Tenet says it is reviewing its relationship with PAA leads in light of parent company moneysupermarket.com’s negative press release about mortgage brokers.
This follows Personal Touch Financial Services’s decision yesterday to terminate its relationship with PAA leads after moneysupermarket.com’s claims over the weekend that 90 per cent of the best products on the market are now direct-only. Moneysupermarket.com has since retracted the research after concerns about its accuracy.
The release stated: “Traditionally mortgage brokers have had the pick of the best deals on the market, with lenders often offering them better deals than they were able to give to their customers direct. However, the financial turmoil in the last couple of years has seen the mortgage market turned on its head, and due to the lack of supply and high demand lenders can take full advantage of the current situation rather than having to push their products through brokers, which they previously relied on. As a result, anyone using a mortgage broker needs to be aware that the range of products available may be limited.”
Tenet group distribution and development director Keith Richards says: “We are extremely disappointed with moneysupermarket’s comment, which clearly demonstrates a lack of balanced market positioning and a lack of consideration for the relationship with its subsidiary businesses.
“We are in contact with PAA and we do now have the matter under consideration as to what further action we take. In the meantime, it is very clear that advisers will choose the most appropriate course of action they feel to be.”
Personal Touch Financial Services announced yesterday it had removed the lead generator from its panel.
Which Network Director Paul Day believes PTFS’ decision to terminate its relationship with PAA could lead to others following suit.
He says: “I’d imagine there are a lot of advisers out there who buy leads will be questioning whether they should use them or not.”
A Moneysupermarket.com spokesman says: “Due to the limited number of products available and restriction on lending, brokers are even more important which is why moneysupermarket.com works closely with intermediaries. We also believe that it is important that consumers shop around for the best deal for their individual circumstances and doing so they need to consider all the options available. Our intention was to highlight this important message to consumers, not to criticise the broker industry.”