Age Partnership dismisses phone fears

Last week, as part of SERA’s response to the Mortgage Market Review, it urged the FSA to ban telephone sales, arguing that face-to-face advice is the only way to check that consumers are fit to make equity release decisions.

SERA is also concerned that telephone sales could force home owners to take out a plan under duress.

However, telephone-based adviser, Age Partnership said over-the-phone and face-to-face advice should remain, in the interest of customer choice.

It pointed out that the number of plans arranged over the telephone has increased, despite a decrease in the size of the equity release industry.

Tim Loy, chief executive of Age Partnership, said a telephone model had the advantage that every conversation could be recorded and scrutinised.

He added: “However, whatever model is used, advisers should ensure they have the appropriate systems and training in place to deliver clear, independent and honest advice.”

Stuart Wilson, managing partner of Equity Advice, argued for both methods, saying that some customers might also be pressurised in a face-to-face meeting.

He added: “Proper guidelines should be followed, whether face-to-face or telephone-based. The telephone may mean that customers’ body language is missed, but face-to-face advice can also put customers under duress.”