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&#39Loan cold-calling ban means big job losses&#39

Mortgage intermediaries are warning that FSA plans to ban cold-calling of potential clients would cause “mass unemployment” and put firms out of business unless they can find alternative sales channels.

The proposals to prevent unprompted tele-canvassing and emailing to drum up new business, included in its near final rules section of CP146, would bring mortgage business into line with investment regulation, says the regulator. But brokers warn this would have a devastating effect on their profits and a knock-on imp-act on lenders&#39 income.

Staffordshire-based rem-ortgage broker The Black & White Group says all its business, which is 80 per cent prime and 20 per cent sub-prime, is generated through its outbound call centre which employs 75 people. It warns that the FSA&#39s proposals would have “dire” consequences.

Independent mortgage expert Mark Chilton says tele-canvassing is a “massive thing” and scrapping it has implications for the sub-prime market in particular, as does CP146 as a whole.

Black & White chairman Chris Ollerenshaw says: “It would create mass unemployment. We would have to look for other distribution channels which would be more expensive and might effect our bottom line.”

FSA spokesman David Cliffe says: “These proposals are included in near final rules in Annex B and would prohibit real-time soliciting customers in line with rules for investment business. They are still part of consultation.”


Inside edge

Perhaps understandably, the Mortgage Code Compliance Board is usually quite guarded and certainly diplomatic when expressing its views in public. Not surprisingly, therefore, there is now much industry talk about the MCCB&#39s robust response to CP146, in particular, its warning that filtering questions, as proposed in CP146, could be the “recipe for total disaster”.I agree […]

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