Skip to content 
‘Lack of trust’: Openwork puts in pre-approval system on debt consolidation advice
Advisers at Openwork now require pre-approval on debt consolidation cases before giving advice, which advisers have warned could see borrowers ‘go elsewhere’.
An email from Openwork to advisers stated it is moving all debt consolidation cases to pre-approval prior to the presentation of the advice.
It added that further details of this process will be communicated over the coming weeks.
Orchard Financial Advisers managing director, Ben Perks warned that, if Openwork does not ensure that the pre-approval process is “slick and same-day”, this could result in delays for borrowers for whom time if of the essence.
“If people are struggling to maintain debt monthly, hence the need to consolidate, the last thing they need is unnecessary box-ticking delays,” he said.
“I feel for brokers working under networks, and this could see borrowers go elsewhere”.
The move has been largely welcomed by advisers who appreciate the extra steps we are taking – Openwork
A similar sentiment was shared by Simple Fast Mortgage principal, Rob Peters, who cautioned: “The question is, ‘what lurks beneath the surface?’
“Networks rarely make these decisions without having encountered a problem with the advice or via quality control checks.
“Pre-approval adds another hoop to jump through and, if not handled swiftly, it could delay urgent cases where clients need fast solutions — especially in debt consolidation, where timing can be critical.”
However, Contractor Mortgage Services director, Ken James, pointed out: “You don’t make a change like this lightly, there must have been a serious amount of cases that were highlighted as not suitable or poorly documented.”
He therefore predicted that as the quality rises, Openwork will probably revert, but did acknowledge, for those solid advisers documenting and advising correctly, this change will be a “real pain”.
