Consumers withdrawing billions due to poor returns on savings

A recently released report has claimed that consumers in the UK have been withdrawing billions of pounds worth of savings over the first couple of months of this year, and this is because of the paltry rates of interest now being paid on many instant access and notice accounts following the dramatic cut in interest rates over the past six months. It has been revealed that in many cases savers are receiving barely above zero in terms of interest on these accounts. Read more

Tags: savings rates, angry consumers, england, notice, bank, building society, pensions, January

Prospect of monthly bank charges unpopular with consumers

According to a recent report the vast majority of consumers do not want to see the introduction of monthly banks charges even if it means that there will be a fairer system in place with regards to penalty fees for unauthorised overdraft use, bounced cheques, and returned direct debits. Research was recently carried out by MoneyExpert.com, and showed that nearly 60% of consumers did not want to see monthly account fees brought in even if there were caps placed on penalty fees. Read more

Tags: recent announcement, year, notice, OFT states, presiding judge, United Kingdom, office, bank charges

BIBA: Uninsured drivers are ‘a massive problem’

With around two million people driving without insurance in the UK, the issue is a “massive problem”, the British Insurance Brokers’ Association (BIBA) has said.

The organisation said it is working with the government to reduce the number of uninsured drivers because they are costing other motorists over £400 million each year.

Graeme Trudgill, technical and corporate affairs executive of BIBA, says that next year there will be a new drive towards making sure motorists have car insurance.

“It will compare the Vehicle Registration Database with the Motor Insurance Database and anyone that’s got a car and hasn’t got car insurance will get a penalty notice and if they don’t get insurance then they will have their car seized,” Mr Trudgill said.

According to recent figures from moneysupermarket.com, 15 per cent of UK drivers admitted to driving without insurance, while 23 per cent of people in their twenties have driven without cover.

Tags: notice, number, Mr Trudgill, Business Finance, hasn, motor, corporate affairs, uk drivers

Northern Rock fined widow £800

An elderly widow has expressed her anger after stricken bank Northern Rock fined her £800 in the midst of the chaos in September after she withdrew her savings from the bank.

After it became public knowledge that the bank had borrowed money in the form of an emergency loan from the Bank of England panic set in amongst those with savings in the bank, and many of the bank’s 1.5 million customers quickly withdrew their savings. One of these savers was seventy six year old Mrs Heather, who had tens of thousands in savings with Northern Rock.

Mrs Heather had £173,000 saved in a thirty day notice savings account, and was therefore aware that if she withdrew the money right away she would face hefty penalties. She therefore contacted Northern Rock and asked them to keep the money in the account for the thirty day period and then send a cheque out to close the account, so she effectively gave the required thirty day notice period.

However, a week later she received a cheque for the money in the post, and given the bank’s position thought that they must have decided to waive the thirty day period in light of what was going on. However, when she then asked the bank for a closing statement she realised that Northern Rock had in fact fined her £800 for withdrawing her cash early, even though she had given notice and the mistake had been on the part of the bank.

She said that she called the bank to complain: ‘The lady I was speaking to apologised, but then got very officious and said I should have sent the cheque back to them after I received it. She was very bombastic. So they expect a 76-year-old housewife to know when they have made a mistake – even when they fail to send out a statement showing what they have done?’

Alan Wright
26th November 2007

Tags: notice, 30 day, northern, bank, fined