Warning issued over HMRC message

Over the past couple of weeks authorities have had to issue warnings over a new email scam that was doing the rounds claiming to be from Her Majesty’s Revenue and Customs. Read more

Tags: scam, hmrc email scam, email scams, Business Finance, customs, Fair Trading, result

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: bank charges, firm legal beagles, bank claims, decision, banks, original ruling

Up to 70% of credit card holders did not shop around, says report

A new report has revealed that up to 70 per cent of credit card holders did not shop around before selecting their current card.

The findings from the Office of Fair Trading (OFT) indicate that this could put these spenders at a financial disadvantage.

Research for the report looked at issues surrounding the comparative costs of using various cards for purchases, cash advances, introductory offers and payment allocation.

John Fingleton, OFT chief executive, said: “No-one wants to throw money away, but consumers who don’t shop around for credit cards are doing just that.”

He added that it is essential that consumers are now given the right tools to make comparisons between credit cards more easily.

The report recommended that an independent comparison tool for credit cards needs to be introduced by the Financial Services Authority as well as improvements in how card providers show how information to consumers.

Meanwhile, Reuters has reported that the OFT is considering launching an enquiry into internet bank, Egg.

The news comes following the company writing to 161,000 customers to cancel their credit cards.

Tags: finance, John Fingleton, information, Fair Trading, cash, internet

Bank charge test case may be dropped

According to a recent report the Office of Fair Trading is considering dropping the test case over bank charges, which was planned for next year.

The test case was designed to make a final determination over bank charges following months of controversy and rows between banks and consumers. The battle started after campaigners and regulators branded the charges, applied for exceeding overdraft limits, bounding cheques, and returned direct debits, unlawful and unfair.

Officials from the Office of Fair Trading have confirmed that there is a chance that the test case will be dropped, but this will only happen if it is in the best interests of the consumer.

Officials stated that they may consider dropping the test case if banks decide to cut their charges to a level that makes them fair to consumers. Lloyds TSB has already cut its charges, but many experts state that it has not cut them enough.

One OFT official stated: “If we do our own financial analysis, and they come in with a number that is lower than our analysis would suggest is an unfair charge, there is no need for the court case to go forward. We will be looking out for what is the best outcome for the consumer.”

However, the banks are arguing that their bank charges have nothing to do with the OFT, and that officials have no power over their bank charges. The OFT is due to review charges to come up with a figure that it believes is fair.

If the test case does go ahead, many experts think that free banking could come to an end in the UK and that banks will start charging monthly fees for having a current account to recoup losses from bank charges.

Tom Smith
16th October 2007

Tags: case, oft, bank, claim, court

HSBC reveals extent of charge costs

HSBC reveals extent of charge costs

In another twist to the ongoing dispute between consumer groups and British banks over allegedly “unfair” charges such as overdraft fines, a leading high street bank has revealed for the first time the financial damage it has sustained over the issue.

The figures, released yesterday by HSBC, show that more than £100 million has been paid back, reflecting the scale of customer rebellion against the charges.

HSBC chief executive Michael Geoghegan said that “the size of the refunds that we have made demonstrate our commitment to treating our customers in a fair and transparent manner.”

Last week, the Office of Fair Trading (OFT) officially launched legal action against eight UK banks.

Mr Geoghegan also welcomed this news, which he said would “achieve legal clarity and a resolution for our customers and our business”.

The banks were granted a temporary reprieve as the Financial Services Authority (FSA) agreed to waive all charges until the conclusion of the case, which will come later in the year.

HSBC has recently announced an 11 per cent rise in profits so far in 2007 compared with the same period in the year before, totalling around £7 billion.

Tags: uk banks, uk banks.mr geoghegan, Financial Services Authority, fair, costsIn, consumer groups, scale, overdraft

Banks threaten to close accounts as charge row escalates

Account holders who have complained at seemingly excessive bank charges have been threatened with having their accounts shut down.

A study from This is Money, revealed by the website yesterday, showed that over one in eight of those who have tried to reclaim excessive bank fees have been subjected to the threat.

Extra charging by banks is a hugely controversial subject with British consumers. It was revealed last week that a total of £200 million has been paid back by banks so far this year, as customers assert their rights.

This is Money also claimed at the time that around 500 claims a day were being received at some banks, necessitating extra staff being brought in.

Regarding the latest controversy, chief executive of the Banking Code Standards Board Roger Skinner told the website: “Banks are allowed to close down accounts for commercial reasons. But they must also treat fairly any customers who are experiencing financial difficulties.”

According to the Banking Code, to which the banks in question are signatories, customers must be dealt with fairly when in financial difficulty.

Industry watchdog the Office of Fair Trading (OFT) extended its investigation into bank charges earlier this year. It is slated to report back in the autumn.

Tags: excessive bank charges, total, Banking Code, fair, threat.Extra charging, latest controversy, financial difficulty.Industry watchdog

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: strike, consumers, judge, claim, charges, legal, out

Capital One agrees to PPI fine

credit card company Capital One has agreed to pay a fine to the Financial Services Authority (FSA) over its sale of payment protection insurance (PPI).

The firm has reached a settlement with the authority following its investigation into the whole PPI market.

Capital One says that it has been working proactively with the FSA to ensure that its sales and administration in relation to PPI is brought up to standard.

The card company admits that there were problems in the past but says that it has now rectified these and was able to reach a settlement with the FSA because of the work it had put into addressing the authority’s concerns.

“Capital One values its relationship with its four million customers,” said Sanjiv Yajnik, chief executive officer at Capital One.

“We consistently review our policies and practices and had made a number of significant improvements prior to the FSA’s investigation.

“The FSA has recognised that Capital One co-operated fully throughout the investigation,” he added.

The firm agreed to a fine of £175,000 and it follows the announcement by the Office of Fair Trading earlier this month that the PPI market will be referred to the Competition Commission for further investigation.

If you are considering taking out PPI on any money you are borrowing it is worth while shopping around for the best deal that suits your needs.

Tags: trading, ppi market, fair, proactively, relation, executive, authority, commission

The Pros And Cons Of Payment Protection Insurance

Lenders are always eager to convince borrowers to protect their repayments for loans, credit cards, store cards, mortgages and other financial products. And they have a point. People in the UK are saving less and borrowing more, with a high rate of debt. Read more

Tags: cover, policy, cards, payment, Insurance, fair, trading, ppi, credit, claimsoft