David Oastler of Mortgage Business contacted Mortgage Introducer after he claimed that he had been chasing LMS Packaging for procuration fee payments since November.
He said: “After lots of chasing from us and threats of legal action we finally received two cheques dated 25 January which we paid in immediately – we have now been notified by the bank that the cheques have bounced.
“I called LMS Packaging and an answer phone message said that it is temporarily closed. I’m guessing that this, together with its reluctance to pay our fees and the bounced cheques, means it has gone bust.”
At the time of going to press, LMS Packaging was unable to be contacted for comment, with an answer phone message claiming that business had been suspended.
However any link with the legal services firm LMS was quickly stamped out. Dominic Toller, director of marketing and new business at LMS, said: “LMS Packaging has nothing to do with LMS; we simply have a similar name.”
John Mawdsley, spokesman for the Association of Mortgage Packagers and Distributors, (AMPD) said: “All I know is that they have resigned from AMPD, and it is sad to see anyone resign, but I won’t comment on rumour. If it doesn’t turn things round it will be another casualty.”
Dale Jannels, sales and marketing director of All Types of Mortgages, added: “It is with some sadness that we see yet another colleague competitor casualty.”
Rob Jupp, managing director of Personal Touch Packaging, said: “It is sad to hear of any packager experiencing challenges in this market.”
