The Association of Mortgage Intermediaries is planning a best practice factsheet on lead generation after several brokers lost hundreds of pounds on poor quality leads.
Mortgage Strategy has received dozens of calls from brokers owed money by lead generation firms in recent months. Having failed to get back money they paid for leads that never materialised, some are now pursuing legal action.
Now AMI says it hopes to offer informal guidance on how best to prevent more brokers losing money.
Chris Cummings, director of AMI, says: “We are concerned if people are making promises and not fulfilling them. We have been aware that this is becoming an issue in the industry. As regulation nears and rules come into effect on cold calling, intermediaries need to look carefully at the leads generation firms they are dealing with.”
He adds that by insisting on legally binding contracts for the supply of leads, service providers could be brought to book for failing to deliver on their offers.
Mortgage broker Andy Vowles, proprietor of Wingham Wyatt Financial Services, says a contract would have helped in his dealings with Mortgage Appointments, a company about which Mortgage Strategy has received repeated complaints.
Vowles is planning to take the firm to court after it broke its money-back guarantee and refused to refund him on a £350 lead.
He says: “There should be guidelines and a contract. I know I'm only talking about £350 but I'm a one-man band and that's a lot of money to me. Having spoken to other brokers, I'd say the only decent lead is one that comes through referral.”