MIp10-11_0709.qxd 9/7/09 07:29 Page 23
Debt management | 11
Cross selling
As in any niche, where brokers are
introducing clients to a third party, there is a
danger that the ‘ownership’ of the client can
for Debt begin to blur. Debt solutions companies should
Management Plans be making every effort to partition clients
(DMPs). With a proper introduced by intermediaries from their own
written tariff, it will become much direct to customer clients. The opportunities
clearer for client and adviser and lead to for ‘accidents’ to happen reflect badly on the
greater trust and acceptance. industry. While any savvy intermediary will
insist on a proper no cross selling agreement,
Advice the providers should be communicating this
of getting out of Who is giving the advice? The adviser needs to upfront. Intermediaries and their clients
their debt prison by have written confirmation that he is only deserve to be protected. Some debt companies
ensuring that the plan they are recommended introducing his client and is not responsible for are known to sell ancillary insurance products
actually meets their particular requirements. It the advice given. Alternatively, if the adviser is without permission. For a fledgling industry
is vitally important for the purposes of clarity more involved in terms of fact finding and relying on intermediary business this is cynical
and fairness that clients are aware at the outset document completion, he needs to be made in the extreme.
of whether they are being offered a range of aware that as far as a regulator is concerned he The opportunity to create a confident,
options or just one. Unfortunately too many might be considered to be giving the advice. transparent and proactive industry made up of
companies offer only one solution, which Checking the status of the advice is vital for companies which have chosen to embrace a set
might very well not be suitable to a particular future compliance requirements and firms of publicly broadcast principles is, in my
client. should make the situation clear to introducers. opinion, a goal worth campaigning for. Too
Too many firms say they offer a referral service often, the financial services industry has waited
Fees when in fact the introducer is still liable for the for legislation to be thrust upon it. By taking
In our view, the charging of upfront fees is not advice given. Either the intermediary is a ‘real’ the time to set out some ground rules and
right, particularly when the client can find he is introducer to a firm which is taking full principles which are in tune with the needs of
paying out even when his situation might be responsibility for the advice or he is working the customer, debt solutions providers can be
beyond help. For this very reason, providers who with the firm he chooses and is part of the seen to be at the forefront of customer care
insist on upfront payment should be upfront advice process. Either way, it should be made rather than resistant to change.
over their fee charges before the client is too far very clear. The implications for the The watchword is transparency and I believe
engaged. The full fee structure needs to be intermediary through future action by a the time is right for like minded debt solutions
explained at the beginning and fees. Clients and regulator or legal action by a client where the providers to come together now and engage
their advisers can then see and compare costs introducing intermediary is not a ‘real’ with each other to set out some guiding
and those companies which are charging introducer, might make many reconsider the principles which can become the building
excessive fees will be shown up. Some companies type of debt solutions company they should be blocks to a future regulated industry which we
are charging in excess of four months payments dealing with. have had a real hand in shaping.
www.mortgageintroducer.com July/August 2009 Mortgage Introducer
Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44