Paymentshield move may have been a takeover sweetener

From Allen Smoker

With regard to Natalie Martin’s recent article about Paymentshield commission (Mortgage Strategy November 6), Chris Traynor’s comments are flawed as I have a closed agency with Paymentshield but am still directly regulated with the FSA and still giving mortgage and protection advice with my new firm Merlin Mortgage Management under a new agency and dealing with remortgage advice on 95% of clients on my closed agency.

Many of my colleagues are in a similar position but we have all had our commissions stopped on our closed agencies.

The consensus of opinion is that Paymentshield did this to reduce its liabilities prior to the Towergate takeover to make the proposition more attractive.

Please could you pass my details to Sue Lambert-Hope as I would like to add my support to her legal challenge.

Could you also tell her that I still have the original documents Paymentshield issued us with while selling the company’s proposition which clearly states that renewal commissions built up would be payable for life as a pension-type fund.

Maybe principles of good faith and integrity do not apply to firms such as Paymentshield.

Allen Smoker
Merlin Mortgage Management
By email