Q: Tell me about Sara-Ann Burgess?
A: Sara-Ann Burgess has worked in financial services, primarily in the provision of Payment Protection Insurance for over 30 years and is Managing Director of online PPI provider, Burgesses.
She started the business in April 2003 with a view to making insurance affordable and accessible to all. Sara-Ann achieves this by offering a portfolio of low-cost, yet high-quality socially-responsible PPI products that provide market-leading benefits and support services.
Mindful that High Street lenders account for 80% of all PPI sales – so effectively have a monopoly that’s resulted in consumers purchasing over-priced and often inappropriate cover – Sara-Ann has tirelessly lobbied for change.
It was common for lenders to charge exorbitant premiums, give the impression a policy purchase was a condition of the loan and adopt a ‘one size fits all’ sales approach. Sara-Ann could see this was causing consumers to shell out more than they needed to for cover that in many cases would not pay out, and in the process, was damaging the reputation of all PPI providers.
Where properly sold, PPI is an invaluable financial safety net for people in times of hardship and it was vital consumers better understood how the product worked and whether it was appropriate for their circumstances, plus were aware they had a choice in where and how they purchased cover. Sara-Ann knew consumers needed a greater level of information in order for them to make an informed purchase decision and she vowed to safeguard their interests.
Her objectives were to; raise awareness of the mis-selling issues, call for the abolition of single premium policies (where the premium is added onto the cost of the loan and interest charged on both) and ensure those who had been mis-sold policies knew how and where to complain. Equally, it was important to de-mystify PPI, inform consumers about their options and emphasise that monthly cover can be purchased independently from the lender.
In true David v Goliath style, and well before the Competition Commission began investigating this sector, Sara-Ann harnessed the power of the media to call for lenders to end their pressurised sales tactics and stop implying that the purchase of PPI is a condition of the loan.
She used the media to expose lenders’ underhand sales tactics, worked alongside consumer groups and independent research houses to produce evidence and statistics that support her concerns and over a period of time has been instrumental in ensuring changes are made to the selling practices of lenders, who in a number of cases, abused their positions of trust.
Sara-Ann inputted to Citizens Advice Bureau, Office of Fair Trading and Competition Commission investigations and surveys and as the PPI mis-selling scandals gathered pace, so did her reputation as a consumer champion with frequent requests from the media, trade bodies, research specialists and consumer groups for her advice and opinion.
The Competition Commission has now called for lenders to stop selling single premium policies, it has banned them from offering cover at the time a loan is taken out and asked for greater clarity in the information they provide both to consumers and the Financial Services Authority for inclusion in comparison tables.
Having opened ‘Pandora’s box’ so publically, consumers became increasingly aware they had cause to complain. For the year end 31 March 05, the Financial Ombudsman Service handled 833 PPI complaints, by 07 it reached 1832, 08 10,652 and a year later, at the peak of Sara-Ann’s activity, soared to 31,066. FOS Chief Executive Walter Merricks confirmed the majority were from consumers who bought policies from High Street lenders.
Despite more people now seeking redress via the FOS and the advances made in securing a better deal for consumers, Sara-Ann does not believe her job is ‘done’. She is concerned about the small number of consumers purchasing PPI, even though the product provides a financial lifeline should a salary go, and is endeavouring to rebuild the reputation of this much-maligned sector. Sara-Ann continues to ensure media commentators and consumers receive a steady flow of information re; PPI developments, and is committed to highlighting any injustices.
Sara-Ann is an outstanding consumer champion and embodies everything the financial services sector prides itself upon - fairness, value and honesty.