All Topics / Help Needed! / Can i ask for a refund for Financial Service?

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  • Profile photo of CindyCindy
    Participant
    @merlin999
    Join Date: 2015
    Post Count: 2

    Hello Everyone,

    Just wondering if I can get some advices in regards to lodging an official complaint to a Financial Service company that I believe has failed to provide adequate service outlined in the service list; I was referred to this company by an Investment company ( The sister company) that sold the home and land package to me in QLD Deebing Heights and had paid $5500 for this extra service. In my view, majority of the services that I expected from this package has not been delivered. My main concern is I cannot justify how to constitute the $5500 fees for these service. The following are included in the Platinum Pack;

    1) Transaction account, credit card and guidance to set up if required. General speaking, these are the standard services where all lenders provide when you took out a mortgage with them. In my view, this is an act of double dipping when the broker charges the additional cost on top of the commission that the Financial Brokers received from the bank.
    2) Mortgage minimisation structure utilising Mortgage Master – full service with monthly tracking and assistance. This is a 12 month service with full support and software included.. Compare to many online budgeting tool. This program is extremely complicated and non user friendly system. All you do is just to input your total exp and income for the month and at the end of the financial year it will calculate if your spending is within the budget. The process is an advisor rang you from QLD once a month for to minutes to “explain” the procedure of inputting these data. Due to the complicated process, I’d requested the advisor to do a screen shot or provide a clear step by step instruction manual but was told that it was not possible.
    3) Financial planner consultation – review income, superannuation, life insurance, salary sacrifice etc. This is merely a an extraction from my superannuation fund statement which summaries the total and insurance. If i need a review, i need to pay $1000 to get a report.
    4) Tax time assistance link you with an accountant and assist with ATO Withholding Tax Variation forms –value $600. We were under the impression that the company will provide the Tax Variation service. but instead this is merely a tax agent recommendation.
    5) Fully independent third party building inspection performed on completion of property. First inspection is done, then reports forwarded to client and builder, second inspection is completed to ensure all defects have been corrected before we organise final payment from the. The investment agent has reassured me that the second inspection has been done. Upon with the inspector who engaged the first inspection, i was told that he had not been contacted to engage a second inspection. As I am based in interstate, it is really crucial for me to obtain a 3rd party opinion who represent me to ensure the property is in up tp standard condition before handing over. When confronting with the property agent, i was told that the 2nd inspection is indeed carried out by the builder supervisor. This is a clear conflict of interest. how can a builder inspect your own work?

    Much appreciated in advance for your time to going through my problems

    Cindy

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    Sounds like they charged you a fee for things which others provide for free. not sure if any of the above are something FOS can investigate. You seemed to have entered a contract with them to provide services which they provided.

    Maybe contact the dept of fair trading in your state first, and ASIC investigate these marketing schemes involving paying the home loan off sooner.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069

    Wow – $5.5k for that! and that doesn’t include the commissions they would have made on the property sale, the loan they arranged for you and whatever products the planner has set up.

    Very greedy. I really don’t understand how some companies get away with this.

    Most of those offerings are provided free by brokers/bankers and planners because they get paid a salary and/or commission.

    The building inspection is prob worth $300 – $500.

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of CindyCindy
    Participant
    @merlin999
    Join Date: 2015
    Post Count: 2

    Thank you all for your useful advice :)

Viewing 4 posts - 1 through 4 (of 4 total)

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