In August, BM Solutions said it was standardising proc fees on sub-prime business to 0.85%. There have been fears that having a range of proc fees can encourage mis-selling as it is hard to justify higher rates when the amount of work involved is the same.
Steve Sandiford, head of products, BMS, says: “Sub-prime proc fees should be standardised. There is no extra work so differing proc fees can’t be justified.”
But other brokers disagree. Paul Banfield, director of Best Advice Financial Planning, says: “I don’t think they should be standardised. A lot of work is involved in some adverse cases.”