AFG's Mark Hewitt has questioned the efficacy of writing clawback clauses into loan contracts, arguing they would be difficult to enforce, and may not do 'great things' for a broker's reputation.
But as clawbacks begin to bite, broker feedback shows many already use such clauses in their contracts, and Forum participants are urging others to protect themselves.
In response to our recent poll (Poll: How severely have commission clawbacks impacted your business?), Damien responded by saying: "All brokers should be using a clawback provision - you are simply mad if you don't."
Likewise, Ray and Casey are both using and support clawback clauses.
"Not an issue for me," said Ray. " I have a clawback clause in our contract where the client pays."
"I believe in and use a clawback provision," Casey said. "Why should I pay for the actions of the other two parties in the transaction? If I stuff up or churn the client, then I'm happy to wear the cost. But if the client decides to sell up early, I pay. If the bank ruins the relationship, I pay.
As Casey finishes, "Why are we paying for other people's actions?"
Have you voted in our poll, or had your say on clawbacks? Have your say by clicking here.