WARNING – Darren Loades Of Insurance Advisernet Explains Why You MUST NOT Refer Your Clients For Credit Repair To A Credit Repair Agency
If You’re A Finance or Mortgage Broker or Professional Adviser, Then You Must Read Why You MUST NOT Refer Your Clients For Credit Repair
Darren Loades (Expert Mortgage Broker PI Insurance Adviser) explains why you must not refer your clients for credit repair services through a credit repair agency.
In this short (edited version of a much longer) telephone conversation, Darren Loades of Insurance AdviserNet explains to Graham Doessel where Mortgage Brokers could find themselves without Professional Indemnity (PI) Insurance cover if they refer their clients to a credit repairer who is not a lawyer/law firm.
This (video on YouTube)is just the main points of the conversation, reproduced with Darren’s permission.
Darren explains why:
- You must declare your referral income to your PI Insurer; and
- You must have a formal written agreement with MyCRA Lawyers; and
- You must not refer your clients for credit repair to a credit repair agency.
The video is just the main points of a 25-minute phone conversation between Graham Doessel of MyCRA Lawyers, and Darren Loades of Insurance Advisernet where Darren explained to Graham how a Broker referring their client to a credit repair agency, while knowing (or should have known) they (the credit repair agency) are not a law firm and therefore not legally entitled to offer Credit repair Services (legal work), are unlikely to be covered by their PI insurance in the event of civil litigation action against the Broker by the referred client.
This is something that, should a client referred to a credit repair agency get ‘miffed’ at you, could potentially destroy your business and so much more.
Example referring to a credit repair agency:
- Broker refers their client to (lovely, well-intentioned credit repairer) ABC Credit Repair Solutions; and
- Client does (or does not) get the outcome they wanted; and
- Client loses deposit; or
- Client loses the opportunity to buy the home etc.; or
- Client see’s what happened with other credit repair agencies in the media; and (another Shonky CRA)
- Client blames (see’s a potential pay-day) the referring Broker and sues you…
It seems the broker couldn’t rely on their PI cover for protection in the scenario above.
If this is a serious concern to you, please think about only referring your clients to someone you can trust. MyCRA Lawyers is the only Specialist Credit Repair Law Firm in Australia focused solely on Credit Repair with an independently and externally audited successful removal resolution rate of better than 9 out of 10 (91.6%).
So now you can make your mind up and decide if you must not refer your clients for credit repair to a credit repair agency, or if you’re willing to risk your entire business and reputation.
I look forward to welcoming you as a MyCRA Lawyers referrer.
Darren’s contact details for more information about PI insurance:
Dip Fin Serv (Broking); Q.P.I.B
Authorised Representative of Insurance Advisernet Australia
Authorised Representative No 262182
Level 1, Niecon Plaza, Victoria Ave, Broadbeach Q 4218
PO Box 1735, Broadbeach QLD 4218
email@example.com | www.insuranceadviser.net/drloades
(07) 5538 7655 | (0414) 999 065