MOGI 2.10 Charges (MCOB 12)

This section of the Guide explains the rules on charges in chapter 12 of MCOB (MCOB 12). The rules on excessive charges in this chapter apply to mortgage intermediaries. There are also rules in MCOB 12 on early repayment charges and arrears charges, but these only apply to mortgage lenders.

The charges that you make to a consumer when advising on or arranging a mortgage must not be excessive (MCOB 12.5.2 R).

1. (1)

   In determining whether a charge is excessive, you should consider:

2. (2)

   the amount of the charge for the service compared to charges for similar services available elsewhere;

3. (3)

   the degree to which the charges are an abuse of the trust the consumer has placed in you; and

4. (4)

   the nature and extent of the disclosure of the charges to the consumer.