# Should consumer advocacy groups get involved in business?



## Brendan Burgess (30 Nov 2014)

IMHO applies to become a mortgage broker!

New Beginning plans to buy 15,000 distressed mortgages from banks

Eddie Hobbs new Brendan Investments vehicle

I think it's very hard to advocate on behalf of consumers and also make money from them. 

I had no problem when a good financial advisor like Eddie became the consumer finance spokesman for the Consumers Association.  He knew the business. He knew the issues.  He knew where the conflicts of interest were and I trusted him to act accordingly. It was better to have an expert working on behalf of consumers, than having someone independent who had no knowledge of the area.  I wasn't comfortable with the way he promoted property in Cape Verde.  I didn't think that Brendan Investments was a  good move. I  just didn't think that he had a track record to be a successful property investor. 

Now let's say a German bank set up in Ireland and started offering tracker mortgages at ECB + 3%.  I would promote them heavily on askaboutmoney and anywhere else I could. 

But what if a German bank contacted me and asked me to become a director to promote their mortgage lending in Ireland?   Or to lend my name to their application for a banking license in Ireland? 

If they then came in and offered trackers at ECB +3%, then I would be very happy with my work, and would have no qualms about getting paid for it.   

Of course, if they started lending at 4%, then I would have to criticise them as much as I criticise other lenders, but would I be able to do so after  I had been paid by them?

What if a new board of Irish Nationwide had asked me to advise them on how to change their lending practices?  I would gladly have done it as my campaign objective was to improve their lending practices. If they had offered me a three month assignment to work full time for them in changing things?  I would like to think that I would be independent minded enough to be free to praise or criticise them subsequently. But my perceived independence would be compromised.


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## Brendan Burgess (30 Nov 2014)

If I heard that a vulture fund had bought 15,000 very distressed mortgages from the main banks, I would be very concerned for those borrowers. The vulture fund's objective is to make as much money as possible and I would not expect them to treat the borrowers well. 

If I then heard, that Ross Maguire was a director of the Vulture Fund and would be responsible for making sure that the interests of borrowers were kept in the forefront, then I would be much happier. 

But then I would expect him to stop advocating on behalf of borrowers generally.  I think that he would have to leave New Beginning.


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