"If I can get $3,500, it's money that can go into my back pocket rather than some broker's" thinks Jacqui
"The average Australian family has the products that they can get back about $1,600 to $1,700 a year" tells Paul Brady from YourShare
It's money for jam - a cheque for $650 rebated from her life insurance payments. Mum of two, Jacqui Cameron, who runs a large tree farm, never realised until this year that she could claim back trailing fees and commissions she's incurred - money paid to a company's reps or third party brokers for selling financial products to customers.
"I can't believe there are this amount of fees levied on products that every household has so I am going to claim the fees back on my car insurance, mortgage home and contents insurance. That's going to get me something like $3,500 back that I would otherwise be paying in fees, so that's a lot of money and that is every year"
"What does it actually cover? It covers all sorts of financial products and services, retail superannuation, pensions, home loans, mortgages, insurance policies, wrap accounts you name it you could be paying up to 20% of the premium you pay for insurance policies can be commissions" explains Paul Brady.
The fees may be miniscule, like 0.6%, hidden in repayments and premiums, but they just keep being charged, year after year, as long as the account operates. If we don't claim the fees, the bank and insurance companies, or their reps, just pocket them year after year - and they can!
"If they've got 50 clients they are probably making $100,000 a year just on fees and commissions. They don't have to do 50 loans a year, they do 50 loans once and then for the next 3 or 4 years, there's $100,000 coming in in commissions"
Paul Brady runs award-winning YourShare.com.au, a broker company specialising in rebates on trailing fees and commissions. "Got this client, we've got managed funds with Colonial First State, super with AMP, insurance with MLC we think we can get back about $3,000 for that client every year"
This is the client data base showing all the fees and commissions that various companies take, and you wouldn't believe how much they are
"I'm normally not such a trusting person, I'm probably a bit sceptical, but I thought, what can I lose?" said Judith Osherov. She got back around $600 just for her small retail superannuation investment - now she's going to claim on her insurances.
"If I make a claim for fees charged on all my policies I could possibly get back between $1,500 and $2,000"
"I got $1,000 back last year just for superannuation, and I expect to get close to $3,000 back this year, having registered for mortgage, insurance, and other financial products" tells CEO of The Australian Institute of Credit Management, Terry Collins. He says if HE wasn't aware about being able to claim, no wonder most people don't know.
"I didn't know about the fees and charges, and I didn't know that they could be recouped"
Peter Switzer of Switzer Financial Services says rebates won't always apply, such as with industry super funds and certain insurance companies that don't pay commissions to financial advisors. Also, some financial advisors DO give ongoing service and thus EARN their fees.
"It seems to me if there's a chance you can get substantial rebates, why wouldn't you give it a chance? You've got to weigh up the value of a relationship with a very good broker and a very good adviser. Work out, ask them what are they getting out of the relationship, if you think it's a fair cop, and they're doing a good service, I wouldn't brake a good relationship like that"
You can't claim yourself - you need to go through licensed brokers or financial advisors to get your cashbacks. YourShare charges a percentage of the trailing fees collected, but the maximum amount retained by them is $295 - you get the rest. So how do you do it?
"Its' just filling out a simple form, sending it across to us and we'll do everything else for you, we tell you how much you can get back, when you are going to get it back. Interest rates are going up, food, electricity bills they are all going up. There is financial pressure on all these Australian families out there. Get this money back."