US giant Citigroup is running a home-service business in the UK to generate protection and sub-prime mortgage leads.
CitiSolutions, which launched in the UK in September, operates in a similar way to multi-level marketing. Self-employed reps work part-time to generate leads for UK financial services arm CitiFinancial and sub-prime lender Future Mortgages. The agents do not offer financial advice and get no training to advise but they complete a financial needs questionnaire with clients.
A completed form, which covers debts and savings, is passed on to a CitiSolutions appointed rep for term, critical illness and sub-prime mortgage products. CitiSolutions' agents are paid commission and are paid for every new agent they introduce.
The scheme was originally established in the US where 107,000 agents run home-based businesses for six million clients.
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