MCOB 12.5 Excessive charges
A firm must ensure that any regulated mortgage contract that it enters into does not impose, and cannot be used to impose, excessive charges upon a customer.
A firm must ensure that its charges to a customer in connection with the firm entering into or making a further advance on a regulated mortgage contract or administering a regulated mortgage contract or arranging or advising on a regulated mortgage contract or a variation to the terms of a regulated mortgage contract are not excessive.
When determining whether a charge is excessive, a firm should consider:
- (1)
the amount of its charges for the services or products in question compared with charges for similar products or services on the market;
- (2)
the degree to which the charges are an abuse of the trust that the customer has placed in the firm; and
- (3)
the nature and extent of the disclosure of the charges to the customer.