The news that the regulator is set to crackdown on the payment protection insurance (PPI) market is good news for the sector, for the wider financial services industry and most of all, the consumer.
Braintree, Essex (
So says Sara-Ann Burgess, managing director of
"Worldwide crisis in the credit markets and its knock on effect for banking and other financial services has brought it home to many people just how many people in the financial services industry have been treating their customers with contempt.
"Nowhere is this better exemplified that in the PPI market where poor performing products that generate massive commission fees have been pushed to unsuspecting customers."
Investigations into the PPI market have been ongoing for some time. However, the FSA declared this week it is to escalate intervention following poor findings from its thematic review. It highlighted the sale of single premium PPI sold alongside unsecured personal loans as being of particular concern and advised stopping the practice all together.
"We have been arguing for some time that this product is unsuitable in nearly every scenario and should be scrapped. It is unsurprising that the FSA has now come round to our way of thinking, it is just disappointing that it has taken so long and left customers open to further exploitation by unscrupulous lenders," Burgess added.
The regulator is also to consider what action to take to deal with ongoing non-compliant sales practices and consider actions to identify and remedy non-compliant past sales, using a range of regulatory powers at its disposal.
Burgess said: "While stricter requirements in selling payment protection insurance would focus attention on the responsibilities that brokers hold to their clients, they must be introduced alongside a tighter line from the FSA over the frightening divergence in price that exists between the cheapest and most expensive products in the market.
"The FSA could regulate the products sold, take a much harder line on those found wanting, or stop credit providers selling only their own protection insurance. This would introduce greater competition and ensure a better deal for the customer."
35 commercial properties throughout Ohio & Indiana to be offered at October 28, Chartwell Group Real Estate auction at Crowne Plaza Cleveland Airport Hotel. Property types include: hotels; former YMCA's & YWCA; an apartment building; an office building; a shopping center; 2 former bank branches & 3 business parks. Published reserve prices at 55% to 82% discounts from original pricing.
Cleveland, OH (
The 34 Ohio Properties are located in the Northeast Ohio Counties of Cuyahoga, Summit, Medina, Lake, Lorain, & Ashtabula; North Central County of Richland (Mansfield); and the Southwest Ohio County of Wood (Suburban Cincinnati). The 35th Property is located in Northeast Indiana, Allen County, City of Ft. Wayne.
"Creating an Auction Venue this geographically diverse was important to our sellers who want to attract bidders and buyers from throughout the Midwest and the U.S.," said Mike Berland, Auctioneer with Chartwell Auctions. "The commercial property types being sold on October 28 include Hotels; an Apartment Building; Former Bank Branches; a Gas Station; Shopping Centers; an Office Building; Two Hotels; and a number of Business Park Land Sites. There is literally something for every type of Commercial Real Estate Buyer," said Berland. "Two of the properties are offered, Absolute and Regardless of Price and many others have Published Reserve Prices at 55% to 82% discounts from original pricing. A Published Reserve Price obligates the owners to sell that asset at any bid at or above the reserve number. The bidders know these are guaranteed sales."
Among the properties being offered are the following:
1. 162-176 Chestnut St., Painesville, OH, a 50,000 SF well-leased Commercial/Industrial Building with a Reserve Price of $250,000.
2. 1623 Mentor Ave., Painesville, OH, a 56,000 SF Shopping Center, originally priced at $2,000,000, now with a Reserve Price of $475,000.
3. 141 2nd St., Mansfield, OH, a 34-Unit Apartment Building with a Reserve Price of $375,000.
4. 220 State St., Conneaut, OH, a Gas Station in current operation with a Reserve Price of $435,000.
5. 3101 Euclid Ave., Cleveland, OH, a 100,000 SF 8-Story Office Building on the recently re-opened Euclid Corridor plus 200-Car Parking Garage with a Suggested Opening bid of $265,000 and built-in Seller-Financing.
6. 1121 Tower Blvd., Lorain, OH, a 43,000 SF former YMCA on 4.5 Acres, originally priced at $1,200,000, now with a Reserve Price of $150,000.
7. 265 Washington Ave., Elyria, OH, a 34,000 SF former YMCA on 1.63 Acres with a
Reserve Price of $150,000.
8. 13169 Smith Rd., Middleburg Hts., OH, a 21,000 SF former YWCA on 4.46 Acres, originally priced at $1,200,000, now with a Reserve Price of $300,000.
9. 229 Main St., Conneaut, OH, an 7,992 SF former Bank Branch, offered Absolute and Regardless of Price with a Suggested Opening Bid of $35,000.
10. 4148 Main St., Ashtabula, OH, an 8,295 SF former Bank Branch, offered Absolute and Regardless of Price with a Suggested Opening Bid of $60,000.
11. 92 31st Street, Barberton, OH, a 20,000 SF Commercial Building on 3.33 Acres with a Reserve price of $475,000.
12. 3527 W. Coliseum Blvd., Ft. Wayne, Indiana, a former 120-Room Howard Johnson Hotel with a Reserve Price of $495,000.
13. 3484 Hanley Rd., Perrysburg (Toledo), OH, the 83-Room Vista Hotel in current operation with a Suggested Opening Bid of $685,000.
14. Northwest Commerce Center at Hamilton Ave. & Northwest Drive, Springfield (Suburban Cincinnati), OH, a 46-Acre Site, Zoned Light Industrial, with a Reserve Price of $650,000.
15. Beacon Marshall Development Office, Commercial & Business Parks in Three Locations, all with Reserve Price Discounts from 60% to 70%.
A. Beacon West Commerce Park, Westlake, Cuyahoga County, OH at Bradley & Clemens Roads. Seven Land Sites from 1.698-Acres to 10.605-Acres.
B. Beacon Timberlake Commerce Park, Richfield, Summit County, OH at Brecksville Road, ½ mile North of Wheatley Road & I-271. Seven Land Sites from 3.010-Acres to 7.959-Acres.
C. Beacon South Commerce Park and Foreign Trade Zone, Seville, Medina County, OH on Route 3 (Wooster Pike), ¼ mile south of Exit 2 of I-76. Five Land Sites from 1.855-Acres to 9.320-Acres. The 6th Site is 25.729-Acres just North & West of the Beacon South Park and has over 2,800 Feet of Frontage on Interstates 71 & 76. The 7th Site is 14.660Acres on Wooster Pike about 3 miles North of I-76 near Poe Road.
For a free color brochure on the October 28th, Real Estate Auction with terms of sale, on-site inspection dates and times, and locations of all properties call Chartwell Auctions and Chartwell Group at 216-360-0009. Who wants to pay retail when they can buy real estate on a wholesale basis at real estate auction?
TCN / Chartwell Group
1301 E. Ninth Street, Suite 2210
Cleveland, Ohio 44114
Telephone: 216-360-0009 / Fax: 216-360-0395
Commercial Real Estate Brokers
Accelerated Real Estate Marketing
Mike Berland, V.P.
Gordon J. Greene, CCIM
Despite being hammered to the tune of £7m for serious failings in its telephone sales of payment protection insurance (PPI), Alliance & Leicester is still way ahead on the business in question.
Braintree, Essex (
Fined by the Financial Services Authority (FSA) for forcing through non-compliant and unsustainable sales over a three year period between January 2005 and December 2007, A&L's activities were held to account in regard to the 21,000 policies that were sold in that time.
However, despite the record fine handed down, Sara-Ann Burgess, director at PPI specialist Burgesses, said A&L would still end up making a significant profit out of the business that had been condemned as non-compliant.
"The regulator has said A&L sold approximately 211 000 policies during the period for which its activities have been fined, at an average price of £1265. In round figures, that equates to £265m in premiums. The £7m fine may be a record, but this sorry affair shows just how much some of the high street banks have made out of PPI," said Burgess.
The Office of Fair Trading said that the average claims ratio in the personal loans PPI market was 18%. If this is representative of A&L's business then Burgess said the bank would have received £265m in premiums, paid out £48m in claims, paid out £7m to the FSA and be left with £210m to pay for its overheads on the business and carry out the remedial work that the regulator has demanded.
"There is no doubt that this is a very substantial fine," said Burgess. "However people should not be in any doubt of the huge profits that high street providers have been squeezing out of their customers and the non-compliant way in which they have done it."
Burgess said she hoped the news did not stop consumers taking out