Despicable financial advice...and a singing Carpenter!

Wednesday, 2nd July 2008 15:19 - by Resident IFA

For once, I will keep lse’s Blog a Blog, rather than descend into ‘article mode’! Two interesting things have happened in the space of 24 hours from yesterday morning through to this. Firstly, a lady who I arranged a mortgage for 5 years ago called me for help. I am a man who likes to keep his promises and had called and written to her in early May, 3 months before her mortgage product was due to expire. I received no response, so assumed she had made alternative arrangements. It turns out that she had a look around and came across another Adviser, sitting down with him to discuss her situation and choices at that point. I used the term ‘despicable’ in the title of this Blog and think that to not be overly-dramatic. I could add disgusting, self-centred, unprofessional, money-grabbing, dishonest, etc., etc. If anyone from the Financial Services Authority (FSA) is reading this, please use the response box below and I will provide the rascal ‘Adviser’ and his Firm’s name. He recommended the Client move lender and pay him a £2,000 fee, allied to the lender costs of product and valuation, and the associated legal costs...on a £45,000 mortgage!!! The total package of costs would be around £3,000+ all-told. I then looked at the opportunity of the lady staying with her existing lender and the best product was a 'Fees-free' one, costing her approximately £5 per month more than his recommendation. In this instance, her only cost will be my company’s £295 administration fee (the minimum). So, I ask you, do you pay £475 (Total of £295 + £5pm over 3 years) and have next-to-no application hassle or £3,000+ and have to go through the rigmarole of a new application process? These Cowboys are still out there. The idiot should be struck off. I hope the FSA come a–knocking on his door anon. In addition, it appears he is trying to cash in further by recommending sweeping insurance changes and new/replacement policies. I can’t wait to help the lady when I see her tonight, rescuing her from the clutches of this expensive mistake. On to happier, more comedic events... As those who read this (You are out there, I can feel it!) will know, I attend my local Chapter of a National networking organisation – Business Network International (BNI). Each Member is given an opportunity – every 6 months give-or-take – to present for 10 minutes on their business in order that the group gain a more intricate understanding of it and how they might better be able to refer business to that person/company. It was our Carpenter’s turn this morning. Now, I have seen approximately 250 of these presentations, but this was the first time anyone had pulled out a guitar! He proceeded to wax (sing) lyrical to the astonished/open-mouthed/laughing/admiring throng for the next 5 minutes or so about the life and times of a chippie, taking us on a musical journey from the young apprentice to the finished article stood before us. This will stay in my memory for a long, long time...Johnny Cash he isn’t, but a legend he is nonetheless!! Until next time...