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No ‘knee-jerk’ reaction to Paaleads, says Tenet

The Tenet Group is making no knee-jerk reaction to Moneysupermarket.com’s withering attack on the mortgage broker community.

The network confirmed it is considering its relationship with Paaleads, the lead generation arm of Moneysupermarket.com, but says it must consider all its advisers, not just mortgage brokers.

The decision comes after Personal Touch Financial Services severed its relationship with the lead generator despite Moneysupermarket.com retracting the figure that nine out of 10 deals are direct-only.

Keith Richards, group distribution and development director at Tenet Group, says: “We have got the matter under consideration as we discuss the issue with Paaleads rather than Moneysupermarket. Whatever we do, it will be down to our advisers whether they use them or not.

“We are very disappointed by the comments made and we have made our feelings known. But because we represent a number of advisers not just mortgage brokers so we won’t be making any knee-jerk reaction.

“We need to be a bit more balanced before making a decision because Paaleads provide a broad reach of leads for financial advisers, not just brokers. We have made our feelings very clear and very strongly felt. Brokers will make the individual choice whether to use them now.”

The Moneysupermarket press release claimed brokers limit choice and should be used as part of the shopping around process.

Kevin Mountford, head of banking at Moneysupermarket.com, says that lenders no longer need to rely on brokers and they can no longer offer a whole-of -market perspective.

Despite the claim that 90% of deals were direct-only being retracted, the comparison website stands by Mountford’s comments.

Sally Laker, managing director of Mortgage Intelligence, does not deal with Paaleads but defended the role of brokers.

She says: “If they sell leads to brokers I don’t know why they wouldn’t want to support brokers. I think a lot of the exclusive deals tend to be through ARs so they would be broker deals, and Moneysupermarket didn’t consider this.

“There is a place in the market for intermediaries. People are confused and it isn’t only about rates, sometimes there are hidden charges and expensive additional products. Brokers do a pretty good job of guiding customers through this.”

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  • Keith 5th August 2010 at 2:30 pm

    What a weak response from Tenet, talk about turkeys voting for Christmas. They are plenty of other lead providers out there and theres nothing special about PAA’s leads. Keith Richards should grow a pair.

  • Luke Atkinson 4th August 2010 at 2:26 pm

    I find it almost comical that Money Supermarket ”stand by” Mountford’s comments, which incidentally are quite ironic considering he is the ”Head” of Banking and anyone with any ounce of industry knowledge will know that its the banks that fail to offer choice to the consumer by only offering products from their own range.

    I wonder if Money Supermarket are aware of the snivelling email that was sent around to all of PAAs account holders, explaining that they ”apologise unreservedly for any misunderstanding caused by this press release”.

    Personally I think its the final nail in the coffin for PAA who provide low quality leads where the clients are rate hunters and have no intention of committing to the broker who gives them the information. Don’t bite the hand that feeds you MSM/PAA. Silly billy.

  • Ancient Wisdom...is a mortgage broker in N3. 4th August 2010 at 12:41 pm

    Tenet needs to realise very quickley, that these companies exist because of brokers buying their leads, and to then publish an article and message that its best not to use a broker is shocking.

    People are not stupid, they shop around and will do their own research – and very often, alot of the cases I tie up are the HSBC and BOI rejects.

    Lenders choose how to disctribute, and as a broker, I choose whether or not to support a company sending out such comments without fact.