Popularity of Internet banking results in bank closures

The UK has seen a massive rise in the popularity of Internet banking over recent years. Although there have been concerns about security and the risk of banking fraud, the rise in the number of people using Internet banking these days has reflected consumer confidence in this type of service.

Consumers are able to conduct transactions from the comfort of their own home at any time of the day or night, and can do anything from transfer money or make a one off payment to set up direct debits or simply view statements.

However, although Internet banking is both convenient and simple, it is not all good news. It seems that the huge popularity of Internet banking is now taking its toll on high street banking, and as a result of this some high street branches are going to have to close due to lack of business. The C&G has recently announced that as a result of so many people using Internet banking it will have to close a number of its branches across the UK.

C&G officials have announced that thirty one branches across the UK will be closing, which will mean job losses in excess of 315. There are 195 C&G branches in the UK in total, and the company is a part of the Lloyds TSB group. One spokesman stated that there were fewer people using the branches that were to be closed, and much of this had been put down to the popularity of Internet banking.

He stated: “Closing branches is never a decision that we take lightly. But with more customers taking advantage of technology, the number of customers coming through the doors in these particular branches has fallen. By closing these branches where customer use has dropped, we can invest in the branches that customers do use.”

Tom Smith
21st September 2007

Tags: online, internet, business, high st, grow, branches, overheads, close

Over two billion still to be claimed in bank charges

According to figures released by the price comparison website Uswitch, over two billion pounds worth of bank charges are yet to be claimed by consumers that have been hit with hefty and unlawful penalty fees over the past six years.

The topic of bank charges has exploded over recent months, with regulators claiming that the charges imposed for exceeding an overdraft limit and for returned cheques and direct debits are unlawful and unfair. As a result many people have claimed back these charges going back up to six years, but Uswitch officials claim that around £2.12 billion has still yet to be claimed.

The figures from Uswitch suggest that around four billion pounds in charges have been netted by banks that have applied these charges to the accounts of around nineteen million consumers in the UK. So far, over half of that amount has not been reclaimed by consumers.

So many people are now being encouraged to reclaim their fees from banks that there are a number of financial services available that can help consumers to try and reclaim their fees if they are unsure as to what they need to do. However, the clock is ticking, as an impending decision from UK regulators with regards to what is construed as a fair fee may reduce the amount that claimants can file for.

Many consumers have already threatened to take their banks to court for not repaying the fees, and in most cases the banks have paid up on a last minute basis, with no banks actually having gone to court to justify the amount that they charge.

However, it seems that many consumers are frightened of the consequences of making a claim, with a number of banks having threatened to close consumers’ accounts if they try and reclaim their fees.

Tom Smith
10th May 2007

Tags: threats, fees, time, uswitch, bank, claim

Repossessions grew in 2006

More people had their homes repossessed as 2006 drew to a close, according to the latest statistics.

The Council of Mortgage Lenders (CML) has released its statistics for the year and they do not make good reading for people struggling to keep up with their mortgage repayments.

According to the CML, 8,860 homes were repossessed in the final six months of 2006, compared to 8,140 in the first six months. The reason for the rise is being put down to increased interest rates and the CML is expecting more repossessions in the coming years.

The organisation is predicting that things will continue to get worse for homeowners, with an expected 19,000 repossessions in 2007 and 20,000 in 2008.

Despite the apparently bleak figures, the CML points out that the 8,860 repossessions at the end of 2006 was fewer than had previously been predicted.

“The arrears picture at the moment is fairly complex,” commented Michael Coogan from the CML. “On the one hand, the wave of problems caused by previous interest rate rises has now worked through, so recently arrears levels have fallen.

“On the other hand, interest rates are rising again, and payment shock may be an issue for some this year as their existing fixed or discounted deals expire.”

Those considering taking out a mortgage are advised to borrow within their means and ensure that they have enough financial clout to deal with any large interest rate rises that may come up in the future.

Tags: cml, wave, clout, are, Arrears