Mark Howell, marketing manager at Pink, says: “FSA rules say a broker cannot do unsolicited real time credit promotions, which means it can’t cold-call clients.It must get permission even from its existing client base.”
He says this could cause problems as many brokers rely on building business through their existing client base.
Under the regulations the broker has to get in touch with each client to ask their permission to contact them. If the broker wishes to contact the client in several years when their mortgage expires, they must get permission now.
Howell says: “There is a problem for brokers who have just started up. In their early years they rely heavily on their databases.”