From Paul Thompson
I read about Eddie Royce’s treatment by Paymentshield with great interest.
I can’t believe that Paymentshield has terminated the payment of trail commissions to brokers when they close their agency or retire. It seems like commercial suicide.
After years of promoting its products on the basis that brokers can build up a renewal premium book for their retirement, it has gone back on its word just because its terms of business allow it to. It smacks of despair or sharp practice.
What are we to expect next? If Paymentshield decides to close some agencies, will the same apply?
Although I feel for the brokers to whom this has happened I cannot help but be heartened by the decision, as it has made many of Paymentshield’s previously loyal agents turn to ourselves and other competitors for agencies.
This could not have come at a better time for us as we are about to launch a three-months’ free mortgage payment protection product that is not only better at meeting the needs of clients but will also be priced at 3.95 per 100 of benefit for full ASU back to day one, and will pay brokers 30% commission.
Paymentshield’s comment that its ‘policy is in line with common industry practice’ is unsubstantiated. I am not aware of any other provider doing this.
D&D Homecare certainly does not follow this practice and we will continue to pay trail commissions as long as customers continue to renew their policies with us.