brokers
Sub-prime motor finance lender British Credit Trust (BCT) has
told members of its broker network that it will no longer pay them
any commission for placing deals with retailers.
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The announcement was made during a conference call on September
26.
Mick Woodall, chairman of BCT, confirmed that the decision to
stop paying commission to brokers has been made, but declined to
comment further.
There was speculation that the decision – which will drastically
reduce the volume of new business BCT receives every month – could
have been prompted by the takeover of BCT’s main backer, Merrill
Lynch, by Bank of America. “Merrill has most likely been told to
pull money from all non-US investments back into the US,” an
industry source said.
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 prior to the announcement. “It’s a
bombshell.”
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By GlobalDataSee “You can get finance – as long as you can prove you
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