Financial Services

[Gavmacp]

We used a Financial Services a few years ago for a few things. We paid the fee at the time and was assured that we wouldn't be charged anything in the future.
Now they want to charge £500 annually as a retainer (don't know if that is exactly what they have called it but not important).
I have a limited knowledge of contract law and believe they cannot do this.

[Peter Pedant]

and if you dont pay 500 knicker.... then what ?

and yes your first para is a valid contract

if there are verbal assurances then you may have trouble proving it
does the contract say they can plug in a £500 charge later in writing and the clerk said oh no we never do that ....?

£500 pa retainer fee sounds a damned lot to me ....

[Gavmacp]

It all rather stinks and sounds like just another way of making more money I feel tempted to say "Are things that bad?"

[Peter Pedant]

what do you get for £500 ? p.a.

[ubasses]

Depends what you went to them for, did you just ask for Independent Advice then walk away. In that case it should have been a one off fee. Have they been doing ongoing work for you and how has this been covered in the intervening period?
eg. have they been providing a service Managing an Investment Portfolio. This will need paying for.
This may help a bit, give it a read.
https://www.moneyadviceservice.org.uk/en/articles/guide-to-financial-adviser-fees

[Gavmacp]

Probably not a lot! I worked in the bank many years ago and remember what we charged for stopping direct debits etc which only took a few minutes.

[Fitzer]

I suspect this is much the same as our situation, our IFA used to get all his income from the commissions etc. on products sold, however the regs have changed and now all fees are paid by us and products etc. have lower management fees to compensate. As such I doubt that the £500 is a retainer but a fee for advice etc. as such, if one decides to keep on with them, one should use their services as much as possible, have all current products reviewed etc.