View more on these topics

This move by Paymentshield seems to smack of despair

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.

Paul Thompson
Managing director
D&D Homecare
By email

Recommended

UK Coal to sell brownfield sites for development

UK Coal is poised to sell up to 49,500 acres of brown field sites around its mines, both active and closed. The move, which will earn the company more than £500m, will see the development of commercial, industrial and residential property on the sites. Jon Lloyd, former head of property at HBOS, joined UK Coal […]

Change at the top for DFS

Direct Financial Services has changed its senior management structure. Founders Malcolm Davidson and Alex Knaggs will become joint managing directors. They will steer the direction of the group’s activities, which cover mortgage packaging, financial advice, estate agency and property investment.

Easier2move offers instant payment facility for referrers

Easier2move is launching a new payment facility that will allow payment on the day of completion for referrers. Referrers can chose to be paid via BACS or by cheque. The payment system is available on all remortgage and sale and purchase work.Karen Babington, sales and marketing director of easier2move, says: “We are continually asking our […]

MBUK launches remortgaging scheme with LMS

Mortgage Bureau UK has launched a Treating Customers Fairly remortgage scheme in partnership with LMS.The service gives the packagers consumer customers telephone support and help in filling in forms, coupled with high-speed conveyancing and case tracking for 199.The TCF remortgage scheme has been tailor-made specifically for Mortgage Bureau by LMS using its unique technologies, dedicated […]

Budget summary – March 2016

This week’s Budget looked as if it would be a difficult one for the Chancellor, with disappointing economic numbers and the need to avoid ruffling feathers ahead of June’s in/out referendum. Nevertheless, Mr Osborne did spring a few surprises, including some tax reductions. So how does this budget affect you? If you are – or […]

Newsletter

News and expert analysis straight to your inbox

Sign up