Mortgage/Remortgage leads and FSA compliance

**Michael_Anthony** · 05-02-08

Can someone with the relevant expertise please answer a question for me here.

To be FSA compliant, does the site....

a) Have to tell the applicant which broker/lender their application has been passed to after they have clicked "submit"

or

b) Have to request the applicant's permission to send their details to the specified broker/lender BEFORE they click "submit"

Many thanks in advance for your responses.

**russell cpanuk** · 05-02-08

The client has to be aware and agree. Many other factors too. So answer is B, but with a few more requirements.

**Michael_Anthony** · 05-02-08

And your/your merchant's forms do this?

**russell cpanuk** · 05-02-08

That’s correct they do, amongst many other things. You can have an unbranded site which generated the mortgage application, however the client needs to know who will be contacting them and agree to this.

So the applicant submits the application then the logo, Company Reg, Address, FSA number, DP number etc is displayed. Then they agree to be contacted by the broker (like a double submit)

Our form works on the first submit to work out which merchant the lead should be sent to from the criteria that is asked and supplied. This way the merchants only gets what he asks for.

Thats why we insist on I frames.

**lethal0r** · 05-02-08

are you sure on that russell? leadpoint do a).

before the form is submitted at all their statement reads:

By pressing submit you agree to be contacted by telephone by an FSA Authorised Mortgage Advisor and confirm that you have read and agree to the Terms & Conditions and Privacy Policy.

**bioalien** · 05-02-08

Based on your requirements we have selected an FSA regulated broker called BROKER NAME HERE to help you with your enquiry.

The applicant needs to be informed who will be contacting them before they proceed with the application. This can either be done via a two stage submit and confirm process or via AJAX and one submit button.

Leadbay does a good job of this, and they are a prime example of how it should be done.

**Michael_Anthony** · 06-02-08

"So the applicant submits the application then the logo, Company Reg, Address, FSA number, DP number etc is displayed. Then they agree to be contacted by the broker (like a double submit)"

So after the applicant is shown the logo, etc, they have to click again to send the app?

**russell cpanuk** · 06-02-08

There are many more agencies who govern “credit advertising” Advertising Standards, OFT etc. An FSA registered broker, has to comply with all the other agencies rules (so should everybody else) but they are very rarely enforced by the other agencies.

The FSA will enforce all advertising rules across all agencies, for its registered members.

Main points to remember, is what they call “TRIGGERS”

A trigger is words like “fast, CCJ, bad credit, low APR, cash back,” a whole array of words which are used on sites to describe the service/lenders.

Using these words, means affiliates/brokers sites are classed as “FULL ADVERTISING” which need to carry CCL, DP numbers, APR examples, registered address etc of the credit provider.

The “credit provider” is the broker who gains the commission from the lender.

Getting back to the FSA registered brokers, who are Mortgage brokers (not loan brokers) have to ensure that ALL compliance is in place from all introducers.

Most FSA registered brokers (Mortgage companies) will have compliance officers in house, and each one has their own slant on the rules, which makes dealing with more than one very difficult.

That’s correct Michael they do, with an unbranded site, “affiliate site” the applicant has no idea who the credit provider is, so they need to be made aware. If the client goes direct to the brokers branded site, then there is no need for a double submit, as the applicant has no doubt who they are applying to.

**Michael_Anthony** · 06-02-08

So all the applications go to EasyRemortgages, so there's no problem??

**simonb** · 07-02-08

Having spent literally hundreds of thousands on complaince advice I can confirm that it is our interpretation of the FSA regulations that b) is indeed the only compliant way of distributing mortgage leads. As far as I am concerned anyone who is doing a) is not acting in a compliant manner.

From an affiliates point of view though unless the affilaite is FSA authorised themselves then the onus is on the broker who purchases a lead to ensure that express consent to contact is obtained and if it is not then it is the broker who could have a probem.

**Michael_Anthony** · 07-02-08

Many thanks Simon. Can I just ask a further question here..

Is it OK to simply say "By pressing submit you agree to be contacted by telephone by an FSA Authorised Mortgage Advisor and confirm that you have read and agree to the Terms & Conditions and Privacy Policy"

as one of the above posters has suggested is the case with Leadpoint's approach,

or should it actually be the NAME of the broker/lender that is offered to the applicant before they commit to the application?

**simonb** · 08-02-08

It should it actually be the NAME of the broker/lender that is offered to the applicant before they commit to the application based on our interpretation of the FSA rules and bear in mind we spent a huge amount of time and effort on compliance advice when these regulations came into place in Nov 2004.

If you wan to see how it should be done take a look at the form we offer to our affiliates who want to make sure they're leads are being distributed compliantly.

My Mortgage Site - Speak To An Adviser

**simonb** · 08-02-08

Originally Posted by Michael_Anthony

Many thanks Simon. Can I just ask a further question here..

Is it OK to simply say "By pressing submit you agree to be contacted by telephone by an FSA Authorised Mortgage Advisor and confirm that you have read and agree to the Terms & Conditions and Privacy Policy"

as one of the above posters has suggested is the case with Leadpoint's approach,

or should it actually be the NAME of the broker/lender that is offered to the applicant before they commit to the application?

Michael - can you edit this post to refer to Leadpoint rather than Leadbay as it's what you meant I believe and could be confusing to people. Thanks

**russell cpanuk** · 08-02-08

Thanks Simon, showing your form will really help affiliates.

Other things to remember is that the form on it own is compliant, the content on your site “TRIGGERS” could then make it non compliant.

A trigger is words like “fast, CCJ, bad credit, low APR, cash back,” a whole array of words which are used on sites to describe the service/lenders.

Using these words, means affiliates/brokers sites are classed as “FULL ADVERTISING” which need to carry CCL, DP numbers, APR examples, registered address etc of the credit provider.

If your site or PPC adverts, have any “TRIGGERS” then APR, CCL,DP numbers must be shown.

Go to the OFT website, search for credit advertising, in the PDF, it will then show you examples of compliant and non compliant.

This is my understanding, maybe Simon can give his view on content around the application form?

**Michael_Anthony** · 08-02-08

Simon, many thanks for being so helpful - it is genuinely appreciated. Please forgive every negative comment I've ever made on here about Leadbay! That is one clever piece of coding, congratulations to whoever wrote it.

I have edited the post as requested.

It strikes me that with the exception of Leadbay, no networks supplying mortgage/remortgage leads are currently compliant.

Before you all shoot me down in flames here, perhaps anyone claiming compliance in contradiction of my comments above could ensure that they post a sample form, as Simon has done, to back up their claim.