Santander admits to glitch over statements

Banking giant Santander has recently admitted that it has made a grave error that resulted in tens of thousands of its customer receiving the details of other customers on their bank statements. This is another of a string of security breaches made by banks and building societies over the past couple of years that has put consumer at increased risk of identity theft.

For many, ID theft is a very serious and frightening prospect and with fraudsters becoming more and more prevalent in the current climate many people have become increasingly nervous about falling victim to their crimes. However, security breaches such as the one by Santander can put people at increased risk of falling victim to this sort of crime.

According to officials from Santander it was a printing error that caused the problem on this occasion, as it resulted in pages from other people’s statements getting mixed in with accountholder statements that were being run to send out. This meant that whilst accountholder received details of their own transactions they also receive details of other accountholders transactions too.

Whilst the bank has apologised for the breach it has also said that customers accounts cannot be accessed using the details from the statements. An official from the bank said that although customers could see other customers’ details they could not be used to get into the account. Some customers are still worried though.

One customer said: “Initially I thought the statement was mine because my name, address and account number were correct, but when I turned the page over, I could see that transactions were someone else’s. I could also see the other person’s name, account number and sort code,” said Anne Robb, from Edinburgh. I called the bank to complain. The staff were very professional and helpful, but I am still concerned that someone has details of what money comes into and goes out of my account.”

Tags: theft, robb, breach, run, identity, banks, problem, name

Loan hikes have made millions for UK banks

According to a recent report banks in the UK have managed to make millions of pounds as a result of sneaky hikes on loans and other forms of borrowing. The claims have been made following an investigation by a finance group, which shows that since they started making huge losses during the credit crunch the banks have been merciless on their attack on consumers in order to try and shore up their own finances.

It is claimed that banks have been making up the losses on their books by slyly increasing the rates of interest charged on borrowing whilst at the same time reducing the rate of interest on savings accounts to the point where some savers are earning practically nothing on the money that they put into their savings.

Officials claim that banks are getting away with this because of the rock bottom base interest rate, which still stands at just 0.5 percent, which is the lowest it has ever been in the history of the Bank of England, and it has been at this level for well over a year now.

The low base interest rate has fooled many people into thinking that borrowing is cheap at the moment. However, what has in fact happened is that the gap between the base rate and the rates that lenders are charging has expanded resulting in what has been described as an eye watering margin. The fact that the base rate is so low, coupled with the fact that many of these banks have been bailed out by the taxpayer, appears to have provided no benefit to borrowers.

An official from the consumer campaign group Which? said: ‘We paid for the banks’ failures once when we bailed them out and now they are getting a double hit by taking more of our cash.’

Tags: banks, interest rate, Loans, credit crunch, Economic history, investigation, finance

Consumers not happy over treatment by banks

A recent report has suggested that many consumers are still furious over how they are treated by some of the nation’s major banks, and think that many of the banks are badly managed. Read more

Tags: Citizen Advice Bureau, rbs, bank charges, bank loans, banks, bank customer service

Banks take taxpayer’s money but won’t lend any back out!

Over the past year the UK government has spent billions of pounds bailing out the banking industry following the global credit crunch and the ongoing financial crisis. Banks have run into severe difficulties in terms of their finances, and at one point the banking industry in the UK was said to be on the verge of collapse. Read more

Tags: banks, business, interest, mortgage applications, Mortgages, bail out, high interest rate, move

Are banks becoming more generous with their lending?

A number of reports that have been released recently have suggested that mortgage lending amongst banks in the UK has been increasing, and whilst the past couple of years has seen lending becoming increasingly restricted recent figures have indicated that mortgage lending levels have increased to their highest in around fourteen or fifteen months. Read more

Tags: anyone, fifteen months, banks, mortgage market, state, mortgage lending

Banks try to recover by making customers pay

It has been suggested that many banks and building societies in the UK are trying to rebuild their financial portfolios and profits by making customers pay, according to a recent report. Read more

Tags: percent, fixed rate, banks, cost of borrowing, level

Many bank staff as confused as customers about cheques

Following a recent investigation it has been revealed that many bank staff members are as clueless as many consumers when it comes to the clearance times for cheques. The problem was brought to light in a recent investigation by the industry watchdog, the Banking Code Standards Board. Read more

Tags: banks, cheques, Banking, bank, investigation, customer facing staff, consumers, Numismatics

Tougher Regulation For Banks – More Protection For Consumers

“We need a change of culture in the banks and their boardrooms, with pay practices that are focused on long-term stability, and not on short-term profit.”

These were the words of Alistair Darling today when he outlined his White paper on banking. The proposed measures are aimed at preventing a repeat of the banking crisis which led Britain into its worst ever post-war recession. Read more

Tags: banks, consumer protection, Alistair Darling, bank of england, bank regulation

Iceland agrees to compensate UK

It has been revealed that the Icelandic government has finally agreed to repay the UK as well as the Dutch authorities following the collapse of the Icelandic banking system. Read more

Tags: agreement, icesave, scheme, Icesave dispute, compensation, uk savers, banks

Bailed out banks acting up

Earlier this month a number of MPs expressed their concern over how many of the leading UK banks that have been bailed out with the use of taxpayers’ money are acting terribly in the current recession. Read more

Tags: Treasury Select Committee, lack, banks, Liberal Democrat, Politics, quid

Is it time to lay off the banks?

Nobody can deny that over the past year and a half the UK’s banking industry has taken a real battering from all sides, with consumers, government officials, regulators, and campaign groups having really laid into the banks, accusing them of everything from irresponsible lending practices to failure to control bonus levels paid to executives. Read more

Tags: Ethical banking, good bashing, banks, government officials, Lord Mandelson, huge bonuses, Financial Services Authority, certain staff

At least a million have their bank charge claims frozen

According to recently released figures at least one million consumers have their bank charge claims frozen, as the appeals relating to the original High Court decision continue. Read more

Tags: fair, decision, original ruling, firm legal beagles, bank charges, bank claims

Consumers receive better news about mortgages

After a year of tough times for those looking for a mortgage, consumers have finally received some good news over recent week. Read more

Tags: banks, demand, income borrowers, association costs, free mortgage, history

Banks leaving many high and dry by taking money from their accounts

A number of banks have been accused of taking money from consumers’ accounts by stealth, with officials stating that this practice is leaving many people high and dry, with no cash left with which to make essential payments such as pay bills, rent, and mortgage. Read more

Tags: banks, Citizen Advice Bureau, british bankers association, advice bureau, climate, cash

Frightened banks pull mortgage deals

Recent figures have shown that since the start of October hundreds of mortgage deals have been pulled off the shelves by lenders who are becoming increasingly nervous in the current difficult financial market. Over the past year thousands of mortgage products have been taken off the shelves as lenders have become more and more concerned about lending money out. Read more

Tags: Frightened, banks, Mortgages, mortgage deals, shop around

Did Darling know about the Icelandic bank collapse?

Earlier this month UK consumers were shocked after the collapse of Icelandic bank Landsbanki left many fearing for the savings that they had placed in UK branches of the bank. Many had been persuaded to put their cash in Icelandic accounts such as Icesave over the past couple of years due to the high rates of interest that were being offered. In fact Icesave spent a considerable amount of time at the top of the best buy tables because of the interest rates offered. Read more

Tags: official, amount of time, uk, Icelandic financial crisis, banks, iceland banks, darling, deal

What will happen to charity cash invested in Icelandic banks?

Following the collapse of Icelandic banks a number of charities that had money invested in these banks because of the high rates of interest being offered have come forward with concerns that they may have lost millions of pounds. The UK government has given a 100% guarantee on UK consumer savings in these banks after the Icelandic government failed to do so, but there was no indication given with regards to whether this guarantee would be given to charities and authorities with money in the banks. Read more

Tags: iceland banks, voluntary organisations, cat, charity, banking crisis, KSF, Politics, banks

Another bank gets nationalised

Earlier this year the financial headlines were filled with news about the government taking over the stricken bank Northern Rock. Over the past few days the government has used the same legislation that was used in the Northern Rock takeover to rush through the nationalisation of another troubled bank, Bradford & Bingley. Read more

Tags: FTSE, barclays, bradford & bingley, level, major banks, Minister, banks, nationalisation

Instant access savings charges can be high, says expert

Consumers who open an instant access account should be aware that although they can withdraw their money without notice, some banks will charge them for doing so, according to a financial analyst.

Michelle Slade of Moneyfacts, a personal finance website, has said that as many as one in four banks charge their customers hidden penalties for taking money out of an instant access and no-notice savings account.

Last month, Nationwide published research on savings accounts which showed that 84 per cent of consumers believe there should be no penalty for withdrawals and 54 per cent say it is very important or essential that there is a no-notice period.

Ms Slade says: “The term ‘instant access’ is not misleading, but some would say that they should not really be charging a penalty just for you taking your money out, especially as some of the charges really are quite high.”

According to the analyst, some accounts either reduce the interest or do not pay it for the month in which a withdrawal is made.

Tags: moneyfacts, banks, penalty, withdrawals, Business Finance, business, expert, access

Consumers ’should help prevent credit card fraud’

Consumers and financial institutions have a joint responsibility to prevent card fraud, claims one expert.

Although banks have a “definite responsibility” to protect consumers, individuals should also be more stringent with their financial information.

Danny Harrison, a fraud expert from life assistance company CPP, commented that people should be careful when using chip and pin because others could “look over their shoulder – fraudsters have been sold some devices that use cameras which can get the pin number”.

Other tips from CPP included people making sure that their post is secure and taking care that credit and debit cards do not leave their sight in restaurants and shops.

A potential problem can also be caused by writing down passwords and pin numbers.

Card Watch reported that in 2007, £535.2 million was lost as a result of credit card fraud.

However, CPP also found that almost three-quarters of those surveyed believe it is the sole responsibility of the banks or credit card companies if a problem arises through their products.

Although 74 per cent thought individuals should be responsible for minimising the risk of card fraud, 65 per cent also thought that responsibility lay with the banks.

Tags: banks, use, care, definite responsibility, shoulder, CPP, sight

Millions switched banks in 2007

According to recent report millions have dissatisfied customers have switched from their existing bank to another bank this year, indicating the high dissatisfaction levels with the banking industry.

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Tags: figure, bank accounts, overall figure, service, banks

OFT rejects banks’ main defence

The main defence put forward by UK banks just ahead of the bank charges super-case to be held in 2008 has been rejected by the Office of Fair Trading.
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Tags: office of, banks, bank charges, office of fair trading, bank fees

Bank charges could mean many consumers switch bank

A recent survey has been carried out by the consumer campaign group Which?, and the results reveal that there could be a rush of consumers flocking to switch banks in the event that standard monthly bank charges are brought in, effectively bringing free banking in the UK to an end.
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Tags: november 2007 bank, bank accounts, consumers, switch bank a, government intervention, banks, profits, rush

Government plans to ‘nationalise’ Northern Rock

The government has made plans to effectively nationalise the struggling bank, Northern Rock, to protect its customers, it has been claimed.

Already, the Bank of England has loaned £23 billion to the bank, following a run on deposits – the first run on a British bank in many years.

In addition, the Treasury has promised to underwrite 100 per cent of all deposits in the bank, a commitment worth another £20 billion.

Although a number of companies are bidding to take over Northern Rock, Thisismoney claims to have learned that the Treasury is preparing plans to take the bank into public ownership.

Last night, chancellor Alistair Darling announced that the government will soon publish a statement on the principles affecting any takeover – which will give a critical insight into whether nationalisation, formal or informal, is likely.

In a letter to the chancellor, acting Liberal Democrat leader Vince Cable complained: “We are now in an absurd situation where banks can take ludicrous gambles with their customers’ money, knowing that if it all goes wrong the taxpayer will bail them out.”

Tags: situation, liberal democrat leader, taxpayer, run, deposits, Alistair, banks, Banking (Special Provisions) Act

Mortgage lenders try and pull in retail deposits

Mortgage lenders across the UK are trying to pull in deposits from savers after facing difficulties with borrowing money in the short term wholesale market.
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Tags: Mortgages, banks, number, interest rates, savings, Birmingham, Sage, Bond

Brits hiding their cash around the house

A recent report has revealed that an alarming number of Brits like to hide money around their homes in order to have ready cash when they need it rather than having to go to a building society, bank, or cash machine in order to get their hands on the money. Read more

Tags: Free Cash Flow, hiding cash, use, favourite hiding places, cash in house, cornhill insurance, banks

FSA investigating banks’ stability

Following the recent turmoil in the financial markets, which has spread from the sub-prime sector in the United States, the Financial Services Authority is to launch an investigation to review the stability of mortgage lenders. Read more

Tags: fsa, bradford & bingley, clock, northern rock, billions, banks

Further controversy over banks’ failure to apply interest rate rise to savers

Once again many banks in the UK are coming under fire as a result of leaving savers hanging on to find out if and how they will benefit from the latest interest rate rise, which was applied four weeks ago by the Bank of England. Read more

Tags: savings, interest, bank of england, banks, Loans, interest rates

Are banks playing on the consumer’s conscience?

Over recent months consumers in the UK have been finding more and more services and products that are going ‘green’, enabling them to get the services or products that they need whilst also helping the environment. Read more

Tags: Payment systems, way, consumer, Credit Cards, banks

New term sees Brits sort out finances

For school children, September and the new school term means a fresh start, but it seems that at this time of year, adults too are following suit and turning over a new leaf.

Research from Lloyds TSB shows that in the autumn, some 56 per cent of adults vow to get fit, 34 per cent vow to spend more time with loved ones and 36 per cent promise to sort out their finances.

Over a quarter (28 per cent) of those who said they wanted to get their financial affairs in order planned to move their current account and over a third (35 per cent) are looking for an account that will offer higher credit interest rate, with changing credit cards and finding more competitive insurance also a priority.

A positive three-fifths think they will stick with their new commitment to better financial management.

Ian Larkin, managing director of consumer banking for Lloyds TSB, said: “Time and again, people tell us that sorting out their finances is a top priority, but many overlook the difference that a competitive current account can make to their finances.”

Some banks, including Lloyds, have staff dedicated to making switching accounts an easy and smooth process, so that new term financial resolutions are painless as well as beneficial.

Tags: banks, year, autumn, Brits, Credit card

Are UK bank services the best?

According to a report from on economic consultancy, consumers in the UK receive far better and cheaper banking services than practically any other developed country. Read more

Tags: Loans, interest rates, bank accounts, personal loans, banks

Charge Claimants Can Ask For Strike Outs

The campaign for people to reclaim excessive charges from banks has been hit by banks “playing the game” and stringing customers’ claims along until they are taken to court. More often than not, the banks then don’t turn up to court. Read more

Tags: charges, system, out, legal, abuse, claim, strike

Overdraft interest rates go up

Recent reports have indicated that some banks and lenders have raised their overdraft interest rates by huge amounts over the past year, by far exceeding the interest rate rises that have been imposed by the Bank of England in terms of the base rate. Read more

Tags: interest rates, Banking, banks, bank of england, overdraft

Bank charge victory for Lloyds TSB

One of the UK’s banks has made history by being the first to have its banks charges upheld in the fight against unfair and unlawful bank charges.
Read more

Tags: banks, position, charge, none, lloyds tsb, bank charges, bank fees, Business Finance

Expect annual fees on your credit card

The next decade is likely to herald a new era for credit cards, where users are charged simply for having them.

Financial research company Defaqto predicts that annual charges will become the norm in the next ten years as credit card companies and banks look to rebuild their profits following the capping of penalty fees.

The likes of Lloyds TSB and Barclaycard have already or are considering introducing charges of this sort and it seems that more firms will follow suit.

“Reports that Barclaycard is considering an annual fee is not a surprise and my expectation in the years ahead is that there will be a gradual move towards annual fees in the credit card market,” said David Black, head of banking at Defaqto.

“However this will herald a significant contraction in market size as people who clear their outstanding credit card balances on a monthly basis will, as they start facing annual fees, jettison credit cards in favour of using debit cards instead.”

If, as Defaqto predicts, fewer people use credit cards, it may be that those who do hold one will be hit even harder by annual fees as the providers charge more to cover the losses.

However, a mass exodus from credit card use may also work in the public’s favour as competition hots up and more favourable deals are introduced.

Tags: move towards, jettison credit cards, banks, significant contraction, losses

Bank charges investigation to be widened by Office of Fair Trading

The investigation into illegal and unlawful charges imposed by banks has been going on for some time, with regulatory bodies in the UK looking into the amounts that banks have been charging customers that exceed their overdraft limit or in cases where cheques bounce or direct debits are returned. Read more

Tags: consumers, bank charges going, banks, bank charges, trading, ongoing investigation, overdraft, office of fair trading

RBS customers face new charge

The backlash from the Office of Fair Trading’s (OFT’s) crackdown on bank charges is beginning to be felt.

After the organisation announced that banks should reduce the amount they charge customers when it comes to penalty fees, it became apparent that banks would look for other ways to make their money.

Now Royal Bank of Scotland (RBS) has announced that it is making some changes to the way that it operates.

The bank has revealed that customers who change address must inform RBS before two statements are sent to the previous property or they will be hit with a £12 fine.

In addition, RBS has plans to change the way it treats card purchases of items such as gift vouchers and betting slips.

The bank wants these “cash equivalent products” to be charged in the same way as cash advances, meaning customers will incur a higher rate of interest.

RBS is not the first bank to announce changes to its operations since the OFT crackdown.

A number of firms have increased interest rates, while some are charging customers for failing to use their card on a regular basis.

Tags: backlash, card purchases, bank, cash, way, amount

Current accounts now available through credit unions

Credit Unions have recently announced that they will now be able to offer current bank account facilities to their members, giving bank customers that are getting irate with the way that they are being treated by the UK’s major banks another option when it comes to their banking needs. Read more

Tags: banks, misleading customers, current accounts, Co-operative, cheque, bank accounts, credit union

Bank charge row

The British Bankers’ Association (BBA) has hit out angrily in retaliation to a Which? magazine report that claimed banks are trying to trick their customers.

The publication looked into bank charges and found that many banks are employing “underhand methods” to prevent consumers challenging the charges.

According to the report, those who attempt to challenge the banks can be threatened with account closure and having their details passed onto debt collectors.

“In an attempt to avoid paying consumers what they are due, we have found banks employing increasingly underhand methods,” said Doug Taylor from Which?

“It is important that the exposure of these tricks does not put people off reclaiming their charges, though, as that would be playing into the banks’ hands.”

In response to the claims made by Which?, BBA has launched a scathing counter attack, labelling the report “sensationalist” and “personally insulting”.

BBA says that it is perfectly reasonable for a bank to close a customer’s account when it is clear that the relationship has broken down.

Additionally, the organisation points out that a bank is acting within its rights if it chooses to use a debt collector if it has chased an individual a number of times.

“Which? is clearly trying to exploit its position as a consumer body by sensationalising what could be a useful piece of research,” said Angela Knight from BBA.

“The way in which Which? has approached this is not only sensationalist, it’s also personally insulting to the front line bank staff who do an excellent job serving their customers.”

Another report into bank charges, carried out by the Office of Fair Trading, is due to be published soon.

Tags: british, Bank charge, banks, office of fair trading, relationship, bank, research

Banks top mortgage lenders table

Banks remained the cheapest mortgage lenders for existing borrowers in 2006.

That is according to a new study by financial research company Defaqto, which also discovered that there was a huge difference between the cheapest and most expensive.

There was a difference of almost £500 between some mortgages, with HSBC being named the cheapest for standard variable rate mortgages or their equivalent.

HSBC was closely followed by Intelligent Finance, while the next three in the top five were building societies (Skipton, Nationwide and Britannia).

“Despite two Bank of England base rate increases last year, on average they did not change significantly from 2005 so it’s not surprising that it cost virtually the same to service a standard variable rate mortgage in 2006 as it did in 2005,” commented David Black, head of banking at Defaqto.

“While it is recognised that standard variable rate mortgages are only one type of mortgage, they can represent an important benchmark in competitiveness.

“This demonstrates why borrowers must take the time to check that they have the most appropriate mortgage,” he added.

The research was based on the amount of gross interest payable on a £50,000 interest-only mortgage and specialist providers, privilege and loyalty rates were not included.

Tags: Defaqto, bank, nationwide, interest rates, Banking, Mortgage loan, banks, mortgage lenders

Consumers could accrue bank charges over the Christmas and New Year period

According to recent data released by the consumer group Which? a large percentage of consumers in the UK could be at risk of accruing hefty bank charges by using their overdraft facilities to fund the expense of the Christmas and New Year period. Read more

Tags: consumers, accrue, customers, christmas, accounts, cost, banks

Online Banking Fraud Rockets

Over recent years many UK banks and financial institutions have made online banking almost irresistible to consumers, offering bonuses and incentives for opening an online bank account, highlighting facts such as being able to conduct your financial transactions both day and night without having to worry about opening times and queues, and making it as convenient and easy as possible for consumers to switch to online banking. As a result many consumers in the UK now combine their regular banking with online facilities, and some have now joined banks that operate exclusively online.
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Tags: online banking fraud, banking fraud, fraud, Banking, banks