Newtomorow warns brokers against rogue debt advisers

Newtomorrow Broker Services is warning that some debt solutions businesses could damage the brokers’ businesses by ruining relationships with their clients.

Brian Ferguson, director of NBS says brokers risk long term relationships by passing struggling clients to ‘unsuitable suitors’ – debt advice firms which push vulnerable people into the wrong solutions.

He says the economic downturn and increased spending in December made it more likely that brokers would encounter equity-poor individuals who need help with debt because they are unable to consolidate by remortgage.

He says: “Trust has to be maintained in any relationship, and in this climate that is even more important. Indebted individuals need debt advice which is right for them, not the debt adviser. If a debt solutions company only offer your client debt management plans rather than a wide range of solutions then you have to question if your client is receiving the best advice.

“A good debt adviser will reflect well on an intermediary as someone who has provided a solution when things have become tough.

“But unsuitable suitors can make a loyal client a former client, and we’d encourage all intermediaries to take time for due diligence before teaming up with a debt solutions provider.”