Credit Trust (BCT) has told members of its broker network that it
will no longer pay them any commission for placing deals with
retailers.
The announcement was made during a conference call on Friday
(September 26).
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Mick Woodall, chairman of BCT, confirmed that the decision to
stop paying commission to brokers has been made, but declined to
comment further.
An industry source commented: “Brokers were told by BCT that
they could make up for the lost commission by selling products such
as GAP and payment protection insurance, and by asking dealers for
a commission when placing deals with BCT – something that retailers
will not be happy to do in the current climate.”
The decision by BCT could send many brokers to the wall. “It’s
definitely left us in hot water,” said a broker who placed a large
volume of business with BCT before Friday’s announcement. “It’s a
bombshell.”
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