Part X Ancillary Credit Businesses
Seeking business
155 Right to recover brokerage fees.
1
F1Subject to subsection (2A),the excess over F2£5 of a fee or commission for his services charged by a credit-broker to an individual to whom this subsection applies shall cease to be payable or, as the case may be, shall be recoverable by the individual if the introduction does not result in his entering into a relevant agreement within the six months following the introduction (disregarding any agreement which is cancelled under section 69(1) or becomes subject to section 69(2)).
2
Subsection (1) applies to an individual who sought an introduction for a purpose which would have been fulfilled by his entry into—
a
a regulated agreement, or
b
in the case of an individual F4desiring to obtain credit to finance the acquisition or provision of a dwelling occupied or to be occupied by that individual or a relative of that individual, an agreement for credit secured on land,
F5c
a credit agreement which is an exempt agreement for the purposes of Chapter 14A of Part 2 of the Regulated Activities Order, or
d
an agreement which is not a regulated credit agreement or a regulated consumer hire agreement but which would be such an agreement if the law applicable to the agreement were the law of a part of the United Kingdom.
F32A
But subsection (1) does not apply where—
a
the fee or commission relates to the effecting of an introduction of a kind mentioned in F6article 36E of the Regulated Activities Order (activities in relation to certain agreements relating to land); and
b
the person charging that fee or commission is an authorised person or an appointed representative, within the meaning of the Financial Services and Markets Act 2000.
3
An agreement is a relevant agreement for the purposes of subsection (1) in relation to an individual if it is an agreement such as is referred to in subsection (2) in relation to that individual.
4
In the case of an individual desiring to obtain credit under a consumer credit agreement, any sum payable or paid by him to a credit-broker otherwise than as a fee or commission for the credit-broker’s services shall for the purposes of subsection (1) be treated as such a fee or commission if it enters, or would enter, into the total charge for credit.