FSE 2013: Precise will not link proc fees to quality
Alan Cleary, managing director of Precise, told delegates of the Financial Services Expo that Precise would not look to emulate other lenders with an increase in fees but would take action if brokers were not up to standard.
When asked why other lenders had dropped fees for underperforming brokers Cleary said: “I can’t speak for other lenders as I don’t know their reasons.
“We expect our brokers to pass on quality cases but we would not link proc fees to quality. If we don’t get the required quality we will look to remove brokers from our panel.”
Cleary also expressed doubts about the effectiveness of lowering fees to improve the quality of cases.
He said: “I’m not sure what lenders dropping proc fees based on quality are after. If it’s conversions I don’t get the argument.
Ian Andrew, head of intermediary sales at Nationwide, was also sceptical of the implementation of some lenders links between proc fees and quality.
He said: “If it’s linked to conversion rates then I’m not convinced a small change in proc fees is going to improve the situation.
“If you are going to link them in such a way then I think brokers should be paid on an individual level.
“I think it stacks up as an idea but I’m not sure about the implementation.”
Abbey for Intermediaries, now Santander for Intermediaries, switched to a quality based payment scheme in July last year.
At the beginning of September it was reported that Lloyds plans to link proc fees to the quality of cases from the beginning of next year.