Coming from a lending background I can see the lender viewpoint. It would be easy to make a knee-jerk reaction as on one hand, brokers and networks are providing mortgage products while receiving proc fees and on the other hand, working with certain claims firms to challenge the same lenders.
This could leave a bad taste in the mouths of some. But not all claims companies are the same.
For example, at Credit Issues, a division of the Guardian Financial Group, many of our senior management staff are experienced in the lending market and have a great deal of experience dealing directly with the intermediary market.
We try to strengthen broker propositions, not weaken them, so we do not look to challenge mortgage agreements and it is important to clarify that these agreements are not necessarily the main target for all claims firms. We look at card and loan agreements which would not have been business written by brokers.
Brokers should look carefully at the claims firms they deal with. Due diligence is vital as ultimately they, along with their clients, will be the ones losing out. So lenders, networks and brokers need to do their homework as some claims firms could actually open up new income streams without a tidal wave of lender opposition.
Director of Marketing
The Guardian Financial Group