If You Buy Leads You Must Read This Right Now!

From: Ameen Kamadia

Do you buy leads? Do you call these leads yourself?

If yes, then here is something that will scare the daylights out of you.

The Federal Communications Commission (FCC) issued a forfeiture notice to Dynasty Mortgage, LLC in the amount of $770,000 for 70 phone calls made by Dynasty to 50 consumers who were listed on the Federal Do Not Call List. According to the notice, Dynasty obtained the leads from a lead broker, who claimed the leads were scrubbed prior to Dynasty's purchase of the lead.

The forfeiture notice also found that Dynasty failed to comply with the Federal Do Not Call laws by failing to adequately train employees, maintain written guidelines, maintain an internal company do not call list, and failure to regularly download the Federal Do Not Call List and use the current list to scrub phone numbers before calling consumers.

In the notice to Dynasty the FCC also made it clear that purchasing a scrubbed list from a lead broker or aggregator is not compliant under the law.

The Dynasty Mortgage forfeiture notice is likely to have a sweeping effect on the mortgage industry. "I think this case is a wakeup call to all the mortgage companies out there that thought the federal DNC laws didn't affect them. This case shows that even companies that only conduct business in a local market within a single state need to comply with the federal guidelines," said Barry Kaye, a Beverly Hills attorney that specializes in compliance issues for mortgage companies. "It's a scary day for anyone that has relied upon buying "pre-scrubbed" leads since in and of itself this offers no protection."

Source: www.ftc.gov

What can we do so we don't get fined?

1. Stop calling people yourself. Unless you have a dedicated phone room and are compliant with all the Do Not Call requirements, DO NOT TRY THIS AT HOME! Find a company that will do the calling for you.

2. Thoroughly investigate the company you are buying leads from. Find out how they get leads, what questions they ask, and what guarantee they provide before you give them a dime.

3. The larger the company the less risk for you. This still does not absolve you of any responsibilities, but the larger a company is, the more they have at stake to lose and the more likely they will be following all the laws.

4. Generate your own leads. Use the Greed Stimulator to get homebuyer leads, The Marketing To Real Estate Agents Toolkit to get Realtors to send you leads, and Referrals on Demand to get your personal sales force to send you leads. By having these three areas covered, you never have to put yourself at risk of getting ratted out to the FTC by people who you paid good money to contact.

Happy Originating!


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