Hope nothing more comes of Black probe
FINANCIAL ADVISER - 20TH DECEMBER 2007
Early in 2007, I had cause to respond to criticism from Thomas Reeh, chief executive of broker Blackandwhite.com who took exception to my concerns over the mis-selling of payment protection insurance , its huge commissions and the promotion of single premium policies. He accused me of being out to get mortgage brokers which is utter nonsense.
However, it is interesting to note that other organisations, such as the FSA and the police swept into his office in November, looking for past documents.
I do hope he does not misconstrue this as someone else being out to get him.
Mr Reeh has always been vociferous in the benefit of single premium payment protection insurance and how sophisticated developments in this market have become.
Let us hope those investigating this area and his other products think the same.
The Competition Commission believes intermediaries have a key role to play in the provision of payment protection insurance, so I hope for his sake nothing is discovered that can further blight the reputation of this sector.
Simon Burgess
Managing director
British Insurance
Response from Thomas Reeh:
There are few in the mortgage industry who escaped the news that Black and White had a very public visit from the FSA last week.
The support I have receive personally and the feedback we have received from the mortgage intermediary and lending community has been first class.
Those who know our business well, know that we run a very solid business. We welcome the FSA’s visit and have nothing to hide. Of course, the style of the visit could have been a little better thought through, but I am sure it sent a shiver up the spine of all mortgage intermediaries across the UK.
I am happy to report that the FSA did not find any convertible rollers on the drive or poorly tailored suits when they arrived and that their visit had nothing to do with payment protection insurance.
We gladly stand by our record of selling both monthly and single premium payment protection insurance compliantly. Our sales processes were subjected to rigorous scrutiny when we voluntarily took part in the FSA’s thematic review on payment protection insurance sales.
