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Network chief told brokers to quit if they were owed

Network Data chief executive Richard Griffiths advised appointed representatives who were owed commission by their mortgage networks to “jump before being pushed” in a mortgage trade publication over two years ago.

Network Data has been heavily criticised for late payments of commission, which prompted 11 ARs to visit the network’s Surrey headquarters recently to demand their money. After the visit, Network Data emailed ARs to say it could not commit to a date by which the commission would be paid.

But in an article in in October 2006, Griffiths advised appointed representatives to leave their networks instead of “waiting in vain for outstanding procuration fees”.

He said: “The stark message generally is this – if you are beg- inning to have concerns about your existing mortgage network, start thinking about jumping in your own time, before you are pushed out with undue haste.”

According to the FSA Register, 133 ARs have left Network Data since July 2008.

Blue Q Mortgages director Jason Carpenter, who is waiting for outstanding procuration fees from Network Data, says: “It beggars belief it is so ironic.”

Griffiths was unavailable for comment.

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