Commission Clawback – Mortgage/Insurance Brokers

ContentImage-Money(Magnet).jpg-550x0It appears to be the case that it is becoming quite common for mortgage/insurance brokers nowadays to include a clawback clause within the terms of engagement. This simply is their attempt to recover from you the commission that is clawed back by the lender/insurer in the event the mortgage is repaid or policies cancelled earlier than the agreed timeframe (usually about 24 to 27 months).
This further stresses the importance of carefully reading and understanding the terms of engagement (or any contract for that matter) before signing.
An interesting case study was highlighted on the Financial Services Complaints Limited website. Click here for details.