AMI will push for clampdown on rogue networks

The Association of Mortgage Intermediaries says it will increase pressure on the Financial Services Authority to take action against networks that delay payment.

Mortgage Strategy continues to be contacted by an unrelenting stream of appointed representatives struggling financially as a result of outstanding commissions from a few rogue networks.

Robert Sinclair, director of AMI, acknowledges that this issue is refusing to go away and has pledged that AMI will step up the fight on behalf of brokers.

He says: “Despite assurances, this appears to be an ongoing and escalating problem. It is apparent that AMI should now throw its weight behind the issue with the FSA. We will be raising the matter with the regulator shortly.”

His comments come as a Mortgage Strategy Online poll reveals the depth of feeling about late commission payments in the broker community.

Some 640 brokers responded to the poll and 88% replied with a resounding yes to the question of whether the FSA should intervene if networks delaypaying their ARs.

One AR, who wishes to remain anonymous, has launched legal proceedings against his former network in an attempt to recoup monies he claims he is owed.

The network in question has res-ponded by issuing a standard reply disputing the amount owed and stating that it pays brokers on a weekly basis.

The AR says: “How can the network get away with this? I have contacted the FSA and it does not want to know. I have also contacted my MP who doesn’t want to know either.

“Why isn’t there a legal body set up to protect brokers? We are highly qualified and up to our ears in red tape. We’re only trying to make a living but it seems that we are treated worse than criminals.”

The FSA was not available for comment.