View more on these topics

Action group in legal battle over lost Paymentshield commissions

Disgruntled Paymentshield brokers are forming an action group to recover thousands of pounds of lost commission after the protection provider last month ceased trail payments to intermediaries no longer regulated to sell mortgage-related general insurance.

The group, which will shortly enlist the support of what it calls a “high profile trade figure in the protection market”, is finalising agreements with an unnamed law firm to bundle the claims from the estimated 1,500 agents affected together.

It is being formed by former Paymentshield marketing director Gareth Riding, who left the firm in April 2005, who claims Paymentshield’s action breaches its agency agreements with its introducers as many were never FSA regulated and therefore never signed the new agency agreement under which the provider claims allows it to terminate commissions.

Paymentshield was sold to GI broking giant Towergate earlier this month for a rumoured £180m.

Riding says: “We are going to meet up with a trade figure who is planning to pull together an action group that will co-ordinate legal activity against Paymentshield. It is heartbreaking to see the reputation of a fantastic company like Paymentshield being dragged through the mud.

“If the previous owners were still at the company, every single agent would still be receiving the commission they were entitled to receive irrespective of their status and FSA regulation.”

Paymentshield sales and marketing director Chris Traynor says: “We should no longer continue to remunerate someone no longer authorised after regulation. That is not inconsistent with the life insurance industry. Remuneration is not just about introducing a client it is about managing the client so if people have left the sector they cannot manage that relationship.”

Recommended

TSC report calls for Government action on savings and advice

The Treasury select committee report into financial inclusion has called for the Government to create a greater savings culture and do more to encourage generic advice.The report calls for a clampdown on illegal money lending, increased competition in the home credit market, better data-sharing among and for lenders, new legislation for credit unions and changes […]

Bryan collings

Hexam Capital Partners’ managing director says the six partners of the firm make up a ‘magic’ team who are paid on the performance of the business as a whole rather than on the success of each fund and its 50/50 partner Resolution has deep pockets to drive the business ahead. Interview by Gregor Watt

1Bn business for Scottish Life

Scottish Life has pulled in 1bn of new business in the first nine months of the year.Scottish Life’s figures are up 11 per cent from 983m compared with the same period in 2005.Parent group Royal London has reported a 21 per cent increase in new life and pensions business in the first nine months of […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com