Process to remove brokers

STAR LETTER

I’m writing in response to last week’s Star Letter (Mortgage Strategy November 15) headlined ’Lloyds must explain why brokers are being dropped’.

I think it’s important I set the record straight on how we manage removals from our broker panel. The intermediary community is important to us, so it’s vital we’re transparent about our processes – if a broker has been removed they will know where they stand and why.

The reality of our process is in stark contrast to that detailed in last week’s letter. Removing a broker is not an action we undertake lightly.

When we first have concerns about the quality of business submitted by a broker we talk to them and give a clear reason why we are concerned.

Brokers who write quality business have nothing to fear and will benefit from us being able to build stronger relationships with them

We also give them guidance on what we expect from future business, providing them with the opportunity to improve.

This happens face-to-face. The next stage is a written warning outlining the same information. If problems remain and we decide to remove a broker, we provide full details of the reasons and how the appeal process works.

The sales team provides information on appeals. The exception is when we believe a broker is acting fraudulently – that’s an immediate red card and panel removal.

Brokers who write quality business have nothing to fear and will benefit from us being able to build stronger relationships with them.

Readers are welcome to contact us if they have been removed from our panel and feel they didn’t have the explanation they deserved.

Unfortunately I can’t provide comment or clarity where we don’t know the intermediaries’ name or have any details of their firm.

Peter Curran
Head of intermediary distribution
Lloyds Banking Group