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“Badges? We don't need no stinking badges”

21 Feb 2012

A marketing opportunity of the very worst kind or out of adversity comes opportunity?

ABI Director General Otto Thoreson was meeting with the PM this week to discuss something that the UK is a Euro leader at - Whiplash claims management.

This unenviable accolade is generated by the unchecked growth of a fantastically poorly regulated industry that often encourages the opportunist in such an unchecked way that many would see the time has come to reset the moral compass if not the legal one too.

We examined some of the more outlandish examples of fraudulent claims recently and found that something really is “rotten in the state of Denmark”?

So with this thought in mind, I was taken aback by this e-mail landing in my Junk mail folder the other day.

It is one of the better examples of some of the worst excesses of the No Win, No Fee compensation culture that has grown unchecked in our country. Indeed it would be hard to find a more compelling reason for the PM to hold his summit with insurance industry heads, ministers and consumer groups.

Now please consider that this e-mail is directed at the intermediary distribution channel, yes, asking IFAs to pass clients to the firm. It read:

I hope you are well?

Creditline Financial in Peterborough assist in claiming of compensation for clients that have been Missold Payment Protection Insurance. We are very enthused about our business proposition and strongly believe this one area in a continuingly challenging Financial market where you can assist your client/s to obtain additional funds, receive a healthy financial reward for your self by simply asking the client

"Have they had or do they have PPI on any Loans, Credit Cards, Mortgages, HP agreements etc”, if the answer is “Yes” then the completion and return of the PPI Claims pack is required.  Clients who did not know about the PPI, were self employed when the policy was taken out etc genuinely have been missold and require your support.  Creditline Financial offer you and your business the following: -

  • No upfront fees to the clients as we ask them to pay 25%+ VAT of the overall compensation obtained. Meaning we do NOT get paid unless we offer an excellent service and obtain compensation
  • Access to a purpose built web based system (Access can be granted if this has not already been done)
    Capture the clients details, PPI questionnaires etc.
    Print off a blank or pre populated claims documents to obtain an instant sales opportunity
    Real time case tracking facility
    B2C Marketing material
  • Market rated commission which will provide you our Appointed Representatives with the greatest reward possible
  • Marketing and sales support is made available to maximise opportunities i.e. B2C editable Flyers, Adverts, Posters etc as you can become an Appointed Representative of Creditline Financial and come under our MOJ 
  • Fair and ethical treatment of clients.

Please feel free to contact me to discuss this further and I hope we can then be of further service to you and your clients. If this is not of interest to you or your business then please feel free to send me an email to opt out of future emails. I look forward to hearing from you shortly.

David Crowson - Sales Director
(w) 01733 393399
(m) 07740 236470

Now I understand that we all have to make a living but this symbiotic relationship attempt involves IFAs now being invited to join the process.

Creditline Financial is a trading name for Regency Mortgages under the MoJ registration confirmation. It is interesting to note that individuals at the firm in question are one Gregory Broder and Michael Castellano who used to be with a number of FSA registered firms – all strangely appear to no longer be in business, according to the FSA register.

David Crowson, the signatory has an involvment with an organisation called Brilliant Loans, it is not FSA registered but refers complainants to the FOS in its complaints section. And stangely enough, Brilliant Loans seems to be involved in the sale of PPI - how very odd?

Should we be concerned? Well I think we should because the individuals involved with Creditline Financial have worked within an FSA regulated business, they know what the FOS is set up to do and despite all this, plus FOS warnings for the public telling them that they do NOT need to use such firms, they see this as a business opportunity and are trying to solicit IFA business to introduce “business” with the promise of commissions.

The MoJ is so concerned it has a FOS focused update on Claims Managements firms on its site.

The financial services industry is going through one of the most radical overhauls ever seen yet while all this is going on, the more “Wild West” the legal system is becoming and one must question whether the MoJ is turning into a version of “Rock Ridge” where the town is out of control with no Sherriff.

Ken Clarke, what have you done?

There is no doubt that there will always be someone who has been disadvantaged in some way and needs help. It is also the case that many need protecting from themselves.  In this case, to quote Mongo, the consumer is “only pawn... in game of life” for organisations of this type.

Frankly, I am appalled that such firms are not regulated by the FSA. And I suspect that the FOS feels the same. There is a mindset reminiscent of Hedley Lamar when he said in Blazing Saddles “Unfortunately there is one thing standing between me and that property: the rightful owners”.

Clearly the Mexican Bandit in Blazing Saddles was right: “Badges? We don't need no stinking badges” because all you need is an MoJ accreditation and you are up and running.

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Comments (2)

Good Lord!

Have you only just twigged this?

Not only e-mails, but phone calls and text messages. There has even been a stall in our local shopping mall with a 'representative' chasing shoppers down the road haranguing them to make a claim.

This is just redolent of the ‘Compensation Culture’ which has become so common. With regard to whiplash for example the lawyers and the Insurance companies are also complicit. We all know about the lawyers; but the insurance companies get kick backs from car hire firms and repair garages. Doctors are involved – from both sides. They earn from the ‘injured’ and from the insurance companies who often want claimants examined. Hospitals also now charge a fee for those admitted as a result of a car accident in the knowledge that they too can cream off something from an insurance company. So there are a multitude of snouts in the trough.

And what is underlying it all that has helped to encourage this venality? Well I guess it began in earnest with the ‘pensions mis-selling’ review and was further encouraged by the FOS and FSCS. Now I’m not saying that in principle these are not worthy institutions, but as ever the law of unintended consequences comes into play and as so often in trying to ‘do good’ you merely let the feckless, the venal and the plain crooked off the leash.

Norwest   16/02/2012   09:26
This is a sick state of affairs, in this case the "pushers" are ex FSA registered. I had this mail too and was staggered that they were trying to get IFAs involved. They really should know better and should certainly know the FOS attitude to firms offering such a service.

cortesin   16/02/2012   15:18


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