In a letter sent to agents dated November 30, MGM writes: “Many of you will have received a letter from BDS confirming its mortgage proposition and quoting inaccurate and misleading information regarding the new MGM proposition. As a result of this breach of its service agreement with MGM, BDS has been terminated with immediate effect as a business partner.”Phil Jay, managing director of BDS, says the firm approached some of the culled agents but only to discuss their future. He also says BDS tried to ask permission from MGM for this but got no response. He adds: “MGM is like Terminator – first its ARs and now us.” Alan O’Neil, head of marketing at MGM, says: “BDS invited all our agents to join its network which is in breach of its contract. We had no choice but to end our working relationship.” Mortgage Intelligence, another business partner of MGM, has also been accused of trying to solicit advisers away onto its own network. But Sally Laker, managing director of MI, says: “Members that joined our network approached us directly.”
Mortgage Strategy has learned that MGM has terminated its contract with BDS for allegedly being in breach of a service agreement.