Bank account options for consumers

Although the banking industry in the UK has taken quite a bit of flack over recent years the various High Street banks do offer plenty of choice when it comes to bank accounts to suit different needs. There are many different consumers with banking needs, and their different circumstances and statuses determine which bank account is going to be best suited to their needs.

One of the accounts that most High Street banks offer are basic bank accounts, and these are ideal for some people such as those on low incomes or with bad credit ratings who might otherwise struggle to get a current account. Whilst there are some restrictions with basic bank accounts, such as no debit cards or cheque books with many as well as no overdraft facility, they do offer the ability for accountholders to effectively manage and run their finances, pay bills, get money paid in, and other basic banking functions.

Standard current accounts are what most people have, and these are accounts that enable consumers to run their day to day finances. They are very similar to basic bank accounts in that you can set up standing orders and direct debits, transfer money, pay money in, make withdrawals, etc. However, many bank accounts also come with additional perks such as debit cards and overdraft facilities.

Another type of bank account that is available from many banks these days is the packaged bank account, and these accounts are fee charging accounts with fees that vary from one bank to another. The reason for the fee on these packages accounts is that they offer a package of benefits to the accountholder, which could save them money depending on how many of the services they use. Some of the benefits that come with the package include travel insurance, pet insurance, mobile phone cover, breakdown cover, and more. However, consumers should ensure that they are getting value for money and would not be better off paying for the benefits that they use on the open market rather than paying a fee for the account.

By choosing the right bank account and the right bank for your needs you can ensure that you can manage your finances more easily and conveniently, and with so many different banks and account to choose from it should be relatively easy to find one that is going to suit your needs and circumstances.

Tags: direct debits, that enable consumers, phone, finance, bank accounts, Banking, bank, cheque

Cards set to replace cash transactions

According to recent reports less than half of all transactions will be made by cash in five years’ time. A report from the UK Payments Council has suggested that at the moment 80 percent of cash transactions were low value transactions that were for less than £10. The Payments Council said that cash was taking over as the main method of payment for transactions, whereas cash and cheque use had fallen into decline.

In years gone by those making purchases used cash and cheques to make payments, with only a small percentage having access to or wishing to use plastic cards. However, over the past decade this has changed, with a rising number of people having access to plastic cards and many preferring the convenience and ease of paying by card.

In addition to this the use of cheques has really declined over recent years, and many retailers have stopped accepting cheque payments altogether. In fact, the banking industry has confirmed that it is planning to phase out cheques altogether over the next eight years, but this is something that is being opposed by many pensioners who have become accustomed to using cheques.

Based on trends over the past few years the UK payments Council developed a report with predictions relating to how consumers will be spending in the future. The report predicts that by 2018 only one in every fifty workers will be paid in cash, whereas in 1999 this figure stood at one in eight.

An official from the Payments Council said: “Although cash will not disappear in our lifetime, the continuing payments revolution will make it an ever smaller part of our spending. The noughties have been the decade of the debit card. Especially since chip and pin, which has speeded up transactions, it has become socially acceptable to buy small items by card now too, for example in a sandwich shop or a pub.”

Tags: finance, cards, Banking, cheque, plastic

Demand for cheque alternative from pensioner group

It was announced last year that the banking industry is looking to do away with the cheque, which has been a method of payment for millions of older people for many years before debit and credit cards came along. Many pensioners and older people still rely on cheques to make payments for various services and purchases, and the announcement that the cheque was to be phased out caused concern that many of these people would be left without a viable alternative.

The banking industry has said that it is planning to phase out cheques by around 2018, but many officials have said that this could impact on pensioners negatively, causing them stress and difficulties. A pensioner group is now calling for an effective and suitable paper alternative to cheques to be offered so that those that cannot use the Internet to make payments will still have a viable choice.

The group that is lobbying for the paper alternative to the cheque is the National Pensioners Convention, and its protest to find an alternative comes shortly after the BCC revealed that more than 75 percent of pensioners were against cheques being phased out. The NPC is now calling for a guaranteed paper alternative to be offered to older people in place of cheques.

An official from the NAC said: “If cheques are taken away from older people it will create an enormous stressful situation for them, because their bills are paid on time, with a cheque, in an envelope and put in the post. We have told the authorities that what is going to be required is a paper trail to replace the cheques.”

A spokesperson for the Wandsworth Older Peoples Forum added: “A lot of people who are housebound use cheques daily, and a lot of people who have no computer and therefore can’t get onto the internet or do internet banking would be lost without it.”

Tags: cheque, concern, Social Issues, enormous stressful situation, pensioner, finance, time, payment

Holidaymakers could benefit from credit cards

Many holidaymakers in the UK that head off on holiday each year use credit cards to make payments for purchases, and one recent report has suggested that this could prove to be an ideal solution for holidaymakers. Read more

Tags: rate, cheque, consumers, britons, sums of money, Credit card

Do you want faster payments from your bank?

For many people that amount of time that their bank takes to transfer money from one bank account to another can be a real problem, and whilst banks are supposed to adhere to regulations that have been formed by the UK Payments Council there are many banks that still do not carry out the same day transfers in line with the Faster Payments Scheme, which was brought in back in May of 2008. Read more

Tags: cheque, bank, finance, Payment systems, BACS, bank account

Treasury gets involved in controversy over cheques

Recently it was announced by the banking industry that by 2018 it was planning to phase out the use of the humble cheque altogether. Over recent years a rising number of retailers have stopped accepting cheque as a form of payment, stating that cheque use can be time consuming and costly for businesses to process. This has led to the banking industry stating that it plans to get rid of cheques altogether over the course of this decade. Read more

Tags: cheque, Treasury spokesperson, Payments Council, bank, Cheque and Credit Clearing Company, treasury, inclusion, consumers

Cheques will be phased out if alternatives found

It has been reported that by 2018 cheques could be phased out altogether in the UK, but that this will only happen if suitable alternative for cheques are found. The data has been released by the UK Payments Council, which has set the date of 2018 to try and encourage alternative forms of payment to be developed and used so that the end of the cheque will not have such a huge impact on consumers. Read more

Tags: Banking, Debit card, UK Payments Council, cheque, Payment systems

Government bans credit card cheques

The government has recently updated credit card regulations and put a ban on credit card cheques being sent out to consumers by credit card companies. Read more

Tags: card, Revenue, industry officials, credit card cheques, cash transaction, cheque, beginning

Watchdog makes pledge over bank charges

The UK consumer watchdog, the Office of Fair Trading, has recently promised the no matter what the outcome of the ongoing battle against the banks in relation to bank charges it will still continue to pursue these charges as unfair. Read more

Tags: bank accounts, action, overdraft charge claims, senior official, bank charges, office of fair trading

Is HSBC favouring its richer customers?

A recent report has suggested that High Street bank, HSBC, is giving more favourable treatment to its better off customers with its Internet arm First Direct than to its poorer HSBC customers. Officials claim that the customers of First Direct, who tend to be better off due to changes that were made by the bank a couple of years ago, are getting a far better deal than customers with its parent company, HSBC. Read more

Tags: better-off customers, surprise, monthly paper statement, hsbc, rate cut, better deal, cheque, Debit cards

Are premium bank accounts worth the cost?

Banking in the UK has come a long way over the years, and these days consumers in the UK can enjoy a choice of bank accounts offering a range of perks. In the past the average consumer had a standard bank account and very little in the way of benefits of perks. However, most consumers in the UK can now select from a choice of bank accounts from both the high street and from Internet banks. Read more

Tags: cheque, consumers, Financial services, Internet banks, free travel insurance, premium bank accounts, bank accounts

Consumers can bank on changes to Banking Code

Changes are to be made to personal business and Banking Codes as the result of an independent review.

The review was followed up by a public consultation which drew out necessary reforms that will give consumers a fairer deal.

Among the reforms will be a step up in the amount of aid given to customers heading into financial trouble, greater clarity in cheque clearance and information on products and greater transparency of information for credit cards and credit card cheques.

Angela Knight, chief executive of the British Bankers’ Association, commented: “The Banking Code is the charter that sets out how customers are treated by their banks and building societies.

“These revisions to the code reflect the need to keep up with a changing world. It will continue to underpin the treatment and protection customers value and have every right to expect.”

Meanwhile, Paul Smee, chief executive of APACS, said that the improved transparent for cheque users is “great news” for all consumers but especially for those with basic bank accounts as well as small businesses.

Tags: public consultation, cheque, basic bank accounts, Economy of the United Kingdom, Banking Code

Are cheque payments becoming a thing of the past?

There was a time when paying for something by cheque was the norm for most people, but with the soaring popularity of credit and debit cards in the UK it seems as though cheque transactions are becoming a primitive payment method that will soon be left trailing.

This is being reflected by the number of retailers that are now turning away cheque transactions, and the latest to jump on the bandwagon of saying no to cheques is Sainsbury’s.

The supermarket giant has announced that as from the 1st August this year it will no longer be accepting cheque payments from customers. Although this does reduce the range of methods that customers can use to make payment for goods, the vast majority of customers tend to use debit cards, credit cards, or cash anyway. The no cheque rule will be applied in all 800 of the supermarket chain’s stores.

According to officials from the supermarket chain it makes sense to stop accepting cheques because so few people use them and because processing them can be time consuming. A number of other high profile retailers have also decided that they will stop accepting cheque payments, and this includes WH Smith, Morrisons, Boots, Asda, and Shell. Again, the main reasons seem to be lack of use by customers and time consumption for the companies in question.

With more and more retailers stopping cheque payments it is likely that an increasing number of transactions will now be made using credit and debit cards, which could see the number of card transactions made each year in the UK rocket even further.

Speaking about cheque use one Sainsbury’s spokesperson stated: “Like other retailers they are being used less and less by our customers.”

Tom Smith
27th August 2007

Tags: debit, credit, payments, cheque, dated, purchases, spend

Bank may have equipment seized

A branch of the Abbey bank in Chorley, Manchester, has been threatened by bailiffs following its failure to adhere to a court order and repay past overdraft charges to a customer that took it to court.

Sam Umaar sued the Abbey over the repayment of illegal bank charges amounting to nearly £3000. However, despite a court order instructing the bank to make payment to the customer no action was taken.

Sam Umaar sued the Abbey over bank charges that amounted to £2493. These were charges that the bank had applied to his account for exceeding his overdraft limit – charges that have now been described as unlawful and unfair by financial regulators in the UK. Mr Umaar’s case went to court in June, and because the Abbey did not show up to defend itself the judge granted an additional £276 to Mr Umaar, bringing the total judgement to £2769.

However, despite the court order the Abbey still did not pay up, and now bailiffs have visited the branch and given officials seven days to pay up. If this is not done the bailiffs state that they will seize equipment to the value of the sum owed. This has been done in the past with other banks, where equipment such as computers, faxes, printers, and other office and banking equipment has been taken in order to make the bank pay up in accordance with the court order.

Mr Umaar stated: “It’s ludicrous that the Abbey haven’t paid up when they know they have to.”

He added: “The bailiff says I will get my money – it is just a matter of when.” Officials from the Abbey have stated that the cheque has now been issued to Mr Umaar, and that bailiffs have been notified of this.

Tom Smith
11th July 2007

Tags: costs, bailiffs, unpaid, abbey, judge, fees

Holidaying card holders should keep record of helplines

Credit card helplines provide essential customer protection against fraud, payments association Apacs said yesterday.

This advice especially applies to those intending to use credit cards on holiday this summer, with the trade association recommending that a copy of the helpline numbers always be to hand so that providers can be quickly notified if their card is stolen.

Holidaymakers were also advised to cut down the amount of cards taken with them to a minimum.

A spokesperson for Apacs said: “I think if you’ve got a lot of store cards or five credit cards then you don’t need to take all of them. So minimise your chances of fraud. Look after them. Frighteningly, people don’t.

“Before you go, make a note of the 24-hour helplines of the card companies. So if something does happen, you’re not then searching who to phone; you’ve always got that number with you.”

The spokesperson also noted that increasing numbers of tourists are using their cards in place of traveller’s cheques because of convenience, despite the inherent risk of fraud that comes with their use.

Tags: Frighteningly, helpline, copy, cheque, spokesperson, Credit card, card holders, yesterday

Handbags a goldmine for fraudsters

British women may be more susceptible to credit card fraud because they carry too much information in their handbags.

That is according to credit reference agency Equifax which says that handbags are a potential goldmine for thieves.

As well as holding all of a person’s debit and credit cards, the average handbag often also contains payslips, cheque books and National Insurance numbers.

The firm has found that 22 per cent of British women hold their National Insurance number in their handbag, while 32 per cent also keep old receipts.

“Information is our greatest asset these days,” said Neil Munroe of Equifax.

“And, according to our survey, women are carrying around enough information for a fraudster to apply for loans, mortgages, credit cards and bank accounts in their name.

“As our survey revealed anything from payslips, driving licences and mobile phones can be found in a handbag and this is all it takes to commit ID fraud,” he added.

In addition to potential fraud, many women leave themselves open to other crimes, with four in five admitting to carrying their house keys alongside proof of address in their bags.

Tags: credit card fraud, business, cheque, credit, reference, potential goldmine, national insurance number, National Insurance

Consumer pressure mounts for bank fee refunds

The consumer campaign to reclaim the fees banks charge when a cheque bounces or customers exceed their overdraft limit was given fresh impetus this week when barrister Tom Brennan took his bank, NatWest, to court.

Mr Brennan, who is 30 and newly qualified, has said he would be putting his personal finances on the line by suing NatWest for alleged injustice, abuse of power and unlawful conduct.

His case is in its early stages as he seeks permission from the City of London County Court to sue the bank.

But it could become an important test-case for other consumers as well as improving awareness of the issue.

Mr Brennan’s case rests on his claim that the charges are “unfair because they do not reflect the actual loss to the defendant”.

To charge a customer £38 when a payment bounces is, he argues, “egregiously invidious” because it is disproportionate to the administrative cost to the bank.

Millions of people have now written to their banks to demand that penalty charges be refunded immediately.

Tags: limit, cheque, alleged injustice, Banking, Law Crime, case

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: cheque, bank accounts, Co-operative, banks, Chief

Identity Theft

Identity theft is the fastest growing type of fraud in the UK today. So what is it?

Fundamentally, it is what it sounds like: somebody pretends to be you. Often the first thing you will know about it is when a bailiff turns up at your door demanding you repay the thousands of pounds you owe!

But identity fraud isn’t just about somebody pretending to be you. The fraudsters have access to the same technology that we all have (if not more so) and can easily pretend to be a financial institution on the Internet and you would never know. But you can take some steps to protect yourself.

What are you looking at?

‘Phishing’ is the practice by fraudsters of creating false websites so they look exactly like the genuine article. They can be used to obtain personal financial information from people who are enticed to visit those sites. Usually the targeted person will receive an email suggesting that their financial information has been breached. The email asks them to click on an embedded link to visit the false site to confirm their details. In so doing they are of course making the security breach happen.

What can I do about it?

If you ever receive an email suggesting that your financial or security details have been compromised, even if it’s from a company that you have dealings with, NEVER click on any link or go to any of the pages the email suggests. If you are in any doubt, contact the finance company by telephone and ask them about the request.

Once upon a time

Credit card theft can happen just as easily in real life as it can in cyberspace, so there is no need to become paranoid about using your credit card online. You do, however, need to be careful and think about how you use it.

These days nearly all credit card companies offer protection from fraudulent use. So if your card details are stolen on the internet the credit card company will usually absorb the cost of the fraudulent items, as long as you can prove them to be the work of somebody else without your knowledge.

If you ever suspect you may have revealed you financial details to somebody with malicious intent, notify the credit card company immediately and they will put a stop on your account and issue you with a new card and new account details. This is a minor inconvenience to them and it is far better to be safe than sorry.

On-going battle

Credit card companies have introduced measures to try to counter credit card fraud. The security code on the strip above your signature on the back is an example, as is the use of Chip and Pin cards.

If you prefer not to use your credit card online but still want to buy things on the internet then many sites operate using payment intermediaries such as PayPal. But beware, even these aren’t without their fraudster hangers-on and you need to look after your PayPal account details just as much as you do those of your credit card!

Under lock and key

Whenever you’re entering your financial details into a website always check on your browser that a small “lock” symbol is showing, usually in the bottom right hand corner. This indicates that the site is encrypted and at least offers some protection to you as a user.

Be wise be safe

When people first sign up to the Internet they inevitably experience a period of wide eyed wonder at it all. Some become so amazed by it that they accept whatever they see as genuine.

A seasoned user will often be far more sceptical about a many of the things they find on the Internet. After all, how many people do you know actually respond to that email from Nigeria asking if they may borrow your bank account!

More Information:

•  Federal Trade Commission – Identity Theft
• Identity Theft Resource Center - Features detailed guides for victims, current laws, media resources, and reference library.
• Identity Theft
  Identity theft is a major issue in the UK, and with good reason. It has been estimated that it can take up to sixty hours of work to recover a stolen identity, and in the worst cases, cost up to £8000 to put right. But what can be dome to prevent this?
• Home Office Identity Theft Home Page
• Take Charge: Fighting Back Against Identity Theft

Tags: cheque, fastest growing type, financial institution, security breach, identity fraud, battle credit card

The Process and Benefits Of Switching Bank Accounts

It’s a free market, competition is positively encouraged between companies and the banking world is no exception. So what do you have to do when you want to change banks accounts? Read more

Tags: finance, switch bank accounts, savings account, cheque, old one, bank accounts, bank, best bank accounts

How Do Bank Accounts Work?

Why does it take so many days for a cheque to be paid into your personal account? We thought we’d look at how these bank accounts actually function from the Bank’s side of things and maybe along the way we’d find out whether the system is fair to its customers. Read more

Tags: amount of time, bank accounts, how do bank accounts work, faceless acronym, BBC How Do Bank, Government enquiry, cheque, bank