Fee Without Service Provided
We specialize in recovering funds from mis-sold insurance, irresponsible lending, and excessive superannuation fees.
Here’s how it works:
✓ We review your information.
✓ We handle the claim submission for you.
✓ You receive your compensation!
✓ We handle the claim submission for you.
✓ You receive your compensation!
What is a “Fee for No Service”?
A “fee for no service” occurs when financial institutions charge clients for ongoing advice services that were not actually provided. This situation might arise if, for example, a financial advisor promised an annual advice review but failed to deliver it due to various reasons such as resignation, retirement, or negligence, without a new advisor being appointed to continue the service.
If you have been charged for services you did not receive, you may be eligible for compensation. However, the financial institution may attempt to demonstrate that they fulfilled their service obligations by presenting relevant documentation like a Record of Advice or Statement of Advice as required by the Australian Financial Services (AFS) license conditions.
When using secondary evidence to prove that annual reviews were conducted, the evidence must be reliable. The AFS expects that such evidence undergo an independent quality assurance process to confirm that clients indeed received the promised services, potentially involving third-party assurance providers.
If the financial institution cannot provide solid proof that the services were rendered, they are obligated to refund the fees to the customer.
Sectors typically impacted by “Fee for No Service” issues include superannuation funds and financial advisors.
What is a “Fee for No Service”?
A “fee for no service” occurs when financial institutions charge clients for ongoing advice services that were not actually provided. This situation might arise if, for example, a financial advisor promised an annual advice review but failed to deliver it due to various reasons such as resignation, retirement, or negligence, without a new advisor being appointed to continue the service.
If you have been charged for services you did not receive, you may be eligible for compensation. However, the financial institution may attempt to demonstrate that they fulfilled their service obligations by presenting relevant documentation like a Record of Advice or Statement of Advice as required by the Australian Financial Services (AFS) license conditions.
When using secondary evidence to prove that annual reviews were conducted, the evidence must be reliable. The AFS expects that such evidence undergo an independent quality assurance process to confirm that clients indeed received the promised services, potentially involving third-party assurance providers.
If the financial institution cannot provide solid proof that the services were rendered, they are obligated to refund the fees to the customer.
Sectors typically impacted by “Fee for No Service” issues include superannuation funds and financial advisors.
How It Works
Beyond cases involving absent or negligent advisers, there are other scenarios where clients may be charged for non-delivered services. For instance, banking institutions might charge a single ongoing-service-arrangement fee that covers more than just annual reviews. This fee is meant to include additional services such as seminar invitations and periodic newsletters. If the customer does not receive these services but is still charged, they experience a “fee for no service” issue.
Another common situation arises when organizations set up automatic periodic payments, which might include adviser fees and sales commissions. In these setups, some licensees may focus more on generating fees and advice revenue rather than on delivering the actual services promised. This often results in customers being charged for services they never receive.
How It Works
Beyond cases involving absent or negligent advisers, there are other scenarios where clients may be charged for non-delivered services. For instance, banking institutions might charge a single ongoing-service-arrangement fee that covers more than just annual reviews. This fee is meant to include additional services such as seminar invitations and periodic newsletters. If the customer does not receive these services but is still charged, they experience a “fee for no service” issue.
Another common situation arises when organizations set up automatic periodic payments, which might include adviser fees and sales commissions. In these setups, some licensees may focus more on generating fees and advice revenue rather than on delivering the actual services promised. This often results in customers being charged for services they never receive.
Can I Get Money Back for Fees Charged Without Service?
Fees for no service have caused significant financial losses for many people. Here are a few prominent scenarios where this has occurred:
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Irresponsible Service Outsourcing: When a financial institution outsources the management of some of its branded products to a third-party provider that lacks access to the institution’s systems, it can lead to operational inefficiencies. For example, the third party might be unable to process changes to ongoing fees, resulting in unmet requests to eliminate adviser fees, affecting numerous customers.
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Higher Administrative Costs Due to Errors: If a bank implements a coding change to its fee scheme that mistakenly applies to the wrong products, it can lead to issues. When linked advisers and their fees are subsequently removed, the administrative fee may be increased to offset the loss of the adviser fee.
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Overextending Service Capacity: A company may promise annual advice reviews or other services to more clients than it can realistically manage. This overextension can result in insufficient resources or capacity to fulfill all service commitments, leading many customers to be charged for services they never receive.
Can I Get Money Back for Fees Charged Without Service?
Fees for no service have caused significant financial losses for many people. Here are a few prominent scenarios where this has occurred:
- Irresponsible Service Outsourcing: When a financial institution outsources the management of some of its branded products to a third-party provider that lacks access to the institution’s systems, it can lead to operational inefficiencies. For example, the third party might be unable to process changes to ongoing fees, resulting in unmet requests to eliminate adviser fees, affecting numerous customers.
- Higher Administrative Costs Due to Errors: If a bank implements a coding change to its fee scheme that mistakenly applies to the wrong products, it can lead to issues. When linked advisers and their fees are subsequently removed, the administrative fee may be increased to offset the loss of the adviser fee.
- Overextending Service Capacity: A company may promise annual advice reviews or other services to more clients than it can realistically manage. This overextension can result in insufficient resources or capacity to fulfill all service commitments, leading many customers to be charged for services they never receive.
Examples of Mis-Sold Car Loan Insurance
Here are some common ways in which Extended Warranty Insurance may be mis-sold to consumers:
- Overlap with Manufacturer’s Warranty: Selling extended warranties to clients whose vehicles are still covered under the original manufacturer’s warranty. This makes the extended warranty redundant if the vehicle is sold before the manufacturer’s warranty expires.
- Inappropriate for Vehicle Use: Offering extended warranties to clients who use their vehicles for commercial purposes, such as taxis, Uber, food delivery services, driving schools, or courier services. These uses may not be covered under standard extended warranty terms.
- Ignoring Pre-existing Conditions: Selling warranties without verifying whether the vehicle has pre-existing conditions that would disqualify the owner from making insurance claims under the extended warranty.
- Overlap with Manufacturer’s Warranty: Selling extended warranties to clients whose vehicles are still covered under the original manufacturer’s warranty. This makes the extended warranty redundant if the vehicle is sold before the manufacturer’s warranty expires.
- Inappropriate for Vehicle Use: Offering extended warranties to clients who use their vehicles for commercial purposes, such as taxis, Uber, food delivery services, driving schools, or courier services. These uses may not be covered under standard extended warranty terms.
- Ignoring Pre-existing Conditions: Selling warranties without verifying whether the vehicle has pre-existing conditions that would disqualify the owner from making insurance claims under the extended warranty.
- Lack of Clarity on Coverage: Extended warranties are often sold without clearly explaining that they typically do not cover wear-and-tear parts such as brake pads and windshield wipers.
- Unnecessary Urgency: Consumers are frequently pressured to purchase Extended Warranty Insurance at the same time they buy their vehicle, despite the fact that it can often be bought later, allowing time for more informed decision-making.
- Ambiguity in Warranty Start Date: When selling a used car that includes a warranty, it’s crucial to clearly explain when the warranty coverage starts—whether it begins from the date the new owner takes possession or from when the car was originally sold as new.
- Lack of Clarity on Coverage: Extended warranties are often sold without clearly explaining that they typically do not cover wear-and-tear parts such as brake pads and windshield wipers.
- Unnecessary Urgency: Consumers are frequently pressured to purchase Extended Warranty Insurance at the same time they buy their vehicle, despite the fact that it can often be bought later, allowing time for more informed decision-making.
- Ambiguity in Warranty Start Date: When selling a used car that includes a warranty, it’s crucial to clearly explain when the warranty coverage starts—whether it begins from the date the new owner takes possession or from when the car was originally sold as new.
Why was Extended Mechanical Protection purchased?
Extended Mechanical Protection is often sold as an add-on package, but it’s important to note that it is not an insurance product. This can cause some confusion. Typically marketed as a dealer retention plan, these packages are presented as warranties intended to cover specific, minimal LISTED parts of the car in case of failure. They are commonly sold with both used and new cars. However, these plans come with numerous exclusions, limitations, and guidelines that can significantly limit their value.
One critical aspect of Extended Mechanical Protection plans is the requirement for the vehicle to be serviced at the dealership where it was purchased. Failing to adhere to this stipulation can instantly void the plan, rendering it ineffective.
Why was Extended Mechanical Protection purchased?
Extended Mechanical Protection is often sold as an add-on package, but it’s important to note that it is not an insurance product. This can cause some confusion. Typically marketed as a dealer retention plan, these packages are presented as warranties intended to cover specific, minimal LISTED parts of the car in case of failure. They are commonly sold with both used and new cars. However, these plans come with numerous exclusions, limitations, and guidelines that can significantly limit their value.
One critical aspect of Extended Mechanical Protection plans is the requirement for the vehicle to be serviced at the dealership where it was purchased. Failing to adhere to this stipulation can instantly void the plan, rendering it ineffective.
Examples of How Extended Mechanical Protection Can Be Mis-Sold:
- Inappropriate Sales Tactics: Selling the protection plan to clients who are unlikely to use the dealership for servicing due to their geographic location, such as those living far from the area, knowing it would invalidate the plan.
- Misrepresentation: Misleading clients by presenting Extended Mechanical Protection as equivalent to a Manufacturer’s Warranty, which it is not. This can create false impressions about the scope and security of the coverage.
- Inappropriate Sales Tactics: Selling the protection plan to clients who are unlikely to use the dealership for servicing due to their geographic location, such as those living far from the area, knowing it would invalidate the plan.
- Misrepresentation: Misleading clients by presenting Extended Mechanical Protection as equivalent to a Manufacturer’s Warranty, which it is not. This can create false impressions about the scope and security of the coverage.
- Ignoring Pre-Existing Issues: Failing to consider pre-existing faults or failures of the vehicle, which can lead to selling protection that does not actually cover potential issues already present in the car.
- Deceptive Inclusion: Marketing the protection as ‘included’ in the deal when, in reality, the cost has been built into the price of the vehicle, falsely implying that the customer is receiving a free benefit.
- Ignoring Pre-Existing Issues: Failing to consider pre-existing faults or failures of the vehicle, which can lead to selling protection that does not actually cover potential issues already present in the car.
- Deceptive Inclusion: Marketing the protection as ‘included’ in the deal when, in reality, the cost has been built into the price of the vehicle, falsely implying that the customer is receiving a free benefit.
How can I find out if an Extended Mechanical Warranty was added to my policy without my knowledge?
One of the most deceptive practices in the insurance industry involves lenders or dealers adding an Extended Mechanical Warranty to your insurance documentation without your explicit consent. To check if this has happened, review your Certificate of Insurance, which should include an itemized list of all the insurance products you’ve purchased, along with crucial details such as:
- Your policy number
- The period of coverage
- The associated costs or premiums
If the details in the policy are confusing or unclear, don’t hesitate to contact your insurance provider for a detailed explanation of each item. If you discover that an Extended Mechanical Warranty was added without your agreement, you may be eligible for a refund.
How can I find out if an Extended Mechanical Warranty was added to my policy without my knowledge?
One of the most deceptive practices in the insurance industry involves lenders or dealers adding an Extended Mechanical Warranty to your insurance documentation without your explicit consent. To check if this has happened, review your Certificate of Insurance, which should include an itemized list of all the insurance products you’ve purchased, along with crucial details such as:
- Your policy number
- The period of coverage
- The associated costs or premiums
If the details in the policy are confusing or unclear, don’t hesitate to contact your insurance provider for a detailed explanation of each item. If you discover that an Extended Mechanical Warranty was added without your agreement, you may be eligible for a refund.
Am I eligible for an Extended Mechanical Warranty Refund?
Our industry expertise is here to simplify the claims process for you. We handle everything from start to finish:
- Provide Your Details: Send us your information, including any loan contracts you have. If you don’t have them, we can assist in obtaining them.
- Analysis: We’ll analyze your details and contact you to finalize your claim.
- Claim Submission: We handle the submission of your refund claims.
- Receive Payment: Once the claim is processed, you receive your refund.
Am I eligible for an Extended Mechanical Warranty Refund?
Our industry expertise is here to simplify the claims process for you. We handle everything from start to finish:
- Provide Your Details: Send us your information, including any loan contracts you have. If you don’t have them, we can assist in obtaining them.
- Analysis: We’ll analyze your details and contact you to finalize your claim.
- Claim Submission: We handle the submission of your refund claims.
- Receive Payment: Once the claim is processed, you receive your refund.
