In an interview to be published in Mortgage Introducer next week, Michael Coogan, director-general of the CML, believed that the independent advice which a broker could provide a struggling client would be key, as more people find themselves struggling to handle their debts.
Get the daily news delivered to your inbox
However, he warned that this privilege should not be seen as just a selling opportunity and brokers must put the interests of the client first.
“If the adviser is able to help the customer, then that provides an independence from the lender which customers may find useful because they may have more than one debt. Then the issue becomes whether this is seen as a selling opportunity by the broker or an opportunity to help them through counselling. If it is seen as a selling opportunity, they are risk falling foul of the Financial Services Authority’s views on ‘Treating Customers Fairly’. If they are helping them to manage their finances better, then that’s a valuable service which any broker should be looking to provide.”
Jason Richardson, director at YooToo Financial Services, admitted there were intermediaries out there simply looking for a quick sale.
“We work on the basis that if someone calls us up looking for help, if we treat them right then they will come back later, thereby cultivating a client, not just a one-time customer. However, that is not to say there are not brokers out there who just want to sell to the client. But there are times when the best advice wouldn’t be to change products.”
