Free Press Release Submission

September 24, 2008

Consumers must take responsibility for their own financial health says Burgesses

Filed under: Press Release - Administrator @ 1:46 pm

Consumers must proactively seek to protect themselves in the face of a rising tide of unemployment and take responsibility for their own long-term financial health, says payment protection insurance specialist, Burgesses.

The Confederation of British Industry (CBI) has significantly revised its economic outlook and in its most recent forecast, released today (15.09.08), believes the UK is now entering a recession that will put hundreds of thousands of people out of work.

The CBI believes unemployment will rise over the course of the coming months, breaking the 2 million barrier in 2009. This is a very much bleaker outlook than the CBI gave earlier in the year when it said the UK would avoid recession and is a clear indication of just how bad things are likely to get.

Given the deteriorating economic situation, Sara-Ann Burgess, director at Burgesses, said it was up to each and every individual to take responsibility for their own financial situation and make sure it was sustainable in the changing environment.

While UK consumers have been quick to take on debt, not all had been so quick to make sure they could pay it back and in a faltering economy, such provisions will prove essential, according to Burgess.

She said: “Hundreds of thousands of people are going to lose their jobs over the coming months and this is going to make it very difficult for many of them to meet their financial commitments. Finding new jobs is not going to be as easy as it has been in recent years and for those that do not have savings to meet the mortgage or pay their monthly credit card bills, getting insurance in place now will help them avoid financial disaster if they are made redundant.”

Despite changes to the Income Support for Mortgage Interest benefit, which will come into force next year, the vast majority of consumers will receive no help with their mortgage should they be unable to pay due to redundancy.

Burgess said it was time for consumers to take responsibility for their own future financial health and urged them to see what the protection market had to offer.

“There is robust, low cost protection insurance available in the market despite some of the bad press the protection industry has received. Those who would be unable to pay their mortgage if they were made redundant should investigate their options. This economic storm is going to get worse before it gets better and consumers must protect themselves.”

About Burgesses

Burgesses is a trusted and respected name in Payment Protection insurance (PPI) and has established its credentials over many years. The firm is headed up by Sara-Ann Burgess, who has made it her mission to push for fairness, value and efficiency in the Mortgage Payment Protection insurance market.

Income protection can lessen financial hardship for credit crunch casualties

Filed under: Press Release - Administrator @ 1:45 pm

As the economic downturn gains momentum and credit crunch casualties continue to increase, it’s more important than ever for consumers to take out some form of income protection, so they can pay their monthly bills should they lose their jobs, warns Payment Protection Insurance sector lobbyist Sara-Ann Burgess from Burgesses.

As the economic downturn gains momentum and credit crunch casualties continue to increase, it’s more important than ever for consumers to take out some form of income protection, so they can pay their monthly bills should they lose their jobs, warns Payment Protection Insurance sector lobbyist Sara-Ann Burgess from Burgesses.

She comments: “Only this week we’ve seen the collapse of the fourth largest investment bank, Lehman Brothers and witnessed on the news, employees packing up their belongings in boxes, facing an uncertain future. XL Airways employees were equally devastated to find they were out of a job last week and there’s a general nervousness about the stability of HBOS.

“Now is not the time to turn your back on income protection, it’s vital that during these difficult times, everyone has a financial safety net to help meet monthly commitments should something happen. Even if you have savings to fall back on, how long will these last given the current food, fuel and utility prices? Income protection provides a monthly replacement income for up to a year, paying those all important bills and giving much-needed financial breathing space to those who either need to find a new job or recover from an accident or sickness.”

The reputation of the PPI sector has been tarnished over the years - it’s currently under close scrutiny from the Competition Commission, following allegations of mis-selling, high pressure sales tactics, over-priced products and vast numbers of claims rejections, due to policies being sold to the wrong people.

Consumers have subsequently turned their back on providers. This, suggests Sara-Ann, is leaving millions of people exposed to financial hardship should they be made redundant, have an accident or become sick.

She continues: “Over-priced PPI products have been marketed by High Street banks and building societies for years and people now take the view they would rather save their money and take a chance. In this current climate, it’s a very risky strategy and one I do not recommend.

“However, there are many more-ethical independent income protection providers who offer good value products that are very comprehensive in their cover and not over-priced. Prices start at £1.90 per £100 of monthly income.”

Sara-Ann concludes: “Over the last week we’ve seen people in despair, wondering how to pay their bills, feed their children and keep a roof over their head when there are no wages coming in. Whilst the redundancy could not have been avoided, the financial hardship that will inevitably follow can.”

About Burgesses

Burgesses is a trusted and respected name in Payment Protection insurance (PPI) and has established its credentials over many years. The firm is headed up by Sara-Ann Burgess, who has made it her mission to push for fairness, value and efficiency in the Mortgage Payment Protection insurance market.

LTSB takeover relieves pressure on HBOS but not those in mortgage arrears

Filed under: Press Release - Administrator @ 1:42 pm

News of Lloyds TSB’s takeover of HBOS will do little to help the thousands of people falling into mortgage arrears says Payment Protection Insurance lobbyist Sara-Ann Burgess from Burgesses.

She comments: “Whilst this £12.2bn takeover might relieve the pressure on HBOS, it will not ease the financial burden felt by hundreds of thousands of people faced with crippling debts and little support from their lender. More and more people are losing their jobs and struggling to make ends meet, but this is of little concern to these two organisations that collectively will become a ‘super bank’.”

According to the Council of Mortgage Lenders, at the end of the first half of this year, 155,600 households had arrears of three months or more. Many have contacted the National Debtline - the debt advice charity reports that 4,154 calls, in connection with first and second charge mortgages, were made during June, July and August this year, up from 2865 the previous year.

Sara-Ann asks: “Where are the lenders when their customers need them most? If they’re calling Debtline it must be because they’re getting little support from their mortgage company. The Charity has been recruiting to try and keep pace with the demand for its services – there are now 100 staff on hand to give advice, but I suspect this is the tip of the iceberg. The numbers of callers would double again if the capacity to help them increased.”

There are also worries that LTSB and HBOS will hold a collective customer base of nearly one third of the UK’s savings and mortgage market, creating a larger captive audience, for the marketing of its own-brand PPI.

Sara-Ann continues: “There’s a general nervousness about the stability of jobs which means more people may consider purchasing PPI as a financial safety net. This is great news, but consumers should not buy cover that’s offered by their lender – shop around, as much cheaper and more comprehensive policies can be sourced via independent providers.”

She concludes: “I hope more support will be given to those struggling to make their mortgage repayments and customers will not be taken advantage of. I also urge people to purchase PPI – it provides some financial breathing space for those made redundant – something I hope the 40,000 or so employees, plus staff working in businesses that support LTSB and HBOS will get.

“There is robust, low cost protection insurance available in the market despite some of the bad press the protection industry has received. Those who would be unable to pay their mortgage if they were made redundant should investigate their options. This economic storm is going to get worse before it gets better and consumers must protect themselves.”

About Burgesses

Burgesses is a trusted and respected name in Payment Protection insurance (PPI) and has established its credentials over many years. The firm is headed up by Sara-Ann Burgess, who has made it her mission to push for fairness, value and efficiency in the Mortgage Payment Protection insurance market.

September 12, 2008

Choosing to use an offshore insurer could seriously damage your wealth says Burgesses.com

Filed under: Press Release - Administrator @ 3:49 am

Intermediaries are being warned to check the domicile of their general insurance product providers, or risk being out of pocket. That’s because providers that are domiciled overseas are not subject to the demands of the Financial Ombudsman Service (FOS) and the Financial Services Compensation Schemes (FSCS), says Burgesses.com.

It cautions that when the mortgage and general insurance industries came under statutory regulation, they immediately signed up to meet industry standards of professionalism and competence – that included offering access to the FSCS. Crucially, the FSCS has the power to compensate consumers in the event of the failure of any firm that is authorized. That guarantee does not apply to customers of firms domiciled outside the UK. That can have real consequences for intermediaries selling or advising on products from overseas providers that have no obligation to the Financial Services Authority (FSA) or the FSCS.

Sara-Ann Burgess managing director of Burgesses.com explained:

“Intermediaries choosing to sue these firms are denying their clients access to the compensation through the FSCS should something go wrong and they could end up footing the bill.

“Those advising or selling products provided by insurance firms that fall outside of the regulatory regime, and therefore not suing the key facts logo nor providing prescribed information, could also be deemed to fall foul of the FSA’s treating customers fairly guidelines.

“Intermediaries should do a little homework to make sure they don’t place themselves in a vulnerable position by using a non-UK regulated product provider.”

About Burgesses

Burgesses is a trusted and respected name in Payment Protection insurance (PPI), Credit Card PPI and has established its credentials over many years. The firm is headed up by Sara-Ann Burgess, who has made it her mission to push for fairness, value and efficiency in the Mortgage Payment Protection insurance market.

Address & Contact Person

Burgesses Limited
PO Box 6164
Braintree
Essex
CM77 7ZW
Sara-Ann Burgess
01371853027

Credit Card PPI – another consumer rip off warns Burgesses

Filed under: Press Release - Administrator @ 3:46 am

News from Which Magazine that over 9.8million people with credit cards are forking out £127 each for worthless Payment Protection Insurance (PPI) is shocking and another blow to ethical providers who are trying to salvage the reputation of an industry rife with malpractice and greed, says PPI sector lobbyist Sara-Ann Burgess from Burgesses.

Which? reports today that almost 1.3million people buy credit card PPI in the belief it will improve their chances of being approved for credit and it appears providers positively encourage this view; three in ten consumers were told upon application that ‘PPI is a good idea’. 

However, Sara-Ann echoes the sentiments of Which? and says this cover is unnecessary and rips off consumers: “I applaud this campaign from the consumer watchdog - people need warning about this product. Ninety five per cent of premiums are taken in commission by providers, very few claims are ever paid and it will not provide a financial safety net for those with mounting debts.”

She continues: “Credit card PPI only pays the outstanding minimum monthly balance leaving an outstanding debt which will still have to be paid once the 12 month payment period expires.  Consumers are better off reducing their level of debt rather than spending their money on insurance that will not pay out when it’s needed.  If the policy does pay out – and only 11% are ever successfully claimed – it will have little impact on the overall amount owed on the credit card.”

Credit card PPI is worth over £970 million a year to the PPI sector, making it the second biggest selling product.  Sara-Ann concludes: “It’s no surprise to find credit card providers pushing this product, they make a tidy profit!  If you’re adamant you want this type of cover, buy a policy from one of the independent providers.  Prices start at around £6 - a twentieth of the costs charged by credit card companies. Alternatively, opt for income protection – it pays all the monthly bills, not just credit cards, should accident, sickness or unemployment occur.

“During these difficult economic times, it saddens me to find consumers are falling victim to unscrupulous profit-driven companies who although profess to caring about the financial well being of their customers, are keen to encourage them to push themselves further into debt.  Don’t waste money on premiums; use it to line your pockets instead.”

About Burgesses

Burgesses is a trusted and respected name in Payment Protection insurance (PPI), Credit Card PPI and has established its credentials over many years. The firm is headed up by Sara-Ann Burgess, who has made it her mission to push for fairness, value and efficiency in the Mortgage Payment Protection insurance market.

Address & Contact Person

Burgesses Limited

PO Box 6164
Braintree
Essex
CM77 7ZW
Sara-Ann Burgess
01371853027

Heads should roll over discrepancy between protection in rental and private property markets says Burgesses

Filed under: Press Release - Administrator @ 3:42 am

Senior heads should roll at the Council of Mortgage Lenders (CML) after failing to secure an equitable level of state protection for mortgage lenders in both the private and rented sectors.

Sara-Ann Burgess, Managing Director of payment protection insurance specialist Burgesses, said the CML had been ineffective at lobbying the Government to improve the level of benefit offered to those unable to pay their mortgage because of accident, sickness and unemployment. This does not compare favourably with the more easily accessible and immediate level of protection offered to tenants who are unable to pay their rent because of similar problems with accident, sickness or unemployment.

The disparity between the help available to borrowers in the private sector and tenants in the rental sector means there is a safeguard for landlords, which will in turn help them to meet their mortgage commitments.

However this safeguard is not in place for borrowers in the residential sector leaving mortgage lenders carrying the can should their customers be unable to afford repayments.

“The CML has been ineffectual at getting the Government to make any movement on this issue,” says Burgess. “Both residential mortgage borrowers and lenders will suffer because of the lack of help available from the Government and the CML’s inability to get the Government to change its stance may end up costing numerous members of the CML very dear indeed.” 

The Local Housing Allowance was introduced nationally on 7 April 2008 and is a new way of working out Housing Benefit for private tenants. However while a lot of work has gone into protecting those who are struggling to pay their landlord, nothing has been done to change the rules surrounding the help afforded to borrowers in the residential market.

Currently, not everyone is eligible for help and those who are have to wait 9 months before the government will help with their mortgage. However, it will only pay the interest on a maximum of £100,000 and at a fixed rate of Bank Base Rate plus 1.58%.  This is to change in April 2009 to 3 months and £175,000.

“This is an issue that the CML should have been pushing harder to resolve,” says Burgess. “Mortgage payment protection insurance has not created the safety net that the Government had hoped and the lack of state funded aid means residential mortgage lenders will have to pick up the cost of defaults because of accident, sickness and unemployment.”  

About Burgesses

Burgesses is a trusted and respected name in Payment Protection insurance (PPI) and has established its credentials over many years. The firm is headed up by Sara-Ann Burgess, who has made it her mission to push for fairness, value and efficiency in the Mortgage Payment Protection insurance market.

Address & Contact Person

Burgesses Limited
PO Box 6164
Braintree
Essex
CM77 7ZW
Sara-Ann Burgess
01371853027

Portability to escape protection Trap says Burgesses.com

Filed under: Insurance - Administrator @ 3:37 am

Thousands of mortgage borrowers who suffer from pre-existing medical conditions have found they are effectively trapped into unsuitable – and often very expensive – payment protection policies.

New research conducted this week by Burgesses.com has revealed that these unsuspecting borrowers are tied into deals because mortgage lenders’ mortgage payment protection insurance (MPPI) policies are non-transferable between lenders.

Alarmingly, these policies – which are supposed to pay out in the event of accident, sickness or unemployment – have built-in clauses that will exclude medical conditions that exist or have occurred within 12 months of the start date.

Sara-Ann Burgess, spokeswoman for Burgesses.com says, “It’s a shocking and outrageous reality that anyone with a pre-existing condition is seriously prejudiced because lenders’ policies are non-transferable between mortgage providers. I believe the only reason for this is that the lenders want to tie their most vulnerable borrowers into financial arrangements that are often poor value for money.”

An alternative, and far more beneficial way of buying the cover, is to go through a specialist broker, because these do not prejudice policyholders who have developed a medical condition but may wish to change mortgage providers.

Burgess continues “Pre-existing condition exclusions are wholly unsatisfactory because you are effectively underwritten at the point of claim and having a new exclusion each time you change your mortgage exacerbates this further. The key is to make sure you buy a portable policy at the outset.”

About Burgesses

Burgesses is a trusted and respected name in Payment Protection insurance (PPI) and has established its credentials over many years. The firm is headed up by Sara-Ann Burgess, who has made it her mission to push for fairness, value and efficiency in the Mortgage Payment Protection insurance market.

Address & Contact Person

Burgesses Limited
PO Box 6164
Braintree
Essex
CM77 7ZW
Sara-Ann Burgess
01371853027

September 4, 2008

Mortgage borrowers are wasting £480 million a year on overpriced Mortgage Insurance says Burgesses.com

Filed under: Insurance - Administrator @ 10:11 am


Mortgage borrowers are wasting £480 million a year on overpriced Mortgage Payment Protection Insurance (MPPI) according to Burgesses.com who say that a staggering 90% of mortgage borrowers purchase cover from their lenders instead of shopping around for a better deal. In fact, even in the first year alone the average mortgage borrower can make substantial savings by switching to an independent provider.

Commenting upon its research, Burgesses.com Managing Director, Sara-Ann Burgess says, “Loyal consumers are paying the price of apathy and are paying hundreds of thousands of pounds over the odds for cover which is available from independent providers for a significantly lower price.

The cost of cover varies dramatically. Cheltenham & Gloucester charges £7.70 per £100 of cover, whereas the Alliance & Leicester rate is £5.45. However, independent providers such as Britishinsurance.com offers cover for only £3.95 plus three months’ free cover.

Sara-Ann Burgess continues, “Just because cover is more expensive doesn’t mean that it is better. In fact, it’s all obtained from the same source, the only difference in 99% of cases is how much commission goes into the lender’s pocket.  The vast majority of the major lenders retain at least 70% of the premium in commission.”

The UK economy is growing at a sluggish 1.7%, the slowest growth for a decade. Accordingly, most mortgage borrowers must now assess their need for insurance. They must not however be victims of inertia and must shop around for a better deal.

The cost of Mortgage Payment Protection Insurance for the UK’s top ten providers is detailed below:

Cost per £100 of Full ASU cover

Cheltenham & Gloucester                                                     £7.70

Abbey National                                                                     £6.04

Barclay’s                                                                               £5.95

Woolwich                                                                             £5.95

Halifax                                                                                  £5.95

Northern Rock                                                                      £5.50

Alliance & Leicester                                                             £5.45

NatWest                                                                                £5.12

Nationwide BS                                                                      £4.94

Bradford & Bingley                                                              £4.90

Average Cost                                                                        £5.75

 

This compares with the cost from Britishinsurance.com of only £3.95

About Burgesses

Burgesses is a trusted and respected name in Payment Protection insurance (PPI) and has established its credentials over many years. The firm is headed up by Sara-Ann Burgess, who has made it her mission to push for fairness, value and efficiency in the Mortgage Payment Protection insurance market.

Don’t pay the price of apathy - shop around and save up to £10,980 on Mortgage Payment Protection Insurance says British Insurance

Filed under: Insurance - Administrator @ 10:07 am

To encourage mortgage borrowers to shop around for the best deal on mortgage payment protection insurance (MPPI) instead of accepting the policy offered by their mortgage lenders; British Insurance has launched a new ultra low cost Mortgage Payment Protection Insurance product.

It offers premiums for a 25 year old at £1.60 or 27.63% of the average price charged by the top 10 lenders and is 20.13% less than the most expensive. The new policy is even 32.65% of the cost of the cheapest lender Bradford and Bingley. According to Andrew Hagger of Moneyfacts.co.uk “People need to be made aware that there are alternative providers of MPPI offering superior levels of cover but at a much reduced cost, which can result in thousands of pounds being saved over the term of a mortgage.”

This new product according to leading Financial Adviser Sean Horton of Enhanced Wealth Ltd is “great news for the consumer who by shopping around either directly or via a broker, can not only save a significant sum but purchase a policy that is designed to pay claims rather than to avoid them.”

Advantages include:

  • Premiums from only 0.95 per £100 of monthly benefit
  • Tax-free claims benefits are payable from day one – instead of being subject to the usual 60 day excess period
  • Fully portable between lenders – enabling those with pre-existing medical conditions to change to a cheaper mortgage deal if they wish
  • Unemployment only or disability only cover both or combined

Simon Burgess, Managing Director of British Insurance says, “Our research shows (see notes for Editors) that consumers insuring an average monthly mortgage payment of £600 could save on average £7,547 over the lifetime of a 25 year mortgage or £10,980 when compared to the most expensive lenders, even the cheapest lender’s policies results in consumers over-spending by £5,940.”

“This is because of the over inflated commissions (often in excess of 80%) that are taken by most mortgage lenders. In comparison we take a comparatively modest 20% allowing 80% to go into the fund to pay claims”.

About Company

British insurance are trusted market leaders in payment protection insurance and Mortgage Payment Protection.

Address & Contact Person

British Insurance

PO Box 6164

Braintree

Essex

CM77 7ZW

Simon Burgess

07718152635

New Website Content Service Launched

Filed under: Press Release - Administrator @ 9:51 am


A new service launches today that offers those in the finance and insurance sector a constant stream of content for their websites, blogs, and newsletters. Many websites lack content and this is one of that major keys to driving more traffic and business on the Internet.

This new limited subscription service provides a range of monthly articles which can be used by insurance and mortgage brokers, and financial advisers to populate their websites with quality content which in turn will help generate more traffic.

 

Jason Hulott, director of Speedie Consultants, the finance and insurance content provider, says:  “The new website service is a fantastic way for the small broker to level the playing field and be able to compete online. By leveraging a limited membership and an online delivery system we are able to reduce the individual cost to the broker.”

He adds: “We are excited about this new service as it means that we can now provide our content service to a larger number of companies who want to drive more business to their website. This service allows companies to add quality content however they like.  It also provides them with enough content to build a blog or provide a newsletter for their clients.”

The membership - which is open to 50 clients only in order to keep the content exclusive - comes complete with several marketing and promotion guides. 

For more information – and to pick up ten free samples of content to be used however you wish - visit www.thecontent.co.uk

About Company

British insurance are trusted market leaders in Payment Protection insurance have launched new website for Finance Content and Insurance Content writing.

Address & Contact Person

10 College Gardens

Westgate on Sea

Kent, United Kingdom

CT8 8EY

Jason Hulott

01843831088

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