Can you claim for undisclosed broker commissions?

by | Oct 28, 2023 | Advice, All Articles, Generate Revenue

You’ve had the emails, you’ve taken the calls, but are “hidden broker commission” claims worth looking into?

The quick, quick answer is; potentially, yes. Here’s why.

You might be (probably are) already receiving the emails and the phone calls proclaiming you could be owed lots of money – often tens of thousands, and in some cases even hundreds of thousands of pounds back in hidden broker commissions. Even we get them!

But whilst many things like this scream out “scam”, we’ve spoken to one of the leading and most reputable claims firms specialising in these sorts of claims in the UK through one of our networking groups, and it seems there are genuine merits in these claims.

In the coming weeks, we will publish an interview that takes a deeper dive into how the claims work – so keep an eye out for that.

But for now, here is a quick guide into what it all means and how these claims have come about.

What are Hidden Broker Commissions?

Hidden broker commissions relate to any commissions received by a broker from an energy supplier that were either mis-represented or not disclosed to a client as part of the contract.

Any such commissions are deemed to be effectively a bribe – or secret commissions – and went against the broker’s duty “to be honest and impartial”.

Of the 1500-3000 estimated UK Brokers, less than 10% were registered for self-regulation before Ofgem stepped in last year.

Obviously, we partner with one of the brokers who were in this 10% – however, for many businesses out there, they were dealing with brokers who weren’t.

This means that for years, as much as an estimated 80% of agreements made contained these hidden commissions, which were paid by companies who were either mis-lead or mis-sold to.

Who can claim?

Basically, if you are a business who has used an energy broker historically, then you could potentially have a claim.

In terms of numbers, it is estimated that 1.2m businesses have been affected and could have potential grounds to make a claim.

This opens the door to a return of revenue for a lot of businesses in struggling industries – from retail and manufacturing to agricultural businesses, the money being won back is offering them a timely boost and in some cases a real lifeline.

What are claims worth?

Obviously, every case is different and could involve multiple claims if your supplier was switched. It also depends on how far back the claims go.

Because the broker and supplier are jointly liable, the broker can be bypassed and the supplier is tackled directly. As a result, the suppliers have set aside billions of pounds for such claims.

Our partner’s website estimates that the average claim value is equivalent to 30% of your energy spend. They have also dealt with clients who are seeing figures of tens of thousands and even up into the hundreds of thousands of pounds.

How to claim

Working with a claims company can both speed up your claim and also enhance your chances of getting a positive outcome.

Many claims companies work on a no-win, no-fee basis.

Some claims companies may charge an upfront “set-up” fee whilst some “success” fees are as high as 50%.

There is also the option of a Group Litatigation Order, whereby you could join forces with similar complainants to tackle the case, however the fees here are capped at 33% and could take as long as 5 years to settle.

The claims company we spoke to have fees capped at 30% and aim to reach a settlement in 12 months.

You can, of course, pursue a claim yourself if you have all your information.

The more information you have to hand, the better the chances of a successful claim, particularly for historic cases.

The benefit of working with a claims company though is their experience in processing thousands of claims as well as the time it can save – and potential legal costs.

Beware of the Scammers!!!

As with all new “claims trends” there will be companies out there who are thoroughly professional and act in good faith, working extremely hard on your behalf.

Then there are others who are out to make a quick quid off the back of the latest fad and will have no qualms in ripping you off.

If you receive any emails with promises of amounts owed to you, is asking for personal information upfront, or it just simply looks too good to be true, then our advice would be to avoid it like the wind.

Could you be entitled to claim?

Please complete the simple form below and we will forward your details for one of the UK’s leading commission claims companies to contact you to discuss your circumstances with a free consultation, with no obligation.

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Disclaimer

Once the claims company contacts you, there is no obligation to either use them nor for you to make a claim. Should you wish to proceed with a claim it would be on a no-win, no-fee basis. We may also receive a referal fee from the claim company should you be deemed suitable for a claim and subsequently proceed with your claim. Any referral fee we receive is paid by the claims company direct and does not come out of any compensation paid.

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