Recession over for UK

It was announced last week that the UK has finally come out of recession. All of the other major economies had already come out of recession, with the UK left lagging behind but following the release of recent figures the UK has now joined the other countries that have at last shaken off the recession and can now start looking forward. Figures showed that in the final three months of 2009 the UK economy grew by 0.1 percent. Read more

Tags: recessions, United Kingdom, economics, Late 2000s recession in Europe, Economy of the United Kingdom

Is the recession finally over?

To many people it may feel as though the UK has been stuck in recession forever, and the recent recession has resulted in many businesses and consumers suffering hugely as a result of job losses, plummeting sales and profits, and financial and economic chaos. Read more

Tags: Macroeconomics, recessions, Economic history, Late-2000s recession, Economy of the United Kingdom, economics

FSA cracks down on sale and rent back schemes

Over the past few years an increasing number of people have had to turn to sale and rent back companies to try and get themselves out of a sticky situation with their homes. Read more

Tags: finance, mortgage, Renting, sale and rent back, Economy of the United Kingdom, Real estate

Supermarket hopes to cut food waste with special offers

One leading UK supermarket is hoping that it can allow its customers to save money on their shopping whilst cutting back on food wastage through the launch of a new offer that is to run over the next couple of weeks. Read more

Tags: food waste, food wastage, tesco, Economy of the United Kingdom, United Kingdom

FSA to monitor refunds from banks

It has been reported that the UK’s financial regulator, the Financial Services Authority, is to closely monitor refunds that are made by banks in instances where the consumer states that he or she has not authorised a transaction. Regulations that were brought in last November required banks to make immediate refunds to consumers for transactions that they claim that they had not made unless there was clear evidence that the consumer was involved in fraud or had been reckless. Read more

Tags: Financial Services Authority, bank, ATM, hsbc, Economy of the United Kingdom, HSBC Holdings PLC, business

FSA slated over its treatment of lenders

According to recent reports the Council of Mortgage Lenders has accused the UK’s financial regulator, the Financial Services Authority, of treating banks and other lenders like ‘drug dealers at the school gates’. Read more

Tags: mortgage, Economy of the United Kingdom, Financial services, Matthew Wyles, Financial Services Authority, council of mortgage lenders

MPC official expects growth in the economy

According to a recent report an official from the powerful Monetary Policy Committee has predicted that there will be growth in the UK economy over the course of this year. Read more

Tags: onset, job losses, Monetary Policy Committee, Economy of the United Kingdom, recovery, official expects growth, economic growth, economics

Financial downturn could last another eighteen months

According to an industry official the financial downturn that the nation is experiencing at the moment could last for another eighteen months until the property slump in the United States sorts itself out. Andrew Hornby, the chief executive of HBOS, said that it could take until 2010 for house prices in the United States to start rising again, and this could mean that the financial problems in the UK will persist for some time to come. Read more

Tags: house, sixty, credit crunch, meantime reports claim, uk government, interview, Economy of the United Kingdom, long time

Will inflation levels get worse before they get better?

The financial headlines has recently been filled with news about the soaring rate of inflation, and this comes as no surprise given that the rate of inflation has soared to its highest level since records began in 1997. For some months now the rate of inflation has been steadily rising, and it has been soaring above the government’s target of 2% for some months now. For July the rate of inflation hit an all time high of 4.4%, which came as no surprise to many who had already predicted that the rate of inflation would keep on rocketing. Read more

Tags: stagnant economy, inflation, control, degree, Stagflation, economics, Banking, Economy of the United Kingdom

Bank loss in court case could bring debt to the consumer

If the Office of Fair Trading’s (OFT) court case into the overdraft charges of eight banks goes against the firms, then the long term banking climate could be affected for the worse for the consumer claims one financial expert.

FinanceDaily.co.uk said, that while the legality of the case needs clarification, if the banks lose they maybe required to make pay outs up to £1 billion in compensation.

Dale Lovell, editor of FinanceDaily.co.uk, said: “If the banks lose the case it will almost certainly be the end to ‘free’ banking in the UK because the banks will have to find alternative ways of earning money back from customers.”

He added that the interest paid by banks on current accounts could end while the introduction of monthly standing charges for current accounts is also a distinct possibility.

The application for the declaration is brought against Abbey National, Barclays, Clydesdale, HBOS, HSBC, Lloyds TSB, Nationwide Building Society and Royal Bank of Scotland.

According to industry commentators, the banks make an estimated £10 million per day in charges.

Tags: Economy of the United Kingdom, court case, royal, United Kingdom, financial expert

Rise in online banking reflects ‘pace of life’

The increasing use of online banking services by consumers reflects the “pace of life”, according to a leading financial association

The British Banking Association (BBA) agreed with the findings of a recent survey by Lloyds TSB, which revealed that over 50 per cent of the British public had not seen their bank manager for more than ten years.

However, the BBA believed that this was a matter of “simple convenience” rather than consumers avoiding their financial responsibilities.

Lesley Mcleod, spokesperson for the BBA, said: “We think that this is more to do with the way people live their lives these days, the pace of life is such that people are increasingly using the internet or a hole in the wall facility to do their banking.”

She added that bank managers and advisers are still available if required by savers.

“Banks are there to offer a service and they are happy to do so, but they are not a nanny facility for people,” she added.

The survey from Lloyds TSB revealed that just over a third of respondents had visited their bank manager in the last two years.

Tags: respondents, internet, British public, british, banking association

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, great news, british bankers association, Economy of the United Kingdom, basic bank accounts, cheque, Banking Code, apacs

Lenders announce mortgage rate increases

British mortgage holders will feel the squeeze, as Nationwide, Northern Rock and Halifax all announced a rise in their base rates yesterday.

The rise comes as a direct response to the Bank of England’s decision last week to raise interest rates to 5.75 per cent – their highest level for six years.

The new rates for variable mortgage holders are now 7.75, 7.84 and 7.24 per cent respectively, with all three passing on the full 0.25 per cent increase to their customers.

These increases work out as £33 extra a month for a £200,000 loan. Mortgage holders coming off a two or three year short-term fixed rate deal in the next few months will feel the difference worst of all, with rates having stood at just 4-4.5 per cent when their fixed rate period commenced.

Mortgage holders could find the situation worsening still, with many economists predicting further rate rises by the end of the year.

The Consumer Price Index – the government’s inflation yardstick – stands at 2.5 per cent, according to most recent figures. The Bank of England, which uses interest rate rises to cool inflation, has a target of just two per cent.

Tags: Consumer Price, price, loan, Economy of the United Kingdom, interest, month, rates yesterday.The rise

Keep claiming those bank charges

Customers should continue to trying to claim back unauthorised overdraft charges from their banks despite a recent court ruling.

Birmingham County Court found in favour of Lloyds TSB in a case against Kevin Berwick in which he was trying to claim back £2,545 in charges.

The case does not affect other rulings as County Courts cannot set precedents, however, the fear is that banks will become more confident in turning down people who seek compensation.

Despite this, Which? says that people should not be put off from claiming and should remain confident that they will get some money back.

“This news must not deter people from reclaiming their bank charges,” said Emma Bandey, personal finance campaigner at Which?

“People shouldn’t be scared or worried about continuing with their claim or indeed starting one. We have now had over 387,000 downloads of template letters from the Which? website.

“It’s such a simple process. Keep reclaiming those charges and if you experience any problems, go to the Financial Ombudsman Service,” she added.

Some industry figures have warned that we could be about to see the end of free banking as banks look to recover the money lost through charges.

Tags: Bank charge, business, Financial services, Business Finance, Lloyds Banking Group

Insurance sells process must improve

Firms which sell general insurance have been told that they must improve their standards when cold calling potential customers.

The Financial Services Authority (FSA) is concerned that customers are not being treated fairly and the organisation is demanding that standards improve.

Research by the FSA, which looked at the sales processes of 43 firms, found that the standard of sales were poor when the company contacted the customer.

“The quality of cold calling in general insurance sales was disappointing – consumers were pressurised and the benefits of the product were sometimes exaggerated,” said Vernon Everitt, director of retail themes at the FSA.

“We expect to see significant improvements when consumers are cold called. Swift action has been taken to deliver those improvements at the firms we visited and we are following up with other firms which use cold calling as part of their sales strategy.

“The bottom line is that firms must never pressurise consumers into making a rushed decision and must always clearly spell out the nature and limitations of the products,” he added.

The FSA advises consumers to make sure that they do not make a rushed decision and keep a cool head when being sold a product which they did not enquire about.

The same piece of research from the FSA found that the standard of sales was high when a customer initiated the phone call.

Tags: Economy of the United Kingdom, insurance sales, head, general insurance sales, organisation

Happy birthday Banking Code

Today (March 16th) marks the 15th anniversary of the UK Banking Code.

The code is voluntary but sets out the standards for good banking practice which financial institutions should use as guidelines when dealing with customers.

Once a financial institution has subscribed to the code its compliance with what is set out in it is monitored by the Banking Code Standards Board and the code itself is monitored by regulators and consumer groups to ensure that it is up to date and fair.

This regulation, says the British Bankers’ Association (BBA), is what makes the code so strong.

“Whether they’re saving or borrowing, customers deserve a fair, transparent and responsible service,” said Angela Knight from the BBA.

“As one of the three trade associations sponsoring the Banking Code we are proud to be celebrating its 15th birthday.

“The members of our three trade associations include banks, building societies and credit card issuers so we see the issues that are affecting our customers and we see how the industry responds. The Banking Code gives us a way of setting real obligations and real benefits for customers,” she added.

The code, which is jointly owned by the BBA, the Building Societies Association and Apacs, the UK payments association, is formally reviewed every three years.

Tags: british bankers association, date, investment, Economy of the United Kingdom, payments association

‘Contaminated fuel’ affects thousands

Thousands of motorists up and down the UK have been experiencing difficulties with their cars as fears grow that a contaminated batch of fuel has been sent out to the country’s forecourts.

Many drivers have reported problems such as their cars misfiring and completely cutting out a short while after refuelling.

An investigation has been launched to determine whether or not this is down to contaminated fuel as the scale of the problem appears to indicate that it is.

However, tests have been carried out on fuel provided by some of the country’s leading petrol stations, such as Tesco and Morrisons, and the results have proved inconclusive.

“Having received a limited number of enquiries further tests were carried out. These found no contamination and confirmed our unleaded petrol met the required standards,” a spokesperson for Morrisons commented.

Most motorists who have experienced problems have found that the trouble is occurring with their oxygen sensors and this is also adding to the belief that it is a result of contaminated fuel.

Drivers are now being forced to have repair work carried out on their vehicles and some insurance firms are promising that if the problems are a result of contaminated fuel, they will be covered.

“If any of our motor policyholders have experienced a mechanical breakdown which is proved to have been caused by contaminated petrol, we will honour their claim under the accidental damage section of their policies,” said John O’Roarke from Liverpool Victoria General Insurance.

Tags: Fuels, mechanical breakdown, required standards, repair work, section

Apacs introduces new payment system

Making payments over the phone and online will soon become a quicker process, thanks to the implementation of a new payment system.

The UK payments association Apacs has revealed that the new system is on track and it believes that those doing their banking online and over the telephone will enjoy using the new system.

Apacs says that the UK will now be brought up to speed alongside the frontrunners around the world when it comes to making payments.

Bankers can expect to see payments made almost in real-time, removing the hassle, and sometimes confusion, of waiting for money to enter or exit your account.

“This service will be great for any customer wanting to move money quickly – perhaps to pay a bill or move money between accounts,” said Paul Smee, chief executive of Apacs.

“Like the internet, it will be available all day, and will move a payment within a few hours and on any day of the week.”

As well as online and telephone banking, the new system will speed up the movement of standing orders.

Apacs claims that standing orders will be processed within the same day, a vast improvement on the three days it currently takes.

So far, a host of major banks are onboard with the scheme, with HSBC, Lloyds TSB and Barclays among the 13 to get involved from the very beginning.

Tags: scheme, service, customer, Business Finance, Economy of the United Kingdom, lloyds tsb, apacs, chief executive of Apacs.