Financial services group Mitchell Farrar Group
(MFG) is searching the motor finance sector for customers that have
been declined finance from all lenders, with a view to providing
them with financial advice, debt consolidation and PPI claims
management.
The group, headed up by managing director Jim
Rowley, formerly of The Funding Corporation, is offering dealers,
brokers and lenders an introductory fee and ongoing revenue for
referring deep subprime customers.
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According to MFG, customers whose financial
situation is improved by debt management and advice services can
then be turned back to lead introducers for future sales, providing
a customer retention benefit in addition to partnership
revenue.
In addition to the services listed above, MFG
also provides PPI claims management to customers through claims
management company (CMC) Investor Compensation Claims.
The Group has defended the small claims
management industry, saying its practice was reputable and
compliant with all formal guidance. Rowley has stated in the press
that CMC services have been important in defending consumers
against mis-selling by banks.
PPI claims have, however,
hit motor finance companies and some dealerships hard in recent
years.
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By GlobalDataNevertheless, MFG’s director of group
marketing Allan Brown says that the group’s debt management
business is operated on a completely separate basis from its CMC
subsidiary, and that customers introduced to the former would not
be cross-sold claims management if lead providers were against
it.
“From a Treating Customers Fairly perspective
we believe that we should try and explore as many options as we can
to improve customer finances, but whether we offered [PPI claims
management] to introduced customers would depend on our agreement
with that partner.”
fred.crawley@vrlfinancialnews.com
