The partnership has come in response to the effects of the credit crunch on the mortgage industry, as clients with adverse credit now faced a tougher financial climate. ClearDebt said it aimed to be an ethical, transparent provider of IVAs, paying brokers’ fees in full once the case completes and stated it would always return clients to the originating broker.
John Smith, sales and marketing director for GHL Group, commented: “Nearly everyone in this industry has been affected by the so-called credit crunch. We have responded by adding additional lenders to our panel and by looking at ways to diversify our offering.”
David Mond, chief executive of ClearDebt, said: “More mortgage brokers need to be able to offer a debt resolution solution to remortgagers. ClearDebt believes the shock of remortgaging, plus the impact of several months of higher interest rates, will mean debt resolution will need to be part of a broker’s client retention strategy for some time to come.”
Steve Brockman, director of A2B Mtg Co, commented: “You effectively have mortgage intermediaries teaming up with IVA providers and debt counsellors. I can understand that it is a useful income stream, especially at this time, but what kind of message does that send to clients? Plus, how would they know that their customer is in financial difficulty?”
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