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Brokers removed from Lloyds panel

Lloyds Banking Group has only removed 100 brokers from its panel in the last year for suspected fraud, Mortgage Strategy understands.

Lloyds is believed to have removed around 900 brokers from its panel in the past three to four years, with around 300 in 2010.

But only a third of these are believed to have been because of suspected fraud. Most were down to natural wastage and other factors, such as firms going out of business.

Mortgage Strategy first revealed in October 2010 that brokers were being kicked off Lloyds’ panel.

A spokeswoman for Lloyds said she could not confirm how many brokers it has removed.

She says: “When we understand there are issues with business submitted, there is a robust process in place where we endeavour to work with brokers long before we take action to remove them.

“However, there are circumtances, such as when fraud is suspected, where we need to take immediate action.

“We have a clear appeal process in place. In the vast majority of cases, we remain comfortable that the original decision was the right one. However, on occasion, the information we get at this stage means that brokers are reinstated.”

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  • Chris Thalha 7th February 2011 at 6:10 pm

    Glad to see that LBG are being pro-active and removing suspicious brokers rather than the usual story of de-authorisation by the FSA once the deed has been done and clients are left high and dry. Well done Lloyds.