Industry appeals to the FSA to overturn the ban were unsuccessful, but Chris Cummings, AMI’s director of mortgages said there are still many ways to generate leads.
Cummings said: “There has been much said about the cold-calling ban. Most of it has focused on what mortgage intermediaries cannot do. AMI always looks for ways in which members can carry on their business within the rules and so we decided to produce a guide letting members know what they can do.”
The guide said that under the new FSA guidelines, it is illegal for mortgage firms to make ‘unsolicited’ calls where the firm has no previous relationship with the consumer.
Therefore, calls or visits can only take place if the consumer was initially made aware they would be re-approached to discuss mortgage options. Brokers will need to add this clause to their terms of business letter, said AMI.
The FSA defines leads as ‘solicited’ if the consumer approaches the broker or makes a direct request for information, but brokers must contact the client within a reasonable timeframe.
However, AMI said brokers must only deal with lead generators who are clear about their regulatory position.
Stuart Glendinning, managing director of paaleads.com, said: “It is a good thing that AMI has given some insight into this issue and I am sure many members will be appreciative.”
He added: “I disagree with the cold-calling ban as I feel it is another area where the FSA has applied the heavy hand of regulation. The FSA themselves have pointed out how much consumers could save by switching their mortgage, yet they are making it more difficult for these consumers to be contacted. However, the cost effectiveness and speed of delivery enabled by the internet will eventually render tele-based cold-calling and postal-based research a thing of the past, as it simply won’t be cost effective.
