After recent reports concerning lender cold-calling, there has been further anxiety that the questions asked by the callers could lead to identity theft. A source close to Mortgage Introducer said the new wave of cold-calling and the problems with unregulated approaches being made could lead to further problems, with opportunities for identity fraud being created.
The source, who asked to remain anonymous, said: “People need to be careful as the details needed to apply for a mortgage are very similar to that for identity theft. Organisations indulging in this sort of practise are giving clearly worded questions that people need to be aware of, as, from what I’ve heard, it left the impression that they weren’t worried about breaching the Financial Services and Markets Act.
“Where the information requested by the cold-callers is close to the information needed for identity theft, people receiving cold calls need to be very careful. The recent Financial Services Authority (FSA) financial crime newsletter has said that the regulator intended to look at the issue and it was now looking at what constituted good and bad practise in the industry.”
This sort of practise has made an impact on lenders as well as intermediaries. Toby Nelson, spokesman at Platform, said: “As a responsible lender aware of its obligations under the Data Protection Act, Platform has strict policies and procedures in place to protect its customers’ rights, which include verification checks to establish identity and IT security systems.
“All Platform staff undergo data protection training on a regular basis to ensure they are fully aware of their responsibilities and legal requirements under the Data Protection Act and the FSA.”
get the daily news delivered to your inbox
find the latest industry jobs
register for the next forum
