You know all those telephone calls you receive out of the blue offering you a great mortgage deal? Well, the Financial Services Authority (FSA), the industry regulator, is planning to introduce measures when it introduces regulation for mortgage business in 2004/05 to prevent these so-called "cold calls".
In October 2002's consultation paper, this option was introduced and it has been reaffirmed again recently.
Our View
Many mortgage brokers and lenders are not happy with the move saying that it will severly dent the remortgage market where a lot of cold calling highlights better rates to the public. We believe that "cold calling" should remain, whilst we never employ such tactics at as clients approach us on a minute by minute basis, there are many that still use this route to attract clients.
Many consumers could lose out financially if they are not made aware of better terms. Removing this is also a barrier to competition and whilst we believe, a strict code of conduct should be employed, it should not be removed altogether.
Come on FSA, your duty is not just to protect the consumer, it is also to promote financial services to the consumer! Set some strict rules and then enforce them. Other industries seem to manage - why not financial services?
Search the news archive for more on the FSA or regulation.
Learn more about mortgages in our site Mortgage Crazy.com.