Lloyds TSB record £200m losses from credit crunch
by Richard Kilner
Story link: Lloyds TSB record £200m losses from credit crunch
It has emerged that the credit crunch, caused by the US subprime mortgage crisis, has led to a writedown of £200m for Lloyds TSB, the UK’s fifth largest bank.
The losses are smaller than those recorded by rivals Barclays and the Royal Bank of Scotland as Lloyds’ exposure to high risk mortgages is more limited .
Despite [...]
BoE embarrassment over Northern Rock continues
by Gill Montia
Story link: BoE embarrassment over Northern Rock continues
The Treasury and the Bank of England are once again attempting to explain their handling of the Northern Rock crisis.
In an interview with the BBC yesterday, Mervyn King, the Bank’s Governor, attempted to reinforce his view that both the Treasury and the Bank were untied in their approach to the crisis.
However, it appeared that Mr [...]
Law Lords support consumers on credit card insurance
by Gill Montia
Story link: Law Lords support consumers on credit card insurance
The House of Lords has ruled that credit card providers must continue to refund customers who purchase goods and services abroad that are not delivered, or are damaged.
Lloyds TSB and Tesco Personal Finance brought the case, which challenged the Consumer Credit Act.
However, an appeal against an original decision in the High Court has now been [...]
Lloyds TSB in £64 million US court case
by Gill Montia
Story link: Lloyds TSB in £64 million US court case
Lloyds TSB has responded strongly to the news that US prosecutors have filed a £64 million lawsuit against the bank, accusing it of being instrumental in helping to launder the proceeds from a major securities fraud.
The bank has promised to defend itself vigorously, saying: “We do not believe there is any basis for this action [...]
Banks test the law on overseas credit card purchases
by Gill Montia
Story link: Banks test the law on overseas credit card purchases
A case to establish whether credit card companies must refund customers when goods purchased abroad are damaged or are not delivered will be heard by the House of Lords.
A group of banks, led by Lloyds TSB, is challenging the view that under the Consumer Credit Act the same cover applies to goods purchased from an [...]
Lloyds TSB leads the way to lower charges
by Gill Montia
Story link: Lloyds TSB leads the way to lower charges
Lloyds TSB is the first of the High Street banks to announce that it will be reducing its charges for unauthorised overdrafts, from 2nd November this year.
The bank will cut its interest rates for unauthorised borrowing by approximately one-third, whilst also lowering charges for unauthorised overdrafts and bounced cheques.
From November, customers who had [...]
Penalty fees survey shocks BBA
by Gill Montia
Story link: Penalty fees survey shocks BBA
uSwitch, the price comparison website, has published the results of a poll in which over 4,000 of its customers were surveyed about the penalty fees charged by leading UK banks.
The research was conducted by YouGov and concluded that UK bank customers who have been charged such fees have paid an average of £742 each, over [...]
SMEs lose banking price controls
by Gill Montia
Story link: SMEs lose banking price controls
The Competition Commission (CC) has lifted the temporary price controls that it applied to the UK’s four largest banks, in 2003.
The controls determined the way in which Barclays, HSBC, Lloyds TSB and the Royal Bank of Scotland group run business accounts for small and medium-sized enterprises (SMEs).
The price controls were put in place following an [...]
Banks face heavy loans to affiliate companies
by Gill Montia
Story link: Banks face heavy loans to affiliate companies
The difficulties in the US sub-prime mortgage market has left UK High Street banks with the prospect of having to use substantial funds to support affiliate companies involved in high risk investment.
The crisis has caused a shortage of money in the debt markets and a sharp increase in interest rates.
As a result, HBOS has already [...]
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 [...]
Which? survey embarrasses leading banks
by Gill Montia
Story link: Which? survey embarrasses leading banks
Which?, the consumer group, has published its ‘best buy’ survey of bank accounts, which did not feature accounts offered by Barclays, HSBC, Lloyds TSB or NatWest.
According to Which?, consumers borrowing and saving with the four leading banks are getting poor value interest rates combined with customer service that is below the standard of some [...]
Loyds TSB sells Abbey Life and increases profit
by Gill Montia
Story link: Loyds TSB sells Abbey Life and increases profit
Lloyds TSB, the UK’s fifth-largest bank, has recorded a 13% increase in retail banking profit in the first-half of 2007.
Costs during the period increased by a very satisfactory 6%, given that 4% of the increase was incurred through the refunding of overdraft charges.
At a group level, pre-tax profits increased by 15%, to £2.01 [...]
Lloyds TSB in spotlight on overcharging
by Gill Montia
Story link: Lloyds TSB in spotlight on overcharging
Lloyds TSB has been described as cynical in press reports about some of the methods it has used to avoid refunding unreasonable bank charges to its customers.
The bank, which is alleged to be overcharging customers £300m a year, is reported to have told staff to reject first-time claims, even if they are legitimate.
Details of the [...]
OFT brings test case on overdraft charges
by Gill Montia
Story link: OFT brings test case on overdraft charges
The Office of Fair Trading (OFT) has forged an agreement with a number of UK banks, including HSBC, Lloyds TSB, Royal Bank of Scotland and Nationwide, to go to court in a test case over overdraft charges.
Thousands of customers have sued their banks for the return of what they consider to be unreasonable fees for [...]
Lloyds’ Barometer Registers Decline in Business Confidence
by Gill Montia
Story link: Lloyds’ Barometer Registers Decline in Business Confidence
Lloyds TSB has published its Corporate Markets Barometer, which indicates that in June businesses in the UK were less confident about their trading prospects than at any time since February 2006.
The number of companies expecting their level of business activity to increase (rather than decrease) over the next 12 months fell 16% to 45%, representing [...]
Lloyds TSB Sells Abbey Life
by Gill Montia
Story link: Lloyds TSB Sells Abbey Life
Lloyds TSB has plans to sell Abbey Life, the closed life insurance company, for an estimated £1 billion.
There are reports of strong interest in the business from three contenders: Resolution, the life market consolidator, Swiss Re, the Swiss-based reinsurer, and Pearl Group. All three are believed to have submitted indicative offers to Lehman and [...]
