Lender targets high-risk clients

A MORTGAGE broker has defended targeting high-risk clients when their names are listed among those who have hit hard times in the Stubbs Gazette — saying it is nothing other than good business practice.

Yes Mortgages said it will continue to source new customers whose ability to borrow has been damaged by the publication of court judgments against them in the credit rating magazine.

Yesterday, the company’s managing director, David Wylie, said the Gazette was an effective way of reaching its market.

“We only transact business with non-conforming lenders and therefore only on behalf of customers with an impaired credit history. We do not believe targeting our market is anything other than good business practice,” he said.

Subprime lenders have been criticised widely for offering high-risk loans to vulnerable customers.

The high level of default in this sector has caused turmoil in financial markets but Yes Mortgages said it does not feel its approach is unethical.

“We see no point in deliberately setting out to send unsolicited mail to customers who do not fit the profile of lenders’ products,” said Mr Wylie.

The Gazette’s publisher said it does not approve of companies using its service as a marketing tool.

Managing director of Business Pro, James Tracey, said the Gazette is designed to help companies identify credit risks and not to highlight subprime clients.

The practice came to light after a Limerick businessman received an unsolicited letter from Yes Mortgages.