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Commercial Finance: News
33
Ombudsman names and shames
Scottish economy to
exit recession
The Financial Ombudsman complaints which together mortgage complaints, 70 per cent
Service (FOS) has made available - accounted for 38,286 cases - over of general-insurance complaints The latest Lloyds TSB Scotland
for the first time - a range of half of all the new complaints and 42 per cent of investment-
Business Monitor shows the
complaints data relating to received by the ombudsman related complaints.
Scottish economy on track to exit
individually named financial during this six-month period. Walter Merricks - who will be
recession later this year.
businesses including banks, Barclays had the most stepping down as chief
This latest edition for the three
months ending 31 August 2009
insurance companies and complaints at 8,283; followed by ombudsman next month after ten
shows 40 per cent of firms
investment firms. Lloyds TSB on 6,947; Bank of years in the role – said: “The surveyed reporting a decrease in
The data includes the number Scotland with 5,804; Abbey complaints data we are publishing
turnover, 33 per cent reporting
of complaints received about National came fourth with 2,493 for the first time will help people
static turnover and 27 per cent
individual businesses - and the complaints; and NatWest received to see how the financial
reporting an increase, giving a net
balance of -13 per cent, a marked
percentage of complaints upheld 2,493 complaints. businesses that are responsible for
improvement on the previous
by the ombudsman service in The data shows that FOS nine tenths of the ombudsman's
quarter's figure of -21 per cent.
favour of consumers. It shows that upheld an average of 59 per cent workload deal with customer Service businesses show the
between 1 January and 30 June of complaints in favour of complaints.
most obvious signs of
2009 the Ombudsman received consumers. Across the 142 “I believe that putting this
improvement, with businesses
69,841 complaints, with 87 per individual businesses included in information into the open will
reporting a net balance on
turnover of -7 per cent, compared
cent relating to 142 financial the complaints data, this uphold now give those worse-performing
with a figure of -19 per cent in the
businesses. The number of new rate varied substantially between businesses vital encouragement to last quarter. Volumes of both new
complaints about each of these 11 per cent and 95 per cent. The improve - which should mean
and repeat business have
individual businesses ranged from ombudsman service upheld 61 per fewer of their customers having to
improved in the last three months.
31 to 8,283. Five banking groups cent of banking-related bring unresolved complaints to
Production businesses showed
each had more than 3,000 complaints, 41 per cent of the ombudsman.”
a slight improvement in turnover
with a net balance of -24 per cent,
compared with -26 per cent in the
Lombard withdraws from the broker market
previous quarter. Output in the
production sector is still in decline
but the rate of decline is
Lombard has withdrawn from both introducers from its panel. Because conversations, the consensus
lessening.
Expectations of increasing
the asset finance and vehicle finance of this, the impact of its total seemed to be that LVM was not the
turnover in the next six months
broker market. withdrawal will have been lessened most efficient funder; with
remain negative for the fifth
Chief executive of the National as many brokers had their lines cut processing times for a deal from consecutive quarter, but at -1 per
Association of Commercial Finance some months ago and had sourced underwriting to dealer payout being
cent and only just negative, they
Brokers (NACFB), Adam Tyler, other funding lines.” far slower than average. But, in
have improved markedly. Three
commented: “The withdrawal of NACFB director for vehicle many cases their rates were
months ago, this figure stood at -
10 per cent, six months ago at -28
Lombard from both the asset finance, Andy Bell, said: “Lombard considerably lower than average
per cent and nine months ago at -
finance and vehicle finance broker Vehicle Management (LVM) and their commissions considerably 44 per cent.
market doesn’t really come as any confirmed that they will be closing higher.
In the service sector, for the
great surprise given that the their introduced business In a market place as competitive
first time in 15 months, more
strategy of Lombard’s parent, RBS, department causing up to 85 as vehicle leasing, if your
firms expect turnover to increase
has been to retreat and concentrate redundancies. It’s always sad to hear competition was using LVM, you
in the next six months than
decrease. If these expectations
on their own customer base. of any business closing, however, it had to use them too, to compete.
are realised, the Scottish economy
“However, there is no doubt that hits harder when it involves people Now with LVM gone, Adam Smith’s should exit recession and return to
this is a blow for many, in particular that you have worked with for invisible hand will ensure all
growth by the year end.
some vehicle brokers, and could be many years. funders will get a more equal share
Expectations of production
the final straw in some cases. He continued: “Speaking to of the business. The key areas where
businesses have improved but
remain negative and significantly
Lombard had largely withdrawn several brokers (my phone never broker businesses will succeed will
worse than for service businesses
from the asset finance introducer stopped ringing), opinions varied as be customer service, efficiency and
with the net balance standing at -
market earlier this year when it to the effect LVMs demise will have strong funder partnerships with 10 per cent, up from -15 per cent
controversially ‘culled’ a number of on brokers. After many mutual interest. “
in the previous quarter.
For the whole of 2008,
businesses were increasingly
Aviva launches commercial property cover
pessimistic about the level of
demand for their products and
services. This has reversed for
The National Association of stringent background checks before The Association founded the
three consecutive quarters with
Commercial Finance Brokers they hand over their clients’ details - Fraud Intelligence Committee back
firms indicating a further fall in
(NACFB) has warned residential and their clients’ money. The at the beginning of the year for the
the importance of weakening
mortgage brokers to take great care NACFB’s advice to any residential purposes of investigating these cases
demand in the latest quarter.
This coincides with the
when introducing their clients to a broker who is looking to introduce and putting evidence in the hands
improvement in forward looking
third party broker for commercial a client to a commercial finance of the proper authorities. At the indicators in the Business Monitor
finance. specialist is either to deal with an current time three cases have been
and is consistent with a return to
NACFB members operate under NACFB member or alternatively forwarded to the police and Trading
economic growth by the end of
a Code of Practice and residential with a broker with which there is an Standards for further action and
this year.
brokers need to make more existing, good relationship. many more are under investigation.
www.mortgageintroducer.com October 2009 Mortgage Introducer
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