‘It’s good to talk.’ Well, that’s what we’ve been told. However, it would seem that some lenders don’t share our enthusiasm for talking and have placed a charge on it in the form of premium rate 0870 broker contact numbers – an issue that refuses to die down.
Indeed the debate around the continued use of premium line phone numbers has been reignited by a recent Which? study, which has criticised organisations, including mortgage lenders, for the use of expensive phone numbers.
Infuriating brokers
The 0870 issue has been rumbling through the mortgage market for a number of years, with lenders defending their policies or changing them, following stinging criticisms from the industry. Despite moves by lenders, including Skipton Building Society, to eradicate the practice, there is no doubt that it still exists – and that it still infuriates UK brokers.
The Which? research, conducted in June 2007, criticised organisations from profiting through 0870 numbers through revenue sharing. Its study revealed that organisations, such as mortgage lenders, could share revenue from 0845, 0844, 0870 and 0871 numbers with the phone service providers. With phone regulator Ofcom set to introduce another code later this year in the form of ‘03’ numbers, organisations currently exploiting 0870 numbers have been urged to change to the new prefix, which costs the same price as a geographic call and won’t be revenue-sharing.
get the daily news delivered to your inbox
Neil Fowler, editor of Which?, criticised the use of premium phone lines to exploit customers who may not even be aware of the additional charges. He said: “Revenue-sharing is a stealth tax of the worst kind. Tales of customers hanging on for ages at huge expense when they are trying to place an order – or even make a complaint – are numerous. Where once businesses paid to look after customers, it now seems that customers must pay for the privilege of businesses looking after them.”
Lender action
Skipton took the decision to scrap 0870 numbers in 2006 following a campaign by Mortgage Introducer. Following the announcement that the lender was to replace its 0870 numbers, Jennifer Holloway, head of media relations at Skipton, confirmed that it was due to broker feedback. “We have listened to brokers and as a result, we decided to make the changes,” she said. However some lenders, including Abbey, have so far failed to act on the many calls from intermediaries and others in the market to quell the disgust at multi-million, if not billion pound organisations
download our news ticker
Hugh Nichols, partner at Badbury Berkeley Financial Services, said: “I don’t know how some lenders can charge for phone calls and some don’t. Surely it is pretty much the same service. There is all this extra stuff that they try and add in as well to make the process even longer, and I don’t know how it can be ‘Treating Customers Fairly’ (TCF).”
However, a spokesperson at Abbey, which still uses an 0870 number, said: “As part of the ongoing development of the service we provide our brokers we have been moving our telephone numbers from 0870 to 0845 number. There are only a few 0870 numbers still in use but are part of the legacy of our old system and are under review.”
Expecting fairness
With TCF now a central theme too many advisers’ business operations, brokers have also asked for clarification. Many advisers see themselves as customers to lenders, and as such deserve to be treated as fairly as the Financial Services Authority expects of intermediaries’ clients. However with the continued 0870 debacle, it is clear that advisers feel let down by the actions of the multi-million pound organisations. As lenders profit from charging for phone calls – a necessity for many in the industry – the backlash is starting to take shape, with a growing number of brokers growing discontented by the use of premium rate numbers by lenders.
find the latest industry jobs
With competition also increasing within the market, advisers are more likely, if given the choice, to opt for the lender that helps to keep their own costs down, and many are now starting to factor in additional costs, including phone calls and printing and other related costs. While technology has undoubtedly helped to speed up the mortgage application process, many advisers still like to have a personal touch attached to their ‘order’ and the automation of phone calls, or at the very least a delay via the 0870 and 0845 numbers.
In an age driven by technology and the importance of good customer service being highlighted across the market through increased attention to detail from lenders, be it by increased procuration fees, speed to offer or cheaper deals, it seems the decision by some to keep hold of their premium numbers – numbers that undoubtedly make the organisations money – could, ultimately be their downfall.
