Archive for September, 2008
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.
Braintree, Essex () September 19, 2008 -- 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 sector lobbyist Sara-Ann Burgess from Burgesses.
Sara-Ann Burgess, MD 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 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."
As part of the UN General Assembly's High-level Meeting on Africa's Development Needs, world leaders and financial experts, including HRH Princess Máxima of the Netherlands, HE Mr. Bert Koenders, Minister of Development Cooperation of the Kingdom of the Netherlands, Dr. James Mwangi, Managing Director and CEO, Equity Bank (Kenya) and Mr. David Morrison, Executive Director, United Nations Capital Development Fund (UNCDF) gathered today to highlight innovative solutions and best practices to bring inclusive financial services to the poorest populations in Africa and around the globe.
New York, NY () September 22, 2008 -- As part of the UN General Assembly's High-level Meeting on Africa's Development Needs, world leaders and financial experts, including HRH Princess Máxima of the Netherlands, HE Mr. Bert Koenders, Minister of Development Cooperation of the Kingdom of the Netherlands, Dr. James Mwangi, Managing Director and CEO, Equity Bank (Kenya) and Mr. David Morrison, Executive Director, United Nations Capital Development Fund (UNCDF) gathered today to highlight innovative solutions and best practices to bring inclusive financial services to the poorest populations in Africa and around the globe.
Nearly 300 million Africans live in extreme poverty. A mere four percent of those living in sub-Saharan Africa have access to bank accounts. Only one percent of Africans has a loan or credit facility with a formal financing institution. Gaining access to a diverse range of financial products and services--savings accounts, basic insurance products and loans--can provide individuals with the tools needed to generate income, build capital and invest in their future.
"Access to financial services provides a safety net to families, communities and countries so they can better cope during challenging times," said Mwangi, who is also a member of the UN Advisors Group on Inclusive Financial Sectors (UNAG). "These financial services support innovations in agricultural production, food security and small-scale farming and should be considered as an important long-term remedy to affect conditions like those that led to the current food crisis."
The event was co-hosted by UNCDF, UNAG and the Permanent Mission of the Kingdom of the Netherlands to the United Nations.
"The solutions discussed today are powerful examples of the importance of the public and private sector working together to open financial systems to those who were previously denied access," said HRH Princess Máxima, a UNAG member and Chairperson of the Advisor's Working Group on Advocacy. "There is tremendous demand worldwide for financial services among the poor and I am hopeful that by showcasing successes--like these in Africa--we will encourage the elevation of inclusive finance as a global development priority and an important tool for poverty alleviation."
HRH Princess Máxima and Dr. Mwangi are two of 25 Advisors who make up the UNAG, a group tasked by the United Nations with identifying key issues that limit access to financial services for the world's poor and developing practical strategies to remove barriers to access. The group includes leading experts on microfinance from Governments, central banks, regulatory agencies, microfinance institutions, the private sector, civil society, development agencies, donors and academia. [Editor's Note: A full list of the Advisors is available at .
"Increasing access to financial services is an essential part of global efforts to reduce poverty, empower women and promote human development," said Kemal Derviş, Administrator, United Nations Development Programme. "This is especially important as we step up efforts to reach the Millennium Development Goals by 2015, and the UN Advisors Group on Inclusive Financial Sectors has been instrumental in bringing attention to this issue and in keeping us going in the right direction."
The UNAG's recommendations, which target Governments, regulators, the private sector and development partners, underscore a clear message: cross-sector coordination is essential to creating successful inclusive financial systems and extending access to the largest number. They also note:
- Governments should promote access for all citizens to a broad range of financial products and services, embrace new technologies and delivery channels, create helpful policy environments, reject interest rate ceilings that limit credit expansion, and promote consumer protection, transparent prices, financial education and an open, competitive market.
- Regulators should establish conditions that allow a diverse range of institutions to provide financial services, enable appropriate supervision for financial services providers and their supporting industries, and mitigate risk and balance concerns of safety without limiting access.
- Development partners should build human and institutional capacity to meet funding needs, support the range of financial institutions that are apart from inclusive financial sectors, and monitor the financial and social performance of development-partner investment portfolios.
- The private sector plays an important role in expanding access and should realize the market opportunities, engage at the executive level, and forge partnerships with both the financial sector and businesses that support the financial services industry.
Diana Taylor, UNAG member and managing director, Wolfensohn & Co, added "Now more than ever it is important that the UNAG recommendations be acted upon. The constraints that have kept those living in poverty from getting access to life-changing financial services must be removed so that those at all levels of the global economy have the tools they need to live healthy, productive lives."
The full text of the UNAG key messages as well as additional resources and information on the UNAG and microfinance are available at .
About the UN Advisors Group
The UN Advisors Group on Inclusive Financial Sectors was established in 2006 and consists of 25 individuals representing Governments, central banks, regulatory agencies, microfinance institutions and other financial services providers, private sector financial institutions, civil society, development agencies and donors, and academia from all over the world. Its main role is to advise the United Nations system and member states on global issues relating to inclusive finance.
The objective of the Advisors Group is to increase sustainable access of poor and low-income households and micro and small entrepreneurs to a broad range of financial products and services through the development of inclusive financial sectors around the world.
The Advisors Group worked with Governments, regulatory and supervisory bodies, central banks, academia and the private sector to identify and define the key issues constraining access to financial services and advised the United Nations on strategies and concrete steps that can be taken to remove these constraints. The full text of the UNAG key messages as well as additional resources and information on the UNAG and microfinance are available at .
# # #
The Federal District Court for the Northern District of Alabama issued an opinion on Wednesday evening upholding the certification of a consumer class action against RealtySouth.
Birmingham, AL () September 19, 2008 -- The Federal District Court for the Northern District of Alabama issued an opinion on Wednesday evening upholding the certification of a consumer class action against RealtySouth. The lawsuit alleges that RealtySouth charged consumers an “ABC fee” at closing for which no service was provided. The Court’s decision will allow the case to proceed toward notifying the class members and setting the case for trial.
The class includes more than 25,000 people who were charged $149 by RealtySouth at their real estate closing for the so-called “ABC Fee.” Class attorneys Scott Powell, Don McKenna, Jamie Moncus and Bruce McKee of Birmingham firm Hare, Wynn, Newell & Newton LLP say that RealtySouth implemented the ABC fee in 2003 and included it as a separate line item fee on the HUD-1 settlement statement. The suit alleges that RealtySouth performed no specific service for the fee in violation of the Real Estate Settlement Procedures Act known as “RESPA.” RESPA was enacted to protect consumers from unnecessarily high settlement charges caused by abusive settlement practices. The Act specifically prohibits charging a fee for which no service is provided.
Former RealtySouth CEO Tommy Brigham has already given sworn deposition testimony that no specific service is provided in exchange for the ABC fee. Current RealtySouth CEO, Ty Dodge has given an affidavit in a related case stating that the ABC Fee was not intended to cover any specific service. Former RealtySouth agents have also testified that no service was performed for the ABC Fee and that the ABC Fee was a “junk fee.” Now that the Court has ruled the case may proceed as a class action, notice will sent to the class members and the case will be prepared for trial. The class action lawyers at Hare, Wynn say that “this case is a textbook example of the proper use of the class action mechanism to protect consumers. The dollars at stake for any individual consumer are less than the filing fee for an individual lawsuit, effectively preventing individual suits.” Under RESPA, RealtySouth may be liable for up to three times the actual ABC Fees charged to over 25,000 consumers.
When written notice of the certified class action lawsuit is approved by the Court, it will be mailed to individuals who paid the fee and will also be posted on class counsels’ website at . The case is styled Vicki V. Busby v. JRHBW Realty, Inc. d/b/a RealtySouth, 2:04- CV-2799-VEH. The lawsuit is pending in the United States District Court for the Northern District of Alabama, Southern Division.
About HARE, WYNN, NEWELL & NEWTON, LLP HARE, WYNN, NEWELL & NEWTON, LLP, is the oldest existing plaintiff's law firm in the State of Alabama. In 1991, the firm entered its second century of practice. The firm's philosophy is based upon a dedication to protecting and preserving the dignity and rights of all individuals. Representing the rights of all citizens with the same degree of service previously available only to the corporate community, the firm stands today as an enduring testament to the original vision and ideals of its founder in providing quality representation for individuals and businesses requiring legal services. The firm specializes in representing plaintiffs in commercial and business litigation, as well as handling more traditional cases involving catastrophic personal injury and wrongful death. For more information the firm’s website is . "No representation is made that the quality of the legal services to be performed is greater than the quality of legal services performed by other lawyers."
Contact:
SCOTT A. POWELL
DON McKENNA
JAMES R. MONCUS
HARE, WYNN, NEWELL & NEWTON, LLP
(205) 328-5330
scott (at) hwnn.com