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Lead firm fails on cash pledge

Lead generation company SMS Signals has yet to honour a money-back guarantee given to 10 advisers after failing to provide them with leads.

The company, which guaranteed to supply a set number of monthly leads to IFAs for a fee, has now withdrawn from the UK market.

Money Ways UK principal Mike Daniels paid £300 in March for five leads.

SMS Signals guaranteed that if the leads were not supplied, then a full refund would be issued.

The firm failed to provide any leads for three months and on June 23 Daniels sent an email to SMS Signals demanding a refund. He is still waiting to be reimbursed.

SMS Signals confirmed that it owes money to the firm, as well as nine other IFAs.

In a statement to Money Marketing, SMS Signals says: “We can confirm that Money Ways was a client of our company and is one of 10 UK-based IFAs still waiting for their deposit refunds, as well as four ex-staff members still waiting for their last month’s salary.

“Our company stopped taking on UK-based IFAs due to the high number of delinquent accounts and difficulty in securing good quality leads. This unfortunately affected a number of the newer clients. Our process of collecting unpaid funds and returning deposits to our clients is almost complete and should be completed this month.”

Daniels says: “The firm started off professionally and it seemed like a good idea but I did not receive any leads at all and SMS Signals has not given me any information about the progress of my refund. I would warn other IFAs to be very dubious about lead-generation companies in future.”

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Comments

There are 4 comments at the moment, we would love to hear your opinion too.

  1. Lead Generation Companies
    We’ve looked at ALL the offers out there since 2002, and in our opinion, PAA Leads (MoneySupermarket.com) is the only one that can be employed with any safety!

  2. Lead firm fails on cash pledge
    We tried PAA leads a few years back and they were as useless as all the rest of them ~ so called ‘investment’ enquiries were either from complete timewasters or people wanting to know the best rate of interest available for cash deposits (and for that they certainly weren’t going to pay a fee for that information). Ten years earlier, I foolishly sent a cheque for £275 to some lead generation outfit many miles away and they disappeared without trace, as did our money. Then there’s another place down in Penzance that we tried ~ they send you data on things like prestige addresses (with phone numbers) as potentially good targets for cold calling, but that was a waste of time and money as well. In my experience, none of these lead generation outfits are worth a light and I’ve not spoken to a single person who disagrees. The only leads worth having are referrals from existing clients or professional connections.

  3. Jonathan Barrett, Leadbay 25th September 2009 at 2:23 pm

    Use a reputable lead generator
    there are now a number of very reputable lead generators in financial services who pride themselves on providing good quality leads and an excellent service to IFAs, so it is really unfortunate that brokers are still being stung by the odd disreputable company out there. when looking for a lead generator check out: Are they FSA registered? Are they a member of your trade bodies? Do they operate from the UK and what do other IFAs say about them? Check your trade press for mention of them and check their trading conditions to make sure you can get your money back for any lead you can’t contact.

  4. Internet Leads are not that bad
    We have used Major suppliers for leads for the last 3 years without any problems at all. I will only use lead suppliers that have an FSA number (Leadbay is one). I have never worried about these suppliers going bust. If you are worried why not just add funds on a daily basis? or pay on a credit card.

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