Broker requesting payment of valuation

Yeah, agreed, not trying to say what they did is ok....

 

That would also be against NCCP regulations. If you don't sign a quote document upfront before any credit assistance is provided a broker can not charge you a fee. Ask the broker if he /she has followed NCCP guidelines around quote documents and fees?

 

Excellent point Marty.

 

hi
actually advice we had from QED was if we provide the credit guide and it covers possibility broker has the right to charge. We had to get them to amend our credit guide as a result. So the borrower in question should be also referring to that, not just the credit proposal documentation/credit quotes in isolation.
Not that we actually charge in most cases - its just there in the event of.

 

I this is what @Marty McDonald is referring to. The OP didn't sign a credit guide or anything else. There is no agreement. Therefore, OP is not bound as per NCCP.

 

Doesnt matter is one was signed or not but the terms of the one issued

 

But was there one issued?

 

Not sure but legally there should have been.

 

Interesting, unless the OP signed anything acknowledging they received a credit guide surely there can be no agreement?

 

Pretty easy to prove a credit guide was sent. My credit guide specifically states that any fees payable will be advised well in advance - not sure if everyone's is the same though.

 

Agreements can be oral.

 

I've researched this a lot. I've also had documents from QED Risk setting out when and where documents must be issued and signed by clients. It is pretty clear to me that a quote MUST be signed if you are to charge a fee. Having this buried in your credit guide inst good enough from what I have read unless it is signed. I wish it wasn't the case as is another form to sign but I believe ASIC's intention is for it to be a way of stopping brokers charging unsuspected fees.

Below is from ASIC's website.The 3 key NCCP documents that must be given. Credit Guide, Quote and Credit Proposal Document. My emphasis added. Also note the " costs of the consumer using your services" in the proposal section...what they actually mean is for us to note all the lenders fees!!

Also a Credit Guide can be combined with a Quote Document but MUST be signed if there is a fee being charged. Or you can give the quote doc separately.

http://asic.gov.au/regulatory-resou...iew-for-credit-licensees-and-representatives/

Credit guide
A credit guide provides preliminary information about you to a consumer. The time at which you have to provide a credit guide will depend on what type of entity you are and what credit activities you engage in, but will generally be before you engage in credit activities with the consumer.

Quote
A quote tells the consumer the estimated cost to them of using your services, if you charge the consumer a fee. Before you provide credit assistance, you must give a quote to a consumer, the consumer must have accepted the quote by signing and dating the quote and you must give the consumer a copy of the accepted quote.

Proposal document
A proposal document sets out the costs to the consumer of using your services, including any commissions you may receive. You have to give a proposal document at the same time you provide credit assistance to a consumer.

 

That sounds reasonable Marty. At contract law it may be effective but not enforceabke because of the Nccp regulations or act.

 

p.s. I would love to combine the quote and credit proposal documents which is what I used to do but it sounds like you have to give the quote before you engage in credit assistance. By the time you are providing the credit proposal document you are already well into providing credit assistance by recommending a product!

 

and this....no mention of combining the quote with proposal doc

Can I combine disclosure documents?
Yes. You can combine two or more disclosure documents into a single document if all the other requirements of the National Credit Act and National Credit Regulations are met, including the timing requirements. This may include combining documents that are required to be provided by one or more credit licensees or credit representatives. For example:

• you may combine a credit licensee’s credit guide with a credit guide of a credit representative if the relevant information for both parties is included, or
• if you are a credit assistance provider, you may combine a credit guide with a quote as long as the relevant legal requirements are met, including:
  • that the combined document is provided as soon as practicable after it becomes apparent to you that you are likely to provide credit assistance to a consumer, and
  • you do not provide credit assistance until the consumer accepts the combined document by signing and dating the quote.