FSO waiver leaves bank charge claimants confused
by Gill Montia
Story link: FSO waiver leaves bank charge claimants confused
In late July, the Office of Fair Trading (OFT) began the process of bringing a case in the High Court to establish the fairness or otherwise of the high fees charged by some banks for unauthorised overdrafts.
The action has left large numbers of potential claimants in a confused situation, as hundreds of thousands of dissatisfied [...]
HBOS reluctant to help Sams borrowers
by Gill Montia
Story link: HBOS reluctant to help Sams borrowers
HBOS, the group that comprises Halifax and Bank of Scotland, is still resisting any kind of action to compensate elderly borrowers who took our shared appreciation mortgages (Sams) during 1997 and 1998.
Sams were sold as interest free loans that were repaid using any future increase in the value of the borrowers’ homes. The typical proportion [...]
Debtors falsely optimistic
by Gill Montia
Story link: Debtors falsely optimistic
Fool.co.uk, the personal finance website, believes that over two-thirds of all borrowers in the UK have unrealistic expectations about the length of time needed to clear their debts.
According to Fool, 66% of borrowers believe that they can pay off outstanding debts in a shorter time than is feasible, and 32% think their personal finances can [...]
Plastic advice for travellers
by Gill Montia
Story link: Plastic advice for travellers
Capital One is urging holidaymakers to review their personal security and avoid being a victim of the pickpocket or identify thief.
The credit card provider has conducted a survey in which 45% of those questioned admitted to not using the safes provided in hotels.
This group of respondents seemed to be happy to keep passports and personal [...]
Savings market confuses consumers
by Gill Montia
Story link: Savings market confuses consumers
Moneyfacts, the financial data provider, is advising savers to look carefully at the restrictions and conditions attached to some savings accounts.
Over 90 bank and building society variable rate accounts currently pay at least 5.75% (base rate).
However, according to Moneyfacts, 76% of accounts paying base rate or above come with restrictions, conditions or introductory bonuses of [...]
Online gambling creates insolvency surge
by Gill Montia
Story link: Online gambling creates insolvency surge
The Insolvency Service, the government department that deals with bankruptcy, has reported a major increase in debt resulting from gambling activities.
Although the service has traditionally had referrals from casino and slot machine providers, a rapid growth in the number of online gambling portals is now impacting on its caseload.
A spokesperson for the Insolvency Service has [...]
Students warned on credit cards
by Gill Montia
Story link: Students warned on credit cards
Moneyfacts.co.uk is warning students to exercise caution in the use of student credit cards, many of which have high interest rates.
Their use can result in students without regular income accumulating unmanageable debt, even on cards with a relatively low credit limit.
This is because a few hundred pounds worth of debt can become a burden when [...]
Consumers woolly on online banking fraud
by Gill Montia
Story link: Consumers woolly on online banking fraud
Lloyds TSB has come up with some surprising results in a survey about online banking fraud.
Whilst 93% of respondents to the survey were aware that Internet banking fraud is not a victimless crime, 51% were not concerned about it.
Further investigations reveal that 26% of those surveyed were not concerned because “these things happen” in life [...]
Speedier bank transfers by next May
by Gill Montia
Story link: Speedier bank transfers by next May
The Association of Payment Clearing Services (Apacs), the body that represents businesses involved in payment services, has reported that a new system allowing the same-day transfer of money between bank accounts will now be introduced in May 2008.
The system, which should have been operational by November of this year, has been delayed by six months. [...]
Debt forum threatens legal action on IVA charges
by Gill Montia
Story link: Debt forum threatens legal action on IVA charges
The Debt Resolution Forum (DRF), which exists to represent advisors and companies within the debt management industry, has accused High Street lenders of preventing thousands of families struggling with their finances from accessing debt settlements.
The Forum, which represents 28 firms, including ClearDebt and Accuma, believes that lenders are imposing artificial barriers on those who could [...]
Market turbulence may delay base rate rise
by Gill Montia
Story link: Market turbulence may delay base rate rise
Leading economists are of the opinion that the current turbulence in the financial markets is likely to delay the much expected autumn rise in the base rate, from its current level of 5.75%, to 6%.
The international financial markets have been destablised because of events in the US sub-prime mortgage market, where thousands of people with [...]
Piggy banks and poor organisation hampers savers
by Gill Montia
Story link: Piggy banks and poor organisation hampers savers
Credit Action, the charity that earlier this year estimated individual UK debt at £1.3 trillion, is urging people to become more organised in managing their finances.
It gives as an example the fact that most people in the UK have two or three bank accounts and that many lose track of their money through moving house, [...]
US crisis leaves debt markets short of cash
by Gill Montia
Story link: US crisis leaves debt markets short of cash
The Chancellor of the Exchequer has returned from his summer holiday to join Mervyn King, the Governor of the Bank of England, and Hector Sants, chief executive of the Financial Services Authority, in considering the current collapse of confidence in international financial markets.
The crisis has been caused by lending in the sub-prime US mortgage market, [...]
Reforms needed to prevent Internet fraud
by Gill Montia
Story link: Reforms needed to prevent Internet fraud
The House of Lords has been reviewing Internet security and has issued a warning to online shoppers and bankers in a report by its science and technology committee.
The Committee accuses ministers, Internet service providers and software manufacturers of a “laissez faire” attitude to Internet security, which is encouraging criminals engaged in fraud.
The report maintains [...]
Savings up and down
by Gill Montia
Story link: Savings up and down
Birmingham Midshire, the mortgage lender, has published the latest edition of its Saving Britain report, which questions 2,000 people about their savings habits, every three months.
The report shows that UK savers have invested less money in past three months, than in the same period of 2006, with the average amount saved at £910.
This is almost [...]
Direct Line misleads savers
by Gill Montia
Story link: Direct Line misleads savers
Direct Line has been embarrassed by press reports that it has been comparing its current interest rates for savers with competitors’ rates that are almost a year old.
In its online advertising material, Direct Line compared its current offering to savers with interest rates from Halifax, Lloyds TSB, Nationwide and Abbey.
However, the competitors’ rates dated [...]
Consumer interests sidelined in mergers
by Gill Montia
Story link: Consumer interests sidelined in mergers
According to a study undertaken by the University of East Anglia, the customers of UK banks and building societies are unlikely to see the benefits of mergers and acquisitions in the banking sector.
The University’s Centre for Competition Policy used data from Moneyfacts, the financial information service, to look at the ways in which mergers between [...]
Banks set to benefit from IFA reforms
by Gill Montia
Story link: Banks set to benefit from IFA reforms
Banks could be the beneficiaries of the misfortune predicted for up to 50% of all Independent Financial Adviser (IFA) businesses in the UK.
Such businesses could be at risk of losing customers to the banks, if proposals outlined under the Financial Services Authority’s (FSA) retail distribution review are introduced.
The review involves the FSA working together with [...]
Cheltenham & Gloucester branches to close
by Gill Montia
Story link: Cheltenham & Gloucester branches to close
Lloyds TSB is reported to be closing 31 branches of its Cheltenham & Gloucester business, with the loss of 340 jobs.
Lloyds, which has 2,000 branches and is the UK’s fifth largest bank, acquired Cheltenham & Gloucester in 1995.
In addition, the bank plans to outsource work carried out by IT staff at its London, Cardiff [...]
Credit funds 13% of gamblers
by Gill Montia
Story link: Credit funds 13% of gamblers
Moneyexpert.com, the price comparison website, has published the results of a survey of regular gamblers, which shows one in eight respondents funding their activities using cash obtained through credit cards, overdrafts and personal loans.
The survey, which was carried out by YouGov and questioned more than 2,000 adults, found that respondents were likely to gamble [...]
