Bank charge court claims need to be watertight

Experts have warned that consumers that are trying to reclaim bank charges from their banks through the courts need to make sure that the case they are putting forward is solid and watertight in order to increase their chances of successfully reclaiming back the cash from the bank.

Apparently a number of claimants are failing to provide the right documentation or are failing to put forward their case properly, and this can increase the chances of the judge ruling in the bank’s favour.

Judges are becoming impatient with these cases, as there are many pending and blocking up the court system, and banks fail to turn up to defend themselves, which means that the claimant wins the case by default.

Experts claim that judges are now looking to get rid of what they describe as frivolous claims, and this could affect those that do not put forward a strong enough case or provide the necessary paperwork and documentation to support their claim.

Lloyds TSB has already won two cases, where the judges ruled in the bank’s favour rather than that of the claimant. A judge in Hull has also stated that he may strike out twenty claims against banks. Experts think that all of these lost of struck out cases could be the result of sloppily put together cases and inappropriate or inadequate documentation from the claimant.

Thousands of consumers have been claiming back charges from their banks going back up to six years, and these charges were applied for exceeding the overdraft limit on the account, as well as for returned direct debits and cheques. However, where banks have reduced to repay the full amount many have decided to file a small claim against the bank through the courts.

Tom Smith
30th June 2007

Tags: paperwork, charges, court, penalties, cost, fees

How things have changed in last 50yrs

Half a century ago (July 1957) Conservative prime minister Harold Macmillan famously said that the people of Britain “have never had it so good”.

He was talking at a time when rationing had only just come to an end following World War II but Halifax has been comparing the economic picture in the UK in 1957 and comparing it with today’s situation.

Understandably, it has found that massive changes have taken place and concludes that the people of Britain in 2007 really have never had it so good.

The average annual wage in 2006 stood at £31,278, compared to a miser miserly £731 that workers took home on a yearly basis 50 years ago.

More people own their own home today, with 70 per cent of the adult population holding the rights to a property, compared to just 38 per cent in 1957.

We work shorter weeks today, with the average being 38.9 hours, while in the fifties they worked 48.5 hours per week.

Some things were better in 1957, with unemployment figures very low at just 1.3 per cent compared to today, while house prices were fantastically low at just £2,330.

The pound was also very strong in those days, sitting at $2.79.

Tags: week, July, world, pound, population, United Kingdom, War

House fire risk of smoking ban

Homeowners are being warned of a potential rise in the number of house fires when the smoking ban is introduced in England from July 1st.

Smoking in public places such as pubs and bars will become illegal from this date and Abbey is concerned that fires will become ore commonplace as people choose to stay in rather than go to the pub.

The bank believes that many people may opt to host house parties as an alternative to going out so that they can smoke while drinking.

However, this can pose a danger as drunken smokers could inadvertently set something alight, leading to a costly home insurance claim for the mortgage holder.

Figures show that around £11 billion worth of damage is caused by fires started by cigarettes each year in the UK but recent statistics display a downward trend in the past ten years.

Abbey, however, is concerned that this will begin to change as more and more people choose to spend their nights indoors.

“The landscape of social behaviour is going to change quite dramatically following the smoking ban and we anticipate that people are likely to spend more time entertaining at home rather than going out,” said Prasad Shastri from Abbey.

“This could well have an adverse effect on the number of fires started in the home and we would ask everyone to be extra careful and take simple precautions to protect their homes and the people in them.”

Research from the Department for Communities and Local Government has found that nearly a third of households have a smoker living in them.

Tags: uk, costly home insurance claim, Local, risk of smoking, Department for Communities, GBP, Everyone

Buy-to-let looking good

There is a continued high demand for rented properties and this is good news for people with a buy-to-let mortgage.

Figures published by Paragon show that rent has increased consistently over the last six months, as more and more people look to rent a home.

The average annual rent in England and Wales in May sat at £10,702, signalling a ten per cent increase of £1,037 compared to November figures when the average was £9,665.

A recent study shows that 63 per cent of residential property investors have seen tenant demand grow or remain stable and, as a result, they are looking to increase their buy-to-let portfolios.

“The private rented sector is buoyant as demand from tenants continues to be strong,” said Nigel Terrington, Paragon’s chief executive.

“Many parts of the community, such as students, migrants, people on housing benefit and first jobbers, rely on rented accommodation for their housing needs, and the sector is set to continue this growth over the next five to ten years.”

Mr Terrington went on to say that negative reports about the buy-to-let market are unfounded and said that affordability is playing a big part in keeping the market buoyant.

“Commentators forecasting a downturn in the buy-to-let market have overlooked the fundamental dynamic of the UK housing market – people need somewhere to live, and for many, house purchase is simply not an option,” he added.

Tags: good news, Private rented sector, executive, Renting, chief executive, United Kingdom, mortgage, demand

Do your kids have the right savings account?

Banks and building societies have come under fire on many occasions over the past year due to the failure of many to pass on the full level of interest rate rises onto savers whilst applying the full amount and sometimes more besides on borrowing.

And it seems that it is not only the adults savers of the UK that are getting a raw deal with some banks – many are paying even less in the way of interest on savings accounts for younger savers, often paying way below the Bank of England interest rates.

According to recent reports some savings accounts for younger savers pay under 4 percent in interest, which is over 1.5 percent less than the current base rate. Amongst those paying considerably less than the base rate on children’s savings accounts are C&G, Royal Bank of Scotland, Birmingham Midshires, the Woolwich, and Barclays. Even where balances on the accounts are close to one thousand pounds, many of these banks and building societies pay poor interest rates compared to the current base rate in the UK.

On the other hand there is a great deal on children’s savings account with the Nationwide. The interest rate on the Smart Account with Nationwide has been hiked up to 5.78 percent before tax, and in addition to this the Nationwide has pledged to pay at least 0.25 percent more than the base rate until 2010. This savings account is available to those up to the age of eighteen, and with this impressive interest rate and guarantee younger savers can look forward to seeing healthy returns on their savings.

A number of other banks and building societies are offering some impressive deals on savings, and consumers with kids that are getting a raw deal on their savings should look around and compare different accounts to see whether there is something more suitable available

Tom Smith
29th June 200

Tags: Banking, interest, accrue, savings, kids, children, earn, payments

M&S takes credit card award

Consumer watchdog Which? has handed out a number of prestigious awards, detailing the best products and services that it believes are available on the market.

A ceremony was held at the British Museum to announce the winners, with broadcaster Fiona Bruce hosting the event.

A number of awards were handed out across all sectors and a number of financial firms were recognised for offering excellent value.

The Best Current Account Provider award was presented to Smile, while Marks & Spencer’s M&S Money walked away with the Best Credit Card Provider honour.

Deputy chief executive of M&S Money Eddie Nott expressed his joy at the result.

“We are delighted to win Best Credit Card Provider in the 2007 Which? awards. It is a particular honour to be recognised as the best on offer to British consumers following rigorous research carried out by Which?,” he said.

“The ‘& More’ card launched less than four years ago and now more than three million M&S shoppers are cardholders, making M&S Money a top ten credit card provider.

“As well as offering great products and service, we give our customers ‘a bit more M&S’ with the ‘& More’ loyalty scheme, nought per cent interest on shopping and fee-free balance transfers,” he added.

Which? congratulated all of those who picked up awards this year and called upon those that did not to up their game in the next 12 months.

“For those companies that didn’t get an award this year, we hope today will inspire them to try for the winning spot next year,” said Peter Vicary-Smith, chief executive of Which?.

Tags: offering, british museum, Best Current Account, Deputy, Smith, Credit card, fee-free balance transfers, account provider

Motor insurance at 2yr high

Comprehensive motor insurance premiums are at their highest level for two years.

Figures from Experian show that premiums in the direct market peaked in May, sitting 7.9 per cent higher than they were in the same month in 2006.

Experian has developed a Motor Insurance Benchmark to accurately measure insurance premium movements and this shows that the current average in the direct market is £560.

The intermediary market also saw the average premium rise to £529, the highest level for 11 months.

“The last 12 months have seen comprehensive motor insurance premiums in the direct market increase and overtake premiums in the intermediary market,” said David Murby from Experian.

“Traditionally, premiums in the intermediary market have been higher, but after peaking in February 2006 [reaching £557], they started falling significantly. They passed each other in July 2006, when intermediary premiums were at their lowest.

“The whole motor insurance industry is going through a period of transition and it is not as clear-cut as it was 15 years ago,” he added.

At present, it would seem that people looking for motor insurance are better off going through an intermediary but buyers should always shop around for the best deal and remember that things can change very quickly.

Tags: rise, comprehensive motor insurance, Insurance, increase, transition, direct market increase, current average, GBP

Hips may be universal by October

The Association of Home Information Pack Providers (Ahipp) is calling on the government to extend the introduction of Home Information Packs (Hips).

Officials at the organisation say that Hips could be applied to homes with three bedrooms or more from September and the rest of the market could follow just one month later.

The government was forced to announce that Hips would only be introduced to the home-selling process for properties with four bedrooms or more from August 1st after concerns about there being too few accredited energy assessors available.

However, Ahipp says that there are plenty of accredited energy assessors available now and even more on their way.

“According to our own research, in addition to the 1,340 accredited assessors, there are a further 1,200 assessors who have applied for accreditation and will be fully accredited by the end of July,” said Paul Broadhead, deputy director general at Ahipp.

“With this in mind, government will easily meet the 2,000 target that it suggests is needed to provide Hips for homes with three bedrooms or more.

“As a result, I see no reason why, in line with its implementation plan, government could not introduce mandatory Hips for three bedroom properties from September, with the rest of the housing stock soon to follow, perhaps as soon as October,” he added.

Mr Broadhead went on to say that he fully expected Hips to be mandatory in the home-selling process for all properties before the end of the year.

Tags: energy, information packs, target, market, information

The cash machine turns 40

On June 27th 1967 personal banking changed for ever with the opening of the world’s first cash machine in Enfield, North London.

The Barclays branch opened the first ever ATM so that customers could access cash outside of the bank’s normal opening hours.

Actor Reg Varney, star of popular sitcom On the Buses, christened the cash point and will always be remembered as the first person ever to withdraw money from a hole in the wall.

In those days, customers needed to feed a special voucher into the machine and enter a unique four digit code in order to gain access to a £10 note.

Principally, ATMs have not changed too much over the last 40 years but their popularity has soared.

By the end of the 1960s the UK had 595 cash points, while the world contained 781. By the end of 2006 there were 60,642 in the UK and 1.64 million across the globe.

“The cash machine, more than any other banking innovation, has had a major impact on the way we all conduct our lives, not just our banking,” said John Warren, head of cash machines for Barclays.

“Forty years ago cash was only available from 9-3 pm Monday to Friday and Saturdays from 9 -12.30 pm and, as cash was king, queues outside branches on a Saturday morning to get weekend money were common. Now you can get money any time, anywhere.”

The cash machine was invented by John Shepherd-Barron who had the idea while taking a bath after he had been prevented from getting his weekend money because he was late to the bank.

Tags: barclays, time, bank, barron, voucher, code, order, business

Help for flood victims

As much of northern England and parts of Wales suffer at the hands of huge floods caused by torrential rain, Direct Line is offering homeowners information on how to make an insurance claim.

The firm has deployed hundreds of members of staff to the affected regions and help is being offered to those in need.

Flash floods have so far claimed the lives of three people and thousands of properties have been severely damaged by the water.

Rescuers say that water levels are beginning to subside but more rain is predicted for the coming weekend and residents are bracing themselves for another round of flooding.

Once the weather eventually returns to normal and people begin assessing the damage to their homes, many will begin thinking about making a claim on their insurance and that is why Direct Line has gone to the affected areas.

“Our main priority is to help people get back to normal as quickly as possible and with the least amount of inconvenience,” said Andrew Lowe, head of home insurance at the firm.

“Additional staff have been deployed to help manage the higher than average number of calls and we are prioritising those where people’s health and safety is at risk.

“However, we ask our customers to be patient with us as it is taking longer than usual to answer and deal with calls,” he added.

Customers are advised to take photographs of any damage caused and keep all damaged items. Electrical equipment and gas appliances should not be used until they have been thoroughly checked by a professional and redecorating should not take place for a number of weeks so that the property is completely dry.

Tags: property, Financial economics, flood victims, patient, health, home, gas, flash floods

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