Latest NEWS & Insights On Secret Commission Recovery

Car owners could save £165 million a year under a proposed crackdown on commissions linked with finance deals

The financial watchdog wants to ban the dealers and the brokers from receiving fees, attached to the interest rates that customers pay on car loans. Yesterday, the Financial Conduct Authority commented that motorists are paying more than they are supposed to on popular financing packages as the commissions create an ‘incentive for the brokers to act against customers’ interests’. A…

Hidden commission payments costing motorists millions

The FCA estimates consumers are being conned out of £300m every year by the practice. But it is not just motorists that are paying over the odds, with commercial property owners also paying millions every year in hidden commission payments. Consumers are paying an average of £1,100 in hidden commission fees in interest payments when buying a car on finance,…

FAQs

Who is classed as an agent? Any business that acts as an intermediary for a financial transaction with a third party can be classed as an agent. This includes insurance brokers, managing agents, accountants, lawyers, insolvency practitioners, financial advisers, retailers and others. Who owns a secret commission received by an agent held on trust for you? The Supreme Court has…

What to do if you think you’re a victim of secret commissions

Secret commissions are a serious problem for the commercial real estate sector. Millions if not billions of pounds are being paid to unscrupulous managing agents and landlords every year without the knowledge of those they are acting on behalf of. The way it works is that a management agent will offer to negotiate the property insurance on behalf of their…

What the secret world of football agents has to do with your commercial property insurance?

The world’s leading football agents have become millionaires off the back of pedalling their clients between Europe’s richest clubs. But even with the massive commission payments they receive for being the middlemen for the biggest transfers in world football, some agents have taken to receiving secret – and illegal – commissions to broker deals. One case even made it to…

What consolidation means for your property insurance?

The insurance broker market is undergoing considerable change in the UK with the larger players snapping up their smaller counterparts to fuel their growth and drive their expansion into the regions. Smaller brokers, meanwhile, are being driven to sell as a result of an increasing number of retail agencies cutting back on the number of wholesalers they call upon, leading…

What BREXIT means for commercial property insurance?

When the UK voted to leave the European Union (EU) back in 2016 and the prime minister triggered Article 50, the wheels were put in motion for a clean break from the EU in March 2019. Come back to the present day, and Theresa May is still struggling to get her Brexit deal through Parliament, with a new vote scheduled…

Unfair, dishonest and illegal: The truth about secret commissions

The world of commercial property insurance might not seem like a murky business to be involved in, but unscrupulous managing agents are conning landlords and leaseholders out of millions of pounds every year. By offering to negotiate the property insurance on behalf of their tenants and leaseholders, often also offering reduced management fees in return for this privilege, the managing…

Secret Profit Commissions: Change is Afoot

How it works Buildings insurance covers the cost of rebuilding or repairing your property in the event of it being damaged or destroyed. Normally where the property has been purchased with the assistance of a mortgage this type of insurance cover is required by the mortgage lender. In respect of leasehold properties normally the landlord is responsible for purchasing buildings…

Pirate of the Caribbean meets insurance in secret commission scam

A consortium of 14 top hoteliers in Jamaica, the Cayman Islands, Bahamas and Florida are suing a London-based insurance broker for €10m after they were defrauded out of millions following a ‘grossing up’ scam by a former employee. The Evening Standard reported that Charles O’Sullivan, nicknamed ‘the Pirate of the Caribbean”, conned one hotel out of of $150,000 by unfairly…

Politicians vow to pressure FCA on property commissions

17 July 2019. Regulator has remained silent for five years but is coming under renewed pressure. A political group has vowed to press the FCA over controversial property commissions and disclosure practices. The controversial practice sees many brokers and property managing agents taking away up to 50% commissions, meaning leaseholders could face a ‘distorted’ market of higher prices, according to…

Freeholders charge ‘rip-off’ insurance fees

Flat owners have been overcharged billions of pounds for buildings insurance in an “endemic” problem that takes advantage of the leasehold system. It is usually the responsibility of the freeholder to arrange buildings insurance, but under the terms of the lease the cost is passed on to the leaseholders as part of their ground rent or service charge. The freeholder,…

Fury over freeholder and agents’ ‘secret’ insurance commissions

Campaigners for leasehold reform are calling on regulators and trade bodies to take action against freeholders and managing agents who overcharge for buildings insurance and hide commissions and other payments.  

Call for crackdown on ‘secret insurance commissions’

Freeholders and managing agents are overcharging leaseholders for the insurance of their flats, while also pocketing large commissions from the insurers. Campaigners for leasehold reform are calling on the government to crack down on the practice. Sir Peter Bottomley MP, the co-chairman of the All-Party Parliamentary Group on Leasehold and Commonhold Reform, says: “We believe unfair service charges cost leaseholders…

Calls for FCA action as secret property agent commissions hit new highs

By Mark Richardson | 28 May 2019 Five years on from the CMA’s report exposing huge commissions paid by brokers to property agents to win business, Insurance Times finds the practice is still very much alive and the sums being paid greater than ever. The long-running controversy on secret commissions offered by brokers to property negotiators is back in the…

Parliamentary Review Case Study

With many insurance brokers and property managing agents inflating premiums to unreasonable levels in a bid to gain ‘secret commissions’, is it just a matter of time before the property insurance sector’s secret profit becomes public knowledge? Established over 30 years ago, Mulberry Insurance Services is one of the UK’s leading Insurance Brokers that specialises in providing tailored insurance services…

How M2 Recovery saved one customer more than £1m

In 2014 M2 Recovery was contacted by a leading chain of DIY stores that suspected it had been overpaying for its property insurance through hidden commission payments being received by the landlord’s managing agent. M2 Recovery immediately started to analyse the premiums paid for the portfolio of more than 50 different properties over the last six years to determine if…

Specialists In recovery of secret insurance commissions

RBS Case Study We were instructed on behalf of RBS to undertake an insurance audit on a portfolio of properties which had fallen into default. The Borrower had insured through their preferred Broker with RBS noted as Co-Insured. During the period the properties were in default the Broker had maintained insurance cover and RBS had paid the premiums. It was…

How being named as co-insured helped NCP recover £500,000 in illegal secret commissions

Car park company NCP approached M2 Recovery in 2014 to negotiate the insurance premiums for 158 of its car parks that had been arranged by the landlord’s preferred broker. The terms of the lease for the car park portfolio had allowed for the interests of NCP to be noted as co-insured on the landlord’s policy, and it was this that…

What to look for in a commercial property insurance policy

Buying insurance is not an easy task. Over complicated policy documents, unnecessary industry jargon and hidden exclusions all come together to make it a complicated and time consuming experience. For commercial property owners, buying property insurance can often be one of the most important purchasing decisions you make, with the right policy protecting your hard-earned assets if you need to…

4 Tips for getting the best property insurance

Buying commercial property insurance is a complicated process, full of industry jargon and complex policy definitions that make it hard to know which is the right policy for you. To help ease the pain, we have brought together four expert tips that will make sure you are as informed as possible when it comes to purchasing your insurance cover and help…

Neil Holloway

I began my career in insurance in 1974 working for a provincial insurance brokers based in the Midlands. In 1985 I joined a City of London insurance brokerage and following the sale of this business I was persuaded by the directors to establish my own insurance brokerage in 1987. My first office opened in Rugby and subsequently relocated to Daventry.…

Commissions and Secret Profits: Residents Association

Landlord acquires property Landlord’s Managing Agent arranges insurance cover through preferred Insurance Broker. Residents Association is Co-Insured Lease allows Landlord to recover insurance premium from Tenant as premium is reserved as additional rent  Insurer pays commission to Broker (Broker usually shares commission with Landlord or Managing Agent)  Undisclosed commission creates a secret profit against Tenant who is Co-Insured under the…

How your managing agent could be costing you thousands every year?

Managing agents are often responsible for arranging insurance for the properties they are in charge of, representing leaseholders and tenants in negotiations with insurance brokers. Did you know, however, that many managing agents are using this as an opportunity to line their pockets by asking for hefty commissions in return for placing business with a particular broker? Known as secret…

How property managing agents could be conning you out of thousands every year?

The commercial property sector is a well-established market, but within the industry is an equally well-established practice of secret commissions that undermines the honesty and integrity of the marketplace. Unscrupulous managing agents are adding thousands of pounds to the cost of insurance every year by taking undisclosed commission payments from insurers and insurance brokers in return for placing business with…

Secret Commission: Time for a change

Secret commissions are a serious problem for the commercial real estate sector. Millions of pounds are being paid to unscrupulous managing agents and landlords every year without the knowledge of those they are acting on behalf of. The way the practice works is that the freeholder or managing agent negotiates the commercial property insurance on behalf of the tenant or…

Fighting back against unfair secret commissions

When I created Mulberry Insurance Services over 30 years ago I did it with a deliberate focus on the commercial real estate sector. Back then, I happily offered commissions to managing agents and landlords who placed business with us, sometimes as much as £3.5m every year, but I was blissfully unaware they were accepting these commissions without notifying their clients.…

Leaseholders ‘losing millions from bribes’ to renew insurance

Secret commissions are being paid to property agents behind leaseholders’ backs, with undisclosed payments from insurance brokers said to run into “hundreds of millions of pounds”. Sir Peter Bottomley, a Conservative MP and co-chairman of a parliamentary group looking into leasehold reform, warned that both private and commercial tenants were losing out to the practice, in which insurance brokers pay…

RBS recovers secret commissions after paying premiums following borrower default

M2 Recovery were instructed on behalf of RBS to undertake an insurance audit on a portfolio of properties that had fallen into default as the bank had suspected that secret commissions had been paid as part of the insurance arrangements that were in place. The borrower had insured the properties through their preferred broker with RBS noted as coinsured on…

Secret commissions push up the price of insurance for Landlords & Tenants – We can help you recover these hidden payments

The payment of secret commissions in the insurance sector is endemic. These hidden payments are taken by managing agents arranging the property insurance on behalf of the Landlord. Secret commissions push up the price of insurance for landlords and their tenants – and it is malpractice. You may have inadvertently been paying more than you should for your insurance for many…

M2 Recovery

With many insurance brokers and property managing agents inflating premiums to unreasonable levels in a bid to gain ‘secret commissions’, is it just a matter of time before the property insurance sector’s secret profit becomes public knowledge? Launched in 2016, M2 Recovery seeks to identify and ultimately recover secret insurance commission payments that have been passed onto the property owner.…

Secret Profit Commissions: Change is Afoot

How it works Buildings insurance covers the cost of rebuilding or repairing your property in the event of it being damaged or destroyed. Normally where the property has been purchased with the assistance of a mortgage this type of insurance cover is required by the mortgage lender. In respect of leasehold properties normally the landlord is responsible for purchasing buildings…

Leaseholders ‘losing millions from bribes’ to renew insurance

Secret commissions are being paid to property agents behind leaseholders’ backs, with undisclosed payments from insurance brokers said to run into “hundreds of millions of pounds”.Sir Peter Bottomley, a Conservative MP and co-chairman of a parliamentary group looking into leasehold reform, warned that both private and commercial tenants were losing out to the practice, in which insurance brokers pay secret…

Unfair, dishonest and illegal: The truth about secret commissions

The world of commercial property insurance might not seem like a murky business to be involved in, but unscrupulous managing agents are conning landlords and leaseholders out of millions of pounds every year.By offering to negotiate the property insurance on behalf of their tenants and leaseholders, often also offering reduced management fees in return for this privilege, the managing agent…

What the secret world of football agents has to do with your commercial property insurance?

The world’s leading football agents have become millionaires off the back of pedalling their clients between Europe’s richest clubs. But even with the massive commission payments they receive for being the middlemen for the biggest transfers in world football, some agents have taken to receiving secret – and illegal – commissions to broker deals.One case even made it to the…

What to do if you think you’re a victim of secret commissions

Secret commissions are a serious problem for the commercial real estate sector. Millions if not billions of pounds are being paid to unscrupulous managing agents and landlords every year without the knowledge of those they are acting on behalf of.The way it works is that a management agent will offer to negotiate the property insurance on behalf of their tenants…

What to look for in a commercial property insurance policy

Buying insurance is not an easy task. Over complicated policy documents, unnecessary industry jargon and hidden exclusions all come together to make it a complicated and time consuming experience.For commercial property owners, buying property insurance can often be one of the most important purchasing decisions you make, with the right policy protecting your hard-earned assets if you need to make…