1.2 What are the advantages and disadvantages of the correlation model he has developed? Lombard Direct must have one of the bestknown telephone numbers in the UK, 0800 2 15000, which is based on their slogan ‘loans from 800 to 15,000 pounds’. Lombard Direct is a subsidiary of Lombard Bank, part of the National Westminster Bank group. Unsecured loans over the telephone constitute about 90 per cent of the company’s business, other products including insurance on loans, house, contents and motor insurance, savings and a credit card.

The main call centre, in Rotherham, South Yorkshire, is a 24-hour operation that operates every day of the year. The centre handles over 2 million calls a year. Monday is a typically busy day, when around 6,000–7,000 calls are received.

The call centre has around 200 seats (for the customer advisers – CAs) and employs around 250 full-time equivalent staff, with a large contingent of part-timers. Callers are asked a number of questions to rate their creditworthiness and are allocated into a band. This risk assessment, together with the size of the borrowing requested, determines the rate of interest to be charged