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Broker’s not to make reply

“Charge for the guns” he said,

Though not a soldier knew,

Someone had blundered,

There’s not to reason why,

There’s not to make reply,

There’s just to do or die…

This is the second verse from Charge of the Light Brigade by Tennyson. I quote it because I love it, but also because this is exactly the position that all brokers find themselves subject to from the leading providers of premium finance.

The leaders completely monopolise the market, if they ask brokers to do something, brokers cannot reason why, brokers cannot reply, they must just do or the business relationship with the providers dies.

A great example of this is the interpretation of the FCA Affordability Rules adopted by the leading providers. Brokers are not invited to debate the Rules as they have been told that in future their customers must be subject to certain defined checks. One of these checks which is understandably causing consternation is the completion of “hard” credit checks. A hard credit check, means that a broker’s customer will have an entry made on this credit file and each payment made by the client will be entered on the credit file. If the client misses a payment, this will be recorded on the credit file and will affect the client’s ability to get future credit.

There is no requirement to conduct hard credit checks in the FCA Affordability Rules – but brokers are not to make reply. The market needs more lenders so that brokers can make reply. We have been helping brokers to have a voice and determine their premium finance destiny for over 16 years and believe there is a more relevant and appropriate interpretation of the FCA Affordability Rules to the insurance premium finance market.