Mortgage Times: We will fix commission problems
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Mortgage Times says that the problem of delayed commission payments to its appointed representatives should be resolved within the next two months.
Payam Azadi, marketing director at Mortgage Times, admits there have been delays in paying brokers for the last 12 to 18 months, but says brokers do eventually get paid.
He says that clearing the backlog of commission payments is the Mortgage Times board’s main priority.
Azadi says: “We’re hoping that we will put this matter behind us within the next month or two.
“We have to manage our cash flow as a network. We’ve been upfront from day one and haven’t ducked the truth. I would acknowledge that there are delays with our commission payments and there have been for some time now. But I am confident that the board at Mortgage Times is working hard to solve this issue.”
Chris May, director of Mortgage Times, sent an email to ARs on November 27 stating that Mortgage Times has agreed for Legal & General, Paymentshield and Bright Grey to pay brokers directly.
In his email May says that the network is holding talks with strategic business partners that will give the network “a firm platform for the business to flourish going forward”.
He says: “We are hopeful this will put us in a position before the end of the year to have returned all brokers to a position where they have received all commission payments due up to what is deemed to be a reasonable timescale.”
Steve Jascourt, managing director of AIS Financial Services, joined the network in January 2009 and says that commission problems first surfaced in April. He estimates that he is owed around £11,500.
It has also emerged that as at December 2 out of the 427 Mortgage Times ARs listed on the Financial Services Authority register, 116 are showing as suspended.
Azadi says this could be due to a number of reasons, such as compliance issues or ARs working out their notice period. He also says ARs can show as suspended when they move to a new network without novating their liabilities.
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Readers' comments (2)
Heard it Before | 7 Dec 2009 5:33 pm
In mid to late 2008 we were DA's waiting for payments from packaged cases for over 6 months from Mortgage Times.
On no less then 10 occasions i was told it was going to be resolved in anything from 2 weeks to 4 weeks, so why will this time be any different?
To be honest we only got our money after we started debt collection proceedings so i suggest everyone does the same.
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Anonymous | 11 Dec 2009 2:42 pm
The marketing director says they have been up front with things. I remember in late 2008 that he was saying the payment delays were due to new systems being implemented. Maybe they need to get someone in to look at these systems as there must be a glitch in their diverting the money away from brokers. I wonder the real reason why 116 brokers are showing as suspended. The FSA don't seem to be bothered.
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