Rabobank's 'no cure no pay' deal may break financial advice law
Thursday 03 January 2013
Rabobank may be breaking the new law covering fees for financial products by offering a ‘no cure no pay’ deal for its advice, the financial services watchdog AFM told website nu.nl.
Since January 1, financial service firms have been banned from charging commission on mortgages, life insurance and other financial products. Instead they are required to charge a fee.
But according to its website, Rabobank, the Netherlands’ mortgage market leader, is only charging a fee to customers who actually sign up for a product. ‘You only pay for advice if you actually accept a mortgage offer,’ the website states. ‘If you don’t, you do not pay any fees for advice.’
According to the AFM, financial service companies must always charge a fee. Officials are now looking into the Rabobank deal in more detail, nu.nl said.
Financial product fee ban in force: how much will you pay?
Market leader Rabobank opens mortgage advice war
ING to charge consumers €2,100 for mortgage advice
Financial advisors fear effect of commission ban