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Home of Choice in administration

Home of Choice has announced today that it has filed with the High Court a notice of its intention to appoint administrators.

In a statement released today it says: “It is with enormous regret that the Board of Home of Choice announces that it has filed with the High Court a notice of its intention to appoint administrators.

“Over the past few months we have been working towards selling the company.  We believed that having a fresh injection of capital would allow HOC to enhance broker services and grow the business.  We were delighted that several offers were made to purchase the company during this process and a preferred bidder was identified.”

“We were convinced by assurances from an investor and our bank, that broker and staff payments, although delayed, could be made on Monday (26 April). Although the FSA granted a change of control to the investor (Thursday 22 April), talks collapsed at the last moment.”

It says this week it continued talks for the sale of the company with other investors.

But it adds: “However, we have not been able to secure an extension of our overdraft facility to cover the payment due to brokers and staff.  Despite working our way through 2009 and placing the business in a position to be bought by a number of financial services groups, it has been impossible to complete the arrangements.  

“Given our fiduciary duties as directors we must take the step of giving notice of our intention to appoint administrators.

“We currently await the appointment of an administrator, likely to be announced later today, and we will work with them to ensure the best possible outcome for brokers and staff.  

“We would like to take this opportunity to thank those advisers and staff  who have expressed support for Home of Choice throughout the past five years and assure you we will do whatever we can to assist the administration process.”

Mortgage Strategy understands that Baker Tilly will act as administrators.

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  • Dominic Hennessy 27th October 2011 at 10:37 pm

    A while after this has settled and having been directly involved:

    Well done LSL on another fabulous purchase. Definitely a company I want to keep in contact with!! (er LSL – not the other ones)

    First Complete though? Must have completely replaced the disasterous managemenent board that led the firm into administration: Correct?

    As their initial Mission Statement (HoC) said : NO HIDING PLACE. Remember that?

    There has to be accountability with responsibility.Is there?

    For more follow us.

  • HoC AR 30th April 2010 at 7:36 pm

    I think you will probably find, those that are trying to show some loyalty to Richard & Gerry, are only trying to pretect the HOC Brand incase a last minute investor steps in. Saying that I’m sure after they have slept on it they arent so forgiving now, but will still sorely mis the HOC team and collegues

  • Ex HOC AR 30th April 2010 at 2:22 pm

    RE the questions about lenders paying proc fees direct to us instead of HOC/Administrators, we have been in touch with a few today and the news is not good from nearly all of them. Whats more Woolwich have told us that not only will they pay the proc fee to HOC, but if we cancel the app then re-submit it to them through another network, even in the early stages, they will charge the client the £150 withdrawal fee. Now thats a proper kick in the teeth!!!

  • Ex HOC AR 30th April 2010 at 2:22 pm

    RE the questions about lenders paying proc fees direct to us instead of HOC/Administrators, we have been in touch with a few today and the news is not good from nearly all of them. Whats more Woolwich have told us that not only will they pay the proc fee to HOC, but if we cancel the app then re-submit it to them through another network, even in the early stages, they will charge the client the £150 withdrawal fee. Now thats a proper kick in the teeth!!!

  • anonymous 30th April 2010 at 1:13 pm

    As an ex member of HoC this news was never going to be an ‘if’ but always a when. It always amazed me how many people believed and were taken in by the HoC self propelled hype. Does anyone REALLY believe that the founders of this company will be left destitute or financially affected? Of course not, they’ll be enjoying the fruits of other peoples labour on their boat or beachside property. They won’t lose a minutes sleep over the misery caused and in no time, they’ll do it all again!

  • EX HOC AR 30th April 2010 at 12:50 pm

    Everyone is a great guy when you are paying their significant salary and luxury lifestyle. Here is the lesson. HoC was a business built by sales people not business people. Richard, Gerry, John and many of the staff are all well schooled in sales but clearly not so hot on finance and risk management. This was always our concern but unfortunately we never acted on it. Businesses built on a pure sales culture make money in the good times when margins and conditions are healthy. In the bad times financial and risk management come to the fore and these guys have been caught with their pants down. Stick to the sales next time lads and leave the running of a company to a more rounded and qualifed leaders.
    Richard could possibly carve a career in motivational speaking but I don’t fancy Gerry’s chances in stand up having had to listen to him at a conference!!

  • EX HOC AR 30th April 2010 at 12:50 pm

    Everyone is a great guy when you are paying their significant salary and luxury lifestyle. Here is the lesson. HoC was a business built by sales people not business people. Richard, Gerry, John and many of the staff are all well schooled in sales but clearly not so hot on finance and risk management. This was always our concern but unfortunately we never acted on it. Businesses built on a pure sales culture make money in the good times when margins and conditions are healthy. In the bad times financial and risk management come to the fore and these guys have been caught with their pants down. Stick to the sales next time lads and leave the running of a company to a more rounded and qualifed leaders.
    Richard could possibly carve a career in motivational speaking but I don’t fancy Gerry’s chances in stand up having had to listen to him at a conference!!

  • Kelly Hughes 30th April 2010 at 11:45 am

    I appreciate how difficult it is for HOC staff who were not paid their last month’s salary, and it must be a devastating shock to find out they no longer have a job. But I feel the blow to the AR’s is even worse – they are owed two weeks worth of commission and have thousands more in the pipeline that will go directly to HOC even though they are now in administration. As a business we have worked out that we are going to lose £50,000 alone in commission due to us, and the worst thing is that even on mortgages not completed yet, the lenders will continue to pay HOC and won’t pay directly to us, punishing us brokers even more, when it hasn’t been our fault. We have to continue to work on the mortgages already submitted to keep our clients’ faith, knowing full well we are not going to receive a penny of the procuration fees owed to us. Effectively the directors of HOC who allowed this to happen have completely crippled all but the biggest AR’s. And where are they now? Absolutely no communication from them whatsoever, apart from a few extremely short and vague messages from Gerry O’Brien that infuriated us even more. I admire Kieran Byrne’s positive attitude (see Mortgage Strategy comments page) but it is hardly what the smaller AR’s will be thinking, whose careers now almost certainly lie in tatters because they cannot afford to lose months and months worth of commission owed to them. Bankruptcy may be the only option, and this then of course means they cannot work in financial services again. The directors who knew about this must have known things were in difficulty for a long time but did not give us any warning or enabling us to come up with contingency plans. Lending has been ridiculously tight recently, making it obvious to us that lenders don’t actually really want to lend, and now this seems to be the final nail in the coffin for many. Where are the FSA and what are they doing? Wasting time interrogating honest hard-working brokers instead of keeping an eye on the banks. Utterly useless.

  • Kelly Hughes 30th April 2010 at 11:44 am

    I have just spoken to the FSA and they say they cannot help at all. They are literally going to do nothing to help us HOC AR’s who are now facing complete ruin. I feel incredibly let down by HOC AND the FSA. What does the FSA actually regulate? They waste hours of broker’s valuable time interrogating us with compliance questions and procedures, when the good brokers already have their own perfectly reasonable processes in place. They bail out the banks and now they aren’t going to help us at all! What is the FSA’s purpose?

  • Confused 30th April 2010 at 8:13 am

    Reading through the comments here there seems to be nothing but praise for the directors of HoC. Whilst I do not know them I find it difficult to understand how people who have had a massive blow to their businesses can sing their praises. Surely these ‘great guys’ knew the direction the business was heading and had ample opportunity to alert the AR’s who have driven their business for the past 5 years rather than spout the ‘computer issues’ excuse. I wish everybody involved all the luck in the world and hope you all get back up and running asap. I believe the market is about to turn for the bettter and we will all benefit from increased volumes and quality very soon.

  • Jules 29th April 2010 at 11:37 pm

    I recently went self employed because the guys at HOC helped me believe I could do it. This setback changes nothing for me but I am genuinely sorry I wont have these guys by my side. There zest is infectious and I hope it sticks with me and them for a long time yet. I should be bitter that I won’t earn whilst awaiting authorization under a different network but i am mostly sad for all involved. It’s implausible there was no help for a network like HOC especially in an age when banks are bailed out by the goevernment with millions more pounds. My thoughts are with everyone tonight who has had to go home with this news. I hope our future is a lot brighter.

  • Seriously let down 29th April 2010 at 11:14 pm

    To the person that mentioned personal guarantees that Richard and Gerry took out – there were none. The have walked away from this totally unharmed. I wonder if they realise the trail of devestation they have left? I wonder how many of us could do the same with our businesses?

    Richard has spent months building other businesses outside of HOC and Gerry was never dependent on its income either. So they have left hundred of us in total fear of losing everything and they have had the luxury of time to lay plans and secure exit strategies. What a shame they didn’t do us the same courtesy and chose to lie to us instead.

    I am not denying that they were great guys, they wanted our money, of course they were nice. We’ve paid their huge salaries for years and now we are all having to pay even more.

    The only strength HOC had was the staff, Simon Thomas is a legend. He has done more for my business than anyone.

    I honestly don’t know if I’ll get through this but if I do and I bump into R+G, I certainly won’t be shaking their hands.

  • carl ex ar 29th April 2010 at 11:10 pm

    Ex HOC AR for months all I’ve heard is TCF TCF how do I Treat my clients fairly, when I’m unable to put life Policies on risk, mortgages that need to be applied Buildings and Contents to put on risk. I
    Could advise my clients to go direct to ensure TCF and there is no loss of cover. I’m not going to receive my Commission from HOC so as the FSA would only expect me to continue with TCF where’s treat advisers fair from the FSA and HOC? Lied to over the last 4 days and it will take weeks to be accepted be another network or months to go direct. Oh well life goes on 25 years after I started selling insurance,let get rid of Labour and the
    FSA and I may last another 20 years.

  • anon 29th April 2010 at 9:38 pm

    i was an employed broker with a HOC AR last year. The company folded and HOC kept over £10k of my commision and threatend me with all kinds of sanctions if i tried to re-broke the business elsewhere. Leaving me penniless. I really feel for the ARs who due to no fault of their own have been left high and dry but as for the directors…there is a little thing called Karma!

  • Tony Collier 29th April 2010 at 8:39 pm

    Sorry to hear about HoC, I knew a few of their AR’s.

    We run a small, successful Practice in Manchester and are appointed to Openwork.

    We are looking to take on a couple of good quality Mortgage Advisers (with a clientbank).

    Anyone interested, send an email to: office@collieruk.com

  • Layla 29th April 2010 at 7:09 pm

    Nationwide will let you switch networks on your pending pipeline providing you have a network to put it with. Not sure about any other lenders. Abbey are a definate no!Been here and worn the t-shirt!!!

  • jon gili-ross 29th April 2010 at 7:07 pm

    Surely if you just paid the fees and had gone directly authorised from the start, none of you would be in this mess?

    Of course this would mean you all being responsible for clawbacks and compliance on business you sign yourselves, the two c’s in broking nobody wants to say, but if you are a decent enough broker then clawbacks shouldnt be affecting your business so dramatically!

    Either work for a firm, or do it yourself. Dont employ someone to do it for you – If you want a job doing properly, and enjoy getting paid for it, then here is the
    proof!

    Isn’t hindsight evil and twisted?!

  • Metal Mickey 29th April 2010 at 6:38 pm

    I can’t believe that there are still people singing the praises of Gerry O’Brien & Richard Coulson, how “super & “wonderful” they were, how “they would have done everything possible to avoid this happening”. Running a broker network isn’t exactly rocket science and the only reason that Home of Choice is now in administration is because of the mismanagement of these two.

  • AR of Home of Choice 29th April 2010 at 6:18 pm

    Kathy Owen – Get a life! Richard and Gerry have done nothing for us. It was Personal Touch who were trying to buy Home of Choice but Richard and Gerry wouldn’t accept their offer to buy the debt riddled company because they weren’t making enough money out of it. They may have been helpful in the past – taking your phone calls and organinsing events in nice hotels and taking us out to dinner at Xmas- but it is them who has ended HOC so abrubtly. Do you not think that when Richard Coulson stood up at the Jan Road show and said how brillant HOC was and how well they were doing and how all these other networks were in difficulty that he didn’t know fine rightly that HOC were heading for the wall.

  • Me Myself 29th April 2010 at 6:09 pm

    Yeah Nice one HOC, lead me along for 4 weeks doing all the exams, letting me chase references etc etc then drop this bomb shell!! I hope the directors feel bad & i’ll be happy knowing they were getting their homes taken off them!!

  • Kelly Hughes 29th April 2010 at 5:45 pm

    Where are Richard Coulson and Gerry O’Brien? Probably still have all their money! I’ve just worked out that I’ve lost £50,000 and my business will probably go under. And if we’re made bankrupt I can never work in the financial services again. Trying to choose another network but now concerned about how long it will take me to get authorised. Thank you HOC for ruining my life and my career, and that of many others.

  • Kathy Owen 29th April 2010 at 5:38 pm

    As an ‘Ex’ HOC AR I am deeply upset. I know I will pull through this but it is like I have lost a friend.
    Richard was a super guy, Gerry I dont really know, but will miss him terribly. They have done alot for me as a new adviser. I had my best year last year down to there support.
    I know they tried there best and I would publicly like to let them know that I know that.
    Its sad that they fall at the last hurdel. Best of luck to all the BDM’s & BQM’s

  • Tommo 29th April 2010 at 5:22 pm

    Agree with the last comment, show some sensitivity (and get a life).

    I’m not sure lenders will pay pipeline cases direct to brokers, don’t believe this has been done before when any other network has gone down. I no its not ideal, but if you have friend who is a mortgage advisor and with another network, you could try and set something up temporarily with them to submit your business under their login details etc, they may want a cut, but I suppose in certain circumstances anything may help?? Good luck, you’ll all pull through

    ‘If you want the rainbow, you’ve got to put up with the rain’

  • WorriedMan 29th April 2010 at 4:59 pm

    As an HOC AR, I am terrified that this is the end of my business. If my business fails then i will probably be refused permission to work in Financial Services again. Unlike many I was experiencing some of the best figures after 3 years in the industry and for the first time had a pipeline of business written that meant i wasn’t alway worried about making ends meet. After getting through a horrendous 2009, the last 6 months have been brilliant. My business is in the black for the first time since starting and then this happens.

    On the HOC owners well Richard was wonderful but can’t help but feel Mr O’Brien’s BS and bluster has cost 1000’s their career.

    PS – For those people commenting on this column who, in hindsight, want to highlight the merits of going DA, can take a hike. It doesn’t help and is not appropriate for many people starting in the industry like me. Show some sensitivity instead of taking a cheap opportunity to say “you shouldn’t have done that!”.

  • michael wells 29th April 2010 at 4:39 pm

    Disgruntled | 29 Apr 2010 1:14 pm

    Does anyone know whether us unfortunate HoC ARs are able to approach the lenders directly for our pipeline cases to see whether we can be paid our proc fees direct?

    Not sure whether we could, and wondered whether any ex Prestbury / ND / MT AR’s had tried that?

    —- i am sorry to say disgruntled that the relationship the lender has will be with your network and they will pay the proc fee direct to the company / administrator. the only way you will see the proc fees is if you rewrite the case via another network….and if the client is willing to do so….and if it does not disadvantage them.

    best of luck to all.

  • michael wells 29th April 2010 at 4:38 pm

    Disgruntled | 29 Apr 2010 1:14 pm

    Does anyone know whether us unfortunate HoC ARs are able to approach the lenders directly for our pipeline cases to see whether we can be paid our proc fees direct?

    Not sure whether we could, and wondered whether any ex Prestbury / ND / MT AR’s had tried that?

    —- i am sorry to say disgruntled that the relationship the lender has will be with your network and they will pay the proc fee direct to the company / administrator. the only way you will see the proc fees is if you rewrite the case via another network….and if the client is willing to do so….and if it does not disadvantage them.

    best of luck to all.

  • kim 29th April 2010 at 4:24 pm

    How many networks need to fail before brokers realise that they are better off going DA than switching from one network to another network

  • Michael McKee 29th April 2010 at 3:50 pm

    Act now if you were an AR of HOC. The FSA withdrew the permissions of Network Data and as an AR, your permissions are automatically withdrawn too. This means that until you are either DR or become an AR of another network, you cannot transact any business that is regulated. It can take months for the FSA to re-authorise an AR / Dr so the sooner you start the better. As an AR, you act as an agent of HOC so any monies due are paid to the company (administrator) and the income will be used to pay creditors first – NOTE – YOU AS AN AR ARE NOT A PREFERRED CREDITOR AND WILL BE THE LAST TO BE PAID – NDLs ARs WERE PAID NOTHING!!!!!
    It also takes months to become an AR of another network and during the time it takes to be authorised you cannot do business and you may have to sit examinations to prove you can be authorised so be prepared to study and sit exams. But do it quickly, the longer you take, the longer it is before you can earn again.
    The FSA are a shower, they should have a contingency plan for this sort of thing happening to minimise the efect on ARs but they as usual just sit on their hands and throw you to the lions. Families will be affected, ARs will lose their livlihood and homes but the FSA will not help you to overcome the situation.
    Sorry for being negative but that is what happened to NDL ARs.

  • steve brown 29th April 2010 at 3:44 pm

    Is the demise of HOC, Network Data, Mortgage Times etc not a sign that we mortgage brokers should be considering if the intermediary mortgage and protection market will ever regrow enough to support the current number of advisers looking to make a living out of it. I think that the future has to be that we become fully qualified advisers and cover life and pensions as well as mortgages or look for employment in a different industry. The days of making a good living as as mortgage adviser are over for all but a few.

  • Michael Clapper 29th April 2010 at 2:52 pm

    I’m very sorry to see this. Can’t help thinking that all the speculation this week only helped to scare off any potential investors. My best wishes to all affected.

  • adrian franks 29th April 2010 at 2:40 pm

    Having been a mortgage broker in Australia for over 10 years, the past 2-3 years have seen the banks reduce commission and increasing compliance requirements to sqeeze them out of the market. Now over 80% of mortgagees are direct to the big 4 banks whereas 3 years ago it was less than 60%. The same is happening in the UK. Failures such as HoC will add to this trend and result in less choice for consumers in the long term

  • mic2002 29th April 2010 at 2:32 pm

    Why all the Bulls*** about BACS payments??

    The biggest problem I would guess for those AR’s is they aren’t able to write new business as they arent authorised anymore..

  • Steve Keenan 29th April 2010 at 2:28 pm

    It’s the FSA that needs to approve a move. Any ARs’ who wish to move quickly, need to find a new home & get authorised through their new principal. They might lose their right to any outsanding commissons but would they be forthcoming in these circumstances anyway? There is a set priority for debtors once in administration. The FSA could permit dual authorisation to assist as long as it is agreable to the new principal.

  • x mortgage times staff member 29th April 2010 at 2:21 pm

    Another say for the industry.

    I hope the brokers affected by this bad news survive and flourish with another network or as a DA.

    Good luck guys and dont give up!!

  • Rob Jupp 29th April 2010 at 2:18 pm

    My thoughts go out to all the HOC staff and advisors who I can’t begin to imagine how you must all be feeling right now. Hopefully what I’m about to say won’t come across as being insensitive, but I’m sure most of you will find a way through this hell and survive. I lost a business 2 years ago due to the market and my whole world seem to collapse at the time but I found a way out and there is, eventually, a new life waiting. Good luck to you all.

  • Peter Ireland 29th April 2010 at 2:07 pm

    Re Anonymous and my post re £9m profit.
    As an adviser ( if you are one )you should read the post more carefully and not assume too much. I mentioned posted profits of £9m and then put Why? I know there is an election on and spin takes place re comments but did I ask about where the profit had gone? Simply,wanted to make the point, and you yourself recognised the PR, a firm releases figures that create an air of solidity when in fact the truth is far different.

  • James Rose 29th April 2010 at 2:00 pm

    The banks and regulator are conspiring to tear the intermediary market appart with overarching regulation and a growing direct deal market – just when the property market is at a low ebb.

    It is a bitter irony that the guilty bankers keep their outrageous pay and mortgage brokers – lucky to earn £40K pa are being hung out to dry.

  • Alastair Main 29th April 2010 at 1:52 pm

    Anyone interested on moving company, we have an IR proposition very similar to that of a network but are financially stable. We can authorise you to write business in three days. Contact me via my rpivate email if interested and I’ll provide full company and renumeration details. alastair.main@googlemail.com

  • anonymous 29th April 2010 at 1:51 pm

    Kieran if you are interested TMG are recruiting for AR’s again

  • tony oneill 29th April 2010 at 1:39 pm

    Well the king is dead long live the king. We all knew the promises by home of lairs was just that.
    On a serious note, the chaps looking to re-write business written under the network need to take heed, the contract signed was a very water tight contract and as most life premiums were written by Friends the indemnity contact is shared equally between the host and the agent, so beware, and also the data protection issue should be addressed. Why do the AR’s think that all bidders have walked, the legacy of selling loaded premiums on 4 year clawback. This from an retired AR recruiter.

  • john higgins 29th April 2010 at 1:36 pm

    with reference to the person that asked where the £9M profits had gone – the article stated that this was gross profit. As always the article was a good PR story from HOC. If they have outgoings of £9.5M this results in a £500k loss. The worrying thing for me is that you are meant to be a financial advisor!!

  • Kelly Hughes 29th April 2010 at 1:33 pm

    Friends Provident have told me that they are holding back any commission from Home of Choice, and that if we join another network, and resubmit the applications again, we will get paid. I’ve no idea how long it takes to change networks. I have cases that I need to input today, that need to go on risk today, and mortgages waiting to be submitted – I’ve no idea what to tell my clients, I can’t say I won’t start their vital life cover because I won’t get paid! It’s not just the thousands of pounds of OUR money that Home of Choice has taken, it’s all the other costs – thousands of pounds worth of stationery that is now completely useless if we change networks. The smaller AR’s are no doubt going to be completely wiped out by this, and I’m seriously worried about my own business. This has been a complete disaster, and we are tearing our hair out. I feel awful for all the staff at Home of Choice – Brian Dobson has been a brilliant help, and I will be really sad that I won’t be working with him again. He was the only person who kept us informed, and I would really like to thank him for all the support he has offered us. I suggest we all go directly authorised and pay Brian to do our compliance!

  • ... 29th April 2010 at 1:21 pm

    With regards to clawback I was asking about policies already on risk that I had already been paid for.

    Sorry for the confusion. I have the feeling though that any clawback against me on business that has been paid will result in the administrators coming after me, despite the fact HoC will owe me around £15,000!! Is this the case?

  • Peter Ireland 29th April 2010 at 1:19 pm

    Gone even though they posted profits circa £9 million in November last year?

    Why??

  • James Briggs 29th April 2010 at 1:16 pm

    The comment made at 12:37 is incorrect as ALL commission payments from Blu Debt Management are made directly to the AR’s NOT via the network.

    ‘It’s all very well Blu Debt Mngt saying that AR’s will still be paid, but not if the payments go to HOC now. They’ll get swallowed up with all other commissions etc so the AR’s get nothing……’

  • Disgruntled 29th April 2010 at 1:14 pm

    Does anyone know whether us unfortunate HoC ARs are able to approach the lenders directly for our pipeline cases to see whether we can be paid our proc fees direct?

    Not sure whether we could, and wondered whether any ex Prestbury / ND / MT AR’s had tried that?

  • Mrs Collins 29th April 2010 at 1:04 pm

    I dont think the administrators can come after you – you have never been paid the money therefore they cannot clawback any money back from you. I would guess the Directors would have had to take personal guarantees for the clawback with life companies so this would ultimately come back to them. However in saying all this I am not a lawyer and my advice would be to go to one immediately and ask that question.

  • John Reid 29th April 2010 at 12:56 pm

    I agree. It would have been more helpful to be honest and truthful with the Advisers instead of the usual ‘bull****’. that is them looking out for themselves. Noone will buy a failing business and they must have known the company was not viable for months… if they were looking after their advisers they would have warned them well before the administrators came knocking. Dont believe the hype, it is and always has been each man for himself !!

  • Kieran Byrne 29th April 2010 at 12:54 pm

    As an AR of HOC I know how sad it is to see decent folks go to the wall. We are all stunned but respect the guys for trying. Think outside the box folks there will be new opportunities for us all. Dont take a knee jerk reaction and join the first network that comes calling. Do your research. I would like to thank the management AND ADVISORS of H O C for the last 2 years and wish them well on their journey.

  • ... 29th April 2010 at 12:42 pm

    If I was owed say £15,000 by HoC and wasn’t going to see a penny of it – if I joined another network and re-wrote that level of life business (provided there were justifiable reasons for doing so – bigger life panels and therefore cheaper premiums etc) – would the administrator come after me for it?

    Thanks.

  • Keith 29th April 2010 at 12:39 pm

    This is incredibly sad but I would make a couple of points, the Network has failed because its been mismanaged, by that I mean they have undercharged their AR’s for some time. When business volumes per head fell they should have had the foresight and courage to increase their charges early on- other Networks did.
    My second point is that the assumption that all Networks are the same is nonsense, other Networks have reacted swiftly to falling turnover and profits by doing what was needed, ie trimming staff, increasing charges, cutting waste etc.
    I wish all the HOC advisors the very best of luck.
    With respect, some of the posts here saying “I know the directors will have done everything possible” is not accurate in the light of what I’ve said above -which is indisputable, and didn’t these Directors say just days ago that the lack of payments was due to computer problems?

  • Anon 29th April 2010 at 12:37 pm

    It’s all very well Blu Debt Mngt saying that AR’s will still be paid, but not if the payments go to HOC now. They’ll get swallowed up with all other commissions etc so the AR’s get nothing……

  • Peter Beaumont 29th April 2010 at 12:30 pm

    This is a very sad day. I have known Gerry and Richard for many years and they would have done everything possible to avoid this happening.Their intentions have always been to build a viable business where AR’s prosper through the association. Consequently they will be acutely aware of the problems their AR’s face and will be mortified by this end result.We still live in unprecedented times where market forces have had a dramatic impact on what were viable business models. I would hate to see negative comment about HOC and it’s Directors. They are honourable people who have fallen foul of this horrendous recession. No doubt people will be queuing up to help the AR’s and I do feel very sorry for those who have lost money as a result.Terrible news for all those involved.

  • Paul Holden 29th April 2010 at 12:29 pm

    This is very sad news indeed. MortgageStream would like to wish the Directors Staff and most importantly the Home of Choice members the best of luck.

    MortgageStream would like to reassure HoC members that they will continue to have their access to client data in Ignition Pro MortgageStream. Please call 0845 220 2202 to switch your account to MortgageStream direct

  • Raj 29th April 2010 at 12:13 pm

    With RDR fast approaching, more networks will go into administration.

    HOC Directors have the last laugh as always.

    A sad day indeed for another collapsed Network, my heart goes out to all the advisers owed commission – I hope they receive it.

    Another case of Monkeys running a business without a clue, and not keeping their staff informed. They just walk away from their debts and start up again.

    Shocking.

  • Zebedy 29th April 2010 at 12:12 pm

    At this time I would forget about your contracvtual obligations. Your Network effectively broke them by not paying you what you are due and on time.
    My sincere best wishes to all ARs with HOC,I had a discussion with an colleague who was with Network Data after the press release about staff not being paid earlier in the week and he was panicking that the same was happening again as had at Network Data and it appears that it unfortunately is.
    Good Luck to All concerned

  • Richard Evans 29th April 2010 at 12:10 pm

    Sorry to hear this news as I always held HoC, Gerry and the team etc in high regards. Hope all works out for the ARs – yet another kicking for the people in this industry

  • Roland Millward 29th April 2010 at 12:07 pm

    Network Data all over again. Stories that there is no problem and all of a sudden…… How many more networks are going to go the same way?

  • tony webster 29th April 2010 at 12:05 pm

    this is a real shame. I have the utmost respect for Richard & Gerry and i know they would have done everything possible for their AR’s and staff. If HOC cant survive then the network model has to be questioned on its future.

  • ... 29th April 2010 at 12:03 pm

    Do the contracts of ARs get ripped up then or can they still hold us to the three month notice period?

    What are the implications of all this? My business is now more than likely to go under.

    Thanks a lot HoC!

  • Kevin friend 29th April 2010 at 12:02 pm

    This is sad. it is not the first and will not be the last. Most networks have a vunerable business model and did not support their AR’s during some difficult times. just wait until Mortgage and mis-selling hits them! Some have not made sufficient provision for protection clawbacks too. How solvent are the rest?

  • HOCAR 29th April 2010 at 12:01 pm

    Would any of the smug posters from previous threads like me to pass the salt?

  • ... 29th April 2010 at 12:00 pm

    Do the contracts of ARs get ripped up then or can they still hold us to the three month notice period?

    What are the implications of all this? My business is now more than likely to go under.

    Thanks a lot HoC!

  • Lance Hayward 29th April 2010 at 11:59 am

    So much for Labour’s insistence that banks are helping small businesses to recovery.

  • James Briggs 29th April 2010 at 11:59 am

    Blu Debt Management is very sorry to hear of this unfortunate news and would like to wish the Directors, staff and ARs the very best in the future.
    I would like to clarify that this news has no impact on Blu Debt Management agencies held by Home of Choice ARs and all commission will continue to be paid as normal.

  • Anonymous 29th April 2010 at 11:57 am

    Bunch of Muppets, should of used they money they spent on there fancy road shows on paying back the bank!

    What happened to the goals cards Richard? Did one of them say “let our company go into administration?

    Thanks!!!!!

  • Anonymous 29th April 2010 at 11:56 am

    Bunch of Muppets, should of used they money they spent on there fancy road shows on paying back the bank!

    What happened to the goals cards Richard? Did one of them say “let our company go into administration?

    Thanks!!!!!

  • John tidswell 29th April 2010 at 11:55 am

    No surprises there then! I did say the other day that it was looking like another Network Data.

  • John Reid 29th April 2010 at 11:54 am

    Sorry to hear yet more Brokers been left high and dry…. I did give you waring early on in the week. I hope some of you heeded the heads up. !!

  • Tossers 29th April 2010 at 11:46 am

    Thanks a lot HOC
    You complete idiots (Gerry & Richard) for your own miss management of a so called network – you will now take down numerous brokers & firms
    Thanks a lot, hope you can sleep in peace – NOT! ! !