View more on these topics

‘Lenders bleeding advisers with call charges’

Lenders are using higher-rate call numbers to bleed intermediaries for cash to pay for the cost of regulation, says Mortgage Portfolio Services mortgage planner Simon Chalk.

Chalk says the proliferation of 0870 numbers since M-Day coupled with extensions in call waiting times means lenders are using the charges to get revenue for themselves while still not improving services.

He says intermediaries should not be subsidising lenders’ services.

Call charges are often not revealed in lenders’ ads and Chalk believes there has been some deterioration in phone call centre services and that it is unfair for lenders to be making profit out of poor service.

In a random sample from the start of his database, Chalk says Abbey, Accord, Alliance & Leicester and Amber Homeloans all use 0870 numbers. While 0845 numbers charge a regional rate charge, 0870 and 0871 numbers can earn an organisation revenue for every call received and are often used for technical support lines.

The FSA says it cannot force lenders to reveal call charges as they are not brea-king ad regulations.

Chalk says: “If lenders want to charge premium rates, they should say so but offer a superb service. The reality is that we are subsidising their inefficiencies.”

Brentchase Financial Services mortgage specialist Mich-ael Fitzgerald says: “These phone call charges are just the same as admin fees and exit fees. Is it paying off the cost of regulation and if so, shouldn’t this be handed over to the FSA?”


Clerical loans for IFAs to pay PI and regulatory fees

Clerical Medical is introducing a new insurance premium funding product offering advisers loans to pay regulatory levies and professional indemnity insurance premiums in instalments. The loan does not require security and can be repaid quarterly, or in six or 10 monthly instalments. Interest rates on repayments are fixed, depending on the loan term and amount. […]


It is often said that there is only one thing worse than being talked about and that is not being talked about. It is perhaps an indication of its impact on the market that Standard Life’s Sipp continues to generate so much interest. There has been considerable coverage of our decision to appoint Fidelity FundsNetwork […]

Profits triple for Positive Solutions

Positive Solutions has seen a 98 per cent increase in turnover, bringing business in the first quarter of the year to 15m from 7.5m in the same period last year.

L&G predicts corporate expenditure will drive growth

UK plc has record levels of cash on its balance sheets, providing a strong base for economic growth, according to Legal & General. Amid fears that consumer spending is about to tail off, after underpinning US and UK GDP growth for the past three years, L&G believes the anticipated upturn in corporate expenditure and merger […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm