A broker, who wished to remain anonymous, claimed that Woolwich and Barclays was refusing to settle client instructions to pay agreed fees to brokers. The source suggested that this practice was being used for mortgages and remortgages, despite Barclays’ reliance on intermediaries for over 70 per cent of their business.
The source said: “Barclays/Woolwich has instructed its panel solicitors to refuse to settle clients instructions to pay agreed broker fees from monies raised on mortgage or remortgage. This is despite it being contrary to a client’s instruction.
“I don’t know if it has also instructed solicitors to deny estate agents settlement of their submitted accounts when a sale completes. If it has not, and continues to refuse brokers their settlement, then that is discrimination, is it not?”
He added that the lender had sought to detract attention from itself, by informing its panel solicitors to inform the broker, after the mortgage had completed.
The source continued: “Panel solicitors have been told to inform the broker – after completion – to contact the client and get the fee paid direct.
“Does Barclays/Woolwich have a loose cannon on deck seeking to sabotage its already rocky relationship with intermediaries, due to its poor administrative
procedures?”
With the credit crunch continuing to hit the market, it was believed that the move came in an attempt to quell demand and to change their business model.
A spokesperson at Barclays confirmed that the lender was looking into the matter.
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