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MP in &#39igroup secret commission&#39 claim

Sub-prime lender igroup has been slammed in the House of Commons by Labour MP Barry Gardiner over claims of secret commission on past loan contracts.

In a Commons debate last week, Gardiner urged DTI minister Melanie Johnson to meet with igroup owner GE Capital over allegations of undisclosed commission on the lender&#39s previous loan contracts and described igroup as “extremely disreputable”.

Speaking in the debate, Gardiner said: “The mortgage code is ritually ignored in the sub-prime market, so the borrower does not know of the secret commissions that are paid when he or she takes out a loan. They form part of the illegal commissions that companies such as CMC, Ocwen and the igroup have been receiving and have based their business on for many years.”

Johnson pledged to examine whether consumer credit licensing can be extended to allow the Office of Fair Trading to crack down on rogue lenders, including their possible expulsion from the mortgage market.

GE Capital Europe director of communications Ivan Royle says: “We are aware of the debate and Mr Gardiner&#39s comments. We will be making a full response in due course.”

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