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Click closes GI business after payment row

Non-advised protection firm Click has shut its general insurance business, resulting in 80 job losses, with GI staff getting no pay or commission for December.

The GI arm, which sold home insurance from the company’s Northwich office in Cheshire, was closed down on December 22.

Click says it took the decision to close the business after it failed to receive a £132,000 commission payment from Paymentshield, its only home insurance provider.

Click claims that the payment was due to be made on December 22.

Paymentshield would not divulge to Money Marketing the reasons why the payment was not made.

Paymentshield chief executive Tim Johnson says: “It is puzzling how Click management could blame the collapse of a £10m business on one of their suppliers – their employees are suffering enough without being misinformed. We are very sorry to hear about good people losing their jobs just before Christmas.”

Click joint managing director Ray Flannery says the company plans to take legal action against Paymentshield for the money it says it is owed.

Click joint managing director Steve Teague says: “At no point has Paymentshield admitted why it would not continue a partnership which has taken 16 months to build, was successful, and kept 80 people gainfully employed. Click is due a commission pipeline of around £260,000 as well as an ongoing renewal commission stream totalling over £1m.”

In November, Click cut over 50 jobs in its Farnham and Manchester offices as part of a company restructure which saw it stop selling term insurance. The December wave of job cuts, in addition to staff turnover, has seen the number of Click staff plunge from 200 in November to around 30 currently.

Click’s debt management, payment protection insurance, and lead-generation businesses and its Click Money/Insurancewide arm continue to trade.

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Comments

There are 11 comments at the moment, we would love to hear your opinion too.

  1. Industry Insider 6th January 2011 at 10:05 am

    Click operates a debt management arm – ironic or what?

  2. As an ex employee of Click Iam shocked and disappointed at what’s happened in Northwich. Payment Shield were the only provider we sold so Click were heavily reliant on commission due to pay staff. Tim Johnsons (PMS chief exec) comment is far from the truth and would be interesting to hear his motives on not paying Click. Payment shield had a big part to pay with so many people losing their jobs before Christmas. Innocent employees should not be used in corporate politics.

  3. What is going on at Paymentshield, are they in financial difficulty? This could have a massive impact on small brokers, if they do not honour commission.
    PAYMENTSHIELD SHOULD CALM TROUBLED WATERS ASAP

  4. I feel very sorry for the staff being laid off before Christmas without pay! Click’s directors should be ashamed of theirselves!! Some people in the industry would call it Karma!

  5. Why wont Paymentshield say why it stopped paying commission? Is this the same case when they stopped paying firms renewal commission a couple of years ago?
    When will it be a case that providers like these start to reduce their commissions to adviser firms or start to go direct to the public and really turn their back on the broker?

  6. It is very easy to ‘puzzle’ Paymentshield. Tears for Click staff are far from real, last Christmas they made good people at Paymentshield redundant, leaving light weight yes men running the place.
    Only deal with Paymentshield with caution, they don’t issue renewals to brokers, how long before they cut us out and keep all of the commission?

  7. Unfortunately I was one of the unlucky ones who was laid off on dec 22nd. I think that click had a lot or skeletons in its closet which resulted in us all being made jobless. Fortunately, I started a new job today however this hasn’t stopped the amount of bank charges I have occured due to them not paying me! hopefully I can at least get my wages!

  8. I’m still laughing at the incorrect figures for current employees with click and job cuts! 30 people employed, try 11, 2 of which are the directors. 50 job cuts in november, try 150! These figures are so inaccurate it’s laughable. Just click trying to play it down and make it seem less horrific than it actually is. Joke isn’t quite the word! I wish them luck!

  9. I agree with the above comment. Where are money marketing getting these figures from? Are Click really that ashamed of telling the world what actually happened? Man up! For once in your lives, be honest with yourselves, and with the people you employed. This whole situation has been made worse by Click’s inability to communicate with it’s current and ex-staff. Throughout the WHOLE process, the Click staff received one email from Click, and even then, the content of the email did not inform or educate anyone. I would like to personally thank Click, however. If it wasn’t for your complete lack of competence, compassion and sense of moral decency, I would not have landed a job within an organisation that actually values it’s staff and encourages them. So really, thank you. But lets cut the lies now? Let’s get some more honesty – your staff are owed it. (as well as all the money they are entitled).

  10. How the mighty fall, it was about time the “management” had a wake up call to how they run their so called business, you simply, and i say this quite deliberately, cant work in a market where the MOST important relationship is with the providers that pay you, then start churning business with another provider – i wonder why Click had a re-broke team working directly into the existing Fortis book?…….

    Only a matter of time, just a shame people didnt see it coming……two people to blame for that one…..

  11. Prehaps if Click MD’s hadn’t lost their FSA licence back in Oct/November time (and may I add, continued to trade) when the initial job cuts were made, Payment Shield would have paid up? Click asked Paymentshield to pay them into a personal bank account, Like Click employees would have seen it if that had been done anyway.

    I also hear click MD’s have already set up similar business in yet another name.

    Persistant, Ill give you that.

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