IF mailed its customers a letter headed, “Ensuring the information we hold on your buildings insurance cover is up to date.” It asked customers to detail current buildings insurance arrangements and also policy renewal dates.
According to the Advertising Standards Agency the complainants said: “The lender had no legitimate interest in their contents insurance and believed the purpose of the letter was to obtain that information for marketing purposes.”
Jennifer Blackwood, senior press officer at IF said: “As soon as we realised that we had caused offence we immediately halted the campaign and destroyed all the data we had collected from it.”
David Quick, Managing Director of insurance network CETA commented: "It is imperative financial institutions make it clear to customers, whether the subject matter is promotional or addressing genuine customer service issues. Asking customers for confidential information so that a company can then promote its own products and services, not only runs the risk of upsetting various regulatory bodies, but also threatens the trust, which exists between a company and its clients."
Bullet – IF also reached break - even point at the end of 2003. In the year to December 2003, IF increased its mortgage and loan balances by £3.1 billion, up 25 per cent. Viewed as an independent lender, IF is now the 12th biggest mortgage lender in the UK.
Commenting Grenville Turner, chief executive, said: “IF set out to break the mould, using new technology to help deliver innovative products at highly competitive prices. We have led the way in transforming the mortgage market with offset banking and have met our promise to break even at the end of 2003.”
He added: “We have proven that you can build a strong, profitable banking business by championing innovative, flexible products that pay consistently competitive rates – an approach that is proving consistently popular with consumers.”
