Whistleblower slates FSA over building societies

A whistleblower who has chosen to remain anonymous due to fears over legal action has slated the UK’s financial regulator, the Financial Service Authority, over its lack of action with regards to building societies venturing into risky areas during the credit boom. The FSA has been accused of ‘apathy and complacency’ by the whistleblower, who was a former supervisor with the authority. Read more

Tags: treasury, fsa, lord turner, Financial Service Authority, building societies, credit boom, Democrat, regulation

Nationwide cuts fixed-rate mortgages

Nationwide, the UK’s third largest mortgage lender, has announced it is cutting interest rates on some of its fixed-rate mortgages by 0.3 per cent. Read more

Tags: global credit crunch, com, interest, building societies, trend, market, credit, fixed rate mortgages

Rock plight highlights need for building societies

The difficulties of financial firm Northern Rock have underlined the difference between banks and building societies, it has been claimed.

According to Britannia, building societies are a the safer alternative and that could mean that the popularity of the institution could rise.

Commenting on the crisis Emma Taynton-Young, a spokesperson for Britannia building society said: “The recent market has actually strengthened the difference between banks and building societies, and we find it very easy to explain the difference now because it’s shown the effect of the opposite business model to ours.”

She added: “So in a way, yes, building societies are the safer option, and I think this answers the point as to whether the Northern Rock crisis will provoke a rise in the popularity of building societies.”

The firm also claims that the heavy restrictions placed on building societies contribute to the amount of confidence consumers have in them as institutions.

Tags: rise, difference, Social economy, crisis emma, point

Credit card users ‘needlessly wasting millions’

UK holidaymakers lose in excess of £326 million every year as banks and building societies unnecessarily charge them for using their credit and debit cards overseas, it has been revealed.

Figures produced by UK payments association Apacs show £12.3 billion worth of transactions were made on credit cards overseas last year, with customers estimated to have been billed £326.2 million for this privilege, based on an average charge of 2.75 per cent.

Indeed, Nationwide divisional Director Jeremy Wood points out that many credit card providers have actually increased their charges for overseas transactions recently.

For instance, Lloyds TSB is to raise the charge on its debit card from 2.75 per cent to 2.99 per cent and NatWest has effectuated a similar hike from 2.65 per cent to 2.75 per cent.

Meanwhile, Mr Wood has highlighted the fact that Nationwide’s credit and debit cards are fee-free when used abroad.

“People who are planning to go abroad over the next few months should be aware of the hidden charges that most card providers impose which are both costly and unnecessary,” he commented.

“Anyone using a Nationwide debit card or credit card will not be charged any foreign usage fees and will therefore have a little more money to help them enjoy their holiday.”

However, a charge is applicable for ATM withdrawals when using Nationwide products in foreign countries.

Tags: Jeremy Wood, building societies, year, divisional Director, nationwide divisional director, anyone, foreign usage fees, Credit card users