Does your firm use preferred vendor lists? If so, then you could be looking in the face of regulators here shortly. Don’t be alarmed, you’re one in many identical firms using these lists. There are alternatives that can be used to replace these lists and avoid regulators.
A little background for those of you who don’t use or don’t know what these lists are, they’re used mainly to help consumers gather information for contacts of title settlement service companies, lenders, mortgage brokers, escrow agents, home warranty companies, insurance providers and home improvement contractors.
What’s wrong with these lists that are causing upset from regulators? The Consumer Financial Protection Bureau (CFPB) see them as marketing service agreements. Basically, they believe that the companies on these lists will refer business or other favors to the lender that hands these lists out, with is a violation of the regulators.
Other solutions to these lists can be in the form of an ad or a brochure. Running an ad for a company on your list on your website with a simple statement underneath stating that it’s a paid ad is not a violation. You can also set up racks of brochures or postcards in your office with their information on it as long as there is no clear or direct connection made of a referral of business.