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I just received a call from my recruiter stating that they cannot represent me for a position because I had previously applied for a different position within this company who's reporting manager is the same as the position they were to represent me on and because my resume was within that companies database. Can the hiring manager still contact me directly for this position which I was disqualified representation by the recruiter?

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The recruiter has disqualified you because if he sends in your name, he won't get paid. Yes the company can contact you. But are they aware of your interest, likely not. It might be best to directly apply for the position.

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    This. Remember that recruiters are not trying to "help you", they're trying to make money. They don't give a fig if you find a job or not. You have to take care and safeguard your own interests. Contact the company!
    – AndreiROM
    Commented Nov 11, 2015 at 19:39
  • well, they indirectly care if you get hired, it helps their marketing if they can say, "we find a job for 94% of our clients" or something. But I guess that can be said about everything. Does a restaurant really care if you liked the food, or are they only concerned with whether you'll come back or not talk bad about them. Everyone is self-serving ultimately. Commented Nov 11, 2015 at 20:10
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Absolutely. The recruiter has removed themselves from the transaction, so you and the company are free to do as you wish. I'd suggest sending your resume along to the company directly, to make sure they know of your interest.

Now whether the company is willing to talk to you is a different story.

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