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PTFS axes Paaleads from its lead generation panel

Personal Touch Financial Services has axed the Moneysupermarket.com owned Paaleads from its lead generation panel in the wake of its parent group’s negative comments about consumers using brokers to access the best mortgage deals.

At the weekend Moneysupermarket.com issued a press release stating that research showed 90% of the best mortgage deals were now only available direct.

It went on to warn consumers that anyone using a mortgage broker “needs to be aware that the range of products available may be limited”.

In a press release yesterday the company looked to retract the original figures but emphasised that brokers were “vitally important” to it and that the original press release was, “not intended to cause offence to brokers”.

The company says it was merely meant to emphasise that some consumers who are used to going to a broker will not be aware of how the market has changed.

But Dev Malle, sales and marketing director at PTFS, says the damage has already been done.

He says: “Even when Moneysupermarket had retracted its ill thought out comments, it was too little too late.

“It is not the first time it has misjudged the broker community and I am somewhat shocked.

“The sales team from Paaleads is out there trying to mend things when it decides to send out a press release which it then retracts as it is factually incorrect. Paaleads, which is part of Moneysupermarket.com, generates income from selling leads to the intermediary and it appears that a significant proportion of customers who approach its website, ask for advice, which turns into a broker lead.

“Clearly it has its own agenda and we need to trust and work in partnership with organisations to provide support and service to our community of advisers, we cannot do this where our customers value is being wrongly challenged.

“We have therefore taken the difficult decision to serve notice on the corporate relationship we have with Paaleads and remove them from our lead generation panel.

Dean Jones, head of Paaleads, says: “The comments that were made were about direct deals, we are committed to the broker market. We are contacting all of our broker clients to reassure them of our commitment.”

 

 

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  • michael hocking 29th August 2010 at 5:38 pm

    I spent a large part of my broker income on paa leads, most of which were rubbish. I am no longert a broker and would never buy leads from them again if I were to return to the industry. As long as there are direct products – I’m out!

  • Keith 5th August 2010 at 2:23 pm

    Rob, I think you have rather missed the point. Perhaps you should look outside of your own selfish needs and consider suporting the broker community you belong to. Your clients need quality independent advice and not put off using brokers by the ignorant comments from Moneysupermarket. There are plenty of other lead providers out there, have the decency to stop using PAA and tell them why. same goes for everyone else and well done PTFS, its a start.

  • Rob 5th August 2010 at 9:31 am

    i have to say I find most of the comments on here very funny… I have used PAA for 7 years now and they are the mainstay of my business, I am one of the top producers in a very large network and that is all due to Paaleads. I have taken thousands of leads and I havent converted all of them obviously but I have done very well on them and have a national client bank that I would never have got without them… Personal Touch seem to have a very thin skin and I suspect that this move is not about an article…
    Some advisors are not going to take leads from PAA anymore… Great more for me!!!!

  • Dan McGeehan 5th August 2010 at 9:07 am

    I personally do not use PAA Leads as the few times I did the quality was not that great compared with the price. That said other brokers have had a good relationship with them and I hope that not too many brokers with PTFS will suddenly have to look for other avenues of business if they are currently reliant on PAA. The decision to use a lead provider should be left up to brokers unless the company is breaching FSA rules not a network. If PTFS trully want to help the broker community they should be more vocal in their condemnation of lenders dual pricing.

  • DC 5th August 2010 at 8:49 am

    I think everyone is behind the decision to leave PAA, but it would appear that everyone on here has left them a long time ago.

    Have they ever offered good leads?

    I have only found leads to be a complete waste of time and money.

  • Rob 4th August 2010 at 6:24 pm

    I really dont understand what all the fuss is about… PAA provide people for us to talk to.. I have a very successful business built on their leads… Some people dont get on very well with internet leads which is sad but as the leads are not compulsory dont come on here and moan about it, its not some big conspiracy, im sure PAA want you to do well with the leads so that you come back for more..

    as for some of the posts on here seeing the end of price comparison sites… what a laugh… The public are voting with their feet, the internet is here to stay, seen many Travel Agents on your high street lately?… no.. I wonder why?
    The next generations will be even more net obsessed.
    I frankly think PAA are a godsend, I have the power of Moneysupermarket at my disposal and I have thousands of clients who would never of heard of me without them.

  • Michael Jones 3rd August 2010 at 2:37 pm

    “We are contacting all of our broker clients to reassure them of our commitment.” – That shouldn’t take them very long now.

  • Trevor Johnston 3rd August 2010 at 1:54 pm

    Great. I cannot stand these comparison websites. Recently argued the case for a Life Company to move away from these non advised sales (to my L & G Rep). She told me of the importance of comparison websites to their business and that I may have to consider adapting my business to fee charging. She could not accept the argument that charging someone £500 upfront to arrange a protection is a little difficult.

  • valleyboy 3rd August 2010 at 12:42 pm

    Moneysupermarket obviously see’s the brokers as a threat. Their product via PAA has always been poor, and their admittance to having in house brokers doesnt fill anyone with confidence as to their intentions and the quality of the product. IMO the price comparison websites are in their death knell, as consumers are becoming far more wary, they have taken a pounding from various watchdogs, and i see this as a way of trying to re establish their worth in the market. i havent bought a lead from them for a long time now and certainly will not in the future.

  • Ben Larkin 3rd August 2010 at 11:02 am

    Well done Dev and PTFS! We’ve found brokers have been leaving PAA in their droves and looks like this is the straw that broke the camel’s back http://www.premier-leads.co.uk

  • Alan J Nadin 3rd August 2010 at 10:37 am

    Good Move PTFS, more networks do this please and as an earlier post suggested, perhaps now a good time for Network heads to combine thoughts and power in terms of moving lenders to treat brokers more fairly and truly recognise once more that we have and will always be the most cost effective channel for distribution….we are not on salaries, pensions, don’t require sick pay or holiday pay and pay for our own offices!

    Most importantly, we offer the client whole of market advice, or multi-tied panels, which if a lender was offering the lowest deal and the right criteria, would receive the business volumes anyway at a lower distribution cost…get it now?

    My colleague commented that the holier than thou attitude displayed by MS.com is incredible when you consider their background and they are paid fees to advertise for others and not offer advice to the customer. Any fool can put a list out, it’s not that difficult to provide that information if you wish to do that. One might suggest that MS.com and the banks start to respect IFA’s and Brokers as genuine business partners, not just something you would like to give you business, then not provide the service to, pay no respect to and in certain cases question the validity of paying a proc fee to.

    There is a valid place for all, lets work together for each other’s benefit and ultimately the consumers rather than putting bigboy comments out there that are factually incorrect…..and will cost you!

  • David Penny, PFC Mortgages 3rd August 2010 at 10:36 am

    A decision based on principles & integrity, lets see if others have the cohanas to follow the lead. Be interesting to see if Mr Lewis mentions this via any of his media outlets ..

  • Tom Cleary 3rd August 2010 at 10:13 am

    This was a massive own goal from Money Supermarket/PAA. I assume Kevin Mountford will be tendering his resignation. If he was Japanese, he would have fallen on his own sword long before now…

  • Mark Stroud 3rd August 2010 at 10:11 am

    Well done PTFS it’s nice to see a network with some guts!
    It is important we just do not stop buying leads from PAA but also email them and request the account be closed and why.

  • Andy Alcock 3rd August 2010 at 10:10 am

    Good move I do hope that more networks follow the lead set by PTFS

  • Paul Iley 3rd August 2010 at 9:50 am

    Nice one Dev.
    Too many of these lead providers seem to have a ‘take it or leave it’ attitude.
    let’s hope enough people boycott them to make a difference

  • Mr Cynical 3rd August 2010 at 9:44 am

    PTFS being altruistic and protective of the broker community, or ….. more to the point, is Martin’s new lead generating company about to launch and they simply wanted an excuse to get rid of a lesser commercially viable arrangement / competitor?

    hmmmmm

  • Stuart Mahoney 3rd August 2010 at 9:35 am

    This saga smacks straight to the heart of some of the key issues we need to address – ‘buying money’ is a commoditised decision, doing so with the support of an impartial broker who’s advice, guidance and assistance many customers fundamentally need, is a value-based one.

    What is true for car insurance, is not for mortgages, no matter what the comparison engines espose.

    It remains abundantly clear that people continue to seek advice – they should not be penalised as a result.

  • Steve Wentworth 3rd August 2010 at 9:34 am

    Well done PTFS, as the ex IT development manager at Mortgage2000 (now an independent mortgage adviser) I had first hand experience that Moneysupermarket sideline the broker community for there own agenda.

  • Mike Fitzgerald 3rd August 2010 at 9:29 am

    Im surprised that moneysupermaket.com have made negative comments about brokers and its good to see that a major network has dropped PAA ledas from their panel.

    I now feel that many other networks wil start to use their power in a more collective way and put pressure on lenders to treat brokers more fairly.Perhaps its time for a summit of network leaders to use their power to assist brokers

  • Chris Cocksedge 3rd August 2010 at 9:17 am

    Well Done! At last, brokers and networks making a stand. I hope everyone follows Dev’s lead

  • Rob Barwell 3rd August 2010 at 9:13 am

    Fantastic, good for Dev malle. Moneysupermarket can get stuffed for leads from me too

  • nick johnson 3rd August 2010 at 9:10 am

    I agree i think paa leads are feathering their own nest trying to make them selves look good. I will not be using them again
    I offer both direct and brokers deals.
    I think this is blow below the belt from money supermarket .I hope brokers look at this who have supported money supermarket previously.Broker do a great job helping clients through the maze that are mortgages. Helping the client through this and give good value
    Nick

  • Robert White 3rd August 2010 at 9:07 am

    lots of clients that go for direct deals are declined because they do not met the lenders criteria.The more brokers that vote with their feet the sooner the likes of money supermarket will get the message,they need us more than we need them.

  • Jonathan Miller 3rd August 2010 at 9:06 am

    Good Move!

    I would hope to see PAA reduce their lead fees in penance for the press release.

  • Kevin Fowler 3rd August 2010 at 9:03 am

    10 out of 10 to PTFS but now tell us how you manage your relationships with the dual pricing lenders and Santander who continue to rip customers away with their retention policy. Its a good start but as a community we need to work on some of the bigger threats than those of moneysupermarket.

  • Jon 3rd August 2010 at 9:02 am

    Well done to PTFS.

    Of course, some of us axed PAA years ago anyway….

  • Lara Mackie 3rd August 2010 at 8:58 am

    Well done to PTFS. Now the rest of the brokers market needs to do the exact same.

    STOP BUYING LEADS FROM THESE PEOPLE.

  • Patrick Boyle 3rd August 2010 at 8:48 am

    Well done PTFS, i hope other networks axe PAA Leads panel.

    It’s about time networks stood up so called service providers, i hope Abbey / Santander have a similar wakeup call after their recent reduction of fees for direct cases.

  • Ketan Yadav - Avenue & Co Private Finance 3rd August 2010 at 8:45 am

    Us brokers are a big force, we do a good job for many buyers and in the current climate, broker advice is paramount to helf client’s make the right decisions.

    Well done PTFS – hopefully more will follow. As of yesterday, we too are cutting ties with Moneysupermarket.

    Lets all get together, and show what we can achieve when times are difficult to say the least.

  • Danny Lovey 3rd August 2010 at 8:41 am

    Well done Dev!