Balance Legal Capital backs leaseholder claims over secret commissions

Balance Legal Capital is backing a claim brought by Velitor Law on behalf of leaseholders over commission payments shared between landlords and their insurance brokers without the leaseholders’ knowledge. These commissions are included within the insurance premiums for buildings and terrorism insurance and paid for by leaseholders and are paid for by leaseholders, bundled with other service charges.

Since the late 1990s, large landlords and brokers have added these commissions — which the FCA found can range between 10% and as much as 60% — onto insurance premiums. The FCA also found that most insurance brokers could not justify the level of the commissions charged for the amount of work done in relation to the insurance.

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