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Lloyds cuts off 900 brokers

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  • 03/02/2011
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Lloyds cuts off 900 brokers
Lloyds Banking Group (LBG) has cut roughly 900 advisers from its mortgage lending panel in the last few years with 300 thrown off, or around 10 each month in the last year.

LBG would not confirm the numbers, but sources suggest a third of those brokers were removed after the lender uncovered evidence of fraud or from “dormancy” or business closures.

Suspected fraud problems reportedly include buy-to-let cases submitted as residential, over-inflation of income, providing false documentation and potential scheme manipulation.

A spokesperson from LBG said taking a broker off its panel is “never taken lightly.”

“When we understand there are issues with business submitted, there is a robust process in place where we endeavour to work with brokers long before we take action to remove them. However, there are circumstances, such as when fraud is suspected, where we need to take immediate action,” she said.

“We have a clear process in place to allow brokers to appeal. In the vast majority of cases, we remain comfortable that the original decision was the right one. However, on occasion, the information we get at this stage means that brokers are reinstated,” she said.

Lloyds confirmed it compiles a monthly report for the FSA listing brokers who have been removed from its panel.

“This covers the significant majority of all removals, and every instance of fraud or suspected fraud,” said the spokesperson.

 

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