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Network Data isn’t coughing up the money it owes us

I am writing regarding my recent correspondence with Network Data addressed to Richard Griffiths, chief executive officer of Network Data Holdings, its board of directors and Alex Cotton, chief executive officer of Network Data.

The points I raised in this correspondence include a request for overdue commissions and proc fees to be paid and the reasonable request that I be granted immediate release from my three-month notice period as a result of Network Data being in breach of its appointed representative agreement with King’s Mortgages.

This breach stems from excessive and unreasonable delays in making commission and proc fee payments.

Network Data owes King’s Mortgages close to £1,500. I have spoken to several of the providers involved and they have confirmed that they have paid the relevant monies to Network Data.

In many cases, Network Data’s own commissions department has acknowledged to me in writing that it has these monies.

The providers have also confirmed that some of these monies have been in Network Data’s possession since September 2008 and more than half since November 2008, meaning that much of the money has been in Network Data’s hands for more than 10 weeks.

These delays in payment are unjustifiable and are also clearly in breach of Network Data’s AR agreement and terms of business.

These documents expressly state that “Network Data will be responsible for… ensuring timely payment of all procuration fees…” (ToB – Mortgages – Section C, 1.2), and that in the case of insurance commissions, “…all commission received from the product providers and payments due to the insurance introducer/registered firm on or before the 25th of each month shall be paid to the insurance introducer/ registered firm within five working days of that date” (ToB – Insurance – Section E, 4).

Even the updated version states that “…all commission due from the product providers and payments due…shall be paid…within the first 10 working days of the following month”, and this was at a time when commissions were still paid only on a monthly basis, before weekly commission payments were introduced.

The AR agreement and terms of business clearly outline the process by which Network Data handles commissions, implying a regular and timely payment of commissions and proc fees (AR agreement – Section A, 2.1 to 2.3 and ToB – Insurance – Section C, 1.6).

The only proviso whereby Network Data reserves the right to retain or withhold any payments due to a registered firm is “…if the whereabouts of the registered firm is unknown to Network Data…” (ToB – Mortgages – Section H, 4 & 4.1 and ToB – Insurance – Section E, 9 & 9.2), and since this is not the case in my situation Network Data has no right to retain or withhold any payments.

Although I am under no obligation to do so, as a result of Network Data’s breach of agreement as outlined above, I have mentioned in my correspondence with Griffiths and Cotton that I am prepared to make a goodwill gesture.

I am willing to pay three months’ membership fees in lieu of three months’ notice in the hope that we can reach a reasonable agreement and that I might secure an immediate release from my notice period so that my application to a new mortgage network can be expedited. I have so far had no response to either of my emails, dated January 14 and January 27 this year.

Neil King

Principal

King’s Mortgages

By email

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