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.<\/p>\n\n\n\n
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 that particular provider, even if it is not the best policy for their client.<\/p>\n\n\n\n
This results in the end customer, either the leaseholder or the property owner, paying an inflated premium for a product that may not fully suit their needs, all while the managing agent continues to line their pockets.<\/p>\n\n\n\n
While commission payments themselves are not illegal, and are a perfectly accepted feature of the market, it is the undisclosed and underhand nature of these secret commission payments that make them dishonest and illegal.<\/p>\n\n\n\n
\u201cThese secret commission payments do nothing to improve the service or cover experienced by the policyholder, and only serve to line the pockets of unscrupulous managing agents looking to take advantage of their customers,\u201d says M2 Recovery founder Neil Holloway. \u201cThese payments are illegal, and victims of these secret commission payments can take their management agents to court to recover these fees if they have not been fully disclosed.<\/p>\n\n\n\n