The Association of Mortgage Intermediaries (AMI) said when some of its members have contacted lenders for a progress check after a case has gone to completion the lender has informed them it can only speak to the customer, not the broker, due to the mandate of the DPA.
But AMI explained there were no rules in the DPA that stipulated lenders should be doing this.
Chris Cummings, director of AMI, said lenders were probably using the DPA as a way of cutting brokers out of the process so they did not have to pay them commission and to stop the client from remortgaging at the right times.
He said: “Quite a few of our members have experienced this problem with lenders. These brokers are calling the lender with enquiries that do not conflict with the DPA.”
But Cummings added: “Under FSA regulation brokers will have to prove they have on-going contact with the customer, otherwise they will have to approach that person as a new client.
“In order to evidence this they will have to get a signed declaration from the client stating they are happy for the broker to stay within the equation. This should be proof enough to lenders that intermediaries have permission to be involved in a clients’ case after it completes.”
Caroline Havers, partner at law firm Salans, said: “Just because a case has completed I can’t see how a lender can refuse to speak to the broker. It seems they are using the DPA as an excuse which is completely unjustifiable.”
Paul Fincham, spokesman for Halifax, said: “We wouldn’t use the DPA as an excuse not to speak to brokers. If it were stated that we could not communicate with the intermediary we would use the proper reasons and processes. It is not in our interests to cut anyone out of the loop.”
