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We did not cry crocodile tears over LMS’ demise

In response to Chris Gardner’s recent letter, I’d like Mortgage Strategy readers to know that KGB Packaging has delivered genuine benefits to the brokers who approached us for help follow-ing the collapse of LMS Packaging.

Far from shedding crocodile tears or acting like vultures, we have borne the cost of retypes and done everything to ensure that as many of LMS’ cases as possible can continue to completion for the sake of borrowers and to support the Financial Services Authority’s Treating Customers Fairly initiative.

Does Gardner think it makes sense to stand by and watch brokers founder when other packagers cease to trade, knowing full well there will be ongoing applications that have not been processed and customers waiting on mortgage
offers?

What possible benefit could this bring to the reputation of the industry? It is surely better to throw a feline to affected brokers to prevent the mortgage distribution chain from breaking completely.

The last thing we need is for lenders to lose confidence in the ability of the packaging sector to provide them with continuity of service. The fact that some packager firms have gone on record as being willing to help brokers should be a matter for congratulation, not cynicism.

It’s true that business levels are down across the board and we may see more packagers, brokers and lenders go bust before the liquidity crisis has run its course.

But let’s hope that firms in our industry continue to support each other to the ultimate benefit of borrowers until a return to some sort of market stability has been established.

Rachel Bancroft
Managing director
KGB Packaging
By email

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