Paymentshield slashes broker commission by 22.5%

Please be aware that if you put Paymentshield Mortgage Club down as your proc fee route that they will honour your original renewal commission terms. When I contacted them to say that even though I do not use them for new insurance policies anymore but I do put them down for a proc fee route, they changed their initial rule.

In my case, however, in a letter dated 1 September 2011, they want me to put on an extra 2 policies per month for 6 consecutive months before restoring the commission to 27.5%. Further, the only reason I stopped putting cases with them last year was because of difficulties logging on to their system to give them my business.

The only real issue here is the same as the last time there was an issue with Paymentshield. If you don't use them then there isn't an issue. Use someone else. I use them so there isn't an issue for me with this. If there was I wouldn't use them. There are many others to use after all so if you spread youself too thinly around them then this is going to happen. Charging a fee that puts you into profitability without the proc fee is the way forward. Then the proc fee just adds to that. Most proc fees are not profitable in any case. And just who is going to send Paymentshield cases and get a pittance for them for six months? Paymentshield's loss then. They must be abit stupid to think we'll all do that blindly. History ahs a habit of repeating itself.

Anyone who gives them any more business, via mortgage club or otherwise is a fool, as they have shown before they will cheat brokers.

Paymentshield have shown time and again that they no longer care about the broker market. *No more commission into retirement *Cutting commission to 5% so that you are forced to place business with them (It would help if they weren't so expensive!) *AND now they are also hounding my customers to cross sell against my back. (Just read some of the comments from members of the public complaining about their calls below) http://whocallsme.com/Phone-Number.aspx/03333440125 Oh how the mighty have fallen

I have been a broker with paymentshield since it was established. I did have a monthly debit of approximately £600 per month, but because they have become uncompetitive my debit has fallen to approximately £200 per month. By cutting my commission to 5% this will reduce my income from Approx £2400 Per year to £440 Per year. Dick turpin wore a mask when he robbed people, the regulater should investigate Paymentshield's actions. Many thanks Wilson Weir

I stopped using them when a few clients contacted PS direct (the clients thought they were saving me work) and took out altered / new policies which payment shield would not pay me on then made it difficult to transfer the agancy back to me. I guess its time to rebroke the ladt few clients I have with PS!!

The clause in question is as follows: ' 'Any commission due to you under this agreement will be paid in accordance with the commission structure we publish from time to time for each type of policy. Where your agency becomes dormant or closed to new business, we reserve the right to revert commission levels to dormant agency rates' As has previously been said there is no mention of 5%. A spiteful move presumably Paymentshield are in desparate need of my £165 trail commission!

My original contract with Paymentshield was based on the original owner standing on a stage in front of thousands of brokers stating that full commission would be paid forever, creating a veritable retirement fund. Surely this is an incentive to do business with them, breaking many FSA rules? About time Paymentshield gets its comeuppance.

We have been in contact with our BDM over the past few weeks and this has never been mentioned. We have not used them for GI for a couple of years but have actively managed our client bank with them. On their recommendation we have actively used Towergate so we would argue that our level of business via the connection they suggested has increased. Punative action such as this won't get us to use them, whats good for our clients will.

It would have been more professional if PS had warned brokers a month before they slashed renewals. A while ago I was advised to rebroke PS business to PS to get a slightly better premium, but thought this was unethical -- net result I have been penalised for not doing business. I wont be using them again!! Disgusting

I suppose after the bad decisions they have made since buying out the original owners, it's no surprise that they would try to coin in on the brokers who they have already let down. They are finished in the broker market now and I hope they don't have the audacity to show up at any more roadshows or network events. Fortunately because of their ridiculous pricing policy in my area for the last 3 years, I don't have many renewals left with them and I will probably owe them money when I've finished re-writing them elsewhere as I did when The Source reneged on their promise of renewal commission.

Nothing surprises me these days from these cowboys. My how the original founder of this once Ethical, Great, Broker Friendly, Customer Friendly organisation must be cringing at how the people who made the company so successful, are now being treated. The Paymenshield you see today is a completely different beast and it's not a very nice one. The sooner they are put out of business the better.

Oh how I agree with Brian Melling I sat there whilst Rick the founder of Paymentshield stood in front of 1000s of us and told us all about the brokers on the golf course earning £1000s and how we could for life how it was our pension - I used to love paymentshield good conferences, good service, good premiums - now my agency has dwindled down from £2500 pm to £300 and now even further - Thank you Rick for your big misselling lies..............

My renewals come to between £600 and £800 per month , and I haven't even been notified. Thankyou Mortgage Solutions, and that's me busy for the next 12 months re-broking what's left. My man at Assurant will be delighted !!!

As said by others, when they cut trail commission into retirement many switched to other providers ( personally most of my book are with The Source who don't mess with commission at all) and have never been happier. How the mighty have fallen!

How exactly do these people justify getting such a large commission anyway ? 27+% is ridiculous. Do you make your customers aware that they are effectively funding this ? Total greed..... and Wilson Weir mentions Dick Turpin. It beggars belief ! It is about time the gravy train was derailed. Seems clear who the real culprits are.