Bank charge test case may be dropped
October 16, 2007 by admin
Filed under News, News-Banking
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
ABI says younger drivers “should have year of lessons”
August 30, 2007 by admin
Filed under News, News-Insurance
Younger drivers – traditionally a higher risk when it comes to car insurance – have been recommended to take a full year of lessons before their test.
The advice, from the Association of British Insurers (ABI), would in effect raise the driving age limit in the UK
A one-year rule of sorts is already in place in other European countries, with the ABI citing Sweden in particular as a positive example for the UK to follow.
Association spokesperson Malcolm Tarling said: “We suggest a minimum of one year pre-test driving experience before you get to the stage of taking your test.
“The overall aim is to reduce the number of young newly qualified motorists and their passengers that die or are seriously injured on the road.”
He added: “The key thing is to ensure that young drivers, once they have passed their tests, are better equipped to be in control of a potentially lethal weapon.”
The ABI’s position is backed up by recent research from the House of Commons Transport Committee.
It reported last month that adoption of a one-year training programme prior to all UK driving tests would reduce the UK’s road accident rate.
Statistics from the Department for Transport show that 3,150 people were killed on roads in the UK during 2006.
