PPI Claims News

Loan claim: BoE governor says Help to Buy should be temporary

Mon, 20 May 2013 10:52:31 GMT

The Bank of England (BoE) governor, Sir Mervyn King, says that the Help to Buy scheme should only be a temporary measure.

Mr King said that the scheme is "too close for comfort to a general scheme to guarantee mortgages," and suggested that it could be damaging to the mortgage market in the long term.

He said that the UK should not follow in the footsteps of the US, where the government has been trying to find a way out of schemes that it is backing.

Under the Help to Buy scheme, the government can guarantee up to 15 per cent of the mortgage on homes worth up to £600,000.

It was outlined in the Budget, as the latest initiative to encourage growth in the UK housing market.

In his statement about Help to Buy, Mr King agreed that the UK's mortgage market is in a state of recovery.

The scheme will come into effect at the start of 2014 and will last until 2017.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

Bank claim: RBS say shareholders back pay package

Fri, 17 May 2013 15:26:06 GMT

The Royal Bank of Scotland (RBS) claims that 99 per cent of its shareholders support its renumeration report, despite rumours that there is discontent over its bonus pot.

It said that they voted in favour of this at RBS's annual general meeting in Edinburgh.

Last year, the bank paid out £607 million in staff bonuses, in spite of the fact that it had made a loss £5.2 billion in the same time period.

Additionally, this was during a time when the bank was caught up in both the Libor fixing scandal and the payment protection insurance (PPI) mis-selling controversy.

RBS has had to set aside large provisions to pay for consumer claims against mis-sold PPI.

It was also fined £390 million by US regulators and the now defunct Financial Services Authority for fixing the Libor rate.

Having had to pay large sums of money for its failures, RBS described 2012 as a 'chastening' year.

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

Bank claim: Taxpayers to get money back on Lloyds

Fri, 17 May 2013 15:24:09 GMT

Taxpayers could soon get their money back that was used to save Lloyds Banking Group during the financial crisis.

Lloyds' share price passed its break even price of 61.2 pence during morning trade on May 17th, meaning that the government could look to sell it off.

Its rise in share prices follows chief executive officer Antonio Horta Osorio's claim that the bank could soon return to profitability.

As the bank had not been making profits, Mr Osorio has had to push back his annual bonus for a few years.

The bank is currently 39 per cent owned by the taxpayer after the government had to spend £20.5 billion to bail out the bank in 2009.

Should the government begin selling off shares at this point then taxpayers could profit from this, which could go towards making up for the amount of time that they have had to wait for public funds to be returned by the bank.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

Loan claim: FCA to collect personal data on mortgages

Fri, 17 May 2013 10:51:41 GMT

Consumers' data on mortgages may no longer be private, as the Financial Conduct Authority (FCA) is planning to step up the gathering of information.

It is doing this to better police the collection of mortgages, safeguarding against the agreement of risky mortgages. Agreeing bad mortgages are negative not only for consumers but also for the economy, where public funding has previously suffered due to bad investments falling through at several banks.

The new data will include information on such areas as childcare, income and household spend. It will then be shared with the Bank of England and the other financial regulator, the Prudential Regulation Authority.

However, there are some ramifications in terms of data protection and human rights that could be at stake if the FCA implements this measure.

In response to this, the FCA has said that the data collection is necessary to improve mortgage lending and that information will only be shared in rare cases where activities such as fraud are suspected.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

Loan charges: Strong link found between debt and depression

Fri, 17 May 2013 10:09:59 GMT

There is a clear link between debt and depression and anxiety, according to research by a leading charity.

StepChange, a debt charity, has revealed that 60 per cent of people it has spoken to about financial hardship were identified as suffering severe depression or anxiety.

The charity said that during 2012 it received around 5,000 calls per month to its debt counselling service, with the research compiled using a counselling tool to determine if those calling had depression or anxiety.

Almost two-thirds had severe depression or anxiety, a further 27 per cent had a moderate form and 13 per cent illustrated signs of a mild form of the conditions.

"These figures emphasise the link between debt and mental health problems," the charity's director of external affairs, Delroy Corinaldi, told the Guardian.

"Combined together, these issues can have a debilitating effect on people's lives."

Debt has long been known to have an impact on emotional well-being, with these figures illustrating that the two often go hand in hand.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

Bank charges: Babyboomers hit worst by bill rises

Fri, 17 May 2013 10:07:39 GMT

Close to half of households would struggle to pay an extra £99 for bills if they had to.

Research by Halifax has revealed that many households across the UK are stretched to the limit and would not be able to afford increases in bills.

The generations under most financial pressure are those in their 40s and 50s, with 18 per cent of both of these age groups admitting they would struggle to find an extra £24 a month for additional bills.

An explanation for the higher pressure on older generations is that they have already seen an above average increase in their essential bills. For those in their 40s and 50s energy bills increased by 29 per cent and mortgage or rental payments by 11 per cent, compared to averages of 26 per cent and nine per cent respectively.

“There is no quick way to ease the squeeze on households and many are already cutting back where they can. With so many households at full stretch it's even more important to make strict budgets and keep on top of finances and outgoings,” said Anthony Warrington director of personal current accounts, Halifax.

The struggle to make ends meet means that many people turn to payday loans and can make their financial situation even worse.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

Bank claim: Church says Barclays let society down

Thu, 16 May 2013 12:58:05 GMT

Barclays has been accused of letting society down by the Church of England.

It made this claim in its annual report following a year of scandals at the bank, where its chief executive officer (CEO), Bob Diamond, stepped down.

The Church has over £5 billion invested in the stock market, including a small stake in Barclays.

Yet it says that it only invests in businesses that are consistent with Christian values. As a result, its commissioners are engaging with Barclays to ensure that the bank intends to turnaround its culture in spite of its repeated failures.

Last year, Barclays was caught up in both the payment protection insurance (PPI) mis-selling scandal and the Libor rigging scandal.

Following the revelation that staff at Barclays had been guilty of Libor rigging, the bank was subsequently fined £290 million. Mr Diamond then resigned from the bank and was replaced by the current boss Antony Jenkins.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

Loan claim: Rise in first-time buyer mortgages

Wed, 15 May 2013 11:12:56 GMT

The number of loans approved for first-time buyers has been rising.

This is according to new statistics from the Council of Mortgage Lenders (CML), which said that over 19,000 new mortgages were approved for first-time buyers in March. Compared to February's results, when the number of approved mortgages was 15,900, this is an increase of 20 per cent.

However, this is down from March last year, when buyers rushed to take advantage of the stamp duty holiday.

Nevertheless, the monthly increase in mortgages shows that incentives to spur the property market, such as the Funding for Lending Scheme and the Help to Buy scheme, are working.

Both of these schemes make it much cheaper and easier for first home buyers to take out mortgages. Previously, this group would have struggled to acquire a good deal on a mortgage from a bank, as they are unable to show their credit history.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

Bank charges: Co-Op faces sizeable shortfall

Tue, 14 May 2013 11:59:25 GMT

The shortfall of the Co-Operative bank could be up to £1.8 billion in a worst case scenario, experts at Barclays have claimed.

They calculated this on a base of £800 million, in a less stressed situation, and looked into the estimate on losses that could be received from property loans. Many of these came from Britannia building society, which the bank merged with in 2009.

Although previous predictions said that Co-Op bank could need an extra £1 billion in capital, the experts at Barclays said that in a "stressed case" this could be up to £1.8 billion.

This analysis came after the major credit agency Moody's downgraded the bank's status to junk, as it felt that it could be at risk of losses from loans.

Following the announcement, the Telegraph reported that former chief executives at the bank may be seeing their bonuses clawed back, as the company looks to take action against the management of this division.

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

Bank claim: Post Office launches current accounts

Tue, 14 May 2013 11:11:18 GMT

The Post Office has launched its current accounts, which will offer consumers more choice on the high street when looking for somewhere to set up their finances.

For now, it has opened accounts at 29 branches in East Anglia but says that it will be extending its network from the start of 2014 onwards.

Which? has welcomed the move as it means customers will no longer be directed to the big five banks.

Increasing high street competition is something that the government has been aiming to do, as it feels that many of the big banks are not offering customers the best deals.

It has already said that it hopes to make it easier for customers to switch accounts.

As many Post Office branches are easier to access than many bank branches, particularly for those in more remote areas, this could mean that customers will be more likely to move away from bigger banks to get a Post Office account.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

Bank charges: Bad bank reputation harms graduate recruitment

Tue, 14 May 2013 11:07:09 GMT

Graduates are being deterred from getting a job in the financial sector as a result of the bad reputation in banks.

This is the opinion of the chief executive officer at Lloyds Banking Group, Antonio Horta-Osorio.

Over the past five years, banks have been criticised for such things as risk management and scandals.

Among the most notable consumer-related issues that have put banks in a bad light is the payment protection insurance (PPI) mis-selling scandal, which has seen banks paying out many thousands in customer claims as PPI has become the most complained about banking product in British history.

Recognition from a senior banker that the financial sector needs to make changes if it wants to attract more graduates was welcomed by Which? executive director Richard Lloyd.

But he added: “To rebuild their reputation they must do more to turn their words into action by putting customers first, enforcing high professional standards and properly punishing those responsible for mis-selling and bad practice.”

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

Bank charges: No more 'too big to fail'

Mon, 13 May 2013 13:27:31 GMT

Following its summit last week, the G7 has agreed that no bank should be considered too big to fail anymore.

The G7, which consists of financial leaders from the US, the UK, Germany, Canada, France, Italy and Japan, agreed that they should press on with banking reforms so that taxpayers no longer have to cover the cost of failing banks.

In the UK, the taxpayer had to deal with the bailout of Lloyds Banking Group and Royal Bank of Scotland (RBS), which they still own 39 per cent and 82 per cent of, respectively.

Having been bailed out during the financial crisis, only recently RBS was able to announce that it may be able to sell off its shares sometime next year depending on how much the government wants to sell its shares for.

As part of the reforms to the banking sector, the UK government has agreed that major banks need to set aside more capital to protect against bad loans falling though.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

Bank charges: Lloyds chairman to step down

Mon, 13 May 2013 13:25:58 GMT

Chairman of Lloyds Banking Group, Sir Win Bischoff, is planning to retire from the bank within a year.

Over the last four years, the bank has not performed as well as hoped.

It is currently 39 per cent owned by the taxpayer as the government had to bail it out during the financial crisis of 2008.

Additionally, in the past few years, it has had to set aside high provisions to pay for consumer claims as a result of the payment protection insurance scandal.

Nevertheless, Mr Bischoff has seen the bank return to profit during his time as chairman.

He claimed that: "Lloyds Banking Group has, over the past four years, made significant progress in its goal to become a strong, efficient, UK-focused retail and commercial bank."

An exact date has not yet been set for his departure but it has been said that he will leave before the shareholder meeting of 2014.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

Bank charges: Co-op bosses see bonuses clawed back

Mon, 13 May 2013 13:14:31 GMT

Former executives at the Co-operative Bank could be seeing their bonuses clawed back following its downgrade last week.

Major credit agency Moody's downgraded Co-op to junk status as it claimed that the bank could be at risk of losses from loans.

According to the Telegraph, directors of the company have been looking at ways to take action against the management of its banking division as a result of this.

One of the people that they are planning to take action against is the bank's ex-chief executive Neville Richardson, who stepped down in 2011.

Upon his departure from Co-op bank, Mr Richardson took away £4.6 million, including a £1.4 million payment for losing his office and £1.39 million in compensation for leaving the bank.

When Moody's announced the downgrade, chief executive Barry Tootell also stepped down. This was after the bank's plan to secure more branches from Lloyds Banking Group fell through.

Mr Tootell is due to be replaced by Rod Bulmer.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

Loan charges: Credit unions join scheme to offer loans

Fri, 10 May 2013 16:49:18 GMT

A total of 31 credit unions have joined a government scheme that aims to tackle payday lenders and banks.

Under the £35.6 million investment in what is known as the Credit Union Expansion Project, which was launched last month, the unions will be given more support to offer loans to members.

Credit Unions are often used in the local community and in the workplace.

If the scheme is successful then it could help to tackle the growing problem of people falling into financial trouble as a result of payday loan debts.

Alarm on this subject was raised when recent statistics from the debt charity StepChange reported that the number of people who had gone to them for help with payday loan debts had almost doubled.

Additionally, Credit Unions will also pose competition to banks in the UK. This is something that the government has been trying to stimulate in order to see people in the UK getting better deals.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

Bank charges: Co-Op gets downgraded

Fri, 10 May 2013 14:58:19 GMT

Co-Operative bank has been downgraded by the major credit agency Moody's.

It now has 'junk' status, which has sparked fears over the bank's debts.

Moody's claimed that it downgraded the bank because it could face potential losses on loans.

Shortly after this news, chief executive Barry Tootell stepped down and is due to be replaced by Rod Bulmer.

Co-Operative bank recently disappointed both consumers and the government when it decided not to go ahead with the acquisition of a number of bank branches from Lloyds Banking Group, the plan for which had been lead by Mr Tootell.

It was hoped that using these extra branches, which would expand the Co-Operative's reach, the bank would become more competitive.

The government has been aiming to increase competition recently among the retail arms of the financial sector as it feels that many banks are too confident in their customer base to offer the best deals they can.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

Loan claim: Mortgage scheme encourages homebuyers

Fri, 10 May 2013 08:06:38 GMT

The government's Help to Buy scheme has been encouraging more people to buy a house.

This is suggested by news of profits from the house building company Barratt Developments, which said that the housing market is the most positive that it has been for five years.

Barratt said that consumer demand was much higher between January 1st and May 5th this year, which was spurred by the announcement of the government's Help to Buy scheme.

Under this scheme, the government acts as a guarantor for certain mortgages so that people can gain low cost mortgages with a deposit of as low as five per cent. It will lend up to 20 per cent of the equity of their home. People looking to buy a house of up to £600,000 in value are able to qualify for the scheme. It is open to first time buyers and is not based on the level of income that people have.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

Loan claim: 8,000 homes repossessed in Q1

Thu, 09 May 2013 15:57:58 GMT

A total of 8,000 homes were repossessed by mortgage lenders in the first three months of 2013.

This is according to statistics from the Council of Mortgage Lenders (CML), which said this is 17 per cent down from the first quarter of 2012.

Director general for CML, Paul Smee, said the levels of mortgage arrears and repossessions had stabilised at a level that was lower than expected following the financial crisis.

He suggested this has been as a result of lower interest rates, people staying in employment, delayed mortgage closures by lenders and support from public policies.

Certainly, government initiatives such as the Funding for Lending Scheme have made it easier for home buyers to be able to afford a mortgage.

Mr Smee added: "Anyone who is worried about their mortgage can be assured that, as long as they take steps early to address them, most problems can be contained."

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

Loan charges: Kerry Katona payday loan advert banned

Thu, 09 May 2013 14:09:40 GMT

A television advertisement for the payday loan company PDB UK, under the name Cash Lady, has been banned after receiving a large number of complaints.

It featured the ex singer Kerry Katona, who had previously been declared bankrupt, explaining her financial situation and saying how she managed to turn this around.

The Advertising Standards Authority (ASA) said that the advertisement was irresponsible as it encouraged people who are facing financial difficulties to borrow money. As a result, the ASA has banned it.

Payday loans have become a contentious issue as people have been increasingly turning to these to tide them over. Yet many have then struggled to pay off the debts that they incur from these loans.

New statistics from the debt charity StepChange showed that last year the number of people who need help with payday loan debts had almost doubled in 2012 and the average debt of people in financial difficulty had risen to £1,657.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

Loan claim: Nationwide cuts loan rates

Wed, 08 May 2013 16:37:48 GMT

Nationwide’s building society branch in Derbyshire is offering cheaper personal loans in spite of the fact that it will not be open for much longer.

According to the Telegraph, it has cut personal loan rates so that those borrowing between £7,500 and £15,000 can get a rate of five per cent while those borrowing between £5,000 and £7,500 will have a rate of 6.4 per cent.

This is only applicable for loans of between one and five years and for people with a particularly strong credit rating.

Yet these rates have been lowered, potentially enticing more customers, in spite of the fact that Nationwide has said that the Derbyshire building society will be closing,

Nationwide is planning to close down many of its building society branches, starting with Dumferline.

This could put many of its customers out of joint as a lot of them have not yet been transferred to its bank yet.

Jennifer Haines

Jennifer's speciality knowledge is credit card changes and balance transfers.

Loan charges: Payday loan pleas for help double

Wed, 08 May 2013 14:22:18 GMT

The number of people the are requesting help with payday loans has doubled.

Figures from the debt charity StepChange show that it helped 36,413 people with payday loan debts in 2012, which is an increase on the previous year when it helped around 20,000 people.

It also found that the average debt of people asking them for help had risen to £1,657 from £1,267.

Director of external affairs at StepChange, Delroy Cornaldi, explained that payday lenders were causing serious problems for consumers, but that they were running out of alternatives.

He said: “With household finances increasingly under extreme pressure and access to credit far less available, many face the unenviable choice of using payday loans simply to make ends meet.”

Recently, the Financial Conduct Authority, the new financial regulator for consumers, has been investigating the practices of particular payday loan lenders to see if they are adding to the problem of their customers’ mounting debts.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

Bank claim: House prices up but demand weak, says Halifax

Wed, 08 May 2013 14:20:27 GMT

Halifax says that house prices rose by 1.1 per cent over the last month, but that there is still little activity in the property market.

This is according to the bank’s mortgage data and the

subsidiary of Lloyds Banking Group suggested that the reason why people are not as keen to buy property is due to the constraints on income within the UK, meaning that people can’t really afford to buy a house at the moment.

Housing economist for Halifax, Martin Ellis, said: "Weak income growth and continuing below-trend economic growth are likely to remain significant constraints on housing demand during the remainder of 2013."

However, the government has implemented measures that should make it easier for consumers in the UK to take out affordable mortgages.

This includes the Funding for Lending Scheme, which has recently been extended for another year, and the Help to Buy Scheme, which was unveiled during the Budget this year.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

Bank claim: EU to open bank accounts to all

Wed, 08 May 2013 13:28:12 GMT

Consumers across the European Union (EU) may be able to open a basic bank account in any member state in the future.

This is if new proposals from the European Commission are put into law, which aims to help customers open or switch bank accounts and compare deals.

At least one bank in every member state will have to have basic accounts available for anyone in the EU to set up.

Banks will also have to clearly define the terms of their accounts in a standardised fashion so that customers can easily compare what they are being offered.

Currently, 58 million people over the age of 15 across the EU do not have a current account.

What’s more, the Commission found that many consumers are unaware of how much they get charged in bank fees.

This is another case of EU member states trying to improve the financial sector for consumers.

In the UK, the government is trying to improve deals for customers by increasing competition between banks.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

Bank charges: RBS claim businesses are not borrowing

Tue, 07 May 2013 13:45:40 GMT

Stephen Hester, chief executive for the Royal Bank of Scotland (RBS), has said that the bank is desperate to lend but that nobody wants to borrow.

In an interview with the Sunday Times, he claimed businesses are too concerned with economic pressures to borrow the £20 billion the bank has set aside for loans.

While the major bank is one of many that has been told to increase lending to businesses as a means to alleviate the economy, Mr Hester stressed that “we are lending as much as we can” and that “we are not constrained by either capital or funding.”

However, this claim goes against evidence from a government think tank last month that showed the problem for small to medium-sized enterprises (SMEs) in gaining capital is banks are refusing to lend.

Results from the National Institute of Social and Economic Research shows that rejections for business loans were higher between 2011 and 2012 than they were during the financial crisis in 2008 to 2009.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

Bank charges: Nationwide to see closures

Fri, 03 May 2013 16:40:23 GMT

Nationwide has announced that it will be rebranding, which will result in some of its branches closing.

Additionally, 500 jobs are set to go in the process, as it integrates building societies in Dunferline, Cheshire and Derbyshire into its more major operations.

Half of these 91 branches will be converted into Nationwide banks, while the others have been tipped for closure.

Nationwide says that it will be closing these building societies down by 2015, starting with those in Dunferline.

This is bad news for customers at Nationwide’s building society branches as they are currently unable to use Nationwide.

These brands were initially taken in during the financial crisis, when they had suffered huge losses as a result of their portfolios on loans such as mortgages.

It was during this time that many other banks and building societies had to be bought out by other banks. An example of this is the acquisition of HBOS by Lloyds Banking group.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

Bank charges: RBS could be privatised in a year

Fri, 03 May 2013 14:37:14 GMT

Royal Bank of Scotland (RBS) says that it hopes to be privatised again, meaning that taxpayers will finally have their shares returned to them.

This announcement was made by chairman Sir Philip Hampton as the bank reported that it had returned to profit during the first three months of the year.

Despite making losses last year, partly due to the bank’s involvement in financial scandals such as payment protection insurance mis-selling and Libor rigging, the bank made a pre tax profit in the first quarter of £826 million.

Mr Hampton said that the bank could start selling off its shares from the middle of 2014, although he added “it could be earlier...we think the recovery process will be substantially complete in about a year or so's time".

Before the bank can be privatised, the government needs to decide how much it wants to sell shares in the bank for.

At present, RBS is 82 per cent owned by the government following a bailout during the financial crisis.

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

Loan claim: Lenders to contact interest only borrowers

Thu, 02 May 2013 14:36:40 GMT

Mortgage lenders have agreed to get in touch with holders of interest only deals.

They will be required to contact borrowers towards the end of their loan to encourage them to check their repayment plan and look into the options that are available to them.

This follows the publication of the Financial Conduct Authority’s (FCA) research into whether consumers can repay their interest only mortgages towards the end of their deal.

Interest only mortgages were particularly popular prior to the financial crisis. They allowed customers only to pay for the interest on their mortgages and pay the equity on their household when their loan came to the end of their terms.

However, there have been fears that many consumers will not be able to pay off their mortgage at the end of its deal.

The FCA found that almost half of all interest only borrowers will experience a shortfall when their loan matures.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

Bank charges: Cable calls for RBS prosecution decision

Wed, 01 May 2013 14:11:04 GMT

Business secretary Vince Cable is calling on Scottish lawyers to come to a decision on whether or not to prosecute ex directors at the Royal Bank of Scotland (RBS).

Mr Cable said that a decision needs to be reached soon so that public confidence can be restored as he explained "public and media interest in the banking sector and RBS have not dissipated".

The investigation was started by the Scottish Crown Office in 2012 following public concern issues over the practices within the banking sector.

Additionally, the now defunct regulator, the Financial Services Authority (FSA) had released a report detailing that the then chief executive officer, Fred Goodwin, had poor relations with them and that his management held the potential for risk.

He was CEO when the bank had to be bailed out during the financial crisis of 2008. It is still over 80 per cent owned by the taxpayer.

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

Loan claim: Mortgage approvals on the rise

Tue, 30 Apr 2013 15:51:17 GMT

Despite the previous decline, the number of new mortgages taken out last month has increased.

New figures from the Bank of England show that the number mortgage approvals rose in the month of March to 53,504.

This is up from February’s five-year low of 52,000.

Many believe that this increase in mortgage lending has been helped by the central bank’s Funding for Lending Scheme (FLS).

FLS saw the Bank of England invest billions of pounds into major banks so that they would then offer cheaper loan deals to homebuyers and small businesses. However, while it has aided in lowering the price of mortgages, figures suggest that FLS has yet to increase business lending.

Recently, chancellor George Osborne decided to extend FLS in a bid to reduce austerity measures in the UK.

While the scheme was initially meant to be up in January 2014, consumers will be able to take advantage of the scheme for an extra year.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

Bank charges: Lloyds posts profits despite selling problems

Tue, 30 Apr 2013 15:22:06 GMT

Lloyds Banking Group has seen its profits rise in the first quarter of 2013.

The part state backed bank saw a pre-tax profit of £2.04 billion in the first three months of the year.

Chief executive officer Antonio Horta-Osorio said that Lloyds intends to continue investing in delivering UK-customer focused retail banking.

However, future profits could be hampered by the bank’s recent failure to sell off around 630 of its retail branches to the Co-Operative bank.

Lloyds still plans to sell off these branches in 2014, under a plan titled Project Verde, through a stock market listing.

An increase in profits may help Lloyds move back towards privatisation. The bank is currently 39 per cent owned by the taxpayer after the government had to bail it out during the financial crisis.

Nevertheless, the failure to sell the branches and build the prominence of Co-Operative bank will disappoint the government who hoped that it would increase competition in the financial sector.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

Bank charges: Santander CEO steps down after legal battle

Mon, 29 Apr 2013 16:06:12 GMT

Chief executive officer (CEO) of Santander, Alfredo Saenz, has stepped down following legal rows over whether he should keep his post.

Mr Saenz had previously been given a suspended sentence for filing a false claim against a shareholder.

Having gained a criminal conviction, a legal battle ensued over whether Mr Saenz should be allowed to keep his role at the biggest bank in the eurozone.

He launched the false complaint in 1994 and has been battling authorities over his role for more than a decade until he was finally convicted in 2009. At the time he was in charge of Banesto bank.

It is understood that Mr Saenz stepped down from his position voluntarily.

He has been succeeded by Javier Marin Romano. The 46-year-old has been working at the bank since 1991 and held several executive positions.

According to Reuters, a central bank source described Mr Saenz resignation "as a very positive decision for banking stability and for Santander".

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

Loan claim: Lending set to increase

Mon, 29 Apr 2013 15:26:10 GMT

Banks are predicted to loosen their pockets somewhat and help with the first increase in business lending in four years.

The Ernst & Young Item Club suspects that banks will increase lending to companies by around three per cent to £440 billion. Then in 2014 it suspects lending will increase by 8.5 per cent to £477 billion.

This is after business lending fell by five per cent in 2012 to £427 billion.

Increasing lending to business is good news for the economy as smaller firms have often been held up by access to finance.

Ernst & Young says the Bank of England's Funding for Lending Scheme (FLS) will be one of the main driving factors for business lending in the UK.

This is in spite of the fact that so far FLS has failed to stimulate much lending to businesses.

However, it has aided in providing cheaper mortgages for first time buyers.

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

Loan charges: Santander shrinks lending

Fri, 26 Apr 2013 17:07:05 GMT

Santander shrunk the amount that it was lending to customers in the first three months of 2013.

The bank’s net mortgage lending fell by £2.5 billion and it shrunk its loan book by £2.3 billion during the first quarter.

In the same time period, the bank also saw profits drop by 26 per cent.

Such retractions on lending can be bad news for consumers and for the economy in general, particularly in terms of its attempts to boost the housing market.

In recent years, the property market has shrunk because people have been less able to afford mortgages.

As a result, the government has been trying to encourage banks to lend more cheaply.

Meanwhile, Santander may see profits fall further as it may need to pay compensation to customers who took out standard variable rate mortgages.

This is because the Financial Conduct Authority ruled that the bank had failed to give customers adequate information when it made changes to this product.

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

Loan claim: Yorkshire launches 10-year fixed mortgage

Fri, 26 Apr 2013 17:05:47 GMT

Yorkshire building society has launched a new fixed rate mortgage that will last for ten years.

Recent statistics show that fixed rate mortgages have been on the rise.

Some consumers find these deals preferable because they do not face increases on their mortgage expenses.

The downside to this, however, is that interest rates on mortgages are higher from the start. This could present financial trouble for certain groups, such as first time buyers.

Yet Yorkshire’s loan is advertised as one that should be more affordable for consumers.

The rate of this mortgage is set at 3.99 per cent.

This is because, recently, banks have been trying to tailor their loans so that they can be offered cheaper.

At the same time that Yorkshire launched this deal, Norwich & Peterborough announced a fixed rate mortgage at the same rate.

The release of these two new loans could be a sign that lenders are working to improve competition within the financial sector.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

Bank charges: Bailed out bank headache following Jim O’Neil’s departure

Fri, 26 Apr 2013 17:04:26 GMT

Head of UK Financial Investments Jim O’Neil has stepped down from his position and raised concerns over the UK’s bailed out banks.

Mr O’Neil had previously been in charge of the holdings of the two major bailed-out UK banks, Lloyds Banking Group and Royal Bank of Scotland (RBS), until he quit abruptly.

He has only held the position for a year, after having worked as an investment banker previously, and now plans to return to work in London’s financial sector.

Lloyds Banking Group and RBS were both bailed out during the financial crisis of 2008. While both banks are looking to move towards privatisation, they are still around 40 per cent and 80 per cent respectively owned by the taxpayer.

It is thought that Mr O’Neil’s departure will make it more difficult for the government to achieve a deal to sell off shares in the bailed out banks.

Some experts consider his exit to be a vote of no confidence.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

Bank charges: Low income savers wrongly taxed

Fri, 26 Apr 2013 12:27:13 GMT

Low income savers are seeing money automatically taken from their account, despite the fact they shouldn't be.

Experts from the Low Incomes Tax Reform Group (LITRG) claim many people whose incomes are less than the average annual tax-free personal allowance are having 20 per cent taken from them savings.

Banks and building societies automatically deduct income tax at the basic rate from the interest paid on deposits.

However, this should not apply to everybody and to stop deductions, low income savers must fill out an R85 form.

These are available from HM Revenue & Customs or from banks and building societies themselves.

LITRG chairman Anthony Thomas said: "It is possible to reclaim overpaid tax after the end of the tax year but it is certainly more cost-effective for the individuals and HMRC if the R85 procedure is used."

He added that many lose out because they do not make a repayment claim in time due to a lack of awareness.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

Bank charges: Lenders awaiting capital decision

Fri, 26 Apr 2013 12:25:17 GMT

Lenders in the UK are growing impatient to learn how much capital they will have to raise to plug a £25 billion shortfall by the end of the year.

Sources told Bloomberg that banks and building societies are becoming "rattled" by the decision of the Prudential Regulation Authority (PRA) to delay the decision.

The PRA is a unit of the Bank of England, which took over the supervision of the Financial Services Authority this month.

It isn't expected to give lenders the details they need to determine the steps required for bolstering balances until mid-May at the earliest.

This comes after banks have been frantically selling units and laying down plans following the accusation by the central bank that lenders weren't holding enough capital.

By delaying a decision, they will have less than seven months to plug the gap and potential losses from mis-selling.

Claims for payment protection insurance mis-selling are still blighting the reputation of UK banks and research has shown the PPI scandal is now the number one grievance among consumers.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

Bank charges: Barclays to focus on new culture

Fri, 26 Apr 2013 12:23:20 GMT

Barclays bank are to focus on creating the right culture in their organisation in the future, following the payment protection insurance scandals and Libor rigging that blighted the sector.

Speaking at the Annual General Meeting (AGM), chairman Sir David Walker declared there needed to be a change to increase consumer confidence.

"Changing Barclays' culture is critical if we are to rebuild trust," he said. "We started work with the launch in January this year of our new Purpose and Values."

Barclays has defined its purpose as helping people achieve their ambitions, based on core values of respect, integrity, service, excellence and stewardship.

Sir David stressed that this will take time but the bank is already making important progress.

This includes fundamentally changing remuneration structures to ensure they reflect how results are delivered, in addition to just their existence.

Removing all sales commission for branch-based staff with performance has been the first part of this.

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

Loan claim: OFT closes down payday lenders

Thu, 25 Apr 2013 15:32:09 GMT

The Office of Fair Trading (OFT) has shut down two payday loans companies following the revelation that one of their associates had been convicted of fraud.

Brighton-based payday loan companies, B2B International and Loansdirect2u.com have had their licenses revoked as part of the OFT’s investigations into the business practices of payday lenders.

Payday loans are advertised as short-term loans that can be used to help a consumer meet their financial commitments until they get paid.

The regulator has been looking into the practices of these firms after it came to light that many customers were struggling to repay their debts.

Some customers are not properly checked to ensure they can repay their loans and there have been cases where problems with the lender has stopped them from making repayments and raising the interest as a result.

In March, the OFT gave 50 payday lenders 12 weeks to change their practices.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

Credit card claim: Choice Freedom Outlet deals should be questioned

Thu, 25 Apr 2013 13:14:16 GMT

Consumers should question any contract before they enter into it and credit agreements offered by Choice Freedom Outlet are no exception.

The company promises no credit checks and zero interest, but cards cost £29 and can only be used at its online store.

Carole Yardley of South Ockendon Essex told Mirror.co.uk that when on the site, the selection of goods is "very poor".

The news provider investigated the case with Choice Freedom, but initially received no comment.

However, the US watchdog Better Business Bureau stated that there are mechanisms in place to compensation consumers.

"In some instances complainants are offered a partial refund and only after having complaints processed by the BBB does the company usually provide a full refund," it told the Mirror.co.uk.

Choice Freedom later contacted the news provider and stated that they have a 100 per cent 30 days, no questions asked refund policy.

People that feel they have been mistreated by a provider can launch a credit card claim.

Jennifer Haines

Jennifer's speciality knowledge is credit card changes and balance transfers.

Bank charges: No triple-dip recession good news for banks

Thu, 25 Apr 2013 13:12:56 GMT

The UK has managed to avoid a triple-dip recession, giving banks the chance to get back on their feet, lower bank charges and increase lending.

Growth during the first three months of the year has occurred at a faster pace than expected.

The Office for National Statistics has estimated that gross domestic product (GDP) increased by 0.3 per cent during Q1.

For the government, avoiding a triple-dip recession was vital and chancellor George Osborne has said the figures are an "encouraging sign".

However, shadow chancellor Ed Balls claims there is no cause for celebration and the economy is merely back where it was six months ago.

Nevertheless, this will no doubt give banks and consumers the confidence they need to increase their activity in key markets.

It should also have knock-on effects among international investors, demonstrating the UK outlook is improving.

Mr Osborne said: "I can't promise the road ahead will always be smooth, but by continuing to confront our problems head on, Britain is recovering and we are building an economy fit for the future."

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

Bank charges: Lloyds Banking Group deal failure bad news for consumers

Thu, 25 Apr 2013 13:03:24 GMT

The decision of the Co-Operative Group to pull out of a deal to buy 632 Lloyd's Banking Group branches is bad news for consumers.

This is the opinion of Chris Leslie, Labour's Shadow Financial Secretary to the Treasury.

"This is not only bad news for the Chancellor but for consumers too. We need more competition in the banking sector - including a greater role for mutuals - to give customers and businesses a better deal," he said.

Without the sale of Lloyd's branches, competition will remain limited, meaning customers will have little room for manoeuvre when faced with high bank charges or tight lending criteria.

The economy will also feel the ramifications of the failed deal and Mr Leslie believes the situation is another warning that the government's economic plan is failing.

Mr Leslie claims the chancellor must act quickly to kickstart the flailing economy.

This comes after the chancellor is faced with criticism over his austerity measures.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

Loan claim: Fixed rate mortgages rising

Thu, 25 Apr 2013 12:49:07 GMT

The number of fixed rate deals available to customers has risen by 73 per cent in the last year.

According to moneyfacts.com, there are 634 loans available for consumers over a five-year period.

This type of loan is where customers pay a particular amount of interest on their loan over a set period of time.

However, this kind of deal can be expensive for first time buyers as it means that they will be paying higher amounts of interest from the beginning than they would on a variable loan.

Yet the government is trying to find ways to make lending easier to afford for first time buyers.

In the Budget, chancellor George Osborne outlined the Help to Buy scheme. This included the unveiling of partially interest free mortgages. For buyers who can put down a deposit of between five and 20 per cent on a new house they will not have to pay interest on a portion of its equity.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

Bank charges: Brits sticking with banks out of habit

Wed, 24 Apr 2013 15:36:51 GMT

Despite the scandal surrounding several banks relating to payment protection and Libor rigging, it seems Brits are still loyal to their providers.

Research from Santander Current Accounts suggests people are staying with their bank out of habit.

More than half of people (58 per cent) have been with their current account provider for more than a decade, with the average relationship lasting just over 16 years and one month.

Of these, nearly a third (31 per cent) claim this the result of routine rather than strong feelings that they are getting the service they want.

Conversely, the average length of a romantic relationship is just 14 years and four months.

Santander is now encouraging people to review their current account to ensure they are getting the maximum benefits.

Hetal Parmar, head of banking at Santander, said: "The research serves as a stark reminder that it's important to ensure our money is working as hard as possible.

"There still seems to be a strong sense of apathy when it comes to switching current accounts, even when there are better value deals available."

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

Credit card claim: Sainsbury's tries to entice customers with new credit cards

Wed, 24 Apr 2013 15:35:09 GMT

Sainsbury's Bank is hoping to entice more customers with its launch of two new credit cards.

Claiming to offer the lowest standard interest rate available for purchases and balance transfers, not to mention a 7.8 per cent APR representative variable, Brits must still be aware of credit charge risks.

While headline grabbing deals are enticing, the same rules should always apply when shopping around for credit.

Nevertheless, the bank is laying down the gauntlet to its competitors as the only provider to offer credit cards with an interest rate under eight per cent APR, combined with generous rewards.

Research from Sainsbury's previously revealed that the average APR on a credit card offering some form or reward or cashback is 17.58 per cent. This is 9.58 percentage points higher than what Sainsbury's Bank is offering.

Andrew Hagger from MoneyComms commented: "The combination of a low interest rate and a generous reward programme will appeal to savvy shoppers who are striving to make every penny count in this tough economic climate."

Jennifer Haines

Jennifer's speciality knowledge is credit card changes and balance transfers.

Bank charges: EFG Private Bank fined by FCA

Wed, 24 Apr 2013 13:11:26 GMT

The Financial Conduct Authority (FCA) has fined EFG Private Bank for not establishing effective anti-money laundering controls.

EFG Private Bank was fined £4.2 million by the new financial regulator, who said that there had been serious failings in the bank’s anti-money laundering controls for high risk customers that had lasted for three years.

Concerns about the bank’s money laundering controls were raised by the FCA’s predecessor, the Financial Services Authority (FSA), in 2011. This was after the FSA visited the bank as part of a review of how money laundering was being handled in high risk situations.

The FCA took over responsibility for investigations into EFG Private Bank following the dissolution of FSA at the start of April.

Money laundering has seen major banks face fines from regulators worldwide in recent times. Last year, HSBC was fined $1.2 million (£1.2 million) by US regulators that said the bank had been involved in money laundering in the US and Mexico.

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

Bank charges: Barclays profits fall but gains on bonuses

Wed, 24 Apr 2013 13:10:02 GMT

Barclays bank has seen profits fall by 25 per cent to £1.8 billion in the first quarter of 2013.

Yet it also reported that it had made a windfall gain of £235 million from its bonuses last year. This was as a result of a complex financial transaction that saw bonuses awarded to 140,000 of its staff.

Profits had fallen overall at the bank as a result of its restructuring program, Project Transform.

The bank has been implementing cost cutting measures following a fall in profits last year. These have included cutting 3,700 jobs, scaling back its investment arm and changing the bank’s culture.

This was as a result of the bank’s involvement in financial scandals, such as the mis-selling of payment protection insurance and fixing the Libor rate.

Chief executive Antony Jenkins has been trying to change Barclays and recover its reputation after he took over as head of the bank from Bob Diamond.

Mr Diamond stepped down after the bank was fined £290 million for Libor rigging.

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

Bank charges: Co-op rejects Lloyds branches

Wed, 24 Apr 2013 13:08:42 GMT

The Co-Operative Group has pulled out of a deal to buy 632 Lloyds Banking Group branches.

This comes after the two banks had been in talks over a year about the purchase of the branches.

News of the failed deal is likely to disappoint both customers at Co-Operative bank and the government.

Had Co-Op bought the banks it would have had a network of 974 branches, which would make it more accessible to people across the country.

The government had been working to encourage this deal as it was seen as an opportunity to create competition for the big four banks.

Competition in banks is something that the government has been working to improve this year. It feels that customers could be offered better deals but that major banks are failing to do this because they can attract the majority of consumers too easily.

One of the ways the government plans to increase competition is by making it easier for customers to switch their accounts to a different bank.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

Bank charges: Nationwide experiences technical glitches again

Tue, 23 Apr 2013 17:21:37 GMT

Nationwide has been the victim of a technical glitch once again. Customers have been unable to access account information, after the online banking service went down.

For certain consumers, data was also inaccessible in-branch, creating problems for users of the bank.

Nationwide has apologised and assured customers that it is working as quickly as possible to fix the problem.

However, this isn't the first time customers have been experienced electronic failures and last July an error led to double payments being taken, which could have left consumers facing bank charges.

The bank attributed this to a "one-off human error" but 704,426 account holders were affected.

Royal Bank of Scotland was also recently the subject of a technical malfunction and customers were left unable to log into their accounts following an error with their mobile banking app.

This occurred but weeks after customers were left locked out of the accounts, with some cards swallowed at cash machines.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

PPI claim: Are banks upholding PPI claims?

Tue, 23 Apr 2013 17:17:49 GMT

PPI refunds may be harder to come by than previously thought, with reports suggesting banks are rejecting complaints.

The Daily Telegraph reported the Financial Ombudsman Service (FOS), which deals with cases rejected by banks, is still upholding the majority of grievances.

"If claims were being resolved in the first instance, it would be better for everyone concerned," a spokesman for FOS told the newspaper.

The revelation comes after it was revealed the PPI scandal is turning out to be the biggest case of mis-selling in British history.

A report from the Financial Conduct Authority (FCA) found that PPI is still the subject of the largest volume of complaints out of all banking products.

In the second half of 2012, complaints were up by five per cent, compared to Q1 and Q2.

Current accounts have also been identified by consumers as one of the main areas of complaint, taking second place on the FCA's grievance list.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

Bank claim: Banks must serve society, Archbishop claims

Tue, 23 Apr 2013 16:54:39 GMT

The Archbishop of Canterbury has weighed into the current banking crisis, claiming financial institutions must serve society, rather than their own interest.

Following scandals over PPI charges and Libor fixing, the banking sector has come under heavy criticism.

Now the Archbishop, Justin Welby, claims one of the country's biggest banks should be broken up to create more local lenders, the Daily Telegraph reported.

This will help to decentralise banking from the capital and address the "concentration" in the industry.

"What we’re in at the moment isn’t a recession but some kind of depression. It needs something very, very major to get us out of it, in the same way it took something very major to get into it," he said.

This comes after the government announced its desire to break up the Royal Bank of Scotland and Lloyds Banking Group.

Should such plans be adopted, the sector is likely to look much different in the future.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

Loan claim: EU mortgage rules introduced to protect consumers

Tue, 23 Apr 2013 16:41:24 GMT

The EU has announced a new mortgage directive aimed at giving consumers greater protection.

A standard affordability assessment will be introduced to determine whether a loan applicant is capable of making repayments. Anyone that fails the assessment will be refused a mortgage.

The reform is hoped to protect against reckless home lending, which occurred in the past and contributed to the fallout from the financial crisis.

EU commissioner Michel Barnier said in a statement: "Consumers will finally get the protection they deserve. They will be better informed so they can choose the mortgage product which best meets their needs, at the best price, and fully aware of the risks they are taking."

Under the directive, measures to protect against misleading advertising will be introduced, in addition to a ban on tied mortgages, unless they can be proven to benefit consumers.
A guaranteed period of time before a person becomes bound by a mortgage agreement will also be legislated for.

Jennifer Haines

Jennifer's speciality knowledge is credit card changes and balance transfers.

Bank charges: HSBC makes job cuts

Tue, 23 Apr 2013 15:35:17 GMT

HSBC bank announced it will be cutting back its workforce as a means of reducing costs.

It said that 3,166 jobs would be cut in the UK, mostly from its wealth management arm, but claimed that over 2,000 of its workers would be redeployed elsewhere.

However, this means that more than 1,000 members of staff will lose their job.

This is part of HSBC’s three year plan to cut costs and focus on more profitable areas, outlined by chief executive Stuart Gulliver, and follows on from when it cut 2,200 jobs in 2012.

The trade union Unite is considering strike action in response to this decision from HSBC. It said that the way that the bank is behaving is a ‘disgrace’.

This news comes not long after figures showed unemployment is rising in the UK, which in turn does not breathe confidence into the state of the country’s domestic economy.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

Bank charges: UK households worse off in April

Mon, 22 Apr 2013 16:34:32 GMT

Households in the UK had to tighten their budgets even more this month, a survey revealed.

The Markit household finance index fell lower in April compared to its March results.

It said this was a result of increasing living costs against lowered income.

Author of the survey, Markit senior economist Tim Moore, said: “There has been little alleviation of the strain on households' financial wellbeing so far this year. Moreover, with incomes failing to keep pace with living costs, household finance constraints are likely to act as a further drag on consumer spending over the months ahead,"

On Thursday, official figures will show if the UK has fallen into a triple dip recession.

Inflation in the UK has risen to 2.8 per cent, which has constrained consumer spending considerably.

Experts predict this will rise above three per cent over the year.

The target rate for inflation is two per cent, yet the Bank of England says it will be some time before it reaches this.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

Loan claim: FLS to be extended

Mon, 22 Apr 2013 16:32:51 GMT

The Funding for Lending Scheme (FLS) will be extended, chancellor George Osborne has decided.

It was originally due to expire in January 2014 but will now run for a year longer.

The chancellor had said in the Budget that he would extend FLS if he thought it could benefit the economy, which was echoed by the Bank of England (BoE) in its most recent Financial Policy Meeting.

He made the decision to extend FLS after the International Monetary Fund put pressure on him to reduce austerity measures in the UK.

This scheme was put in place to help increase lending to people looking to buy houses and to businesses.

The BoE set this up by investing around £80 billion in major banks on the condition that this money would be given back to customers as cheaper mortgages and business investment.

So far, it has failed to provide credit to businesses but had aided in reducing the cost of mortgages.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

Loan claim: Santander to compensate mortgage holders

Mon, 22 Apr 2013 15:45:03 GMT

Santander is expected to pay out millions of pounds in compensation to mortgage borrowers at the bank.

This is for customers who were affected by the rise of the cap margin for the standard variable rate (SVR) in 2008.

The Financial Conduct Authority (FCA), which has now taken over from the Financial Services Authority, said Santander had not clearly outlined to its customers how the SVR cap margin rise would affect them.

Santander has agreed to contact 270,000 mortgage customers that may have been affected by this.

However, the FCA says that it believes only a small minority of those Santander contact will be able to receive compensation.

Yet it also says that customers who think they may have suffered financial losses due to the SVR cap margin rise should also contact the bank.

It is expected that 30,000 former customers at Abbey bank will be contacted by Santander after they came off fixed rate mortgages and were automatically put onto SVR deals.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

Loan claim: Lending has fallen says BoE

Fri, 19 Apr 2013 12:40:32 GMT

A new report from the Bank of England (BoE) showed that lending fell in the first quarter of 2013.

Its Trends in Lending report showed that mortgage approvals and the stock of business loans contracted in the first three months of the year.

BoE had previously hoped to stimulate lending with its Funding for Lending Scheme (FLS), where it invested in major banks to get them to lend to small businesses and to homeowners.

Yet the results from BoE show that this has not yet produced the results it hoped for.

In its most recent Financial Policy Meeting, BoE said that it could be helpful for the economy to extend FLS.

This echoed chancellor George Osborne’s suggestion that he would see FLS extended if it was considered to be necessary.

He has also put forward a separate plan to aid people with mortgages in his Help to Buy Scheme. This will see the government acting as guarantor for some mortgages and interest free mortgages granted for up to 20 per cent of the equity of certain kinds of new property.

Payment protection: FCA to clamp down on ‘teaser’ rates

Thu, 18 Apr 2013 13:04:43 GMT

Savings accounts and ISAs may soon stop selling themselves on introductory, or ‘teaser’, rates.

The Financial Conduct Authority (FCA), which took over from the Financial Services Authority (FSA) at the start of this month, has suggested that it may look into the selling of teaser rates.

Often banks entice customers by offering them good interest rates for setting up savings accounts with them. However, these rates do not last for very long and result in the customer gaining barely any interest from their accounts.

At a conference in London, FCA chairman Martin Wheatley explained how customers get drawn in by these seemingly good deals but then do not do anything about it when they stop receiving their introductory interest rates.

The FCA has already said that this year it intends to study how behaviour economics affect the sale of banking products, including whether banks encourage ‘customer inertia’ to drive sales.

Jennifer Haines

Jennifer's speciality knowledge is credit card changes and balance transfers.

Bank charges: Barclays investment head Rich Ricci to retire

Thu, 18 Apr 2013 13:02:04 GMT

The head of Barclays investment arm, Rich Ricci, is due to retire in June.

He will be succeeded by Eric Bommensath and Tom King, who will take over as co-chief executive officers (CEOs) of Barclays corporate and investment banking.

Wealth management head, Tom Kalaris, will also be leaving.

Mr Ricci and Mr Kalaris are two of the last remaining management members of the former CEO Bob Diamond’s team.

The ex-CEO stepped down last year after regulators found that Barclays had been involved in the Libor fixing scandal.

This scandal saw banks changing the benchmark estimate, which is used to set financial transactions all over the world, in a bid to boost profits.

As well as Barclays, UBS and Royal Bank of Scotland have also been found guilty of Libor rigging.

Barclays was fined £290 million by regulators for this.

The Financial Conduct Authority has taken over Libor investigations in the UK from its predecessor, the Financial Services Authority.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

Loan claim: BoE supports extensions to FLS

Wed, 17 Apr 2013 12:48:11 GMT

The Bank of England (BoE) said that it thinks extending the Funding for Lending Scheme (FLS) could be beneficial.

In the minutes from its Financial Policy Committee meeting, it noted how the scheme had been put in place to facilitate a gradual economic recovery but so far lending has been more subdued.

The FLS has seen BoE investing in major banks to encourage them to lend to homebuyers for the first time.

However, so far it has not produced the results hoped for. In fact, data showed that lending decreased in the last quarter of 2012.

Yet recent statistics from the Council of Mortgage Lenders have shown that the value of mortgages for first time home buyers has reached a five year high in February. They were up by 17 per cent compared to the same month last year.

Mortgage lending to first time buyers may also rise under the new Help to Buy Scheme.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

Bank charges: EU clamps down on bonuses and capital

Wed, 17 Apr 2013 12:47:06 GMT

The European Parliament has made a final decision on a cap for banker bonuses and capital requirements.

It has been agreed that banker bonuses will be capped at 100 per cent of their annual salary, or 200 per cent if shareholders agree.

This has been implemented under recommendations from the Basel Committee and is supposed to deter bankers from making risky investments that led to the financial crisis.

Yet the UK government tried to oppose this cap as it thought this would encourage banks to increase their wages. It was outvoted 26 to one in March.

Capital requirements for EU banks are also going to go up from two per cent to 4.5 per cent.

This is so banks can protect themselves if their investments fall through, which means that governments will not have to bail them out as they did during the financial crisis.

The changes will come in from the start of January 2014.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

Bank charges: Natwest and RBS increase overdraft charges

Wed, 17 Apr 2013 12:45:38 GMT

Customers at Natwest and Royal Bank of Scotland (RBS) will be facing increased charges if they fall more than £10 into their overdraft.

The changes to overdraft fees mean that the interest rate of 19.89 per cent will come in when customers are £10 into their overdrafts rather than the previous £100.

It was also revealed that customers will have to pay £6 a month for an arranged overdraft, which could see them paying an extra £72 per year.

Yet customers who are unhappy with these changes may not be tied to their accounts for too long.

The government has announced that it will be making it easier for consumers to switch accounts as part of a plan to increase competition in the financial sector.

Earlier this year it said that it was not satisfied that customers were being offered the best deals, as most of them simply turn to the most major banks.

Jennifer Haines

Jennifer's speciality knowledge is credit card changes and balance transfers.

Bank charges: Cost of living still stretched

Tue, 16 Apr 2013 14:05:45 GMT

Consumers continue to be squeezed as inflation has held steady in March.

The Office for National Statistics said the consumer price index has stayed at 2.8 per cent again, which is the highest level seen since May last year.

Only the price of fuel and food was eased.

As wages are not rising fast enough, with an average increase being measured at little over one per cent, it is likely that consumers will still have to look for ways to spend less.

The target for inflation is actually two per cent but it has remained above this since 2009 and even rose from 2.7 per cent earlier this year.

Before this, the Bank of England admitted that inflation will remain above its target for longer than it had initially hoped.

Some economists have said that they think the inflation rate will breach three per cent over the next few months.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

Loan claim: Five year high for first-time buyer loans

Tue, 16 Apr 2013 13:58:30 GMT

The amount of loans agreed with first time home buyers has increased to the highest level seen for five years, a report has revealed.

According to the Council of Mortgage Lending (CML), the value of loans for first time buyers in February had gone up by 17 per cent compared to the same month in 2012.

This was before chancellor George Osborne announced his new Help to Buy Scheme in the Budget.

Under this scheme, the government will act as a guarantor for some mortgages and will also be offering interest free mortgages for up to 20 per cent of a property’s equity.

CML director general Paul Smee explained that he hoped the new Help to Buy Scheme will encourage more first time buyers.

Some first time buyers may have been helped by the government’s Funding for Lending Scheme, which saw money invested in major banks that would then be lent more freely to home buyers and small businesses.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

Bank claim: Lloyds customers face technical hitches

Tue, 16 Apr 2013 12:39:31 GMT

Customers at Lloyds Banking Group may have been faced with problems accessing their online banking services yesterday.

For an hour on April 15th, the banking group, which includes Lloyds TSB and Halifax, was hit by a system error but it says that the issue has been resolved.

It said: “We know our customers rely on us, and we apologise for the inconvenience we have caused them."

This happened on the same day that the Financial Conduct Authority (FCA) released a report stating that Lloyds TSB received the second highest amount of complaints between July and December 2012. It took second place to Barclays.

Lloyds is not the only group of banks that has experienced problems with its computer systems.

Royal Bank of Scotland and its subsidiaries Natwest and Ulster bank are currently being investigated by the FCA for IT failures that took place during summer last year. Customers were locked out of their accounts for days and left unable to pay bills or receive payments, such as wages.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

Loan claim: Think tank finds banks reluctant to lend to SMEs

Mon, 15 Apr 2013 14:02:06 GMT

Banks have proven to be unwilling to agree loans with small to medium-sized enterprises (SMEs), results from a government think tank have revealed.

The National Institute of Economic and Social Research found that banks are more reluctant to lend to SMEs than they were during the financial crisis. This goes against claims from banks that SMEs are, in fact, not willing to invest.

In the report, the institute said: "We control for firm risk and other relevant characteristics in our analysis and still find rejection rates for bank loans are generally higher in 2011-12 than 2008-9."

The government has been trying to make it easier for SMEs to agree loans, as it is hoped that they will drive an economic recovery. One of the ways it has done this is by introducing the Funding for Lending Scheme, although more help has gone to home buyers instead of SMEs.

By failing to lend to businesses, banks are making it more difficult for SMEs to gain access to finance, which has identified as one of the main barriers to growth.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

PPI claim: PPI remains most complained about banking product

Mon, 15 Apr 2013 13:59:34 GMT

Payment protection insurance (PPI) still attracts the most complaints out of all banking products.

This was revealed in a report from the Financial Conduct Authority (FCA), which looked at complaints made by consumers between July and December of last year. Complaints against PPI were up by five per cent during this time compared to the first half of 2012.

Current accounts were the products that received the second highest amount of complaints.

The report also found that Barclays was the bank that attracted the most complaints but that these were down by six per cent. It was followed by Lloyds TSB, which had seen a 19 per cent reduction in the number of complaints it received.

PPI has become the most complained about banking product since a landmark court case in 2009 found it had been widely mis-sold.

The Financial Ombudsman Service still receives thousands of complaints per week about PPI.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

Bank claim: Survey finds complaints handled poorly

Mon, 15 Apr 2013 13:56:34 GMT

Bank customers have been proven to be unhappy with the way their complaints have been handled, a study has revealed.

The magazine, Which?, found that roughly one quarter of the 2,000 people it surveyed had complained to their bank within the last year. Of these, about one fifth found that said that they were unhappy with the response that they had received.

Customer service was one of the top reasons for consumers to complain.

A spokesperson for Which?, Richard Lloyd, said: "There's been a lot to complain about in banking over the last few years and to win back our trust they must sort out their complaints handling.”

Which? was also instrumental in uncovering the payment protection insurance (PPI) mis-selling scandal. Since then, PPI has become the most complained about banking product in British history and banks have had to set aside billions of pounds to pay for consumer claims.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

Credit card charges: Millions of Brits owe money on utilities

Fri, 12 Apr 2013 16:55:39 GMT

The sluggish economy has been tough on many people in the UK, as rising costs force some people closer to the breadline, and push some further into debt.

A new study from the Debt Advisory Centre Scotland found that around one in four Scottish adults has ignored a utility bill for some time after it lands on their doormat, simply because they do not have the money to pay it.

Around 17,000 Scottish people are in arrears to one or more of their utility providers, and over a quarter of Scots - while not in arrears - have ignored a bill.

In the UK overall, over two million people are in debt to their water company, with slightly fewer owing money to their gas and electricity providers.

Ian Williams from the Debt Advisory Centre Scotland said that often utility bills can drop down the list of priorities when people are trying to meet charges for borrowing and pay their rent or mortgage.

"Some people get into utility arrears because other debt repayments - like for credit cards and personal loans - get 'in the way'. If this is the case, you need to seek professional debt advice as soon as you can,” he said.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

Payment protection: FCA to help consumers compare products

Fri, 12 Apr 2013 16:27:39 GMT

The Financial Conduct Authority (FCA) has said that it will help consumers to compare banking products so that they can choose ones that suit them best.

Martin Wheatley, chief executive for the FCA, said that the new regulator will assess the behavioural economics within banks to see how they affect customer decisions.

He explained: “We want the regulatory system to use behavioural economics to ascertain whether people are being put off switching products through inertia, inattention or even the simple fear of regret from making a wrong decision.”

Banks have been guilty of mis-selling financial products in the past.

The most high profile mis-sold product is payment protection insurance (PPI), which has seen banks have to set aside billions of pounds for consumer claims as thousands of these are made against this product every week.

At the start of April, the FCA took over from the Financial Services Authority as the main financial regulator in the UK, alongside the Prudential Regulation Authority.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

Bank charges: Japan RBS investment boss quits over Libor

Fri, 12 Apr 2013 12:47:27 GMT

The head of the investment arm at the Japanese division of Royal Bank of Scotland (RBS) has quit due to the bank’s involvement in the manipulation of the Libor rate.

This was after Japan’s regulator, the Financial Services Agency, found that compliance procedures within the bank were lacking and ordered it to improve on them.

Earlier this year, RBS was fined £390 million for manipulating the Libor rate, as it had been found that employees in London, Singapore and Tokyo had been involved in this.

In the UK, where the bank is 80 per cent owned by the taxpayer, there were fears that this fine would be paid using their money. However, chancellor George Osborne instructed RBS to pay the fine using banker bonuses. RBS agreed to follow this instruction when paying the portion of the fine going to US regulators.

RBS is one of three banks that has been fined for Libor manipulation. The other two are Barclays and UBS.

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

Bank claim: Post Office current account challenges banks

Thu, 11 Apr 2013 13:20:48 GMT

The Post Office will be laying down a challenge for Britain’s major banks as it plans to unveil a current account.

It promises to present a current account with “simplicity, transparency and good value for money,” according to director of financial services at the Post Office, Nick Kennett.

The government has been hoping to stimulate competition between banks in the UK. It says that major banks are not offering as good deals as they could due to the fact that so many consumers tend to look automatically towards the most major banks.

One of the ways it has done this is by saying that newer banks do not need to hold as much capital to trade, while it told major banks that they need to have £25 billion behind them. This is so that smaller banks will be more able to grow in prominence on the high street.

It is also making it easier for customers to switch current accounts, which could help Post Office to compete more easily with the major banks.

Jennifer Haines

Jennifer's speciality knowledge is credit card changes and balance transfers.

Bank charges: Christine Lagarde says ‘too-big-to-fail’ is more dangerous than ever

Thu, 11 Apr 2013 13:19:33 GMT

Christine Lagarde, managing director at the International Monetary Fund (IMF), said that the banks considered to be ‘too-big-to-fail’ are now more dangerous than ever and that tight regulations are needed to stop this.

In a speech to the Economic Club of New York on April 10th, Ms Lagarde suggested that the financial sector needs to be reformed so that it is more supportive of growth.

She said: “We simply cannot have pre-crisis banking in a post-crisis world. We need reform, even in the face of intense pushback from an industry sometimes reluctant to abandon lucrative lines of business.”

Then she commended the work of policymakers around the world for their stricter regulations on capital within banks.

In the European Union, banks are being told to increase the amount of capital they have behind them under suggestions from Basel III.

UK banks were recently instructed to put £25 billion aside to protect against any investments that could go wrong.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

Loan claim: Millions could struggle to pay their mortgages next payday

Thu, 11 Apr 2013 13:17:27 GMT

Millions of people in Britain could be one month away from being unable to pay for their mortgages, research from Shelter has revealed.

It found that over eight million people do not have enough savings set aside, meaning that if they were to lose their job, they would be unable to pay for their mortgage.

Worse than this, 18 per cent said that if they were to lose their job and were unable to get another one immediately after, then they would be unable to pay for their mortgage or rent at all.

The government has been trying to make it easier for people to get mortgages more cheaply in order to stimulate the housing market.

In the Budget, chancellor George Osborne outlined plans to offer partly interest free mortgages and to have the government stand as guarantor for some mortgages under his Help to Buy scheme.

Some people had been struggling to gain cheaper mortgages as banks can be reluctant to lend to people who have little equity.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

Bank claim: KPMG could be linked to HBOS collapse

Thu, 11 Apr 2013 09:42:11 GMT

The accountancy firm, KPMG, may be investigated over the collapse of HBOS bank.

Shareholder advisory firm Pirc wrote to the Financial Times saying that KPMG should be investigated for the way that it audited HBOS leading up to the financial crisis.

During the crisis, HBOS had to be bought out by Lloyds Banking Group, which, in turn, had to be bailed out by the government.

A spokesperson from the Financial Reporting Council said that KPMG is not currently under investigation but it will be using reports from the Parliamentary Commission on Banking Standards and the Financial Conduct Authority (FCA) to decide whether to approach KPMG.

Pirc also asked that John Griffiths-Jones, who was working for KPMG when HBOS got into difficulty, temporarily step down from his role as FCA chairman until the investigation into KPMG has been completed.

Individuals at HBOS came under scrutiny following the release of a report from the Parliamentary Commission last week, which shamed practices within the bank.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

Bank claim: RBS IT failures investigated

Wed, 10 Apr 2013 11:55:32 GMT

Royal Bank of Scotland (RBS) is due to be investigated by the Financial Conduct Authority (FCA) for an IT failure last summer.

During June and July 2012, customers were unable to access their accounts after a software update at the bank caused an error in the system. As a result, customers at RBS and its subsidiaries Ulster Bank and Natwest were unable to receive payments, such as wages, or pay bills.

The FCA has not outlined a timetable for its investigation but says that it will complete it in ‘due course’ and will then decide whether any enforcement action needs to be taken against the bank.

Earlier this year, RBS had a computer malfunction that shut users out of their accounts. Customers were unable to use the bank’s telephone and online banking services and some had their cards swallowed by cash machines.

Its phone app also experienced difficulties in March when users were unable to log in.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

Bank charges: Banning payday lenders from town centres is ‘not enough’

Tue, 09 Apr 2013 17:04:59 GMT

Getting rid of payday loan provider stores on the high street will do little to alleviate the problem of mounting debts faced by many Brits.

Citizens Advice chief executive Gillian Guy said that while the number of payday lenders setting up shop on the high street is “frightening”, these stores are not where the main issue lies.

The comments follow a promise from Labour leader Ed Milliband to give councils more powers to ban payday lenders, pawnbrokers and bookmakers from town centres.

“The problem is much bigger online with the internet awash with websites promising to deliver a loan within minutes - prompting some councils and universities to ban access to payday loan websites from their computers,” she explained.

Part of the issue is the ease at which people can take out these short term loans, but the difficulty in paying them back. This quickly causes debts to spiral out of control.

Ms Guy referred to these lenders as “predatory” and said until they “stop breaking the rules” and start treating people fairly, Brits will continue to suffer from increasing debts.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

Bank charges: Brits owe energy suppliers £637m

Tue, 09 Apr 2013 17:03:29 GMT

Over one in five houses in the UK owes money to their energy supplier, new research has revealed.

A study by uSwitch has found that despite price cuts causing the average debt to drop by £8 to £123 per household, six per cent more people are in the red with their energy supplier than last year.

Collectively, this means UK consumers owe a huge £637 million to energy providers, £159 million more than last year.

The average household energy bill is now £1,353 per year - £100 more than last year and £831 more than in 2004.

Unsurprisingly then 41 per cent of those in debt owe more than they did last year, with only nine per cent owing less.

Ann Robinson, director of Consumer Policy at uSwitch.com, says: "The soaring number of households in debt to energy suppliers is a clear indication of the pressure people are coming under just to meet the cost of their basic bills.”

Combined with increased food and fuel prices, the increase in energy bill debt in putting Brits under more financial stress than ever before - causing some to dip into the red with their banks.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

Bank charges: Government will not strip HBOS executives of their titles

Mon, 08 Apr 2013 16:35:50 GMT

Prime minister David Cameron has said that he will not be stripping former chief executives at HBOS bank of their titles.

Following a report from the Banking Standards Commission, there were calls for former chief executive Sir James Crosby and former chairman Lord Stevenson to be stripped of their titles.

The report criticised the practices of Mr Crosby and Mr Stevenson, as well as of another former chief executive, Andy Hornby, saying that they were responsible for the downfall of HBOS bank during the financial crisis.

Mr Cameron said that whether or not Mr Crosby and Mr Stevenson should keep their titles is something that a private committee should decide. The Forfeiture Committee can choose to remove the former bankers’ titles.

Since the report was published, Mr Crosby has stepped down from his job as advisor at the private equity firm Bridgepoint.

Previously, Mr Cameron had Fred Goodwin’s knighthood removed following the collapse of Royal Bank of Scotland.

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

Bank charges: Former HBOS executive quits Bridgepoint

Fri, 05 Apr 2013 17:45:04 GMT

Sir James Crosby has quit his job at Bridgepoint following a critical report on his work at HBOS bank from the Banking Standards Commission.

Mr Crosby was working as an advisor at the private equity company, Bridgepoint, but has stepped down from this role following the Commission’s report.

The Banking Standards Commission said that Mr Crosby was one of three people who were responsible for the financial difficulties that HBOS, which is made up of Halifax and the Bank of Scotland, faced during the crisis of 2008.

Alongside the former chairman, Lord Stevenson, and another former chief executive, Andy Hornby, the report said that the standards of management from Mr Crosby meant that the bank would have fallen even if the financial crisis had not happened.

It said: "The primary responsibility for the downfall of HBOS should rest with Sir James Crosby, architect of the strategy that set the course for disaster, with Andy Hornby, who proved unable or unwilling to change course, and Lord Stevenson, who presided over the bank's board from its birth to its death."

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

Bank charges: Banks may need to gain more capital

Fri, 05 Apr 2013 17:43:24 GMT

The Bank of England fears that the current £25 billion in capital that banks are required to have behind them may not be enough.

During a meeting between the Financial Policy Committee (FPC), members discussed concerns over the current levels of capital that banks need to have to protect against risks in investment.

The regulations on capital have been put in to try to protect the UK against another financial crisis, where banks fell into difficulty due to having too much money placed in bad investments.

Similarly, the European Union has said that it could increase the amount of capital that banks need to have under recommendations from the Basel Committee.

Banks have been trying to reduce costs to accommodate the raised level of capital that they need, which has included cutting jobs.

The FPC said that at its next meeting, in June, it will discuss whether changes need to be made to the way that banks assess risks.

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

Bank charges: Former HBOS executives shamed

Fri, 05 Apr 2013 12:09:42 GMT

Three former executives at HBOS have been named and shamed by the Banking Standards Commission.

In a report, former chairman Lord Stevenson and ex chief executives Sir James Crosby and Andy Hornby were criticised for the standards of management within the bank around the time of the financial crisis of 2008.

During this time, banks across the UK fell into difficulty as a result of large investments falling through. HBOS had to be bought out by Lloyds Banking Group, who also had to be bailed out by the government. Lloyds Banking Group is now 40 per cent owned by the taxpayer.

However, the Commission’s report said that HBOS would have been in trouble even if the financial crisis had not happened.

It also criticised the Financial Services Authority (FSA) for failing to adequately regulate the management of the bank.

The FSA came under fire for failing to spot signs that the financial crisis was going to happen and, at the start of April, was replaced by the Financial Conduct Authority and Prudential Regulation Authority.

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

Bank charges: Bank of England unlikely to invest further in bonds

Thu, 04 Apr 2013 13:04:47 GMT

It is unlikely that the Bank of England (BoE) will be investing in assets already bought by the government to push more money into the British economy, according to a recent poll.

Reuters reported that only a small number of economists predict that the central bank will increase investment in the government bonds that it bought between March 2009 and October 2012.

This news comes in spite of the fact that chancellor George Osborne recently changed BoE’s remit so that it does not need to focus on above target inflation if this is due to individual factors.

BoE is supposed to be trying to bring inflation back to its target rate of two per cent but says that this will take longer than was initially expected and will not fall back to the target until 2016.

Recently, inflation rose to 2.8 per cent.

It has been suggested that inflation has risen on various occasions largely due to individual factors, such as increased sales tax.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

Loan claim: Mortgage rates to keep falling

Thu, 04 Apr 2013 13:00:49 GMT

The Bank of England’s Credit Conditions Survey has revealed that mortgages have continued to fall and it expects them to continue falling through the next quarter.

Lenders have said that there is increased space for risk at the moment and that credit is now more available to consumers.

The government has been trying to encourage easier mortgage lending to consumers as a means of stimulating the property market.

Under its Funding for Lending Scheme (FLS), it invested billions of pounds in major banks under the agreement that they would make this more readily available to consumers.

However, so far FLS has not produced as strong results as was hoped. Chancellor George Osborne said that the scheme could be revised.

Under the Help to Buy Scheme, which was recently introduced in the Budget, lenders could be encouraged to agree more mortgages as the government will be acting as guarantor on some loans.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

Loan claim: Banks still reluctant to lend to SMEs

Thu, 04 Apr 2013 12:58:55 GMT

Although they have been upping the amount of credit that they are making available, banks still do not seem to be keen to lend to small to medium-sized enterprises (SMEs).

The Credit Conditions Survey from the Bank of England has revealed that credit to businesses was up overall in the first quarter of 2013 but only for larger corporations. Lending to SMEs remained unchanged.

It is predicted that this lack of lending will continue through the second quarter.

This has prompted concerns from the British Chambers of Commerce (BCC) as to how this will affect economic growth.

Dr Adam Marshall, director of policy for the BCC, said: “Although the overall supply of credit to businesses increased for the second successive quarter, it is concerning that the rise was confined to big business, while SMEs continue to be left out in the cold by lenders.”

SMEs are hoped to provide strong growth within the UK’s economy but they often struggle to finance their business.

The government has previously tried to encourage banks to agree loans with SMEs using its Funding for Lending Scheme, although this has failed to produce strong results so far.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

Bank charges: Investors to sue RBS

Wed, 03 Apr 2013 12:34:21 GMT

Over 12,000 private shareholders are launching a compensation claim against Royal Bank of Scotland (RBS).

They are collectively aiming to gain up to £4 billion in compensation from RBS for misleading them into thinking that the bank was in good financial health prior to the financial crisis of 2008.

The RBS Shareholders Group, which is taking legal action against the bank, said: “We believe the directors of the bank acted improperly by misrepresenting the underlying strength of the bank at the time and by omitting critical information from the Prospectus. This led to thousands of shareholders taking part at an over-inflated price.”

Proceedings from the Group against a handful of directors have begun. They say that because Barclays misled its shareholders it has breached Section 90 of the Financial Services and Markets Act 2000.

During the financial crisis, RBS had to be bailed out by the UK government and is now 80 per cent owned by the taxpayer.

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

Bank charges: Salz criticises Barclays’ focus on profits

Wed, 03 Apr 2013 12:31:27 GMT

Barclays has been criticised for focusing too much on profits, according to a review from Anthony Salz.

Mr Salz, a solicitor who is also known for his previous role on the Board of Governors at the BBC, was commissioned to review Barclays banking practices after it was fined for Libor rigging.

He said: “The problems faced by Barclays are to some extent industry problems - though Barclays should take no comfort in this.”

One of the criticisms he raised was that the bank tended to put financial gains above other aspects of the business and focused too much on getting transactions rather than developing relationships.

This was because the bank’s vision for growth happened too quickly and so management became complicated.

Last year, Barclays was fined £290 million for Libor rigging. It is one of three banks that has been fined in the global financial scandal.

Investigations into Libor are still going on, with the Financial Conduct Authority taking over these in the UK.

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

Bank charges: PRA urged to publish risks

Wed, 03 Apr 2013 12:30:00 GMT

The Prudential Regulation Authority (PRA) is being encouraged to publish details on risks.

Conservative MP Andrew Tyrie suggested that PRA should publish details on any exposure to risks that their traders have taken and tell Parliament about the size of these activities, the Guardian reported.

Mr Tyrie is also the chairman of the Parliamentary Commission on Banking Standards, which has been aiming to overhaul regulations within the financial sector. He suggested such changes as ring fencing retail banking from investment banking so that operations are better protected from bad loans.

PRA, which is part of the Bank of England, took over the regulation of banking standards at the start of this month when the Financial Services Authority (FSA) was disbanded.

It is in charge of managing risks in investment, which previously led to the financial crisis of 2008. As a result of the FSA’s failure to spot these risks, it was decided that the regulator should be replaced.

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

PPI Claims: Ombudsman warns of 'confusion' over PPI-style products

Wed, 03 Apr 2013 09:02:02 GMT

PPI claims could be unnecessarily delayed because of confusion over the type of products customers have, the Financial Ombudsman Service (FOS) has warned.

In its March/April edition of Ombudsman News, the FOS highlighted the difference between "payment protection products" and "payment protection insurance", which was widely mis-sold by banks and other financial service companies.

While some of these products are legitimate, the FOS said it is increasingly receiving complaints about services that are not strictly PPI policies. These often have the same hallmarks of PPI cases, such as businesses not providing advice "with reasonable care and skill".

However, the FOS said "confusion" about the type of product a customer has can lead to delays.

It explained: "We also find that consumers are often confused about whether the product they have taken out is actually PPI – or some other form of 'payment protection product'.

"Understandably, consumers sometimes find it difficult to tell these products apart … This can lead to unnecessary confusion, delay and frustration on all sides."

As of 1st April, the Financial Services Authority (FSA), which previously had oversight for regulating sales of products such as PPI, was replaced with the Financial Conduct Authority (FCA), the Prudential Regulation Authority (PRA) and the Bank of England's Financial Policy Committee (FPC).

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking

PPI Refunds: New regulations target future mis-selling scandals

Wed, 03 Apr 2013 09:00:09 GMT

New regulations for packaged accounts in the UK have come into force, customers awaiting PPI refunds have been told.

Many high street banks offer packaged accounts, which are also known as upgraded accounts.

These are current accounts that offer additional services, such as travel insurance, mobile phone insurance and car breakdown cover.

However, the Financial Services Authority (FSA) raised concerns that customers are sold these products, which generally incur a monthly charge, to later find out they are not eligible for the extras.

From 31st March 2013, banks and building societies are required to check whether customers will be able to claim under each policy before an account is sold.

Companies will also need to provide annual statements for the additional services and alert consumers if a change in circumstances – such as age – has affected their ability to claim.

The new rules will be overseen by the Financial Conduct Authority (FCA), which replaced the FSA from 1st April.

In addition to the FCA, the Prudential Regulation Authority (PRA) has also been formed to take some of the responsibilities of the FSA.

The Bank of England's Financial Policy Committee (FPC) will oversee both new bodies.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

PPI Claim: Regulatory changes could lead to more start-up banks

Wed, 03 Apr 2013 08:58:26 GMT

More start-up banks could be formed as a result of regulatory changes, which could benefit people pursuing a payment protection claim.

From 1st April, the UK's banking system was restructured. The Prudential Regulation Authority (PRA) and the Financial Conduct Authroity (FCA) have replaced the Financial Services Authority (FSA), which previously regulated the financial services sector and consumer issues.

The Financial Policy Committee (FPC), part of the Bank of England, will control both new bodies.

Mortgage Strategy reported that the changes could open the door for start-up banks to challenge the biggest players in the market.

Baroness Kramer, a Liberal Democrat peer and former vice-president of Citibank in Chicago, told the website the developments were a "game changer".

She explained: "For 100 years the regulator has rejected almost every new bank, leaving us with a banking system dominated by just four institutions, many of whom have abused that power by failing to serve the customer."

Under the new regime, banks will need less capital to begin operations than is required by existing organisations. A recent reduction in liquidity requirements will benefit all banks.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

PPI Refunds: Banking regulatory changes come into force

Wed, 03 Apr 2013 08:56:42 GMT

People awaiting payment protection insurance refunds may be interested to hear of the banking regulatory changes that came into force this week.

The UK banking sector is being overhauled following a number of high-profile scandals, including the sub-prime mortgage selling that triggered the 2008 financial crisis.

As of 1st April, three bodies have replaced the Financial Services Authority (FSA) and will have oversight for the UK's economic system: the Bank of England-controlled Financial Policy Committee (FPC), the Prudential Regulation Authority (PRA) and the Financial Conduct Authroity (FCA).

The Bank of England will now have more responsibility for monitoring the wider banking market in the UK. Its FPC will instruct the two new regulators.

Banks and insurers will be monitored by the PRA, which will ensure the organisations have sufficient cash and liquidity, while FCA will regulate consumer affairs and financial services firms.

The FSA was criticised for its regulatory approach, which resulted in the interbank lending Libor rate fixing and PPI mis-selling going unnoticed for long periods.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

Loan claim: Mortgage approvals fall

Tue, 02 Apr 2013 15:33:49 GMT

New statistics from the Bank of England show that the number of mortgages approved fell in February.

Only 51,653 were granted during the month, which is the lowest number of approvals since September last year. This is down from results in January when 54,187 mortgages were approved, where figures had declined from December’s results.

February’s results were also below the six month average of 52,395.

This decline in results indicates that the Funding for Lending Scheme has not helped enough to encourage people to take out mortgages. However, chancellor George Osborne said the scheme from the Bank of England could be revised if necessary.

It is hoped that the new Help to Buy Scheme, which Mr Osborne revealed in the Budget, will help to raise the amount of mortgage lending in the UK and give the property market a boost.

Mr Osborne has said that £3.5 billion will go into the Help to Buy scheme.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

Bank charges: Bank of England to help regulate UK finance

Tue, 02 Apr 2013 15:29:58 GMT

The Bank of England will have stronger powers over the UK’s financial sector with the launch of the Prudential Regulation Authority (PRA).

It will use the PRA to make sure that risks within the UK’s financial sector are monitored to ensure that they remain stable.

This will help to offset the chances of another financial crisis as the PRA will aim to make sure that banks will no longer have to be bailed out due to investments falling through.

However, chancellor George Osborne has received criticism for putting too much power into the Bank of England, especially as the PRA consists largely of Bank of England members.

The PRA took over as one of two financial regulators in the UK, the other being the Financial Conduct Authority, from the Financial Services Authority (FSA) on April 1st.
It was decided that the FSA should be replaced following the financial crisis in 2008, when it failed to spot warning signs that UK banks could collapse.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

Payment protection: FCA launches website

Tue, 02 Apr 2013 15:27:55 GMT

The Financial Conduct Authority (FCA) has launched a new website to keep consumers up to date with any developments from the regulator.

Its new website has been set up to inform consumers about their rights, inform them about banking products, stay protected against financial scandals and help them complain if they are caught up in one.

From April 1st, the FCA has taken over from the Financial Services Authority (FSA) as the main financial regulator in the UK alongside the Prudential Regulation Authority (PRA).

The FCA will be in charge of monitoring conduct within the financial sector and helping consumers with complaints.

As a result, the FCA will be watching the banking sector to ensure that there is not another scandal similar to that of the mis-selling of payment protection insurance.

It will also be taking over Libor investigations, which the FSA has been in charge of previously. With three banks having been fined already, the FCA will be continuing investigations to see how far reaching this scandal is.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

Bank charges: RBS in mobile app fault

Thu, 28 Mar 2013 17:27:16 GMT

Customers at Royal Bank of Scotland (RBS) may have been unable to log into their accounts on March 28th following a fault with its mobile banking app.

RBS has apologised to its customers for any inconvenience and said that the service was now up and running again.

Customers at subsidiaries of RBS, Natwest and Ulster Bank, were affected by the technical glitch with the mobile app.

Over one million people use the bank’s mobile app.

This is not the first technical problem that RBS has had recently.

Earlier in March, a computer error locked users out of their accounts. Customers were unable to bank online or over the phone and some said that their cards had been swallowed by cash machines.

The bank also had problems last summer when a software update caused an error that locked users out of their accounts for several days, this meant that they would have been unable to pay bills.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

Payment protection: PPI fines hit UK banks' profits

Thu, 28 Mar 2013 12:53:25 GMT

Fines for mis-selling payment protection insurance (PPI) dented underlying profits at the UK's top five banks last year, according to a new report.

Profits at Barclays, HSBC, Lloyds Banking Group, Royal Bank of Scotland and Standard Chartered rose to £31.5 billion in 2012, but these were marred by regulatory fines, accountancy KPMG said.

The gains, from a fall in bad loan charges and better investment banking performance, were offset by fines including £7.4 billion for PPI mis-selling.

Bill Michael, a financial services specialist at KPMG, told the Financial Times: "In terms of their reputations, 2012 was a dire year."

The latest figures from the Financial Services Authority show that in January 2013 banks paid out £439 million in payment protection insurance compensation, bringing the total PPI bill to £8.9 billion; however, it is thought the final bill could reach £15 billion.

Earlier this month the Financial Ombudsman Service said it was receiving 2,000 new PPI complaints a day, with numbers rising.

John Fieldman

Having worked in the City for 19 years, John's main focus is interest rates and corporate finance.

Bank charges: New administrators to set financial benchmarks

Thu, 28 Mar 2013 12:05:44 GMT

The Financial Services Authority (FSA) has revised the way that international benchmarks on finance will be set.

Following the failure of the banking sector to properly set the global benchmark of Libor, the FSA has decided that administrators should be appointed to oversee the setting of benchmark rates. They are expected to overlook submissions and spot any suspicious activity from banks.

This change is being implemented on the suggestion of the Wheatley review of Libor, which was published in September last year. Chief executive officer of the Financial Conduct Authority Martin Wheatley, which will be taking over from the FSA at the start of April, was commissioned to come up with ways to reform the Libor rate following the discovery of banking misconduct.

Banks are being investigated by the FSA to determine whether they have been fixing the Libor rate.

So far, Royal Bank of Scotland, Barclays and UBS have all been fined for Libor rigging.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

Loan charges: Help to Buy could boost house prices

Wed, 27 Mar 2013 15:54:06 GMT

Houses prices could be driven up under the Help to Buy scheme rather than seeing more first time buyers acquiring mortgages.

The Office for Budget Responsibility (OBR) has said that this scheme is only likely to drive up house prices.

Chancellor George Osborne announced the Help to Buy scheme in the Budget on March 20th. Under the scheme, buyers who place a deposit of between five and 20 per cent on a house worth under £600,000 could gain an interest free mortgage on up to 20 per cent of the value of their house.

He also said that the government would be able to help guarantee mortgages for people who are unable to provide large deposits.

The scheme was unveiled to boost movement in the property market and the construction sector. However, if house prices are driven up then it will still be difficult for first time buyers to enter the market.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

Bank charges: Laiki bank cannot guarantee all UK deposits

Wed, 27 Mar 2013 15:52:49 GMT

The Cypriot bank, Laiki, has only been able to guarantee that deposits in the UK up to £85,000 are secure.

As part of a eurozone deal to bail Cyprus out, it has been agreed that Laiki bank will need to close and Bank of Cyprus will need to restructure.

People with deposits of above €100,000 (£85,150) in either bank, certainly in Cyprus, risk losses of up to 40 per cent following the bailout deal.

UK customers of Bank of Cyprus are guaranteed to have their deposits protected under a compensation scheme. However, customers at Laiki bank do not have the same entitlements.

In the UK, Laiki bank has 13,000 account holders.

As Cyprus became the latest country in the eurozone that needed to be bailed out through the international monetary fund, the country has had to close its banks until it came to a solution. Cyprus’ banks are due to reopen on Thursday.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

Bank charges: Banks told to raise capital

Wed, 27 Mar 2013 15:51:46 GMT

The Financial Policy Committee has said that some banks will need to raise £25 billion in capital but did not disclose which ones this applied to.

It has instructed banks to raise capital to protect them against future losses due to bad loans.

Such investments aided in causing the financial crisis in 2008. During this time, some banks had to acquire funding in order to avoid closing. Royal Bank of Scotland (RBS) and Lloyds Banking Group had to be bailed out by the government. The taxpayer now owns around 80 per cent of RBS and 40 per cent of Lloyds.

However, these banks will need to tighten spending further if they are to raise the amount of capital required under new regulations.

Plans to increase the amount of capital that banks need behind them have also been put forward in the European Union, which is looking to standardise banking regulations across member states using recommendations from the Basel Committee.

John Fieldman
Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

Payment protection refunds: Brits think Budget leaves them worse off

Wed, 27 Mar 2013 11:20:48 GMT

George Osborne may have spoken of an "aspirational" Budget when he announced his financial plans for 2013 last week but new research shows nearly half of consumers felt worse off following the Chancellor's statement.

Comparison website uSwitch found that 35 per cent of people believe the UK is more likely to fall into a triple-dip recession as a result of the Budget, whilst 45 per cent of people believe they will be worse off.

Few of Mr Osborne's measures pleased Britons, with three in ten (29 per cent) opposed to knock a penny off a pint and over half (54 per cent) of parents claiming new childcare tax relief is 'too little, too late'.

However, the majority of those polled (88 per cent) did welcome the rise in the personal tax allowance to £10,000 and freezing fuel duty has also proved popular with more than nine in ten (91 per cent) Brits.

"Homebuyers and small businesses may be jumping for joy following this week's Budget, but most of middle England has been left stuck in the mud," said Michael Ossei of uSwitch.

Anyone who has taken out a loan, credit or store card, mortgage or hire purchase agreement is likely to have been sold an insurance policy. Payment protection insurance (PPI) was one product which was mis-sold to significant numbers of people.

It could be a good idea to see if you have been a victim of mis-selling – with the average PPI refund standing at around £2,500, it could provide a welcome post-Budget boost.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

Bank charges: Lloyds pays over £1m to 25 staff members

Tue, 26 Mar 2013 16:45:09 GMT

Lloyds Banking group paid over £1 million to 25 of its employees in 2012, and more than £2 million to five of its staff.

These staff received the wages in spite of the fact that Lloyds posted losses for the third year in a row. In 2012, these losses were partly as a result of fines that the bank had received.

Almost 40 per cent of Lloyds is owned by the taxpayer after the government had to bail the bank out during the financial crisis.

Until the bank can pay off at least a third of the government’s shares, chief executive Antonio Horta-Osorio will defer his £1.5 million annual bonus that he was set to receive in 2012.

In spite of the fact that Lloyds has managed to pay staff this much, it has announced that it will be making job cuts this year.

Lloyds cut 1,340 jobs in January and in March it said that it would be cutting a further 550 positions.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

Loan claim: Mortgage lending fell in February

Tue, 26 Mar 2013 16:43:56 GMT

The British Bankers Association has found that fewer people took out mortgages in February.

It said that new mortgages were down by six per cent compared to one year ago.

The number of loans approved in February fell to 30,506, which is the lowest number of mortgages approved since July 2012.

This shows that people are either less keen or unable to acquire funds to enter into the housing market.

However, this could change under the government’s ‘Help to Buy’ scheme, which was outlined in the Budget on March 20th. Among the plans in this scheme are some to allow people to obtain interest free mortgages for up to 20 per cent of the value of their house if they can provide a deposit of between five and 20 per cent.

The government had hoped previously that its Funding for Lending Scheme, which was put in place to allow cheaper lending to homeowners, would boost mortgage lending. However, these results show that it has not taken effect as of yet.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

Loan claim: Mortgage plans to cost taxpayers

Tue, 26 Mar 2013 16:42:31 GMT

An expert claims that the government’s plan to boost lending to first home buyers may impede growth.

In the Budget on March 20th, chancellor George Osborne announced the ‘Help to Buy’ scheme which was to see loans guaranteed for first time buyers.

However, Professor Larry Summers told BBC Newsnight that this would still see first time buyers taking out loans but that taxpayers would now be at risk of losses.

So far, plans to stimulate the housing market by encouraging lending have failed to stimulate growth.

The Bank of England previously invested billions in major banks to encourage them to lend mortgages to first time buyers at cheaper rates under the Funding for Lending Scheme (FLS). However, this has proved to be relatively unsuccessful as banks reduced lending by £2.4 billion in the last quarter of 2012.

The government has said that it may look at ways to get FLS moving again in future.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

PPI refunds: Mis-selling bill hits £8.9bn

Tue, 26 Mar 2013 10:38:10 GMT

Banks paid out £439 million to victims of payment protection insurance (PPI) mis-selling in January as the total bill for PPI reaches a whopping £8.9 billion.

The January figure is a rise on December, when £360 million was paid out, according to the latest data from the Financial Services Authority (FSA).

The largest monthly payout was in May 2012 when compensation reached £735 million. So far financial institutions have paid out more than £8 billion but the final bill is expected to reach an eye-watering £15 billion.

In recent months banks have set aside more cash to deal with PPI claims, with Lloyds Banking Group allocating an extra £1.5 billion, Royal Bank of Scotland another £450 million and Barclays a further £600 million.

Earlier this year the FSA and the British Bankers' Association held talks over setting a potential deadline for people to put a claim in for mis-sold PPI.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

Bank claim: UK fund managers brace for bonus cap

Tue, 26 Mar 2013 10:35:32 GMT

UK investment fund managers are facing a pay cap similar to the ceiling placed on bankers' bonuses following a European vote.

The European Parliament's monetary affairs committee voted last week to approve bonus rules applying to asset managers managing funds known in the industry as Ucits.

Under the legislation, if introduced, bonuses for fund managers would be restricted to 100 per cent of basic salary with half being paid on assets of the funds they manage.

"The Ucits bonus cap will help strengthen investor protection and reduce risky speculation," said MEP Sven Giegold.

"It will also complement the recently-adopted EU rules capping bankers' bonuses, ensuring these rules cannot be circumvented and providing for a level playing field."

Last month, MEPs and EU ministers provisionally agreed a deal which would bar bankers in Europe from getting bonuses bigger than their salary.

Discussing the proposals, Jon Terry of accountancy firm PricewaterhouseCoopers, said they had potential implications for the insurance industry.

"The insurance industry is likely to be nervous as they watch the banks, hedge funds and asset managers being hit with ever increasingly rigid regulations of their pay," he said.

"Many will now be concerned that it could only be a matter of time until similar regulations affect them."

John Fieldman

Having worked in the City for 19 years, John's main focus is interest rates and corporate finance.

Payment protection: No repeat of PPI, says new regulator boss

Mon, 25 Mar 2013 17:23:49 GMT

The payment protection insurance (PPI) mis-selling scandal is a reminder that it is "better to deal" with problems early on, the boss of the new UK financial regulator says.

Martin Wheatley, who will head up the Financial Conduct Authority (FCA), said the regulator will look to end years of mis-selling of financial products that have ended in banks being forced to pay £12 billion to date in PPI refunds.

Next month, the UK's Financial Services Authority (FSA), which has been the country's financial watchdog for 11 years, will be disbanded and replaced by the FCA.

The FCA will be responsible for consumer issues and the conduct of firms. Another body, the Prudential Regulation Authority, set up as a division of the Bank of England, will cover banking regulation.

Speaking at a press conference, Mr Wheatley said the FCA would be no "pushover", adding: "We will be on the front foot when we see things we don't like."

Analysts say firms are bracing for some of their products to be temporarily banned while the FCA looks at whether consumers are being ripped off.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

Bank charges: Bank of Cyprus UK customers not affected by bailout

Mon, 25 Mar 2013 16:04:45 GMT

Customers with the Bank of Cyprus in the UK will not be affected by Cyprus’ bailout.

In the UK, customers at the bank are covered by the Financial Services Compensation Scheme, which would protect them against losses that they would have incurred to pay for Cyprus’ bailout.

It has been announced that Bank of Cyprus will need to be restructured under the bailout deal between Cyprus and eurozone governments. The cost of restructuring the bank will be taken from savers with over €100,000 (£85,000) deposits in the bank.

As part of the deal, Laiki bank will be closed down. Its shareholders and people who put deposits of over €100,000 into the bank will be most affected by the losses. There were fears previously that customers of Laiki bank in the UK would see money taken from their savings when Cyprus was bailed out.

Savers with less than €100,000 in Laiki bank will see their accounts transferred to Bank of Cyprus.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

Bank charges: Proposals outline challenge major banks

Mon, 25 Mar 2013 16:02:11 GMT

The Financial Services Authority (FSA) will outline a proposal this week to see smaller banks more able to compete with the big four.

Previously, it was suggested that smaller banks should not have to hold as much capital as their major counterparts in order to trade. The FSA has decided to follow through with this and will outline the terms on March 27th.

This idea is being implemented to encourage competition between banks. Currently, government is concerned about the lack of competition between retail banks as most customers tend to go to the ‘big four’. These are HSBC, Lloyds Banking Group, Royal Bank of Scotland and Barclays.

Regulations within the European Union, due to be introduced by the Basel Committee, could see banks having to keep higher amounts of capital than they are required to at present. This is in order to protect the banks against risky investment deals falling through and potentially leading to another financial crisis.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

Bank charges: Big five bank profits wiped out in 2012

Mon, 25 Mar 2013 16:00:03 GMT

Profits made by the big five banks, HSBC, Royal Bank of Scotland (RBS), Lloyds Banking Group, Barclays and Standard Chartered, were wiped out in 2012 because of fines and compensation claims.

A report from KPMG said that the banks’ profits dropped by 40 per cent due to regulatory fines.

Last year, banks had to pay for such claims as the mis-selling of payment protection insurance (PPI). This is an ongoing and widespread mis-selling scandal that has seen banks across the UK setting aside provisions to pay for consumer claims.

In 2012, the cost of consumer claims went up as more people complained about mis-sold PPI.

Barclays and Royal Bank of Scotland were also fined by US regulators and the Financial Services Authority for rigging the Libor rate.

HSBC incurred fines for money laundering in the US last year.

KPMG did say, however, that core performances in the banks have improved recently. This is because of better results from their investment banks and fewer charges on bad loans.

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

Bank charges: Brits could lose out in Cyprus deal

Fri, 22 Mar 2013 15:26:34 GMT

British people with accounts in Cypriot banks could lose money if a deal is reached that sees savings taken from banks.

The Telegraph reported that if savings are taken from Laiki bank, which has branches in London and Birmingham, then its customers will not be entitled to receive compensation under a UK wide scheme to cover this.

People with more than €100,000 in Laiki bank stand to see up to 40 per cent of their savings taken away if it is agreed that the funds Cyprus needs to be bailed out should be taken from customers at Cypriot banks.

Cyprus was the latest country to need to be bailed out in the eurozone. However, the country needs to raise €5.8 billion (£4.9 billion) before it can qualify to be bailed out.

Earlier, the Cypriot Parliament was presented with a deal that would involve taking money out of its banks but it rejected this.

Currently, banks in Cyprus are closed until a deal can be finalised.

Jennifer Haines

Jennifer's speciality knowledge is credit card changes and balance transfers.

Loan claim: Banks stop offering interest only deals

Fri, 22 Mar 2013 11:24:09 GMT

HSBC and Yorkshire Building Society have said that they will no longer be selling interest only mortgage deals to homeowners.

Only customers with a Premier bank account
at HSBC , which requires at least £50,000 for people to qualify for one, will be able to take out interest only mortgages from them. This will come into effect from March 24th.

Yorkshire Building Society has said that it will only be offering interest only loans to buy-to-let landlords from March 25th.

Interest only mortgage deals were popular with homeowners prior to the financial crisis. They required owners to only pay for the interest on their mortgages until the end of the mortgage term where they would have to repay the capital. However, many interest only mortgages are coming to a close with many homeowners having been unable to afford the capital on their home.

Recently other banks and building societies have been pulling out of interest only mortgage deals, such as Royal Bank of Scotland, Nationwide and Co-Operative Bank.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

Bank claim: Co-Operative Group sells insurance arm

Thu, 21 Mar 2013 15:04:33 GMT

The Co-Operative Group has said that it will be selling its insurance business as a means to boost profits.

It made this announcement after revealing that it incurred substantial losses last year.

Part of the reason for the group’s losses were due to Co-Operative bank’s involvement in the mis-selling of payment protection insurance (PPI).

Co-Operative is one of many banks across the UK that has had to set money aside to pay for customer claims on mis-sold PPI. The Financial Ombudsman said that it receives thousands of complaints from customers every week about PPI as it is now the most complained about banking product in British history.

Other customer claims that cut back the Co-Operative Group’s profits last year included mis-sold mortgage and insurance loans.

Despite selling its insurance arm, the Co-Operative Group says that it still intends to buy 632 bank branches from Lloyds banking Group in a project titled Verde.

However, experts have questioned whether this deal will go ahead following the departure of Co-Operative Bank’s chief financial officer James Mack.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

Bank charges: Barclays declares bonuses

Thu, 21 Mar 2013 15:03:05 GMT

Barclays has announced that it will be paying out almost £40 million in staff bonuses.

Rich Ricci, head of Barclays investment bank took away £17.6 million in shares.

Chief executive Antony Jenkins took away shares of £1.8 million, despite saying earlier this year that banker bonuses should be more restrained in future.

Staff cuts have been made at Barclays recently as part of plans to lower costs and boost profits.

News of bonuses at Barclays came on the same day that the Budget was announced, where people across the UK were distracted with news of how public money was going to be spent this year.

Included in the Budget was news of how the fines that had been taken off Barclays by the Financial Services Authority (FSA) were going to be used.

Chancellor George Osborne said that fines that the FSA had collected from banks would be spent on helping the armed forces.

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

Bank claim: Libor fines go to forces

Thu, 21 Mar 2013 15:01:31 GMT

Chancellor George Osborne has announced that the fines collected from the libor rigging scandal will go to the armed forces.

The provision to donate the fines to the armed forces was outlined in the Budget on March 20th.

These funds will go towards Christmas boxes and for aiding with mental health services, which deal with issues such as post traumatic stress disorders that are common among people who serve in warzones.

Mr Osborne said: “Those who have paid fines in our financial sector because they demonstrated the very worst values are paying to support those in our armed forces who demonstrate the very best of British values.”

The Financial Services Authority (FSA) is responsible for collecting banking fines in the UK. Included in the fines that FSA collected last year are those from Libor.

Banks around the world, including those in the UK, were alleged to be involved in fixing the global benchmark rate for which all banking transactions are set.

Royal Bank of Scotland (RBS) and Barclays were both fined by regulators, including the FSA, for libor rigging.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

Bank charges: Bank of England given new remit

Wed, 20 Mar 2013 17:25:30 GMT

The Bank of England (BoE) will receive a new remit to help in deciding inflation rates.

Chancellor George Osborne announced the new remit when he release the Budget today.

He said that the target rate of inflation will remain the same but that it must use other methods to do this.

In a method similar to the US Federal Reserve, BoE should be able consider wider economic concerns when setting inflation rates. Mr Osborne hopes that this will help to encourage growth.

Today, Mr Osborne admitted that he expects the UK economy to grow at half the rate that was predicted this year.

BoE’s target rate for inflation is two per cent but it has exceeded this since 2009.

Earlier this year it also said that it expects that it will not reach its target inflation rate until 2016.

Inflation rates recently rose to 2.8 per cent according to the Office for National Statistics.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

Bank charges: UK economic growth cut

Wed, 20 Mar 2013 16:42:53 GMT

Growth predictions for the UK economy this year have been cut by half compared to predictions from three months ago.

Chancellor George Osborne admitted that he thought economic growth in the UK would proceed half as quickly as was previously predicted when he delivered the Budget today.

It was hoped that Mr Osborne could put forward a plan in the Budget that would considerably increase growth in the UK, particularly as the economy has not seen a lot of improvement since the coalition government came into power.

Labour has criticised the lack of growth in the UK, saying that the coalition’s plans for growth are not working.

Recently, the British Chambers of Commerce cut their growth predictions for the next two years.

The domestic economy in the UK has suffered recently, with events such as the downgrading of the country’s credit rating from AAA to AA1. A lack of movement in the domestic economy was one of the reasons why the UK’s credit rating was downgraded.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

Loan claim: Government unveils new mortgage plans

Wed, 20 Mar 2013 16:40:39 GMT

Prospective homeowners will be able to gain interest-free mortgages under a new government initiative.

On March 20th, chancellor George Osborne announced plans to help homebuyers acquire a mortgage when he released the Budget.

Under the Help to Buy scheme, people who are struggling to buy homes will be able get an interest-free mortgage for up to 20 per cent of their household if they can provide a deposit that is between five and 20 per cent.

This is the second initiative that the government has set up to encourage mortgage lending in recent times. The government tried to get major banks to lend mortgages at cheaper rates by investing in them under the Funding for Lending Scheme (FLS).

However, FLS failed to provide as strong results as was initially hoped. In fact, bank lending in the final quarter of 2012 fell by £2.4 billion.

Mr Osborne said that the government could make extensions to FLS in the future.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

Bank claim: Lloyds to change bonus system

Wed, 20 Mar 2013 16:39:20 GMT

Lloyds Banking Group says that it will be making changes to its bonus scheme.

The Guardian reported that the bank is aiming to have more of a focus on customer service. To do this, it is getting rid of its annual sales targets that see bankers entitled to a bonus if they meet them.

Instead, bankers will be able to earn bonuses based on customer feedback.

Lloyds Banking Group said earlier this year that banker bonuses would be cut by three per cent due to a £570 million loss before tax in 2012.

Chief executive at the bank, Antonio Horta-Osorio, has had his annual bonus of £1.5 million deferred until 2018.

Part of the reason why the bank experienced losses last year is due to the mis-selling of payment protection insurance (PPI). The bank has had to set aside large provisions to pay consumer claims against PPI.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

The bank could soon see further changes to its bonus system, as the European Union has introduced a cap on banker bonuses.

Bank charges: HSBC faces money laundering accusations

Tue, 19 Mar 2013 12:30:48 GMT

HSBC has been accused of money laundering and tax evasion in Argentina.

It is alleged that the bank has laundered 392 million pesos (£50 million) for its clients using fake receipts.

Head of the tax agency that filed the criminal charges against HSBC, Ricardo Echegaray, said that he hopes that the funds suspected to have been laundered can be recovered.

In a statement, a spokesperson for HSBC in Latin America said that the bank would cooperate with authorities in the investigation but did not deny the claims.

The bank was fined $1.9 million (£1.2 billion) when it was found guilty of money laundering in the US and Mexico.

Chief executive for HSBC, Stephen Gulliver, said that he intends to raise $1 billion this year to help make up for the fines received in 2012. The Financial Times reported this claim along with the bank’s suspected plans to cut around 5,000 jobs as cost-cutting measure.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

Bank charges: Inflation rises

Tue, 19 Mar 2013 12:29:33 GMT

The rate of inflation in the UK has risen to 2.8 per cent.

Figures from the Office for National Statistics shows that the price of consumer products has risen, which will have cut even more into people’s disposable income.

Energy bills and fuel costs have been blamed in part for this rise.

The Bank of England (BoE) has set a target to lower the rate of inflation to two per cent, however it said earlier this year that this is likely to take longer than it had planned initially. It is predicted to reach its target by 2016.

Inflation has been higher than the central bank’s target since 2009.

Consumers have had to tighten their spending habits in order to deal with the higher prices.

Some economists expect that the rate of inflation will continue to rise because the pound has been falling in value.

Governor for BoE, Sir Mervyn King, has said that he doesn’t expect the pound to fall any further now.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

Loan charges: Pensioners have four years to repay mortgages

Tue, 19 Mar 2013 12:28:01 GMT

Figures show that 52,000 people over the age of 60 have until 2016 to repay their interest only mortgages.

Credit agency, Moody’s, said that these people with interest only mortgages have 20 per cent or less equity in their homes.

Regulators have become more strict about interest only loan repayments and, over the next year, rates are predicted to rise. This means that it will be more difficult for these people to pay off their loans and could face eviction.

However, the Financial Times reported that elderly people are unlikely to face as strict consequences from regulators.

Interest only mortgages had become popular before the financial crisis because people only had to pay for the interest rather than the capital until the end of the loan terms, which initially made it easier for people to get onto the property ladder.

The Financial Services Authority will be placing repayment plans on interest only loans under scrutiny, expecting affordability reports to be produced in full. These rules will be applied from April 2014.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

Bank charges: Economy would be damaged if pound weakens

Mon, 18 Mar 2013 16:44:36 GMT

The economy could be damaged if the pound is weakened any further.

Ian McCafferty, a member of the Monetary Policy Committee for the Bank of England (BoE), told the Yorkshire Post that there would be high consequences to inflation rates if the pound were to fall further very rapidly. This rise in inflation could stand to damage the economy.

Recently the pound had been falling against the value of the dollar and the euro due to the weak domestic economy and the recent downgrading of the UK’s credit rating from AAA to AA1.

However, sterling rose again last week after the governor of the BoE, Sir Mervyn King, said that he felt the pound was now properly valued and is unlikely to fall further.

The current rate of inflation in the UK is at 2.7 per cent but the BoE is aiming to bring this down to two per cent. During a Monetary Policy Committee meeting it said that this will take longer than was initially planned.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

Bank claim: Credit agencies to change bank ratings

Mon, 18 Mar 2013 11:37:25 GMT

Agencies need to improve regulations on how they rate banks in order to produce accurate credit ratings.

The European Securities and Markets Authority (ESMA) released a report criticising credit agencies for their methods of rating banks in Europe. This was the second annual report for the regulator, which focused on bank rates due to their close links with government debt.

Moody’s, Standard and Poor’s and Fitch were criticised by ESMA for “shortcomings in the processes of disclosure and implementation of changes in bank rating methodologies.”

These credit agencies are registered with ESMA, meaning that they must comply with European Regulations in order to rate banks in Europe.

Ratings by these agencies can have an influence in the performance of countries’ economic movements and currency values. Last month, Moody’s downgraded the UK’s credit rating from AAA to AA1, which led to a fall in the value of sterling.

Weakness in the UK’s domestic economy, which has been suffering since the financial crisis in 2008, was part of the reason why Moody’s downgraded the UK’s credit rating.

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

Bank charges: Banks want Libor rate replaced

Mon, 18 Mar 2013 11:36:03 GMT

Central bankers have said that they want to see the libor rate replaced.

Governor of the Bank of England, Sir Mervyn King, has said that central banks should have more of a role in producing financial rates. This was agreed in a report from a group of central bankers worldwide titled Towards Better Reference Rate Practices: A Central Bank Perspective.

Mr King said: “It is clear that central banks must play an important role in supporting the development of alternative reference rates.”

The London Interbank Offered Rate (Libor) is a benchmark rate on which all financial transactions around the world are decided.

Major banks are directly involved in setting the Libor rate but recently it was found that some of them were manipulating this rate in order to boost profits. As a result, it has lost credibility.

So far, UBS, Royal Bank of Scotland (RBS) and Barclays have been fined for Libor-rigging.

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

Bank charges: HSBC to cut jobs

Mon, 18 Mar 2013 11:34:57 GMT

HSBC is planning to cut thousands of jobs as part of the bank’s savings plans.

Banks have been cutting back their workforce recently in order to save money. Part of the reason for this is to prepare for new regulations that are due to come in under Basel III.

Chief executive Stuart Gulliver said that the bank is hoping to save an extra $1 billion (£663 million) this year, the Financial Times reported.

Included in these rules are that banks should have increased levels of capital behind them in order to protect themselves in case investments fall through.

A cap has also been placed on the amount of bonus that bankers are able to receive. The UK tried to block this regulation, saying that this would encourage bankers to increase wages to meet the lack of bonus they could receive. It was felt that jobs could be put at risk in order to pay for this.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

Loan claim: Mortgage lending up

Fri, 15 Mar 2013 16:37:57 GMT

Mortgage lending for the month of January is at its highest rate since 2008.

The Council of Mortgage Lenders (CML) said that 38,300 mortgages were approved in January. This is 10.7 per cent more than January last year.

It is thought that this was driven by the Funding for Lending Scheme (FLS) as first-time buyers are more easily able to gain access to funding.

These results follow on from a poor month in December, when lending was down by 16.6 per cent. This coincides with statistics that loan lending from major banks had dropped by £2.4 billion in the last quarter of 2012.

FLS was set up by the Bank of England as it noticed that banks were reluctant to agree mortgages with prospective homeowners at an affordable rate.

It invested billions of pound in some of the major banks in order to encourage them to offer cheaper loans to first time home buyers.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

Bank charges: Sterling on the rise

Fri, 15 Mar 2013 12:33:40 GMT

The value of sterling has risen for the last three days against the dollar.

After having fallen to a two and a half year low against the dollar, the value of sterling began to recover following an interview with the Governor for the Bank of England (BoE).

Sir Mervyn King said in an interview that he thought the pound was now valued properly and that it should not fall further. Previously he had said that BoE had hoped for a weaker currency in order encourage more exports.

The pound had been falling against the dollar due to a downturn in the UK’s domestic economy. This was not helped by the fact that the UK recently lost its AAA credit rating when the agency Moody’s downgraded it to AA1.

As the domestic economy has yet to recover and BoE considers more quantative easing, analysts suspect that the pound may fall further.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

Bank charges: ECB hires more staff as regulations tighten

Fri, 15 Mar 2013 12:32:34 GMT

Regulator for banks in the European Union, the European Central Bank (ECB), will hire more staff as its watchdog responsibilities have increased.

A spokesperson told the Wall Street Journal that it was recommended that the bank hire 800 new supervision staff as it becomes the main banking watchdog for the European Union’s (EU) 17 member states.

While the UK has its own banking regulator, the Financial Services Authority (FSA), it will still be expected to comply with the same regulations as the watchdog for the euro.

Recently, the EU has been discussing changes to banking regulations in order to stop another financial crisis from happening. It has also been scrutinising banks further as the Libor scandal was revealed last year, where banks around the world were found to have been fixing the benchmark rate for financial transactions.

In the UK, Barclays and Royal Bank of Scotland were fined by regulators when they were found guilty of Libor rigging.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

Bank charges: Commission does not stop risky trading

Fri, 15 Mar 2013 12:29:41 GMT

The Parliamentary Commission on Banking Standards has decided not to ban banks from trading using their own money.

A spokesperson said on Friday that it would be too difficult to enforce a ban on proprietary trading. This is because the UK’s financial regulators are already focused on ensuring that banks are separating their retail and investment operations.

However, this means that banks will still be able to set up risky trade deals using their own money.

In the US, banks have already been banned from trading with their own money under what is called the Volcker rule. This rule has been suggested to the UK’s banking commission but has not received enough support to be pushed through.

The Banking Commission has been working to improve regulations in the financial sector in order to avert future problems such as another financial crisis or further scandals.

It is putting the rule to ring fence their retail operations in order to stop banks from needing to be bailed out if their investments fall through.

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

Bank claim: Private equity could cause another financial crisis

Thu, 14 Mar 2013 16:12:56 GMT

The Bank of England (BoE) has warned that debts incurred by private equity deals could lead to another financial crisis.

It says companies with heavy debts that have been bought out by private equity firms could lead to another financial crisis. Many of these companies were purchased using borrowed money before 2008 but the BoE feels that their mounting debts will cause problems in 2014.

To reduce the risk of another financial crisis, the BoE says that it will be looking at ways to put finances back into these companies.

Current credit conditions suggest that it is unlikely that these private equity firms will be able to repay their debts.

Banks were one of the causes of the 2008 crisis as they lost large sums of money through investments that could not be repaid.

Major banks had to find ways to stop themselves from collapsing, which involved the government having to bail out Royal Bank of Scotland and Lloyds using money from the taxpayer.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

Bank charges: IOD hits out at bankers’ pay

Thu, 14 Mar 2013 16:11:37 GMT

Banks have been criticised by the director general for the Institute of Directors (IOD), Simon Walker, for the high earnings of some of their staff.

In a speech to the Chartered Institute of Public Relations, Mr Walker criticised the fact that hundreds of staff at Royal Bank of Scotland (RBS) and Barclays had earned over £1 million last year despite having to pay out for financial scandals.

Two of the financial scandals that have hit Barclays and RBS are the mis-selling of payment protection insurance (PPI) and the fixing of the Libor rate.

RBS and Barclays were fined £390 million and £290 million by regulators for taking part in fixing the Libor rate.

Banks are being investigated worldwide as it was found that some had taken part in fixing the global benchmark rate for financial transactions.

In the UK, banks including RBS and Barclays have had to set provisions aside to pay for consumer claims on mis-sold PPI.

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

Bank charges: Labour wants to establish regional banks

Thu, 14 Mar 2013 16:08:09 GMT

Labour will establish regional banks in order to boost lending to small and medium-sized enterprises (SMEs) if it wins the next election.

Ed Miliband, leader of the Labour Party, is due to say at the British Chambers of Commerce annual conference that establishing a network of regional banks will help local SMEs to gain access to finance. This idea is based on a banking model seen in Germany called Sparkassen, where banks can only lend to businesses local to them.

Major banks had been encouraged by the current government to lend to SMEs and homeowners at cheaper rates as it invested money in them under the Funding for Lending Scheme (FLS). However, it was found that lending from banks decreased by £2.4 billion in the final quarter of 2012.

The government hopes to see growth from SMEs in order to improve the domestic economy. However, SMEs have said that they are often held back as it is difficult for them to gain access to finance.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

Bank charges: Job cuts at Lloyds

Wed, 13 Mar 2013 16:45:34 GMT

Lloyds Banking Group will be cutting down on its work force, it has been announced.

Despite already making huge staff cuts, 550 employees in divisions such as risk, retail and investment stand to lose their job.

Lloyds also cut 1,340 jobs in January.

This move has been criticised by the trade union group Unite as the bank had increased the amount of agency workers it employs.

Unite said: “Lloyds is looking for a period of stability and growth but it won’t be achieved by continuous and damaging job cuts.”

The bank reported that it had incurred losses in its annual report. Part of this was due to claims on payment protection insurance.

By cutting down on its staff workforce, Lloyds is adding to the issue of unemployment that is causing concern within the UK’s domestic economy.

However, the bank has said that it will try to redeploy employees who are going to lose their jobs.

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

Loan claims: Banks could face fixed-rate loan claims

Wed, 13 Mar 2013 11:57:01 GMT

Businesses may soon be able to claim on unregulated fixed-rate loans.

There had been situations where certain companies had incurred huge breakage costs that they were not expecting. This was because of interest charges that were hidden in the contract.

Business secretary Vince Cable told the Telegraph that he would be approaching the Financial Services Authority (FSA) about whether there is a case for businesses can claim against banks for this.

He believes that this problem could be similar to the interest rate swap mis-selling scandal.

Earlier this year, the FSA released the results of an investigation into the selling of interest rate hedging products to small businesses and found that major banks were failing to follow at least one regulation in around 90 per cent of cases.

As a result, banks have been setting up provisions to deal with claims on mis-sold interest rate swaps.

Banks have been under constant fire for the mis-selling of their products, particularly after it was discovered that people had been mis-sold payment protection insurance (PPI).

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

Bank charges: FSA criticises wealth management

Wed, 13 Mar 2013 11:52:27 GMT

The Financial Services Authority (FSA) has criticised the wealth management of banks.

It says that banks have been failing to show how their more risky investments are suitable for their customers.

The FSA has reviewed the wealth management of six major banks, uncovering the practices behind the sales of products. It found that it could not demonstrate how suitable the products being sold to customers are in many cases.

Managing director for the FSA, Martin Wheatley, described these results as ‘worrying’.

The report also found that compliance departments within these banks were even less able to demonstrate the suitability of products for the banks’ customers.

He plans to step up regulations on wealth management within banks by setting up a division on this area when the Financial Conduct Authority (FCA) comes into effect.

Mr Wheatley will be in charge of the FCA when it takes over from the FSA as regulator on April 1st.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

Bank claim: Consumers could claim easier

Wed, 13 Mar 2013 11:47:04 GMT

The government is making it easier for consumer groups, including small and medium-sized enterprises (SMEs), to complain about financial scandals.

It has opened up a fast track route to the Financial Conduct Authority (FCA), so that consumer groups can report on financial scandals more easily. Consumers can also expect a response from the FCA within 90 days.

The FCA is being put together to regulate on the behaviour of financial services in relation to consumers.

Financial scandals have seen billions of pounds set aside by major banks to pay to consumers as investigations have revealed mis-sold banking products.

One of the biggest financial scandals that has affected consumers is the mis-selling of payment protection insurance (PPI). It was found that major banks had been selling PPI to consumers who either were not eligible for it or did not need it.

Earlier this year, a scandal was also revealed where banks had been mis-selling interest rate hedging products to small businesses.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

Bank charges: Ideas presented on capital

Tue, 12 Mar 2013 16:55:44 GMT

More explanation of the Basel Committee’s plans to increase the amount of capital banks are expected to have has been unveiled today.

Chairman of the Basel Committee, Stefan Ingves has spoken about plans to make banks hold certain levels of capital in order to prevent financial problems arising from investments falling through.

Among the ideas that have been put forward are that banks should hold extra capital to protect against potential losses as a result of interest rates. Authorities will discuss whether they need to draw up a framework to establish how banks should determine levels of capital for interest rates risks.

However, the rules posed by the Basel Committee have been criticised as being too complicated. Regulators will be looking for ways to simplify them.

New regulations to standardise banking are being drawn up by the Basel Committee. Rules to protect against a future financial crisis, such as requiring banks to hold certain levels of capital, are being drawn up under Basel III.

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

Bank charges: Commission criticises Reform Bill

Tue, 12 Mar 2013 13:27:51 GMT

The Banking Reform Bill, which was put up for debate yesterday, has been criticised by the Parliamentary Commission on Banking Standards.

It felt the new Bill is not tough enough on banking standards.

The Commission had proposed that the retail and investment arms in banks should be ring fenced and that they should be able to separate banks if they fail to follow with this regulation.

While the government accepted the proposal for ring fencing, it rejected the idea that banks should be separated.

Should power be granted to separate banks, this would only have been possible following an independent review and would need to be granted express approval from the Treasury.

The Commission felt that this had been rejected out of concern that too much power would be given to regulators.

These reforms were suggested as a way to protect against a future financial crisis as retail banking would not be affected by risky investments. This would mean that taxpayers would no longer have to bail banks out.

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

PPI claim: Banks expand workforce to deal with PPI

Tue, 12 Mar 2013 13:26:23 GMT

Major banks have had to increase their workforces to deal with claims on payment protection insurance (PPI).

This comes from a survey from Manpower of 2,100 companies. It found that the outlook for the jobs market was at the highest it had been since before the recession, due in part to increases in the financial sector to deal with the redress of mis-sold PPI.

PPI is the most complained about banking product in history and banks have had to set aside billions of pounds to deal with consumer claims.

Mark Cahill, of Manpower, pointed out that the amount of money set aside by banks is expected to double.

He said: “Within the last month alone we have seen big names like Barclays and Lloyds massively raise the amount of money set aside to deal with PPI claims.”

While this has created a rise in the jobs, which is expected to remain high as banks continue to redress PPI, it is uncertain whether these jobs will be sustainable in the future.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

Bank charges: Pound falls against the dollar

Tue, 12 Mar 2013 13:25:14 GMT

The pound has fallen against the dollar, putting it at a two and a half year low.

It fell to $1.4832 against the US dollar, which is the lowest value that has been seen since 2010. The euro also rose against the pound.

This news came around the same time that figures in manufacturing output for January were due to be released. It was expected that this sector would show little or no growth, but instead reported a decline.

Recently, the value of the pound has been falling against the dollar due to the uncertainty of the domestic economy and a recent downgrading of the UK’s credit rating.

Last month, the major credit agency Moody’s downgraded the UK from AAA to AA1.

Following this decrease in the value of the pound, coupled with the state of the economy and the country’s credit downgrade, fears have been raised that Britain will enter into a triple dip recession.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

Bank charges: Commission wants tougher line on leverage

Mon, 11 Mar 2013 16:43:59 GMT

The Parliamentary Commission on Banking Standards has said that Britain should be able to impose tougher rules on leverage.

Leverage decides how much capital banks need to have behind them before they can lend money.

At the moment, the leverage ratio is set internationally at three per cent. The Commission says that this is too low and says that the Bank of England should be able to raise it. This is in spite of the fact that chancellor George Osborne has said that he thinks the current leverage rate is enough.

The Commission has been working to improve regulations on banking to help stop another financial crisis from happening and from taxpayers being required to bail banks out.

In February, the chancellor said that he wants to ring fence banks’ retail and investment arms in order to protect taxpayers from another financial crisis. He said that banks that fail to do this can be separated completely.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

Bank charges: FTSE 100 bank shares drop

Mon, 11 Mar 2013 16:40:38 GMT

Banking stocks on the FTSE 100 were lower on Monday.

This is after the Parliamentary Commission on Banking Standards said that they would like to impose tougher rules.

Among the plans that were discussed were proposals to impose a higher leverage rate, which determines how much capital banks need to have behind them before they can lend. Currently, this is at three per cent internationally but the Commission wants to make this higher for UK banks.

This move is hoped to add protection against a financial crisis in the UK. However, shares will have been affected as a higher leverage rate will make banks less free to lend money.

Shares in Royal Bank of Scotland (RBS) and Barclays have already fallen by 2.5 per cent, while Lloyds Banking Group shares dropped by 1.7 per cent and HSBC shares fell by 0.8 per cent.

Taxpayers own shares in RBS and Lloyds, since both banks had to be bailed out in 2008.

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

Bank charges: RBS could be split up

Mon, 11 Mar 2013 16:37:26 GMT

Governor of the Bank of England, Sir Mervyn King, says that Royal Bank of Scotland (RBS) should be split up.

Mr King claims that RBS should be separated into a ‘good bank’ and ‘bad bank’, saying that the 82 per cent government ownership of the bank has gone on for too long.

He told the Banking Commission that there are not enough signs that the bank is moving back towards privatisation.

This is in spite of the fact that chief of RBS, Stephen Hester, claimed that he expects the bank could be privatised again within two years.

Mr King said that the ‘bad bank’ should be owned by the taxpayer and used to look after any bad loans.

The ‘good bank’ would be used for lending to businesses, which Mr King thinks would help move the bank towards privatisation.

RBS had to be bailed out in 2008 and now the government owns the majority of shares in the bank.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

Bank charges: Barclays paid over £1m to 428 staff

Fri, 08 Mar 2013 16:07:06 GMT

In 2012, Barclays paid over £1 million to 428 of its staff and more than £5 million to five employees.

Chief executive officer (CEO) Antony Jenkins was not among the top five earners for the bank as he was paid £2.6 million in total.

This information on Barclays employee’s pay was released in the bank’s annual report. It was decided that the bank should include information about staff pay in a move to make the bank more transparent.

Staff were paid this money during a year when the bank was hit by scandals such as Libor and payment protection insurance (PPI) mis-selling.

Last year, the bank was fined £290 million for being involved in the Libor rigging scandal. After the bank was found guilty of Libor rigging, the bank’s former CEO Bob Diamond stepped down.

The bank also had to set money aside in provisions for claims against mis-sold PPI. This was a scandal across the retail banking sector that has seen more complaints than any other banking product.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

Bank charges: Users locked out of accounts

Thu, 07 Mar 2013 17:13:28 GMT

Customers at the Royal Bank of Scotland (RBS) and its subsidiaries Natwest and Ulster Bank found themselves locked out of their accounts.

On Wednesday night, customers couldn’t make cash withdrawals or do telephone or online banking due to what the banks described as a ‘computer malfunction’. However, they could not give any more information on what malfunction had occurred.

Some customers also said that their bank cards had been swallowed by cash machines.

RBS apologised to customers and said that services had since been restored to normal.

This is the second time recently where customers at RBS have been locked out of their accounts due to technical problems.

Last summer, millions of RBS customers were stopped from using their accounts for days following an error which the bank said was caused following a software update.

This meant that customers were unable to pay bills or receive payments through the accounts until the error was fixed.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

Loan claim: Stricter rules for payday lenders

Wed, 06 Mar 2013 16:59:59 GMT

The government is due to announce stricter rules for lenders of payday loans.

Lenders of short term loans will be expected to share data about their applicants in order to stop multiple loans being sold and will have restrictions placed on the amount of advertisements they can show on television.

This comes following an investigation by the Office of Fair Trading (OFT) into the main 50 payday loan lenders, which found that lenders were not properly assessing how affordable their loans were before selling them or rolling them over. Lenders were also
not properly explaining to their customers how they would collect loan payments.

The OFT also found that borrowers of payday loans were facing aggressive tactics for debt collection and were not able to delay payments if they were in financial difficulty.

Payday lenders will be expected to adapt their business practices under the new rules from the OFT or will risk losing their licenses.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

Bank charges: EU rules in favour of bonus caps

Tue, 05 Mar 2013 17:09:28 GMT

The European Union (EU) has decided that a cap on banker bonuses will be imposed.

Britain was the only nation not in support of a cap on banker bonuses and lost in a 26 to one vote among finance ministers from EU member states.

It was suggested that bankers’ bonuses should be capped so that the amount that they receive does not exceed their annual salary.

The suggestion to cap banker bonuses was drawn up as part of a series of regulations, suggested by Basel III, aimed at reducing the risk of another financial crisis.

Author of the proposed cap and European Commissioner for financial regulations, Michael Barnier, ruled that the new regulation would apply to all nations.

The British government opposed the cap as it feared that banker salaries would be pushed up to accommodate the lesser amount that they would receive in bonuses.

Where bonuses could previously have been clawed back to counter financial problems, the government also said it would be more difficult to do this.

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

PPI claim: Complaints to ombudsman doubles

Tue, 05 Mar 2013 17:07:55 GMT

Complaints made to the financial ombudsman about mis-sold payment protection insurance (PPI) have doubled.

On average, the financial ombudsman now receives around 2,000 new PPI complaints a day and numbers are still rising.

During the second half of 2012, 283,251 financial complaints were made to the ombudsman. This was double the amount that it had seen during the first half of the year. Of these complaints, 211,885 were made against PPI.

Lloyds TSB was the bank that received the most complaints during the second half of 2012, of which 86 per cent were upheld.

Chief ombudsman, Natalie Ceeney, said that customers are now having to wait longer to have their PPI complaints resolved due to the high volume of complaints that the ombudsman receives, as well as delays caused by businesses.

PPI is the most complained about banking product in British history.

The financial ombudsman service has had to increase its workforce in order to deal with the high volume of PPI complaints.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

Bank charges: Banks lent less in the fourth quarter

Tue, 05 Mar 2013 16:23:38 GMT

Despite receiving government funding, banks have still decreased the amount of money they lent to customers.

The Bank of England found that banks reduced the amount of money they lent in the fourth quarter of 2012 by £2.4 billion.

This news comes in spite of the fact that the government had been trying to encourage banks to lend to people looking to take out a mortgage or gain money for their business using their Funding for Lending Scheme (FLS).

Since FLS was started in August last year, the government has invested roughly £13.8 billion in major banks on the agreement that this money would then be lent at cheaper rate to businesses that need to invest more and people who need to take out a mortgage.

Recently, people have been less likely to have a mortgage approved. Evidence from the British Bankers Association found that mortgage loan approvals decreased in January.

Dr Adam Marshall, from the British Chambers of Commerce, said that there is typically less lending in the fourth quarter but that the results were still ‘disappointing’.

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

Bank charges: HSBC make profits despite money-laundering

Mon, 04 Mar 2013 14:42:51 GMT

HSBC says it made profits last year, in spite of it incurring fines for money-laundering.

This was revealed in the bank’s Annual Report and Accounts for 2012.

HSBC was fined £1.2 billion by US regulators when it was found guilty of money laundering, which was suspected to help Mexican drug cartels and nations such as Iran.

In the UK, the bank had to set aside £1.5 billion for customer claims against mis-sold payment protection insurance (PPI).

Despite these charges, the bank was able to report profits. However, its profit before tax fell by six per cent to £13.7 billion and its revenue fell by five per cent to £45.4 billion compared to the previous year. Its underlying profit before tax rose by 18 per cent to £10.9 billion.

In his statement within the report, HSBC group chairman Douglas Jardine Flint said that the bank would improve controls and governance according to suggestions from regulators.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

Bank charges: UK economy grew last year

Fri, 01 Mar 2013 16:47:50 GMT

Contrary to previous reports, the UK economy showed growth last year.

The Office for National Statistics released a revision of its growth estimate for 2012, showing that the UK economy had grown by 0.2 per cent.

However, it still maintained its estimate that the UK economy had shrunk in the final quarter of 2012 by 0.3 per cent.

For the third quarter, growth was revised up to 1 per cent from 0.9 per cent. The estimated contraction in the first quarter of 0.2 per cent was changed to 0.1 per cent.

This news comes following the downgrade of the UK’s AAA credit rating to AA1 by major credit agency Moody’s, stating that the sluggish growth of the country’s economy was one of the reasons for this.

Part of the reason for the revision of UK economic growth estimates were due to the fact that oil and gas output was distorting the figures and had to be taken out.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

Bank charges: Lloyds incurs losses in 2012

Fri, 01 Mar 2013 16:45:15 GMT

Lloyds Banking Group has revealed that it incurred losses of £570 million in 2012.

In its annual results statement, the bank revealed that the main reason for its losses were an increase in provision for the mis-selling of its banking products.

Lloyds had to increase its provision for the mis-selling of payment protection insurance (PPI) by £1.5 billion.

Of all UK banks, Lloyds has the highest amount of provisions to pay for PPI claims.

As well as PPI, Lloyds had to increase provisions for the mis-selling of interest rate hedging products to businesses. It set aside £310 million in the fourth quarter of 2012.

These provisions had to be made following an investigation by the Financial Services Authority which revealed that in 90 per cent of cases studied, interest rate hedging products had been mis-sold.

Had the bank not had to increase provisions for product mis-selling, it would have reported a pre-tax profit of £2.6 billion.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

PPI refunds: Lloyds' PPI bill passes £6.5bn

Fri, 01 Mar 2013 11:11:16 GMT

Lloyds Banking Group is to allocate a further £1.3 billion to its payment protection insurance compensation pot, bringing the bank's total bill for PPI to £6.5 billion.

Sky News reported that Lloyds will announce the additional compensation today as it publishes its annual results.

"I have learnt that it is to be larger than the most pessimistic analysts' forecasts," said Mark Kleinman, Sky's City editor.

And the additional allocation could be pushed beyond £1.3 billion, Sky said, as Lloyds directors discuss the situation further.

The extra cash from Lloyds takes the overall bill for Britain's four main banks soaring past £12.5 billion.

It is rumoured that Lloyds boss Antonio Horta-Osorio will indicate he has re-thought the idea of an industry-wide effort to reach a deadline for PPI compensation claims.

In January it was reported that the British Bankers' Association was in talks with the Financial Services Authority and was looking at a cut-off date for PPI claims of summer 2014.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

Bank charges: EU agrees banker bonus cap

Fri, 01 Mar 2013 09:00:00 GMT

European Union officials have provisionally agreed a deal on new financial rules that will include capping bank bonuses.

It means bonuses will be capped at a year's salary, although this can rise to two years' pay if there is approval from shareholders.

It represents a defeat for the UK, which was opposed to any caps on bank bonuses.

The City is concerned that bonus rules would only serve to drive away talent and restrict growth in the financial services sector.

Ireland's finance minister, Michael Noonan, who headed negotiations for 27 governments, said: "This overhaul of EU banking rules will make sure that banks in the future have enough capital, both in terms of quality and quantity, to withstand shocks.

This will ensure that taxpayers across Europe are protected into the future."

Othmar Karas, the European Parliament's chief negotiator, said: "For the first time in the history of EU financial market regulation, we will cap bankers' bonuses."

The deal should pave the way for Basel III, a major overhaul of the banking system.

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

Bank claim: RBS bonus topped £600m

Thu, 28 Feb 2013 17:21:38 GMT

Royal Bank of Scotland (RBS) revealed that it paid out over £600 million in bonuses last year.

The partly state owned bank revealed details of its bonus pool, including that £215 million was paid to investment bankers.

It says that these bonuses would have been higher, however they had to be clawed back when RBS was fined £390 million after it was found to have been involved in Libor rigging.

News of these banker bonuses came out on the same day that it was revealed that the bank had lost around £5.2 billion before tax last year.

RBS says its losses were partly due to payouts for mis-sold payment protection insurance (PPI) and due to its Libor fine.

The revelation of bonuses at RBS, coupled with the pay outs that the bank has had to make for failing to follow regulations, has enraged campaigners.

The campaign group Move Your Money said: “Why should ordinary customers and taxpayers pay for RBS’ bonuses.”

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

Bank refunds: BBA chief advises against bailing out banks

Thu, 28 Feb 2013 17:18:04 GMT

Chief executive of the British Bankers’ Association (BBA), Anthony Browne, has said that government should not continue to bail banks out.

In a speech before the Institute of Directors, he said that the government should allow failing banks to ‘die’ rather than spending taxpayers’ money on rescuing them.

He talked about the fact that taxpayers were unhappy that the money that they had earned had been used to rescue banks.

Mr Browne said: “Money that could have been used to pay for teachers was instead used to prop up major financial institutions.”

Royal Bank of Scotland (RBS) and Lloyds had to be bailed out by the UK government during the financial crisis. The taxpayer now owns around 80 per cent of RBS and 40 per cent of Lloyds respectively.

Chancellor George Osborne recently announced that banks would have to ring fence their investments from their retail operations in order to lessen the risk of banks needing to be bailed out.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

PPI refunds: Adults rely on mum and dad for cash

Thu, 28 Feb 2013 16:56:50 GMT

Millions of adults are continuing to use the 'bank of mum and dad' despite flying the nest years ago.

Research by Gocompare found one in ten adults still get help with their outgoings from their mum and dad, despite no longer living with their parents.

The figure is higher among people aged 18-34 (26 per cent) and men are more likely than women to continue to receive financial support from mum and dad long after leaving home (12 per cent compared to eight per cent).

With 38 per cent of people continuing to ask their parents for financial help said they did so because they couldn't afford to pay for themselves, it could be a good idea to see if they have been mis-sold payment protection insurance (PPI).

John Miles, business development director at Gocompare.com, said: "It's worrying that so many people continue to receive help with their outgoings from their parents; suggesting that they aren't able to manage their household budgets.

"But while many see this support as a short-term solution, plenty of those we asked seemed quite happy for their parents to continue bailing them out for the foreseeable future."

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

Bank charges: Capital easing for smaller banks

Thu, 28 Feb 2013 12:28:07 GMT

New banks in the UK will not be required to hold as much capital as larger banks.

This was announced by Lord Turner, chairman of the Financial Services Authority (FSA), in order to try to make major UK banks more competitive.

It is hoped that, by encouraging competition, customers will be offered better rates.

A report from the Office of Fair Trading criticised the biggest banks for offering a ‘lack of dynamism’ within the market for current accounts.

Under new regulations, banks are required to have more capital behind them in order to protect against future losses.

This was suggested in Basel III, which was put together to find ways to stop another financial crisis from happening.

As well as reducing the capital required for new banks, regulators also hope to speed up the process of authorisation so that it will be easier for them to raise funds and begin working.

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

Bank charges: RBS lost £5.2m last year

Thu, 28 Feb 2013 12:26:16 GMT

Royal Bank of Scotland (RBS) made a loss of around £5.2 million before tax last year.

This is the fifth year in a row the bank has reported a loss since it was bailed out during the financial crisis in 2008.

RBS said in its annual profits report that 2012 was a ‘chastening’ year for the bank as it aimed to correct past mistakes.

Part of the loss incurred by RBS is as a result of claims on mis-sold payment protection insurance (PPI). By the end of 2012, it had increased its provisions of PPI claims to £2.2 billion following a further charge of £450 million during the fourth quarter.

It also set aside £700 million in provisions for mis-sold interest rate hedging products after the Financial Services Authority found that UK banks had not been adhering to regulations when selling these.

RBS is around 80 per cent owned by the taxpayer after the government bailed it out.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

PPI claim: Lloyds received 1.4 million complaints

Wed, 27 Feb 2013 17:10:35 GMT

Lloyds Banking Group received 1.4 million complaints about mis-sold payment protection insurance (PPI) in 2012.

However, the bank has said that it has made 'significant progress' in reducing the number of PPI complaints it receives.

In the first half of 2012, the bank received 727,000 complaints. This fell in the second half of the year to 658,289.

This report was revealed yesterday when Lloyds published its complaints figures, which it releases every six months.

Earlier this month, Lloyds was fined 4.3 million by the Financial Services Authority (FSA) for delayed payments on PPI claims.

Lloyds had said that it would aim to pay out for PPI redress within 28 days; however, the FSA found that it failed to do this for up to 140,000 customers.

This delay in PPI redress goes against the FSA's rules, which state that payments should be made promptly.

More customers in Britain have complained about PPI than any other banking product.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

Bank charges: BoE considers negative interest rates

Wed, 27 Feb 2013 15:13:32 GMT

The Bank of England (BoE) is considering implementing negative interest rates in order to boost growth.

Deputy governor for financial stability, Paul Tucker, has said that the bank hopes to implement 'extraordinary' changes to encourage banks to lend money to small businesses.

The change that has been suggested is for BoE to impose a rate for banks that will be separate to the base rates for mortgage and savings interest.

Mr Tucker said that in spite of current government schemes, such as the Funding For Lending Scheme (FLS), had been failing to boost lending to small businesses. He felt that smaller businesses are vital to keeping the economy moving.

BoE has been evaluating various ways to encourage growth in the economy as it has seen very slow growth and believes a recovery will take more time than hoped.

This slow recovery within the economy led a major credit agency, Moody's, to downgrade Britain's credit rating from AAA to AA1.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

Bank charges: Barclays report on staff earnings

Wed, 27 Feb 2013 15:09:59 GMT

Barclays will be revealing details on the annual earnings of its 140,000 employees.

It is expected that around 600 employees at the bank earned over £1 million in 2012.

This disclosure will be part of a shake-up of the way that Barclays reports on pay. It is expected that rival banks will follow suit.

Chairman of Barclays, Sir David Walker, has directed this new way to report on pay. He was commissioned by Labour in 2009 to reveal the amount of pay for employees that earn over £1 million in their annual salary.

Experts fear that this disclosure on employee earnings could cause fresh arguments over how much bankers are awarded in bonuses.

Banker bonuses have been a central point of concern within the European Union as it tries to implement standardised banking regulations to reduce the risk of a future financial crisis. It has been suggested that a cap should be placed on banker bonuses so that it does not exceed their earnings. The UK has tried to block this move.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

Bank claim: Sterling shows a slight recovery

Tue, 26 Feb 2013 14:57:45 GMT

Sterling has shown a slight recovery following its recent plummet against the US dollar and the euro.

The pound dropped to its lowest value in two and a half years against the dollar and 16 months against the euro following the downgrade of the UK’s AAA credit rating by the major ratings agency Moody’s.

However, during trading, the value of the pound recovered slightly against the dollar and the euro.

Moody’s downgraded the UK’s credit rating from AAA to AA1 because of a lack of growth in the domestic economy and because the value of the pound against the dollar and the euro had been falling for most of the year.

The downgrade of the UK’s credit rating was expected by many as the UK’s domestic economy had not shown much recovery.

Chancellor George Osborne said that the UK would continue with its austerity measures and continue to avoid borrowing money.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

Bank charges: Former chancellor speaks against banker bonus cap

Tue, 26 Feb 2013 14:54:43 GMT

Former chancellor Norman Lamont has said that if a banker bonus cap is imposed it would make it more likely that Britain would leave the European Union (EU).

Writing for the Telegraph, he said that if restrictions are placed on the amount of money that bankers can earn then this would see them moving out of Britain.

Disagreements between nations about imposing a cap on banker bonuses have caused the European Parliament to stall in its decision on the matter.

Initially it was suggested that banker bonuses should not exceed salary but this was opposed by Britain.

France and Germany, among many other states in the EU, are in support of imposing a cap on banker bonuses as they feel that it would deter bankers from taking risks such as those that went towards the financial crisis.

The EU has been looking for ways to standardise the regulation of banks, under the recommendations from Basel III, in order to prevent a future financial crisis from happening.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

Bank claim: Millions reclaimed through My Lost Account

Mon, 25 Feb 2013 16:52:15 GMT

Up to £645 million has been reclaimed from owners’ forgotten bank accounts over the last five years.

My Lost Account is a free service run by the British Bankers’ Association (BBA), NS&I and the Building Societies Association (BSA). It allows people to find any money that has been held in bank accounts, building societies, savings and investments that has been forgotten about by users.

Operators said that, since the launch of the service in 2008, 315,000 have used My Lost Account and 580,000 people have made search applications.

The BSA believe that returning this cash to its owners will help to aid people in some way while the economy is in a difficult state.

Similar schemes were already being run by the BBA and BSA. These received 400,000 applications and saw £200 million returned to customers.

If customers leave money dormant in their bank accounts for over 15 years then this can be returned to the government to fund social investments.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

Bank charges: Banks need more capital for FSA crackdown

Mon, 25 Feb 2013 16:29:59 GMT

Banks may need billions more in capital as the Financial Services Authority (FSA) investigates how they assess the risk of their lending.

Reuters reported that the FSA have been cracking down on the kind of risk models banks had in place to protect against future losses.

The FSA has become stricter in the past two months in terms of scrutinising the way that banks assess risks when lending money as Europe looks to implement standard guidelines for all banks.

These rules were suggested under Basel III, which have been drawn up in order to protect against another financial crisis. One of the suggestions under Basel III is that banks have a large amount of capital behind them in order to protect against losses from failed investments.

By paying more capital into banks this could cause further problems for the already suffering British economy, which has just had its credit rating downgraded.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

Loan claim: Mortgage approvals decline

Mon, 25 Feb 2013 11:31:20 GMT

The number of mortgages approved declined in January according to new statistics from the British Bankers’ Association.

In January there were 32,288 new mortgage loans approved, which is down from 33,440 in December.

This news was a surprise to experts, who expected the amount of new loans approved to rise to over 34,000.

Government has been working to increase borrowing for the purchase of houses in the UK under its Funding for Lending Scheme, which has seen it invest £60 million in banks and building societies in order to encourage them to lend money for mortgages and loans.

As mortgage lending is now available at cheaper rates under the scheme, experts were surprised that the figure for the amount of loans approved had decreased.

This suggests that there is not as much growth in the housing market as hoped and that this is another sector that may not provide growth to the UK’s domestic economy.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

Bank charges: Britain loses AAA credit rating

Mon, 25 Feb 2013 11:10:31 GMT

Britain has been downgraded from its AAA credit rating by the major credit agency, Moody’s.

The news comes after sterling fell against the dollar on Friday during US trading.

It was said that Britain’s credit rating was downgraded as a result of the country’s mounting debts and lack of growth in the economy as it is likely that the country could enter into a triple dip recession.

Analysts expect that sterling could weaken even more against the euro and the dollar following the downgrade of Britain’s credit rating.

Financial markets across the globe are expected to deliver a response to the decision on Britain’s credit rating.

Due to the state of Britain’s domestic economy, the pound has been falling against the dollar and the euro for most of the year.

The pound fell earlier last week following the publication of minutes from the Bank of England, stating that the governor hoped to increase quantitative easing but that overall the committee voted against this measure.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

Loan claim: Under 25s at greater risk of getting into debt

Fri, 22 Feb 2013 17:06:24 GMT

High unemployment levels have raised fears that people under 25 are more likely to fall into debt.

StepChange, a debt charity, said that 34 per cent of people under the age of 25 who approached the charity last year did so because of unemployment.

Recent reports from the Office for National Statistics showed that youth unemployment rose by 11,000 in the final quarter of last year. This was the biggest rise across the year.

External affairs director for StepChange, Delroy Corinaldi, said that the high levels of youth unemployment show how vulnerable young people are as a result of the state of the economy.

Bank of England reported earlier this month that it expects the British economy is making a recovery, although this is happening slowly. It also says that it cannot yet decrease inflation to its target level of 2 per cent.

This means that the cost of living for British households will remain high for some time, making it more difficult for people who are unemployed to live by their means.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

Loan claim: Utility company strikes deal with Experian

Fri, 22 Feb 2013 17:01:45 GMT

More lenders have been gathering financial information on customers to decide whether to agree loans with them.

The BBC reported that Yorkshire Water had provided information on its customers to credit reference company Experian, who are seeking agreements with other utility companies for access to customer data.

According to another credit reference company, Equifax, the information that can be included on a credit report includes data from the electoral roll, details of home repossessions, any judgements from County Court and banking details such as from current accounts, joint accounts and credit cards.

This information is then used by mortgage and loan providers to decide who to lend money to. With added financial information such as that of utility bills, customers have more boxes to tick to be suitable for a loan.

Overall, British people have been less inclined towards borrowing money. Recent statistics show that the number of approved mortgages is at a low. The government has been running schemes to try to encourage cheaper lending in order to encourage more people to take out mortgages and loans.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

Bank claim: BoE names new regulator

Fri, 22 Feb 2013 11:54:22 GMT

Andrew Bailey has been named as deputy governor for Bank of England (BoE) and head of its new division for regulating UK banks.

He is currently the head of the Financial Services Authority (FSA) but will become chief executive of its new Prudential Regulation Authority (PRA) at the start of April, after the FSA closes.

PRA has been set up in response to the fact that regulators failed to stop UK banks from falling into a financial crisis. Royal Bank of Scotland (RBS) and Lloyds had to be bailed out by UK government.

The new regulator will have more power within BoE and will be in charge of the Financial Policy Committee, which Mr Bailey is already the head of.

Mr Bailey’s next concern with the Financial Policy Committee is presenting a plan to see what is needed to make RBS and Lloyds independent of government. He will present this plan in March.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

Bank claim: BoE seeks investment from China

Fri, 22 Feb 2013 11:19:12 GMT

As a means of boosting the country’s financial power, the Bank of England (BoE) is seeking a three-year swap line with the People’s Bank of China (PBoC).

BoE governor Mervyn King met with the governor of PBoC, Zhou Xiaochuan, in China where they agreed to sign a swap line deal as soon as possible.

The BoE said that the deal would be used to keep Britain’s domestic finances stable if need be. Its main purpose is to ensure that China and Britain would finance trade and investment between each other so that the BoE will be able to ensure finances if there is little renminbi outside of China.

China has historically kept its currency tightly controlled for fear that opening up its trade would bring down the value of its exports.

The country’s economy has been rising greatly, owing mostly to its exports.

China’s currencies, the yuan and the renminbi, are expected to emerge as a global reserve currency.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

Bank charges: FSA to publish internal probe on Libor

Thu, 21 Feb 2013 12:32:30 GMT

The Financial Services Authority (FSA) will soon publish an internal report on its investigations into the Libor scandal.

In response to a recent report from the Treasury Select Committee, the FSA said that it would review when the regulator first became aware of the Libor rigging scandal.

Members of the Treasury Select Committee accused the FSA of being two years late in starting their investigations into Libor. They also referred to the fact that the FSA had been working with US regulators, the Commodity Futures Trading Commission (CTFC), since 2008.

The committee’s report was issued after Barclays was fined £290 million by the CTFC and the FSA.

Royal Bank of Scotland and UBS have also had to pay fines for Libor rigging, both of which were much higher than that received by Barclays. They were fined £390 million and £940 million respectively.

In order to ensure compliance from banks, the FSA has said that it has been more strict in regulating UK banks.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

Bank charges: MPS say banks should be fined more for Libor

Thu, 21 Feb 2013 12:00:46 GMT

MPs said that the Financial Services Authority (FSA) should be able to impose higher fines on banks for Libor fixing.

The Treasury Committee said that the regulator should be tougher when imposing fines for Libor.

Banks that have helped authorities during the early stages of investigations have been able to receive a discount of up to 30 per cent on fines for having taken part in Libor fixing.

Barclays was one such bank that received a discount to the fine it received after it was found guilty of Libor fixing. The FSA fined Barclays £59.5 million for Libor fixing, which was the highest fine that the regulator had ever given. Without the discount given for co-operating in the investigation, however, the bank would have been fined £85 million.

Libor is a global scandal that saw banks manipulating the international benchmark rate in order to boost company profits.

UBS, Barclays and Royal Bank of Scotland have all been fined for Libor fixing.

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

Bank charges: Libor may still be fraudulent

Thu, 21 Feb 2013 11:29:04 GMT

Even after the recent Libor scandal, a US regulator has said that the rate may still be subject to fraud.

Chairman of the Commodity Futures Trading Commission, Gary Gensler, told the BBC that the Libor rate was often made up.

He explained that when the rate is set it is supposed to be based off financial transactions in similar areas, however there are situations where there is not enough data to accurately set the rate for some financial transactions and so the rate could be made up.

Mr Gensler met with the BBC in London as he had come to meet with the Financial Services Authority.

Libor is a benchmark rate used to set financial transactions around the world, including interest rates on mortgages.

Investigations were launched after it was suspected that banks had been manipulating Libor in order to boost profits.

UBS, Barclays and Royal Bank of Scotland have all been fined for rigging Libor.

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

Bank charges: pound fell after BoE released minutes

Thu, 21 Feb 2013 10:51:30 GMT

Following the Bank of England’s (BoE) release of minutes from their latest meeting from the Monetary Policy Committee, the pound has fallen.

In its minutes, the committee said that it is in no hurry to reach their two per cent target on inflation rates. It said that it would aim to do this “over a longer time horizon than usual”.

After the minutes were released, the pound fell 0.75 per cent against the dollar. Analysts have suggested that the pound may continue to fall further.

The governor of BoE, Sir Mervyn King, voted alongside two other colleagues on the committee in favour of expanding quantative easing programme from £375 billion to £400 billion. This would see them buying more assets in the hope that Britain would receive a return on its investment. However, they were in the minority as the other six committee members voted against this.

It was detailed in the minutes that the committee felt that increasing Britain's assets may not help to decrease inflation. They felt that Britain’s economy is not as strong enough to ensure this.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

Loan charges: mortgage lending has declined

Wed, 20 Feb 2013 16:01:45 GMT

The amount of mortgage loans taken out showed a nine per cent drop in January, with the total amount of loans taken out valued at £10.4 billion.

These figures were reported by the Council of Mortgage Lenders (CML), who said that this is the lowest amount taken out in mortgage loans since April last year.

Rising costs of inflation were named as one of the reasons why consumers were opting against taking out a mortgage due to uncertainty that they could afford it.

However, the CML says that it expects the amount of mortgages taken out to rise again as the housing market is expected to pick up this year and there are lower interest rates available on a range of deals.

Consumers are also able to acquire cheap mortgage loans with greater ease under the government’s Funding for Lending scheme. This scheme saw the government pay £60 billion to banks and building societies in order to ensure that they would allow their customers to take out loans.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

Bank charges: Banks owe over £9bn in legal costs

Wed, 20 Feb 2013 11:59:58 GMT

Over £9 billion is owed in legal costs by four of Britain’s biggest banks, according to reports from Credit Suisse.

Analysts at Credit Suisse found that the ten largest banks across Europe have collectively had to pay multi-billion pound bills in legal settlements.

Mis-selling of banking products has had the highest litigation cost for European banks but they have also faced legal costs for Libor-fixing and money laundering.

UK banks, such as Royal Bank of Scotland (RBS) and Barclays, are among those who have faced the highest legal costs. The banks faced bills for mis-selling of products such as payment protection insurance (PPI) and have provisions in place for further costs in redressing mis-sold products.

Both had also been fined previously for Libor-fixing and are settling fines that they have received from the Financial Standards Authority and US regulators.

Other banks that the analysts looked at included HSBC and Lloyds Banking Group.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

PPI charges: Lloyds fined for delayed PPI redress payment

Tue, 19 Feb 2013 11:31:59 GMT

The Financial Services Authority (FSA) has fined Lloyds Banking Group over £4.3 million for delays to payment protection insurance (PPI) redress for up to 140,000 customers.

Lloyds TSB Bank Plc, Lloyds TSB Scotland and Bank of Scotland plc were all fined as problems within the system meant that PPI redress payments did not reach customers within the 28-day timeframe promised by Lloyds Banking Group upon it receiving a decision letter.

Some customers who received late PPI redress payments had to wait over six months for it. When customers enquired about their late PPI redress payments, Lloyds Banking Group could not explain why this was, give details on when it would arrive or fast-track the payment.

In the FSA’s rules on PPI, it states that redress payments should be promptly sent to customers.

Lloyds has £5.3 billion in provisions for PPI payments, which is more than any other UK bank has set aside.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

Bank charges: Lloyds boss may have bonus held back

Mon, 18 Feb 2013 12:14:34 GMT

Lloyds Banking Group chief executive Antonio Horta-Osorio may have his 2012 bonus held back until the government sees the bank making a profit.

Mr Horta-Osorio is due to receive £4.4 million for his bonus but it is expected that this will be held back until shares in the bank are priced above the average that the taxpayer has to pay for them.

Currently, the taxpayer owns over 40 per cent of the bank after the government had to bail it out during the financial crisis in 2008.

One of the reason for Lloyds’ fall in share prices is due to its involvement in the widespread mis-selling of payment protection insurance (PPI), which has seen UK banks set aside over £10 billion in provisions for claims against them.

Lloyds set aside £5.3 billion in provisions to pay for PPI claims, which is the most that any of the UK banks have set aside.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

Loan charges: CAB investigates four payday lenders

Mon, 18 Feb 2013 10:35:12 GMT

The Citizens Advice Bureau is calling on the Office of Fair Trading (OFT) to suspend the licenses of four payday lenders.

It has gathered evidence on all four organisations to show that they have been acting unfairly and even exacerbating existing debt problems.

Citizens Advice chief executive Gillian Guy said: "The OFT must take immediate action to investigate and suspend these companies. These firms pose a real risk to people looking to get a short term loan to help tide them over.”
Problems highlighted by the OFT include inflated fees and charges, continuing to take payments when debts are cleared, harassment and abusive staff.

More worryingly, the OFT also found evidence that the lenders prevented people from paying for debts online and on the phone, but then applied late fees.

“With a ten-fold increase in people struggling with payday loans we are keeping a very close eye on the industry and will be reporting any other lenders to the OFT found to be using deceitful tactics,” Ms Guy said.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

Bank charges: EU motion to cap bank bonuses

Fri, 15 Feb 2013 16:38:10 GMT

The European Union has proposed a motion to place a cap on banker bonuses, ensuring that they do not exceed the fixed salary.

This proposal was but forward by the Irish government and was backed by the majority of EU states. However, Britain did not support the motion and said that the 1:1 ratio between banker pay and bonus pay should instead be between fixed pay and cash, allowing for shareholders to adjust this in a vote.

Plans to cut back on banker bonuses were proposed as banks were encouraged to decrease activity in their investment banking arms and as a result of recent damage to banks’ reputations through scandals such as Libor.

Measures to prevent UK banks’ investment arms from contributing to another financial crisis were announced by chancellor George Osborne earlier this month. He announced that banks should ringfence their investment and retail arms and that he would separate them if need be.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

Bank charges: Taxpayers expected to pay £66bn in shares

Fri, 15 Feb 2013 16:04:19 GMT

Taxpayers are expected to pay £66 billion in shares of Royal Bank of Scotland (RBS) and Lloyds, a report from the Public Accounts Committee has revealed.

By March 2012, Shares in these banks had also decreased in market value by £34 billion.

However, the committee had found out from the Comptroller and Auditor General’s Report that government support to the banks has been reducing.

The government owns 82 per cent of RBS and 43 per cent of Lloyds as they had to be bailed out during the financial crisis. As a result, taxpayers are expected to cover the shares in the banks that the government has bought.

Earlier this month chancellor George Osborne announced measures to prevent a future financial crisis when he told banks that they must ringfence their investment and retail arms. He said that if banks fail to do this then he could separate them.

RBS caused further fears that it would cost taxpayers when it was fined for Libor rigging.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

Bank claim: FSA checks uncover poor investment advice

Thu, 14 Feb 2013 16:28:13 GMT

A series of mystery shopping check into banks conducted by the Financial Services Authority (FSA) has discovered some customers may be receiving bad advice on how to invest their money.

The review tested six major high street banks to assess the quality of information offered to individuals looking to invest a lump sum. Although three-quarters of customers received good advice, there were concerns raised about the remainder.

It found in 11 per cent of checks, evidence suggested the customer was offered unsuitable advice, while in 15 per cent of cases, the adviser failed to gather enough information in order to help the consumers make the best decision.

The firms involved in this were said to be cooperative and are looking to take immediate action to solve the issue, such as retraining advisers and making changes to their processes.

Director of supervision at the FSA Clive Adamson said: "Whilst we are disappointed by the results of this review, we are encouraged by the action that the firms involved have taken to rectify the situation for their customers."

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

PPI claim: ex-Lloyds boss defends PPI selling

Thu, 14 Feb 2013 16:24:34 GMT

Eric Daniels, former boss at Lloyds Banking Group, defended that bank’s selling of payment protection insurance (PPI) in front of MPs on the banking standards commission.

He denied that the majority of PPI plans were mis-sold and said that the reason the cost to the banks is so high is that they have paid out for many false claims. He said banks had paid out for false claims is because they had received so many complaints that they could not cope.

Mr Daniels was the bank’s chief executive between 2003 and 2011. He had to give back his £580,000 bonus from 2010 when Lloyds began making provisions for PPI claims. Currently Lloyds has set aside a total of £5.3 billion in provisions for PPI claims, which is the highest amount of money set aside by any of the banks.

The PPI scandal has seen the most complaints put in about any banking product in Britain.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

Bank claim: banks consider leaving Libor

Thu, 14 Feb 2013 14:29:07 GMT

Some banks have told the British Bankers’ Association that they no longer want to be involved in setting Libor following the recent scandal that saw three major banks fined.

There is a concern that banks who aid in setting the Libor rate, which sets interest rates on financial products worldwide, will have their reputations damaged or will be at risk of criminal allegations in the future.

Financial regulators are concerned that if banks leave Libor then the benchmark rate’s credibility will be damaged further.

The Financial Services Authority (FSA) has written to some banks warning them against leaving Libor, saying in one letter that the bank’s relationship with the FSA would be damaged.

Barclays, UBS and Royal Bank of Scotland (RBS) were all fined after investigations revealed that they had been rigging the Libor rate.

It was recently suggested that Barclays and RBS receive discounts to their fines as both banks are partially owned by the taxpayer.

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

Bank claim: UBS fined for fund mis-selling

Wed, 13 Feb 2013 16:01:45 GMT

Swiss-based bank UBS has been handed a fine of £9.45 million by the Financial Services Authority (FSA) after it was found to have mis-sold a fund from insurer AIG.

The institution sold the fund to 1,998 high net worth individuals between 2003 and 2008, with initial investments totalling £3.5 billion.

However, the FSA found that UBS did not fully understand the product it was selling, while it also did not take effective action to protect its customers' investments during the financial crisi.

Spokeswoman for the FSA Tracey McDermott said: "UBS' conduct fell far short of what its customers deserved."

A sample review by the FSA revealed that at least 19 customers were mis-sold the fund, while UBS was also found to have mishandled at least 11 complaints over the product.

UBS stated it is pleased to have put the issue behind it so it can focus on serving its clients and executing its business strategy.

It comes shortly after UBS was hit with a £940 million fine for its part in the Libor rate-fixing scandal.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

Bank charges: inflation expected to rise

Wed, 13 Feb 2013 15:53:36 GMT

Inflation is expected to rise to three per cent by summer according to the Bank of England’s quarterly report, which is released today.

The Bank’s monetary policy announced in a statement last week that it expected inflation to rise and would stay above its two per cent target for the next two years. This news comes in spite of the Bank’s November quarterly inflation report which said that towards the end of this year it would fall back to two per cent.

Should inflation rise a full per cent above the target then future Bank of England governor Mark Carney, due to replace Sir Mervyn King in summer, will need to explain to the chancellor why this is.

Growth is also expected to be weak in the early part of the year as the UK economy shrank by 0.3 per cent in the last quarter of 2012. However, Sir King said that he expects that the economy will see a slow recovery due to more financial services becoming available such as the Funding for Lending scheme.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

PPI claim: Barclays has paid out £1.6 billion of provisions

Wed, 13 Feb 2013 15:51:39 GMT

Barclays has paid out £1.6 billion of the provisions it set aside to pay for the mis-selling of its products, the Press Association reported.

The bank previously reported that it had received and processes over a million payment protection insurance (PPI) claims but roughly only 39 per cent had been upheld.

For valid PPI claims, the average pay out from Barclays is £2,750.

In total, it expects to receive 450,000 claims started by customers although it could not predict the amount of future claims and said it may need to scale provisions up or down to pay for them.

Feeling that the bank’s reputation had been damaged through scandals such as mis-sold PPI and Libor rigging, chief executive Antony Jenkins has announced plans to clean up the bank this year. Earlier this month he also announced that he was raising PPI provisions by £600 million.

Collectively, all banks in the UK have set aside over £10 billion to pay for claims on mis-sold PPI.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

Bank claim: 3,700 jobs set to go at Barclays

Wed, 13 Feb 2013 11:06:24 GMT

Barclays has announced plans to cut around 3,700 jobs following a strategic review aimed at reducing the company's costs by £1.7 billion.

It follows the news that the bank saw its pre-tax profits slide to £246 million in 2012, down from £5.9 billion the previous year.

Around half of the job losses are expected to come from the financial institution's investment bank arm - mostly in Asia - while the rest will be drawn from its European retail and business operations.

Barclays has seen its financial position suffer recently after it set aside £1.6 billion to compensate customers who were mis-sold payment protection insurance, while another £850 million was earmarked to reimburse individuals mis-sold interest rate hedging products.

It was also fined £290 million last year for its part in the Libor rate-fixing scandal that engulfed the banking industry.

New boss at the organisation Anthony Jenkins had pledged to change the culture of the bank following the string of negative coverage in recent times.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

Bank claim: Barclays shares rise following cost reductions

Tue, 12 Feb 2013 13:11:24 GMT

After Barclays’ chief executive Antony Jenkins unveiled plans to cut costs and boost the bank’s tarnished image, the bank has risen on the FTSE 100.

Mr Jenkins unveiled cost cutting plans that involve axing 3,700 jobs and closing the bank’s tax advisory unit in a bid to decrease costs by £2 billion.

The plans were announced at the same time that Mr Jenkins said he would like to repair the bank’s image following its recent involvement in a series of scandals.

Barclays has been linked to both the payment protection insurance mis-selling scandal and the interest rate swap mis-selling scandal.

The bank was fined £290 million when it was found guilty in an investigation into Libor rate rigging. Former chief executive for Barclays, Bob Diamond, stepped down during this time.

Barclays rose by 3.7 per cent on the FTSE 100 index following its cost cutting strategy, which is also hoped to boost the bank’s profits.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

Bank claim: RBS defends bonus pay

Tue, 12 Feb 2013 13:09:10 GMT

Chairman Philip Hampton for the Royal Bank of Scotland (RBS) has defended the bonus due for the bank’s chief executive Stephen Hester, Reuters reported.

Sir Hampton said that by industry standards Mr Hester’s pay was modest. Mr Hester’s basic salary is £1.2 million and he is due to receive a bonus of £780,000, which has been deferred until March.

MPs said that Mr Hester should not take the bonus as only last week US regulators found RBS guilty of Libor rigging and fined the bank accordingly.

Following the £390 million fine incurred for Libor rigging, RBS was told by chancellor George Osbourne that the bank should pay for it out of the bank’s bonus pool. As over 80 per cent of the bank is owned by the government after it had to be bailed out during the financial crisis it was expected that taxpayers would have to cover the fine, which Mr Osbourne said they should not be expected to do.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

Bank claim: Barclays to close tax advisory business

Mon, 11 Feb 2013 14:52:21 GMT

Barclays will close its controversial tax advisory unit, which the bank’s clients have been able to use to avoid tax.

Chief executive for Barclays, Antony Jenkins, is due to announce a series of measures that he hopes will help to improve the bank’s image as part of Barclays’ full year review on Tuesday.

Among the motions that Mr Jenkins hopes will improve Barclay’s reputation is the removal of the Structured Capital Markets (SCM) unit.

SCM previously helped to make large profits for the bank, generating high amounts of revenue for Barclays’ investment banking.

The transactions made by the SCM were legal but employed complex structures with the aim of getting tax benefits.

Barclays has been linked to a variety of scandals in recent times, such as Libor-fixing and payment protection insurance and interest rate swap mis-selling. Former chief executive Bob Diamond stepped down when the bank was investigated for its involvement in the Libor scandal.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

Bank claim: Code introduced to stop banking scandals and crises

Mon, 11 Feb 2013 11:53:44 GMT

To stop future banking scandals such as Libor rigging, the Chartered Institute of Internal Auditors (CIIA) has unveiled a code of conduct to grant more power to internal auditors.

Under the code, internal auditors will report to the chairman of the bank they’re working for rather than the chief executive. They will have more power to freely assess risks within the banks.

It was drawn up based on guidance announced in June last year from the Basel Committee, who supervise the US Federal Reserve Bank and central banks in some of the largest economies in the world.

The Financial Services Authority and the Bank of England have given input towards the code, helping it accommodate corporate governance and to work around how complex Britain’s financial systems are.

Following investigations into banks’ involvement in the Libor scandal, regulators criticised banks for not having strong enough internal measures in place to stop such financial scandals from happening.

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

Bank claim: Barclays admits naming wrong investor of £3bn

Mon, 11 Feb 2013 11:23:43 GMT

Barclays misled the public and its shareholders about the source of a £3 billion investment that the bank received, a BBC Panorama investigation uncovered.

The bank received the investment during the financial crisis, where it avoided having to be bailed out by the government by sourcing funds from elsewhere.

It said in what it called a ‘drafting error’ that it was the owner of Manchester City football club, Sheikh Mansour bin Zayed Al Nahyan, who was investing in the bank in 2008. However, it was actually the Abu Dhabi government-owned International Petroleum Investment Company (IPIC) of which Mr Mansour is chairman that paid to bail the bank out.

The day after Mr Mansour was named at a vote of shareholders, the small print in a statement of regulatory disclosures revealed that he had passed the stake on.

When Barclays issued its 2008 annual report, sometime later, Mr Mansour was still named as the investor.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

Loan charges: Pensioners facing debts

Fri, 08 Feb 2013 17:02:10 GMT

Studies have shown that many people who have retired are facing huge loan debts.

Mortgage provider Key Retirement Solutions said that many of their clients were facing unsecured loans that were at least six figures. Lots also had huge mortgages as they had not managed to pay off their debts before leaving work.

Some need to pay large lump sums in order to pay off interest-only mortgages as they are unable to gain new mortgage loans due to their age.

The Financial Services Authority (FSA) had been examining whether interest-only mortgages were being mis-sold as the time where these mortgages need to be repaid is fast approaching.

In January the Times reported that the FSA was looking at whether it needed to take action in case people were largely unable to repay mortgage loans.

The FSA also recently had to look into the mis-selling of interest swap rates from banks and ruled that this was true in 90 per cent of the cases studied.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

PPI claim: UK banks set aside £10bn for mis-selling

Fri, 08 Feb 2013 16:57:33 GMT

All UK banks have set aside £10 billion in total as provisions for payment protection insurance (PPI) claims.

From the start of July 2012, all banks have had to be prepared to pay out for mis-sold PPI in what is now widely known as one of the biggest mis-selling scandals. This has brought in the high provisions collectively set aside as thousands of new claims continue to be brought in every week.

Of the banks, Lloyds has set the highest amount of money aside with provisions totalling at over £3.6 million.

Barclays recently added £600 million to the amount of provisions set aside for mis-sold PPI alongside a further £400 million for mis-selling interest swap rates to small businesses. The bank’s current provisions are now totalled at £2.6 billion.

According to a report from Which? the current provisions set aside by banks will have run out by December. It reported that 2.5 million people had been paid for mis-sold PPI and valued the total bill paid so far at £8.05 billion.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

Bank claim: Minister calls for bank clean up

Fri, 08 Feb 2013 15:49:28 GMT

Minister for cities Greg Clark has promised that he will make UK banks the cleanest in the world despite recent scandals.

Following news that Royal Bank of Scotland (RBS) was fined £390 million for its part in the Libor scandal, making it the second biggest fine received in the Libor scandal so far, Mr Clark said that Britain’s financial services had faced “another day of shame”.

RBS have since been told by US authorities to enforce tighter internal procedures and policies to stop such a scandal happening again.

He said that UK banks need to re-learn ethical standards following their involvement in not only the Libor scandal but also the payment protection insurance (PPI) and interest rate swap mis-selling scandals.

The Banking Reform Bill was also recently put through Parliament as a means of improving the way that UK banks are run, saying that their investment arms and retail arms should be ring fenced to avoid taxpayers needing to bail them out again.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

Bank claim: MP calls for clear rules on swap rate compensation

Fri, 08 Feb 2013 11:16:14 GMT

MP Guto Bebb has asked that a clear structure be set out for compensation payments for mis-sold interest swap rates.

Mr Bebb criticised the fact the Financial Services Authority (FSA) excludes businesses whose live swap rate exceeds £10 million, even though its own rules would usually class these businesses as unsophisticated. He also said that proving mis-sold interest swap rates should not be the responsibility of small businesses.

Interest swap rates can be sold as part of a business loan to ensure that companies will not suffer increased interest from the banks.

A report from the FSA revealed that banks had been mis-selling interest swap rates to small businesses. In its pilot study of 173 cases, more than 90 per cent surveyed found that banks had not followed at least one regulatory requirement.

Barclays bank has already set aside at least £400 million in provisions for claims on mis-sold interest swap rates.

Up to 100,000 businesses could have been mis-sold interest swap rates.

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

Bank charges: RBS fined £390m in Libor scandal

Thu, 07 Feb 2013 14:09:40 GMT

Royal Bank of Scotland (RBS) has been fined £390 million for fixing the Libor rate.

US regulators and its Department of Justice will receive around £300 million of the fines while the UK’s Financial Services Authority has levied £87.5 million.

It was uncovered that RBS had been working with others to fix the Libor rate up until 2010, even after regulators had begun investigating the banks conduct in relation to Libor.

RBS admitted that it had found 21 employees who were guilty of wrongdoing and they have since either been disciplined or have left the bank.

As the government owns over 80 per cent of the bank, it was feared that the taxpayer would have to cover the majority of the fine. However, Chancellor George Osborne said that the bank should cover the fine rather than the taxpayer. RBS agreed to cover the fine from US authorities by having employees pay bonuses back and by reducing future bonuses.

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

Bank refunds: Barclays cuts bonus pool

Thu, 07 Feb 2013 12:54:10 GMT

Barclays has said it will reduce the amount of money it will be paying in bonuses to its employees.

Chief executive for Barclays, Antony Jenkins, told the Parliamentary Commission on Banking Standards that he would reduce the bank’s bonus pool in light of the scandals that it was involved in during 2012. He also said that he would waive his own bonus.

Barclays recently set aside an extra £1 billion to pay for claims on mis-sold payment protection insurance (PPI) and interest swap rates. Antony Jenkins was in charge of Barclaycard during the time that it mis-sold PPI to customers but had felt that he did not need to resign.

Consumer magazine Which? reported that the total amount of money that UK banks had set aside to pay for the PPI mis-selling scandal was £13.6 billion.

Antony Jenkins took over as Barclays’ chief executive last August, following the resignation of Bob Diamond after the Libor scandal.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

Bank charges: RBS awaits decision on Libor fines

Wed, 06 Feb 2013 11:43:54 GMT

Royal Bank of Scotland (RBS) will today find out US regulators' decision on its involvement in the Libor rigging scandal. It is expected that the bank will be fined up to £500 million.

The government owns over 80 per cent of the bank, meaning that if the bank is fined then the taxpayer may have to cover a large amount of the cost.

Business secretary Vince Cable said in an interview with the BBC that he has told RBS that it should pay for its fines out of banker bonuses as he thinks it is unfair for its customers and taxpayers to have to cover it.

However, he also said that he cannot make RBS follow this instruction.

It is alleged that RBS worked with other banks to rig Libor during the financial crisis. This is the benchmark rate used to measure financial deals between banks and to their customers, which banks had been found to have manipulated for profit.

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

Bank claim: Banks must reveal business lending

Wed, 06 Feb 2013 11:41:04 GMT

Banks will be told to give the government information on their lending, following complaints that they had been failing to lend money to small businesses.

Business secretary Vince Cable will say that banks need to publish details on their lending to business from each of their individual branches. He says that if banks do not comply with this then legislation will be put in place by ministers forcing them to do so.

Mr Cable is to say that there has been a “remorseless” decline in the amount of money lending that banks have allowed for small businesses. This is in spite of initiatives the government has put in place to make it easier for small businesses to acquire funding.

He will say that banks have favoured lending to larger corporations than to smaller companies. Complaints have come from Whitehall and within industry who said that they think banks have been keeping cash reserves that could have been used to fund small businesses.

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

PPI Claim: Banks’ compensation provision could run out by December

Wed, 06 Feb 2013 10:42:59 GMT

Provisions set aside by banks to pay for payment protection insurance (PPI) claims could run out by December, an investigation from Which? has revealed.

It calculated its results based on the pace of complaints being lodged for mis-sold PPI last year. The Financial Ombudsman Service recently reported that it was receiving over 10,000 new PPI claims each week.

Barclays announced that it was setting aside a further £600 million to pay for PPI claims, bringing their total amount of provisions to £2.6 billion. But Which? said that if Barclays continues to pay out for mis-sold PPI as frequently as it is at present then its stock will have run out by October.

Banks are currently trying to get the Financial Services Authority (FSA) to set a deadline for people to make PPI claims, which would be in April 2014. The FSA said that it wants to launch a full public inquiry before a deadline is imposed.

Bank claim: Customers can now switch bank accounts easily

Tue, 05 Feb 2013 15:21:29 GMT

Customers who wish to switch their bank accounts to rival banks will be able to do so within seven working days, according to new banking reforms.

The changes to banking were announced in Parliament by chancellor George Osborne. From September this year, Mr Osborne said that payments made into a new bank account could be done within seven working days and that customers would not be charged. He also said that he hoped to speed up the payment system for debit and credit card transactions.

These changes in consumer banking have come not long after the Office of Fair Trade reported that there was little choice in current accounts available to customers and that changes needed to be made.

As part of the banking reforms, Mr Osborne announced that taxpayers would no longer be responsible for bailing banks out if their investments fall through. Banks would now have to ring fence risky financial deals from retail banking.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

Bank claim: Barclays sets a further £1bn aside for compensation payouts

Tue, 05 Feb 2013 13:25:14 GMT

Barclays have announced that they have set aside an extra £1 billion to cover the cost of mis-sold payment protection insurance (PPI) and Interest Rate Hedging Products (IHRP).

They have set £600 million of these provisions aside for mis-sold PPI, bringing their total provisions for PPI claims to £2.6 billion.

One of the main reasons for the increase in the provisions for PPI claims is as a result of the level of PPI complaints in the last quarter of 2012 being much higher than previously predicted.

It was revealed that a number of IRHP products, or interest-swap rates, had been mis-sold to small to medium-sized businesses in a pilot review and a report from the Financial Services Authority (FSA).

The FSA report said that, in 90 per cent of the cases tested, the products did not comply with regulatory requirements. As a result, Barclays set aside £400 million to pay for claims into any mis-sold IRHP products.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

Bank Charges: George Osborne says big banks could be broken up

Mon, 04 Feb 2013 14:57:37 GMT

Chancellor George Osborne has said that big banks will be separated if they do not follow the government’s new legislation on ring-fencing risky operations.

This legislation was announced as part of the new Banking Reform Bill, which has been introduced in Parliament. It calls for banks to separate high street banking from any risky investments, thus ring-fencing against any financial losses.

By implementing this legislation, taxpayers will no longer have to bail banks out as they have been required to during the financial crisis.

The suggestion to ring-fence financial operations and dissolve banks who failed to follow the new regulations came from the Independent Commission on Banking. One of the aims of the Commission was to find ways to reduce financial risks in banks.

As part of the Banking Reform Bill, new chief executives will be appointed for high street banks and a watchdog will be put in place.

Customers who wish to switch their accounts to a rival bank will also be able to do so within a week.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

PPI Claim: Lloyds Banking Group push for change in law on false claims

Mon, 04 Feb 2013 14:39:22 GMT

Chief executive of Lloyds Banking Group, Antonio Horta-Osorio, is pushing for the cost of payment protection insurance (PPI) claims to be shared with claims management companies.

Mr Horta-Osorio wrote to Justice Secretary Chris Grayling to ask that the laws regarding the cost of processing claims be changed. He believes that claims management companies should cover the costs of any PPI claims that turn out to be false, saying that this classes as fraud.

However, chief executive of the Financial Ombudsman Service, Natalie Ceeney, said last October that she disagreed with banks’ allegations of fraud as a number of claims that had been rejected were later revealed to be justified.

At present, Lloyds pay £850 as a handling fee for when the Financial Ombudsman Service receive a PPI claim relating to the bank.

Mr Horta-Osorio said that he is willing to continue to pay the handling fee for claims that are proven to be valid.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

Bank claim: Barclays investigated in Qatar loan

Fri, 01 Feb 2013 12:23:33 GMT

Barclays are under investigation following allegations that they loaned money to Qatar during the financial crisis in 2008, according to the Financial Times.

The Financial Services Authority (FSA) and Serious Fraud Office (SFO) are currently investigating claims that Barclays loaned money to part of the Qatar Investment Authority, Qatar Holding, in order to get them to invest money.

Barclays gained investment from Qatar Holding in June 2008 so that the bank could avoid being bailed out by the UK government. It was a controversial deal as shareholders complained that Qatar Holding was offered better terms than existing investors.

Four current and former senior employees at Barclays are being investigated in connection with the claims.

News of the loan allegations add to the scandals that Barclays has been accused of recently, including the Libor rigging scandal for which it was fined £290 million.

The Financial Times say that Qatar Holding has not been accused of wrongdoing.

PPI charges: Banks 'could have acted earlier'

Thu, 31 Jan 2013 17:22:27 GMT

Britain's banks could have acted earlier on personal protection insurance (PPI) mis-sellling, the head of the Financial Ombudsman Service has said.

Chief ombudsman Natalie Ceeney said if banks had acted swiftly to manage the scandal, they could have cut their bill for compensating customers who were mis-sold loan insurance.

Reuters reported Ms Ceeney telling MPs charged with reviewing standards within the banks: "The bill would have been far lower if they'd tackled this earlier. It felt like a long period of prevarication."

Ms Ceeney added that many consumers had opted to use claims management firms to help them claim for mis-sold PPI because they lost trust in the banks.

The amount of compensation paid so far "doesn't come anywhere near the profits made from PPI", she also claimed.

More than 2.5 million people have already received PPI payouts, at an average of £2,750 each and banks have set aside billions of pounds to cover the cost of PPI claims.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

Bank charges: MPs criticise Barclays’ bonus

Thu, 31 Jan 2013 16:53:02 GMT

MPs have criticised Barclays’ decision to award a bonus to former chief executive officer (CEO) Bob Diamond.

Chair of the Parliamentary Commission on Banking Standards, Andrew Tyrie, described the defence from head of Barclays pay committee as “absolutely extraordinary”.

Sir John Sunderland, who is current the head of the pay committee, said that Mr Diamond deserved recognition for the work he had done as CEO of the bank.

Former head of the committee, Alison Carnworth, opposed the decision to award Mr Diamond a bonus. When she addressed the commission last year she said that Mr Diamond did not accept that his pay was too high.

Mr Diamond resigned from his position after Barclays was fined £290 million for its involvement in the London interbank offered rate (Libor) fixing scandal. He was awarded a £2.7 million bonus in 2011.

It has also been revealed that Barclays intend to award a bonus to its current CEO Anthony Jenkins. How much he will be paid has not yet been decided.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

Bank claim: banks found to be mis-selling interest swap rates

Thu, 31 Jan 2013 16:33:04 GMT

Banks have been linked to another scandal as a report shows interest swap rates have been mis-sold to businesses.

A report conducted by the Financial Services Authority found that 90 per cent of the 173 cases had been mis-sold interest swap rates by HSBC, Royal Bank of Scotland (RBS), Barclays and Lloyds.

Interest swap rates are usually sold alongside business loans offering a fixed interest rate. However, the FSA’s report showed that banks had failed to meet regulatory requirements.

This news follows on from the mis-selling of payment protection insurance (PPI), which has seen banks pay over £10 billion in compensation and admin costs. In 2011, Lloyds agreed to pay out for all PPI claims.

Barclays was also found to be guilty of manipulating the London interbank offered rate (Libor) and was fined £290 million last year, while RBS is still facing charges. If found guilty the bank may be charged up to £500 million.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

Bank charges: Banks 'must compensate' mis-sold businesses

Thu, 31 Jan 2013 09:53:27 GMT

Banks should take "swift and decisive" action to compensate small companies caught up in the mis-selling of interest rate hedging products (IRHPs), a leading business lobby has said.

The Federation of Small Businesses (FSB) described the finding by the Financial Services Authority that 90 per cent of IRHP loans were mis-sold was a serious situation.

This week the FSA said Barclays, HSBC, Lloyds and RBS will start a full review of their sales of IRHPs to small businesses after a review found serious failings in the sale of the product.

"The FSA's report into mis-selling highlights the seriousness of the situation finding that 90 per cent of loans were mis-sold," said FSB chairman John Walker.

The FSB said it was pleased its concerns had been listened to but said it was still concerned payments haven't been automatically suspended and that there is still not a "clear route" for a business to appeal a decision.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

Loan charges: Switch to the best value finance products to boost family budgets

Wed, 30 Jan 2013 16:38:09 GMT

Households should ensure they have the best savings and current accounts rates, as well as the best cashback cards, to add to their household budgets.

Comparison website MoneySupermarket.com revealed that families can add an extra £884 to their coffers every year by making these three switches, which works out as £74 a month - a great help when it comes to meeting monthly outgoings, such as loan charges.

Firstly, the firm suggests moving their savings into an Isa, allowing them to make the most of the £5,640 tax-free allowance they get with these products.

Current account holders can secure more money each month by making the most of cashback offers. For example, the Halifax Reward account gives you £100 when switch and join, as well as £5 cashback every month.

Similarly, those who use credit cards to buy goods and services but make sure to pay off their bill every month can make a great deal of money through cashback as well. The American Express Platinum Cashback card offers five per cent back on up to £2,500 in the first three months and then 1.25 per cent after that.

"Consumers need to make the most of any available returns they can make to their income, and they can take action to help boost the family coffers by taking advantage of a range of offers currently available," said Kevin Mountford, head of banking at Moneysupermarket.com.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

Bank charges: Barclays and RBS will receive bonuses

Wed, 30 Jan 2013 15:08:18 GMT

Barclays and Royal Bank of Scotland (RBS) will be receiving multi-million pound bonuses for their bosses and executives.

It has been reported that Barclays and its shareholders are discussing a £2.75 million bonus for its boss, Antony Jenkins.

RBS will be paying £250 million bonuses to their investment banking division executives.

This news has sparked public outrage following the allegations that both banks had been involved in interest rate-fixing scandals.

Barclays was fined £290 million last year for its involvement in manipulating the London interbank offered rate (Libor).

RBS may have to pay fines of up to £500 million as it faces criminal charges for its involvement in the Libor scandal, as US regulators push for a settlement of the case. However, as 82 per cent of it is owned by the government, taxpayers will have to help in paying for the fines.

The Libor scandal was brought to public attention when banks worldwide were found to be manipulating the rate, which is a benchmark rate for financial deals between banks and consumers.

Bank charges: savers’ interest rates cut

Wed, 30 Jan 2013 15:04:51 GMT

Consumers are facing a drop in interest through their savings accounts as banks cut their rates following the Funding for Lending Scheme (FLS).

Since the start of the month 16 banks and building societies have reduced interest rates on their savings accounts.

Comparison website Savingschampion.co.uk found that the average cut to interest rates is 0.4 per cent. This is an increase from 0.34 per cent in the previous month. They also discovered that in 14 building societies, savings products are being restricted.

The FLS has provided banks with £80 billion to allow them to lend to consumers and small businesses more easily.

As a result, mortgage approval figures in December rose to 55,578 from 54,011 in the previous month. However, because banks no longer need to rely on savings accounts to generate revenue, competition for interest rates on savings has decreased.

Credit card charges: average household owed £3,200 in debt

Tue, 29 Jan 2013 16:54:26 GMT

Half of all homeowners were burdened by debts on their credit cards, overdrafts and loans during the height of the recession, a report has shown.

Stats from the Office for National Statistics (ONS) show that the average household owed £3,200 between 2008 and 2010.

It found that the only part of the UK where household debt did not rise was in London. The north-west of England was where household debt had risen most as the ONS noticed a 41.7 per cent increase.

However, other recent reports have shown that consumers are turning away from borrowing in loans and on credit cards.

The Bank of England reported in December that in spite of rising living costs, consumers were trying to pay down debts. It said that people were increasingly less likely to borrow money as they measured a drop in consumer credit from £377 million to £207 billion, the biggest drop in a month since records began. It did not take mortgages into account.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

FOS receiving 10,000 PPI complaints a week

Tue, 29 Jan 2013 16:36:56 GMT

The Financial Services Ombudsman (FOS) has to cope with more than 10,000 payment protection insurance (PPI) claims a week.

Between October and December, some 145,000 cases were filed with the ombudsman, around double the rate that was seen in the quarter immediately before it.

This deluge of complaints has led the FOS to hire an extra 1,000 members of staff, as the organisation tries to handle the fallout of the largest ever mis-selling scandal.

Banks have so far set aside more than £10 billion to compensate customers, but this figure is set to rise even further.

There are no signs of the sheer volume of complaints slowing down either, as there have been suggestions in recent weeks that a deadline for filing cases could be imposed, which is likely to spur consumers into action.

On average, a typical payout is almost £3,000, with banks forking out around £530 million every month in compensation.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

Loan charges: Debt increasingly becoming a burden for Brits

Tue, 29 Jan 2013 16:35:53 GMT

People in Britain are increasingly viewing their financial debt as a burden, with people on the less wealthy end of the spectrum worst hit by the subsequent credit card and loan charges.

The Office for National Statistics revealed that between 2006/08 and 2008/10, the number of people who considered their debt a burden grew to almost half (49.4 per cent). This marks a 1.9 per cent increase on the earlier period.

More than half (51 per cent) of homes said they had financial liabilities, which across the country totalled £94.7 billion.

Poorer households were found to be 13 times more likely to consider their debt problems a heavy burden. Just 3.1 per cent of the wealthiest people said their money troubles were this severe, compared to 40.9 per cent among the least well-off.

The south-east was the area of the country with the highest level of debt, averaging out at £4,000. Households in Wales had a median of £2,000, while the nationwide figure was £3,200.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

Loan charges: Payday loan companies advertise on children’s television

Tue, 29 Jan 2013 12:30:41 GMT

Parents are being exposed to more advertising for payday loans as companies show campaigns on children’s television.

Companies spent over £500,000 across the last two years to have their advertising campaigns shown on children’s television channels Boomerang, Nickelodeon and Cartoon Network as well as between children’s programmes on channel 5.

Which? Money conducted an investigation revealing that payday loan company QuickQuid spent £292,108 between November 2010 and the end of October 2012 on advertising through the children’s television channels.

The magazine also found that QuickQuid, Wonga and WageDayAdvance.co.uk spent the most out of companies surveyed to show adverts during breakfast television, when many children’s programmes are shown. A Wonga spokesperson said they have a policy against advertising on children’s television but, when advertising on television, realises there is a risk their campaigns may appear between children’s programmes.

Payday loans are intended to provide money in the short term, gaining the title with the idea in mind that consumers use the money until they get paid for the month. Because of their short timescales, high APR and loan rollovers, payday loans can prove to be expensive for customers in the long term.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

PPI Refunds: Financial Ombudsman Service braces for PPI claims

Mon, 28 Jan 2013 14:25:09 GMT

The Financial Ombudsman Service has had to add 1,000 more staff members to deal with Payment Protection Insurance (PPI) complaints, The Independent has reported.
Around three million people have claimed for mis-sold PPI so far, though this is only one tenth of people who have taken out a plan.

The Financial Ombudsman Service has been upholding 70 per cent of consumer complaints.

In the service’s budget report for 2013 to 2014, Chief Ombudsman and Chief Executive of the Financial Ombudsman Service, Natalie Ceeney, said “The biggest challenge we face will continue to be the unprecedented numbers of PPI cases we are receiving,”

The report stated that PPI claims now take up two-thirds of the service’s workload.

Banks are in talks with the Financial Services Authority (FSA) to impose a deadline for those who have been mis-sold PPI to make a claim. Should this deadline go ahead, some companies expect PPI claims to skyrocket. The amount of claims made is expected to remain steady until 2016 if the deadline is not imposed.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

Bank charges: Barclays staff identified in Libor probe

Fri, 25 Jan 2013 16:31:44 GMT

Barclays executives have been denied anonymity in an upcoming trial relating to the London interbank lending rate (Libor).

Customers of Barclays, Guardian Care Homes, have brought forward a claim of mis-sold interest rate hedging products based on Libor.

Libor is a benchmark rate, worth around $300 trillion, which decides how much banks can lend both to each other and in their products such as mortgages, credit cards and saving accounts.

As this rate is an estimate, the scandal arose when it was uncovered that banks were manipulating Libor.

For consumers, this has meant that those who have saved and invested have often lost out on interest they could have made.

Among the list of 104 names released were 25 directly mentioned in court papers on Libor manipulation. These include former chief executive Bob Diamond and former chief operating Officer Jerry Del Missier. However, the names mentioned may not have been implicated in wrongdoing.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

Bank charges: Banks should focus more on customers' needs says OFT

Fri, 25 Jan 2013 16:28:09 GMT

Banks need to do more to be competitive and appeal to customers’ needs, the Office of Fair Trading (OFT) has said.

In its review of the personal current account market (PCA) the OFT said that, although banks had made improvements, it is difficult for consumers to compare current accounts, which in turn has made customers less confident in switching accounts.

The OFT also felt that the PCA was not working well for consumers due to a lack of competition, innovation and diversity in terms of the current accounts available.

It called for banks to be more transparent in their current account costs as this has been causing customers to be more apathetic about their banking.

Consumers had saved £928 million in total, the review stated, due to a fall in charges on unarranged overdrafts but the OFT called for further improvements on this.

Potentially as a result of this, the OFT also noted an increase in charges to arranged overdrafts.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

PPI charges: New guidance on PPI products

Fri, 25 Jan 2013 14:15:24 GMT

In order to stop further mis-selling of payment protection insurance (PPI), regulators have issued guidance on the design of new PPI products.

The Financial Services Authority (FSA) and the Office of Fair Trading (OFT) issued the guidance due to concern that the development of new payment protection products could cause further mis-selling to consumers.

The FSA and the OFT said they were aware that firms had been developing new payment protection products, including short-term income protection insurance and debt waivers linked to mortgages and credit agreements.

If these products are not developed with consumer interests in mind, the FSA feared this could lead to further mis-selling. Additionally, the OFT said that companies should be transparent in the price, implications and nature of their products.

PPI mis-selling has seen banks pay out £12 billion in claims for consumers who either did not want PPI or were unaware that they had been sold it. This figure is expected to rise.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

Credit card charges: Brits should encourage a 'greater savings culture'

Thu, 24 Jan 2013 10:02:24 GMT

There should be greater efforts to encourage a savings culture in Britain, according to Andy Zanelli, head of retirement planning at AXA Wealth.

Reports have shown that people who want to save small amounts regularly are being refused help from high street banks, while the same places are more than happy to talk to anyone with a nest egg of £50,000 or more.

"We stand at a crossroads on the road to getting the nation saving; initiatives like auto-enrolment are a positive step, but the government needs to get the advocacy and engagement of advisers and employers quickly," said Mr Zanelli.

He added that a savings culture will not appear overnight, as there needs to be a huge shift in the average person to get into this mindset, but it is integral for those who want a comfortable future.

Savings can be used for a retirement, a big investment or even a rainy day when they have to fork out on credit card charges, for example.

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

Bank charges: Adults spend £222,000 on raising a child

Thu, 24 Jan 2013 10:00:38 GMT

Children are not a cheap endeavour for couples, with latest reports suggesting the cost of raising just one has reached a ten-year high of £220,458.

LV='s Cost of a Child Report found that the expense has grown 58 per cent in the last decade, meaning parents are forking out an extra £82,000 on their kid.

People who are considering trying for a child should take a long look at their financial situation and establish whether or not they can afford to, as it can impact on being able to afford other outgoings, such as bank charges.

Education and childcare are the most expensive factors. Paying for university, uniforms and school clubs costs £72,832 per child, a 124 per cent increase in ten years, while childcare has grown by 61 per cent to £63,738.

The only expenditure that has fallen in price since 2003 is clothing, which parents spend £10,770 on. This is 5.2 per cent lower than the £11,360 recorded in 2003.

"Everyone wants the best for their children, but the rising cost of living is pushing parent's finances to the limit. There seems to be no sign of this trend reversing," said Mark Jones, LV= head of protection.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

Loan charges: Coast & Country warns people away from payday lenders

Thu, 24 Jan 2013 08:59:53 GMT

Individuals who find themselves in dire financial straits should know that there are better options than using high interest cash advance firms, according to a not-for-profit local housing organisation.

Coast & Country chief executive Iain Sim explained how many households are struggling to make ends meet, particularly as the price of food and utilities continue to increase.

"It is understandable that they may be tempted to try to make ends meet by using money lending websites such as Wonga, Payday Loans or QuickQuid," he said.

"However, in just a few clicks of a mouse, they are likely to find themselves in even more dire financial straits as some charge an interest rate of more than 4,000 per cent APR."

He recommends people with money troubles go to more affordable alternatives, such as community banks, otherwise known as credit unions, where they are unlikely to be hit by sky-high loan charges.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

Bank charges: Councils can save billions of pounds turning around troubled households

Wed, 23 Jan 2013 13:01:09 GMT

Councils in the UK may be able to save billions of pounds through intervening and helping out troubled households, a new report from the Department for Communities and Local Government has revealed.

Published by local government secretary Eric Pickles, The Cost of Troubled Families shows that 120,000 troubled families across the UK cost the taxpayer around £9 billion every year, with the lion's share spent reacting to problems including truancy, youth crime and anti-social behaviour.

The report suggests that intervention could be the answer, and the government has set aside £448 million from six departments to turn these households around by 2015, which could save vast amounts of cash in the long run.

"The prize here is potentially huge, both in terms of reducing the financial cost on the public purse and the human costs on families and communities. The savings we can make for the taxpayer would far outweigh the extra money we are putting in," said Mr Pickles.

Jennifer Haines

Jennifer's speciality knowledge is credit card changes and balance transfers.

Christmas credit card charges to hit Brits beyond January

Wed, 23 Jan 2013 12:59:47 GMT

Many Brits who racked up debt on plastic over Christmas, risking credit card charges, are likely to carry the balance over beyond January, according to a new report.

Comparison website Gocompare.com found that 23 per cent of Brits do not think they will have Christmas spend on credit and store cards paid off by the end of January.

Yet, eight per cent think they will not have even paid off their debts by June and 15 per cent expect to have credit card debt throughout 2013.

"Static salaries coupled with the rising cost of living are placing a strain on many households and as our research shows, credit cards are being used to plug gaps in family finances," said Jeremy Cryer, Gocompare.com's head of credit cards.

"Used carefully, plastic cards can be a useful budgeting tool, but when relied on for everyday essentials card debt can quickly spiral out of control."

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

Former Lloyds boss puts FSA at fault with PPI

Wed, 23 Jan 2013 10:39:46 GMT

An ex-Lloyds Banking Group boss has shifted some of the blame for the payment protection insurance (PPI) mis-selling scandal to the Financial Services Authority (FSA).

A report by Citywire revealed how Carol Sergeant, former chief risk officer at the bank, told the Parliamentary Commission on Banking Standards sub-committee that the organisation was under scrutiny from the FSA between 2005 and 2008 but it did not raise any concerns over PPI sales at the time.

She said that if dialogue was better between Lloyds and the FSA then the rules in place would have been better understood.

"It was a continuous period of improvement—with the benefit of hindsight—we should have had more deep conversations with the FSA about how they would implement the principles in practice," she told the hearing.

Lloyds has so far had to pay more than £5 billion in compensation to customers who were mis-sold the product, and reports late last year suggest the bank may be wrongly rejecting complaints.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

Avoid credit card charges by consolidating debt

Tue, 22 Jan 2013 16:50:46 GMT

Brits who are in the red should try to avoid any credit card charges by consolidating their debt, according to a leading comparison website.

MoneySupermarket.com revealed that people with existing debt at an annual percentage rate (APR) of 17.32 per cent could save as much as £830 in interest if they move their debt to a cheaper, interest-free credit card.

This is based on someone with £3,000 of debt who moves their card to a 24-month balance transfer product at Barclaycard and repays £100 a month during the interest-free period.

"For people who are struggling to pay off their credit card debt quickly, the New Year is a good time to take action. Moving leftover credit card debt onto a cheaper deal could save hundreds of pounds in interest," said Kevin Mountford, head of banking at MoneySupermarket.com.

Nearly half (44 per cent) of people surveyed by the comparison site said they were hoping to clear debt from 2012 this year, while only nine per cent will pay off the minimum monthly amounts on their credit cards.

Amir Hussain
Amir specialises in personal loans, consumer debt and debt management.

Bank charges: Lack of spending power highlights household pressures

Tue, 22 Jan 2013 16:49:50 GMT

British households are under pressure, as spending power in the UK remains stagnant, new research has revealed.

Lloyds TSB's December Spending Power Report found that Brits were no better off than at the same point in 2011, as pay failed to keep abreast of inflation, leaving people struggling to afford outgoings, such as bank charges.

Income grew by just 2.9 per cent. Yet, when translated to real terms it was a drop of 0.1 per cent thanks to spend on essential items going up by three per cent, rising from 2.7 per cent in November.

"Spending power has remained broadly flat in real terms for the last six months as inflation has remained uncomfortably high," said Patrick Foley, chief economist at Lloyds TSB.

"With little prospect of inflation falling back any time soon and income growth remaining anaemic, consumers are going to continue to feel the squeeze at the start of 2013."

He is more optimistic looking to the future, suggesting that the economy will gain some momentum, leading to improving incomes and slightly more breathing space for household budgets.

Charles Baker
Charles is a reputed financial analyst with decades of experience under his belt.

Ex-Lloyds banking boss apologies for PPI scandal

Tue, 22 Jan 2013 16:49:01 GMT

The former head of the Lloyds Banking Group retail division has apologised for the payment protection insurance (PPI) mis-selling scandal.

Helen Weirs, who headed up the department between 2008 and 2010 after spending spending four years as the bank's chief financial officer, said she regrets the episode and the impact it has had on the financial sector.

"I acknowledge the mis-selling of PPI across the industry and at Lloyds and apologise wholeheartedly for my part in that," she said, adding that she believed it was a good product.

"What I am very clear about, both from research and from listening to customers is that this was a product that met very important financial needs for customers who wanted peace of mind were they to fall into difficulty."

Lloyds has had to set aside more than £5 billion to compensate customers who were mis-sold PPI, which led to a quarter three loss of £144 million last year.

Samantha Clarke
Samantha is a former banking assistant and has over ten years experience in retail banking.

Bank charges: Goldman Sachs' London chief sees bonus double

Mon, 21 Jan 2013 13:24:03 GMT

Michael Sherwood, Goldman Sachs' London chief, has received a larger share bonus than any other of the company's other executives.

Widely considered Britain's best-paid banker, Mr Sherwood has reportedly netted 109,461 shares, worth $15.8 million (£9.96 million), which is more than the $13.6 million the investment bank's chief executive Lloyd Blankfein received.

In total, more than $100 million was paid out by the firm to its top 12 executives, as revealed in filings in the US' Securities and Exchange Commission.

Bonuses at Goldman Sachs are 70 per cent shares and 30 per cent cash, according to Bloomberg, which means Mr Sherwood could receive as much as $22.5 million in total bonuses.

The bank made $7.48 billion in profits last year, an increase of 68 per cent, with revenues growing 19 per cent. This was the company's first gain in three years.

Mr Blankfein was the recipient of a Wall Street record bonus in 2007 of $69.7 million, before the crash.

Jennifer Haines
Jennifer's speciality knowledge is credit card changes and balance transfers.

Loan charges: OFT to investigate payday lenders

Mon, 21 Jan 2013 13:22:52 GMT

The Office of Fair Trading (OFT) is to investigate payday lenders that have been targeting the most financially vulnerable people in Scotland, according to a debt management solutions firm.

Scottish Trust Deeds revealed that Scotland has the highest level of payday loan usage in the UK, and now the OFT is to look into how this dangerous credit, which can lead to expensive loan charges, is being sold.

Many people are led into a vicious cycle of debt that is very difficult to get out of when they take out these high interest loans, as they then look to more credit to pay them off.

The Consumer Credit Act ensures that lenders have responsibility to sell products based on someone's financial situation, which means not giving loans to those who are in financial difficulties.

"It was only a matter of time before payday loan lenders went under the microscope," said a spokesperson for Scottish Trust Deeds.

"Some of the stories consumers are reporting about the size of the debt they have built and the speed at which it happened are truly shocking. This investigation by OFT cannot come soon enough."

John Fieldman
Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

FSA only to introduce PPI deadline if in interest of consumers

Mon, 21 Jan 2013 12:25:51 GMT

The Financial Services Authority (FSA) has released a statement saying that it will only introduce a deadline for when people who have been mis-sold payment protection insurance (PPI) have to claim by if it is in the best interest of consumers.

It was approached by the British Bankers' Association (BBA) to go through the possibility of introducing a PPI time limit, so long as there is a widespread advertising campaign that ensures all people that could have been mis-sold the product are aware of the issue and how to complain.

"Our key priority is to ensure consumers are protected, so the FSA Board would need to be convinced that any proposals would be in the interests of consumers," the statement read.

"We have had initial discussions and are prepared to consider the merits of this and other options."

It added that one of the key considerations will be getting compensation to more people, quicker.

The organisation will hold discussions with the BBA and get the opinions of other consumer groups and stakeholders.

John Fieldman
Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

Loan charges: More than half of Brits plan to stick to a budget in 2013

Fri, 18 Jan 2013 16:18:22 GMT

Some 27 million Brits intend to stick to a budget in 2013, new research has revealed, amounting to more than half of the population.

Thinkmoney found that it was the 18 to 34 age group that is most likely to make budgeting a priority in 2013, with 64 per cent of respondents in this bracket saying they are committed.

Furthermore, some 41 per cent of people (21 million) say they will shop around for cheaper tariffs for outgoings such as utilities and mobile phones and 31 per cent (15 million) will pay off non-mortgage debts, which will mean they will avoid being hit by loan charges and credit card charges.

"2013 is set to be a challenging year," commented Ian Williams of thinkmoney. "Benefits being capped, wages stagnating, the threat of a triple-dip recession - we all have plenty to worry about as the year gets underway.
"So it's encouraging to see households attaching so much importance to their finances."

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

Barclays could use bonus pool to cover Libor fines

Fri, 18 Jan 2013 16:17:41 GMT

Barclays could delve into the bonus pool it uses to reward its executive staff to cover the expense caused by the London Interbank Offered Rate (Libor) fixing scandal, according to a new report.

The bank was fined £290 million by regulators last year for its role in manipulating the rate, and it could be the investment bankers who pay for the scandal, according to the Financial Times.

It also revealed that a similar plan is in place at the Royal Bank of Scotland (RBS), as banks try to recoup some of the money they lost as a result of the regulators' decision.

Barclays boss Anthony Jenkins has also sent an email to the company's 140,000 employees stating that they need to sign up and adhere to a new code of conduct or else pack up their desk and leave.

"There might be some of you who don't feel they can fully buy in to an approach which so squarely links performance to the upholding of our values," he said.

"My message to those people is simple: Barclays is not the place for you. The rules have changed. You won't feel comfortable at Barclays and, to be frank, we won't feel comfortable with you as colleagues."

Jennifer Haines

Jennifer's speciality knowledge is credit card changes and balance transfers.

Loan charges: Payday lender advert banned for leaving out APR

Fri, 18 Jan 2013 16:16:22 GMT

The Advertising Standards Agency (ASA) has banned an advert from a payday loan company which did not indicate its annual percentage rate (APR).

Instate Cash Loan, based in Nottingham and known as The Money Shop on the high street, created an advert that featured a consultant who is struggling to get paid by his corporate clients.

"I'd done six months work and just didn't get paid, so it caused enormous stress at home," he said, revealing how he popped in to The Money Shop to get extra help.

On-screen text accompanied the advert saying: "Loans subject to status and affordability. 18+. Terms and conditions apply. Don't over commit, always borrow the amount you are able to repay on time".

Yet, it did not reveal the APR, which can be extremely high at payday lenders, leading to expensive loan charges.

ASA ruled that this came as a breach of code and, therefore, the advert was subsequently banned.

Samantha Clarke
Samantha is a former banking assistant and has over ten years experience in retail banking.

Bank charges: Unjust bonuses should instead be spent on business growth, says TUC

Thu, 17 Jan 2013 16:49:31 GMT

In response to the news that both Goldman Sachs and JP Morgan are increasing the 2012 bonus pot for their employees, the Trades Union Congress has called for better ways to spend the cash.

The organisation's general secretary Frances O'Grady explained how people are suffering real terms pay cuts as a result of the economic strife, while the institutions that caused it are giving six figure bonuses and huge pay rises to their staff.

"The billions wasted on undeserved bonuses could be far better spent on what banks are supposed to do - supporting real business growth," he said.
"The government should force banks to get back to serving the wider economy, rather than simply serving themselves lavish rewards."

This could help bring the economy back into growth, boosting the pay for everyday people, ensuring they are able to adequately afford all their outgoings, such as bank charges and utility bills.

Charles Baker
Charles is a reputed financial analyst with decades of experience under his belt.

Brits risking credit card charges to pay for essentials in January

Thu, 17 Jan 2013 11:11:59 GMT

Many British consumers are putting themselves at risk of being hit by credit card charges by using their plastic to buy everyday essentials in January, new research has shown.

The Post Office Consumer Credit Report found that a third (35 per cent) of people use credit cards to pay for good such as groceries, household purchases and bills.

With the impact of Christmas expenditure hitting home at the start of 2013, a worrying 42 per cent of people will be paying for food using their plastic and 30 per cent are hitting the January sales with their credit card in hand.

Another 25 per cent are looking ahead to the summer and booking a holiday and 16 per cent are purchasing major household items, such as kitchens and sofas.

"It is surprising to see so many people forced to rely on their plastic for daily essentials this month," said John Willcock, head of credit cards at Post Office.

"The New Year is the ideal time to think about financial planning and organising a household budget."

Jennifer Haines

Jennifer's speciality knowledge is credit card changes and balance transfers.

Bank charges: Taxpayers’ bank bail-out bill 'too high'

Wed, 16 Jan 2013 16:15:22 GMT

The Royal Bank of Scotland (RBS) and Lloyds Banking Group bailout has cost taxpayers more than necessary, Conservative Party chairman Grant Shapps has said.

Mr Shapps felt that the Labour party had paid too much to bail out the two banks at the start of the financial crisis, the Telegraph reported.

The public own 81 per cent of RBS and 43 per cent of Lloyds, therefore any debt they incur must be covered by the taxpayer.

At the end of 2012, the Guardian revealed that taxpayers had a £23 billion deficit in their stake in RBS and Lloyds, although the Telegraph has since reported that taxpayers' loss is at £18 billion.

Regulators have said that RBS and Lloyds must raise a large amount of capital to cope with the deficit.

Instead of getting more money from taxpayers, RBS and Lloyds Banking Group have been looking at other options to raise capital, such as selling some of their assets.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

Bank charges: Taxpayers could face £500m bill for RBS

Wed, 16 Jan 2013 15:38:27 GMT

Taxpayers could be paying £500 million in fines to the US on behalf of the Royal Bank of Scotland (RBS), the Telegraph has reported.

American watchdogs are deciding the cost of RBS’s fine for its involvement in the London interbank Offered Rate (Libor) Scandal with the current estimate at £500 million.

Libor is a global benchmark interest rate of £350 trillion to be used for financial products such as savings accounts, mortgages and credit cards.

It emerged that banks had been manipulating the interbank rate, in some cases as a way of securing profits in the wake of the financial crisis.

A former trader for RBS accused the bank of Libor-rigging to gain large sums of money.

Because the government owns 81 per cent of RBS, taxpayers will have to pay most of the fine that RBS incurs. The remainder will be paid by the Financial Services Authority (FSA).

Almost all money paid will go to regulators in the US. The cut paid by the FSA will eventually be paid back into government in the UK.

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

Banks may impose deadline for payment protection claims

Wed, 16 Jan 2013 14:51:09 GMT

Consumers may need to have put their payment protection claims forward by summer 2014 as banks aim to impose this deadline, The Times has reported.

The British Bankers’ Association (BBA) has been in talks with the Financial Services Authority(FSA) to set a deadline for consumers to claim for any mis-sold payment protection insurance (PPI).

With no current deadline in place, it has been agreed that PPI claims could be endless. The Times reported that should the deadline be put in place then banks would have to issue a campaign advertising the deadline.

At present banks have paid out £13 billion for PPI claims, but recent estimates say that this could potentially cost £25 billion.

It was reported by the Financial Ombudsman in November that they have received half a million PPI complaints so far, which is double what they had expected.

Should the deadline be imposed, a consumer who has not filed a claim before summer 2014 will not receive compensation they may have been entitled to.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

Sort out debts in January to avoid credit card charges

Tue, 15 Jan 2013 15:36:24 GMT

British consumers should use January to organise their debts so they can avoid being hit by any expensive credit card charges early in the new year, according to the Money Advice Trust.

The charity explained that the National Debtline it runs always sees a slump in calls in December before a spike in January when the extent of Christmas spending hits.

In the last ten years, the debt advice service has received 158,293 calls in Januarys from people looking for help in sorting out their credit card bills, as many use their plastic to pay for the festive season.

Anyone struggling with this debt should contact a help service to try to get help as soon as possible to prevent issues getting out of hand.

"If possible, rather than take on the full cost of Christmas in one month, the best way to pay for Christmas is to budget for it all year round," said Joanna Elson, chief executive of the Money Advice Trust.

She recommends people look at what they spent last Christmas and then divide the total by 12 so that they can put away money for the festive season every month.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

Bank charges: New flat-rate pension is a 'step in the right direction'

Tue, 15 Jan 2013 13:34:47 GMT

The coalition government's new flat-rate pension of £144, rather than the basic pension of £107 a week plus top ups, is a step in the right direction, according to Aviva.

However, the insurer concedes that the new state pension plus automatic enrolment contributions to private savings will bring only an "acceptable income replacement for younger lower earners".

John Lawson, Aviva's head of policy for corporate benefits, explained that the announcement does give people a good idea of what they can expect to receive when they retire.

"However, for most people, this is still woefully inadequate even when private pension income from automatic enrolment contributions is added in," he continued.

"Realistically, between them and their employer, people need to be saving between 15% and 20% of their income to enjoy a comfortable retirement."

The coalition government has said that the new system will, in particular, benefit women, low earners and the self-employed, ensuring they are able to afford outgoings such as bank charges.

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

Loan charges: Real wage fall leaves British workers £6,000 out of pocket

Tue, 15 Jan 2013 13:33:40 GMT

Thanks to the failure of wages to keep abreast of rising prices, the average British worker will be left around £6,000 out of pocket by 2014, according to new analysis.

The Trades Union Congress (TUC) calculated that a person on a salary of around £25,000 has already lost as much as £4,000 since December 2009, which was the point when earnings first dropped behind inflation.

Real wage growth was anticipated to return in 2013, but the Office for Budget Responsibility has pushed this back to 2014, ensuring that workers will now lose a further £2,000 in 2013, bringing the total to £6,000 and leaving Brits unable to afford outgoings such as loan charges.

For those in the public sector, the loss is likely to be worse, the TUC continued, because their pay has been frozen for the previous few years and capped at one per cent for another two years.

"This massive squeeze on earnings, combined with sharp cuts to vital welfare benefits and tax credits, is hurting millions of people with food, transport and energy bills taking up an even larger share of family budgets," said TUC general secretary Frances O'Grady.

Samantha Clarke
Samantha is a former banking assistant and has over ten years experience in retail banking.

Credit card charges: Cold weather to force bills up

Mon, 14 Jan 2013 15:37:41 GMT

As the snow begins to fall and Britain enters a period of sustained cold weather over the next week or so, households should be wary of the impact this may have on their energy bills.

Comparison website uSwitch.com revealed that keeping the heating on during the big freeze could cost Brits an extra £7 a week, piling extra grief on top of the winter price hikes.

The average bill rose to £1,352 this year and heating accounts for a massive 44 per cent of this. If the cold weather lasts for as long as a month, the next payment could be increased by as much as £30.

"I would also urge consumers to check that they are on the most competitive energy plan for their needs. Moving to a better deal will mean paying less for the energy you use, which could make all the difference when temperatures plummet," said Tom Lyon, energy expert at uSwitch.com.

This will ensure Brits have extra cash available during the winter to keep up payments on other outgoings, such as credit card charges.

Samantha Clarke
Samantha is a former banking assistant and has over ten years experience in retail banking.

Bank charges: Many Brits not switching financial products to save

Mon, 14 Jan 2013 11:27:51 GMT

Millions of Brits are shunning the opportunity to switch the provider of their financial products, leaving them missing out on the potential to save large amounts of money.

Comparison website Gocompare.com found that 9.5 million UK consumers haven't switched any of one of the ten main financial products, which includes their energy provider, home insurance and car insurance.

Current accounts are least likely to be switched, with 40 per cent of UK consumers never moving their money to a different provider. Meanwhile, 26 per cent have not switched their broadband provider, 25 per cent haven't changed to a different Isa or savings account and 24 per cent have not moved to an alternative mobile phone network.

The product UK consumers are most likely to move on is their car insurance, which only nine per cent have not switched, followed by home insurance with 13 per cent and energy providers with 16 per cent.

"Some consumers have never switched any of the most common financial products and they are often the people who could save most because they've stuck with the same provider year in and year out, never questioning what they're paying," said John Miles, business development director at Gocompare.com.

He suggest that people looking to save money in 2013 begin by using comparison sites to find out if they can get their financial products cheaper, ensuring they have more cash left behind to pay for bank charges and other outgoings.

John Fieldman
Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

Loan charges: Kerry Katona criticised for payday loan advert

Mon, 14 Jan 2013 11:27:09 GMT

Kerry Katona has been criticised by Labour MP Stella Creasy for fronting an advert for payday loan firm CashLady.

The ex-Atomic Kitten singer declared herself bankrupt in 2008 and addresses this in the 30-second clip, saying: "We've all had money troubles - I know I have".

Ms Creasy, who campaigns for the regulation of payday loan companies, explained that it is surprising that someone who has experienced debt is promoting a form of credit that is known to cause debt.

"What Kerry doesn't say in her adverts is the interest on the loans she's promoting is 2,670 per cent," said the MP for Walthamstow.

"We know one in three payday loans taken out is to pay off another payday loan and that most people are borrowing for basics."

Ms Katona defended herself, saying that the service is just for short-term loans to help out with small emergencies.

Nonetheless, Ms Creasy is concerned about the use of household names in advertising this dangerous service, which can lead to expensive loan charges.

Lending on the up as consumers risk loan charges

Fri, 11 Jan 2013 15:51:05 GMT

Consumer credit lending continued to indicate a steady growth towards the end of last year, as new figures were up six per cent in November 2012 when compared to the same period 12 months prior.

The Finance and Leasing Association found that car finance increased by the largest margin, with a 25 per cent growth on the previous year, while store instalment cards were up 12 per cent and second mortgages increased 11 per cent.

However, store cards were down eight per cent and credit cards and personal loans fell by just a single percentage point.

This is good news for the economy, as it shows businesses are becoming more confident in providing consumers with credit, but it does mean there is an increased risk of Britons being hit by loan charges.

"The strongest growth we are seeing is in store instalment credit and car finance suggesting that consumers taking advantage of the good finance deals currently on offer," said Fiona Hoyle, head of consumer finance at the FLA.

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

Bank charges: Pension fees to be clearer for savers

Fri, 11 Jan 2013 15:38:54 GMT

The Association of British Insurers (ABI) has concluded an agreement with pension providers to ensure that pension charges and any other costs are clearly disclosed to employees on workplace schemes.

This will come into force for all new auto-enrolment schemes from the summer of 2014, with all other workplace pensions schemes having to follow suit in December 2015. A definition for the charges disclosure will be formulated in the first half of the year.

"This agreement is a vital way of providing savers with greater understanding and confidence in the value of saving for their financial needs in later life," said Stephen Gay, director of life, savings and protection at the ABI.

It should make it much easier for people saving for their pension to budget their earnings, ensuring they can always meet all their outgoings, including bank charges.

The agreement requires staff to be told of all charges they may receive at the outset, charges made in the previous year of the scheme and any investment transaction costs.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

Bank charges: Energy bills increase twofold since 2005

Fri, 11 Jan 2013 15:31:14 GMT

British households increasingly have to spend greater proportions of their income on energy bills, with new research revealing they have doubled since 2005.

A study by Saga has found that the average bill for over 65s in the past year was £1355.90, up from £668.98 in 2005, leaving these pensioners out of pocket and unable to afford other outgoings, such as bank charges and food.

Energy price hikes prove to be even more of a risk for older age groups, particularly if they cut back on heating to save money, which can lead to health problems.

More than half (58 per cent) of those surveyed by Saga said they were worried about the cost of heating their home, with some seven million (35 per cent) already facing difficulty with their bills.

"While incomes have increased in the last seven years, they have not kept pace with the rate that energy and fuel costs have risen, meaning that people are spending more of their income on fuel," said Dr Ros Altmann, director-general of Saga.

"This is especially true for older people who are often on lump or fixed incomes or whose savings income has fallen."

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

Bank workers charged over fraudulent loans

Fri, 11 Jan 2013 12:59:09 GMT

Eight people have been charged with fraud over a number of business loans.

Two members of staff working for Halifax Bank of Scotland (HBOS) and six other people have been charged in connection with a series of bank loans to the value of around £35 million.

The loans were issued at the Reading and Bishopsgate branches of the bank and the two staff members are thought to be senior managers there.

Lynden Scourfield and Mark Dobson were charged with conspiracy to corrupt, while David Mills and Michael Bancroft of Quayside Corporate Services, a turnaround consultancy, also faced the same charge.

“Following a thorough fraud and corruption investigation by Thames Valley police, we have today authorised eight people to be charged in connection to business loans made through a high street bank to a value of around £35m,” said Sue Patten, head of fraud at the CPS.

The charges are another blow for the reputation of HBOS, which had to be bought out by Lloyds TSB and then bailed out by the taxpayer during the financial crash.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

Rail fare hikes put commuters under pressure

Thu, 10 Jan 2013 16:57:19 GMT

Brits may struggle to afford to commute to work due to increasing travel costs.

To mark the New Year, people in the UK saw season ticket prices rise by as much as 4.3 per cent and rail fares overall saw a 3.9 per cent jump.

Labour has now spoken out against the price rises, saying that most working Brits can ill afford the the price hikes after paying for accommodation, bills and bank charges.

It comes as the government’s Rail Fares & Ticketing Review has suggested introducing peak-travel prices almost seven per cent higher than standard ticket prices each year, and have the potential to increase by an additional 40 per cent over five years.

“Commuters paying thousands for a season ticket should not be forced off peak-time trains. Buried in the government's Rail Fares and Ticketing Review is a plan to charge commuters even more to travel on the most popular train services, even though many are overcrowded and with no guarantee of a seat,” argued Maria Eagle MP, Labour's shadow transport secretary.

She warned these potential price hikes could force commuters off the trains and, potentially, out of work.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

PPI scandal has created 1,000 jobs at the UK ombudsman

Thu, 10 Jan 2013 16:24:52 GMT

The level of work created by the payment protection insurance (PPI) scandal has meant that Britain's Financial Ombudsman Service is to have to take on around 1,000 new employees.

These new staff members are recruited to go through the extraordinary level of complaints relating to the mis-sold product, with the organisation expecting to go through a further 245,000 cases in the 2013-14 financial year.

It has launched a recruitment campaign to fill the positions and so it can subsequently cope with the 45 per cent increase in workload.

The Financial Ombudsman Service is there to settle cases when banks and customers cannot come to an agreement.

"Two years after the court ruling confirmed the approach that financial businesses should take when handling PPI complaints, it is disappointing that we're still seeing significant numbers of unresolved disputes about mis-sold policies being referred to the ombudsman," said deputy chief ombudsman Tony Boorman.

The ombudsman is financed through levies on the banking sector, which will increase from £17.7 million to £23 million over the next financial year in order to accommodate the increased workload.

Jennifer Haines

Jennifer's speciality knowledge is credit card changes and balance transfers.

Angela Knight pondered retirement during fight against PPI compensation

Thu, 10 Jan 2013 16:23:37 GMT

The former chief of the British Bankers' Association (BBA), Angela Knight, has revealed that she considered retiring during the organisation's fight against giving compensation to people who were mis-sold payment protection insurance (PPI).

BBA went against recommendations by the Financial Services Authority on the way that banks should communicate with their customers over mis-sold PPI.

Ms Knight believed that there should be a faster way to resolve cases that did not involve resorting to court.

"I thought of leaving the BBA on a number of occasions before I did," she told a parliamentary commission on banking standards.

"Sometimes you will hold your nose and go through the lobby on the basis you can sort it out better than to say 'No, I am going elsewhere'."

She revealed that it made it very difficult to go out in public, whether going to the pub for a drink or riding a train, as people would recognise her.

John Fieldman
Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

Consumers spent £50bn on PPI over 16 years

Thu, 10 Jan 2013 11:45:27 GMT

New research has revealed the true extent of payment protection insurance (PPI), as Which? figures suggest British consumers spent £50 billion on the product over the last 16 years.

The watchdog's chief executive, Peter Vicary-Smith, has suggested that if banks really want to get this issue behind them, they should endeavour to clear this giant backlog of compensation claims.

Examples of inappropriate PPI sales include major high street banks selling coverage that lasted just five years, while the loan to cover it extended for 25 years.

Meanwhile, Egg sold 106,000 PPI policies with its credit cards over a two-year period and the Financial Services Authority found almost half (40 per cent) of the telephone sales breached PPI regulations.

Staff at Lloyds TSB even received an 87 per cent commission for selling one kind of PPI, which is one of the highest ever reported examples of commission in the finance sector.

While giving evidence to the Parliamentary Commission on Banking Standards for the mis-selling scandal, Mr Vicary-Smith called PPI a "poor product that was sold badly".

Charles Baker
Charles is a reputed financial analyst with decades of experience under his belt.

Avoid credit card charges with Lloyds TSB balance transfer fee refund

Wed, 09 Jan 2013 16:52:26 GMT

Consumers who have are being hit by credit card charges with their current provider should consider doing a balance transfer to Lloyds TSB, as the firm is offering a 50 per cent refund on three per cent of the balance transfer fee.

The offer is available to customers who open a Lloyds TSB Platinum credit card online before February 23rd and make the transfer before March 23rd.

On top of the refund, they will also get zero per cent interest on balance transfers for 21 months and zero per cent interest on purchases for three months.

Lloyds TSB claims that this makes it one of the "most cost effective" balance transfer cards available.

"January is always a popular time for customers to review their finances and make sure they are getting the best deals available to them. With this in mind, I'm delighted to offer new customers this fantastic deal," said Mark Powys, head of credit cards at Lloyds TSB.

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

Payday loan companies duping customers over potential loan charges

Wed, 09 Jan 2013 15:08:15 GMT

Although payday loan companies are under immense pressure at the moment to clean up their act, many are still continuing to operate with a lack of honesty.

Research from loan guarantor firm Amigo Loans found that many payday loan companies are duping customer when it comes to the annual percentage rates (APRs), some by as much as 1,000 per cent or higher.

Of 33 firms offering payday loans in the UK, six levy higher loan charges than their advertised APR. Payday UK, Payday Pig, 100Day, Community Payday, PaydayMom and Purple Payday are all guilty of misleading customers.

"Despite ongoing criticism of their practices, there are still many payday providers who aren't playing by the rules, so more often than not borrowers are kept in the dark," said James Benamor, found and chief executive of Amigo Loans.

The worst offender is Community Pay day, which advertises 2,600 per cent APR, but actually charges 38,520 per cent, an astonishing difference of 35,920 percentage points.

Purple Payday has an APR 1,033 percentage points higher than it advertises, while Payday UK's is 825 percentage points higher.

Jennifer Haines
Jennifer's speciality knowledge is credit card changes and balance transfers.

Credit card charges: Balance transfers can help Brits manage their debt

Tue, 08 Jan 2013 16:09:10 GMT

Many Brits are not making the most of balance transfers to better manage their credit card debt, according to Nationwide Building Society.

The financial firm's research revealed that over half (53 per cent) would never consider doing a balance transfer to a new credit card, leaving them missing out on substantial savings.

Individuals who are not paying off their balance every month, and subsequently incurring credit card charges, can save cash by moving their balance to a card that has a lower interest rate.

Balance transfers usually require a fee, but if the amount of credit is substantial enough and the interest rate change significant, savings can be made.

"The New Year can often bring with it the stress of how to manage debt racked up through Christmas-related expenditure, particularly on the credit card," said Paul Carvell, Nationwide's head of credit cards.

"By taking advantage of a 0 per cent balance transfer offer, people can relieve some of that pressure."

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

Bank charges: Best energy deals 'available at small suppliers'

Tue, 08 Jan 2013 11:23:08 GMT

Consumers may want to opt for small energy suppliers rather than the traditional 'big six' if they want to get the best deals available.

Comparison website uSwitch.com explained that EDF Energy is the cheapest of the large firms, with its Blue + Price Promise costing around £1,182 annually. However, Sainsbury's Energy has the cheapest deal on the whole market at £1,123 a year - £59 cheaper.

First Utility is close behind Sainsbury's Energy with a deal costing £1,150 a year, while Co-operative Energy has a £1,157 annual deal, both leaving behind more cash to go towards other outgoings, such as bank charges.

The downside of these cheaper offers is that these are variable energy plans - they may be cheap at the moment, but in the future they can go up in price.

"This is the year for consumers to ‘think outside of the big six box' and to really consider moving to a small or new supplier to meet their energy needs," said Tom Lyon, energy expert at uSwitch.com.

Consumers may want to consider the First Utility iSave Fixed v6 if they are looking for security for their energy supplier. It is held at £1,170 a year until March 2014.

Samantha Clarke
Samantha is a former banking assistant and has over ten years experience in retail banking.

Bankers responsible for PPI scandal to get public grilling

Tue, 08 Jan 2013 11:22:00 GMT

The bankers embroiled in the payment protection insurance (PPI) mis-selling scandal are to face a public interrogation over the financial industry's sales culture, Sky News has revealed.

It reported that Britain's biggest banks are being ordered to reveal the names of the top executives who were complicit in the mis-selling sales behaviour, including those who left their respective organisation years ago.

The demands were said to have come from the Parliamentary Commission on Banking Standards (PCBS), whose head, Conservative MP Andrew Tyrie, made the request in recent weeks.

Once the names are brought forward, it will be the first time those responsible for the scandal will be held publically accountable.

It was recently revealed that the final bill for banks guilty of mis-selling PPI could surpass £25 billion, after banks were ordered to write to any customer who was sold the product to let them know they may want to make a claim.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

Bill for PPI complaints to reach £25bn

Mon, 07 Jan 2013 14:18:06 GMT

Banks in Britain could be forced to pay out as much as £25 billion over the course of the payment protection insurance (PPI) mis-selling scandal, according to a report by the Times.

Using data from the Financial Services Authority's figures on PPI payouts every month, alongside selling data, it found that the final figure would far surpass the £13 billion that has been mooted at present.

The spike has been put down to the new order from the FSA that requires banks to write to any customers that they have sold PPI to, suggesting that they may want to make a claim.

Thisismoney.co.uk reported that at present there are some 1,000 complaints made every day, with many of them being rejected without ever being properly assessed.

The website suggested that customers who have their case rejected either give up their quest for reimbursement or take it to the Financial Ombudsman Service, where the bank is typically found at fault.

Charles Baker
Charles is a reputed financial analyst with decades of experience under his belt.

Royal Bank of Scotland and Lloyds to cap staff bonuses

Mon, 07 Jan 2013 11:19:05 GMT

Two of Britain's biggest banks, Lloyds Banking Group and the Royal Bank of Scotland (RBS), have imposed a cap on staff bonus payouts based on last year's performance, Sky has revealed.

It found that there is likely to be a £2,000 ceiling on cash payments, which is part of a government initiative to tackle sky-high pay in the finance sector.

Although no official talks have been made between the two firms and the UK Financial Investments, which manages the public stakes in both banks, it is expected the cap will be used for the fourth consecutive year.

"It would be politically impossible for the government to sanction a removal of the cap, or even raising it modestly, given the wider economic environment," one executive told Sky.

RBS has already reduced the bonus pot for traders in the wake of the London Interbank Offered Rate (Libor) scandal, which saw the bank fined £350 million for manipulating the rate.

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

The Co-operative Bank fined for PPI mis-handling

Mon, 07 Jan 2013 11:17:24 GMT

The Co-operative Bank has been fined £113,300 by the Financial Services Authority after inappropriately handling 1,629 payment protection insurance (PPI) complaints.

In the first half of 2011 the bank put the cases on hold when the British Bankers' Association launched a court case with the FSA over the new rules governing PPI.

At the time the FSA said that all complaints should be dealt with as normal while the review was taking place, warning that action may be taken if financial firms did not treat those complaining fairly.

"While nobody suffered any financial loss, Co-op's actions meant that a significant number of people had the resolution of their valid complaints delayed for no good reason," said Tracey McDermott, the FSA's director of enforcement and financial crime.

Of all the cases put on hold, the FSA found that 100 per cent could have been progressed. Other banks are expected to receive similar fines, as putting complaints on hold was standard procedure at the time.

Jennifer Haines

Jennifer's speciality knowledge is credit card changes and balance transfers.

Bank charges: Bank of mum and dad risk being able to afford care

Fri, 04 Jan 2013 15:13:46 GMT

Parents who continue financially supporting children after the age of 21 risk not being able to afford care in their later years, as well as other outgoings including bank charges.

Wesleyan Assurance Society found that the nearly two-thirds of parents over the age of 40 with children expect to support them into their adult life. This can be for big items like a house deposit, further education or weddings.

Compounding this, only a fifth (17 per cent) have begun to make plans for how to afford care later on in life.

The 'sandwich' generation of people who have elderly parents and financially dependent children have a double burden and can expect to be even worse off in old age.

"Our research shows that there is a generation who are supporting their children for much longer than they probably expected," said Bridgit Richards, Wesleyan's head of marketing.

"These same people could be living longer and yet are less prepared for old age than their parents."

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

Ofcom to address mid-contract price increases

Fri, 04 Jan 2013 15:12:52 GMT

Ofcom has initiated a consultation to address companies that introduce price increases midway through fixed contract for telephone landlines, broadband and mobile phone services.

The regulatory authority has suggested that customers whose prices grow should have the option to leave the contract without suffering any penalties, which should leave them with more cash to cover other outgoings, such as credit card charges.

In addition, Ofcom believes there should also be transparency among providers over the potential for prices to rise during the contract.

Another possibility is for consumers to opt-in to a variable price contract, as well as a complete ban on providers increasing costs during a contract, but Ofcom is concerned this is not in line with the Europe-wide legal framework.

"Many consumers have complained to us that they are not made aware of the potential for price rises in what they believe to be fixed contracts," Claudio Pollack, Ofcom's consumer group director, said.

"Ofcom is consulting on rules that we propose would give consumers a fair deal in relation to mid-contract price rises."

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

Brits risking loan charges just to meet the costs of housing

Fri, 04 Jan 2013 15:11:35 GMT

With around 7.8 million struggling to afford a roof over their heads, many Brits are resorting to payday loans to meet housing costs, according to a new report.

The charity Shelter revealed that in the last 12 months almost one million people are risking extortionate loan charges by using payday loans as a short-term fix to meet their rent or mortgage repayments.

Furthermore, 2.8 million households are in danger of being hit with huge bank charges and interest for using unauthorised overdrafts to pay for their housing.

"Payday loans may seem like a quick fix, but the huge interest charges mean things can quickly spiral out of control," said Shelter's chief executive Campbell Robb.

"It is vital that anyone who is having difficulty paying their rent or mortgage gets advice now."

Of those who are struggling to meet the costs of their accommodation, 1.4 million are at risk of losing their home or have already fallen behind with payments.

Samantha Clarke
Samantha is a former banking assistant and has over ten years experience in retail banking.

Bank charges: Rail rises to hit vulnerable Brits

Thu, 03 Jan 2013 15:01:21 GMT

Above inflation increases to train fares are to hit vulnerable Brits, with season tickets increasing by an average of 4.2 per cent across the country and overall ticket prices rising by 3.9 per cent.

The hikes were announced in August but came into effect on January 2nd, with the extra cash being used to pay for multi-billion pound improvements to the network, according to the government.

Over the last four years, the Trades Union Congress has said that fares have increased almost three times higher than inflation, leaving commuters in particular with less cash to pay for other outgoings, such as bank charges and utility bills.

"On a day-to-day basis these increases may simply seem like an unwelcome inconvenience, but for seasoned commuters and already struggling families they may be very costly," said Natasha-Rachel Smith, consumer affairs expert at TopCashback.

In the capital, Oyster Card users will have to pay 10p extra for a single journey on the Tube or rail, while the bus and tram have gone up 5p to £1.40 and in West Yorkshire rail fares have increased by 6.2 per cent - well above the national average.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

Bank charges: Scottish banks could face £30m compensation claims

Thu, 03 Jan 2013 11:32:51 GMT

Banks in Scotland are battling against compensation claims worth close to £30 million from customers affected by controversial charges on their mortgages.

According to the Herald Scotland the charges, typically ranging between £3,000 and £5,000, were added as a result of failed repossession actions against mortgage holders.

However, legal experts and consumer rights groups say mortgage holders who are already struggling should not be charged the legal costs of failed cases and are now working to support 7,500 affected homeowners.

A test case is being taken to the ombudsman over a Glasgow homeowner charged £10,000 in legal expenses and charges.

Mike Dailly, principal solicitor of the Govan Law Centre and the man behind the campaign says the charges are unfair.

“Incompetent or defective proceedings cannot be the fault of consumers, it is the responsibility of lenders and their Scottish solicitors. It is unfair, immoral, and unethical for Scottish solicitors and UK lenders to profit twice by double-charging Scottish consumers who are in financial difficulties,” he explained.

The Govan Law Centre has set up a self-help website for people who think they might have been affected.

One in five Brits haven’t paid off Christmas 2011

Thu, 03 Jan 2013 11:31:37 GMT

January is often considered a time for financial hangovers, with the debt of Christmas teamed with large energy bills putting a drain on Brits’ wallets.

However, a new poll suggests that people are not just suffering from the effects of last Christmas, as many are still paying for the 2011 festive period.

According to uSwitch.com, one in five consumers are starting January with more than £5,000 worth of debt on credit cards.

In addition, 17 per cent of people still have not managed to pay off Christmas 2011.

More than half (53 per cent) will take more than a year to clear their credit card, 15 per cent think it will take three years and a whopping seven per cent do not think they will ever be debt-free.

However, the average person could save up to £1,685 in credit card charges and interest if they find an interest free balance transfer.

Nevertheless, comparison website Gocompare.com found that two-thirds of people expect financial woes to make 2013 a difficult year.

Libor fine shrinks Royal Bank of Scotland bonuses

Thu, 03 Jan 2013 11:25:47 GMT

The Royal Bank of Scotland (RBS) has had to cut back its bonus pot for traders following the estimated £350 million levied for the institution's role in the London Interbank Offered Rate (Libor) scandal.

Cash has to instead be used to settle the allegations that the firm was involved in the scandal, which saw Libor falsely inflated or deflated to boost profit from trades or to make banks look more worthy of credit than they actually were.

RBS is said to be close to finalising a deal with regulators in Japan, Singapore, the UK and the US over the scandal.

Already Barclays has been fined £290 million by the Financial Services Authority and US regulators for its role in the Libor scandal.

In the year prior, RBS paid out £785 million in bonuses to its staff, although the firm suffered losses of £2 billion.

To avoid incidents such as the Libor rigging scandal occurring again, politicians are to make it illegal to manipulate these sorts of rates.

Jennifer Haines

Jennifer's speciality knowledge is credit card changes and balance transfers.

Action required on payday loan charges, says Labour MP

Thu, 03 Jan 2013 11:20:40 GMT

Labour MP Stella Creasy has called on the Office of Fair Trading (OFT) to take action to better control irresponsible lending by payday loan companies that can lead vulnerable people into financial difficulties.

On a guest blog at MoneySavingExpert.com, she has suggested there should be moves to limit the damage done by loan charges levied on individuals who take out this expensive form of credit.

"Without action now, and with the rising costs households will face, 2013 could be a window of opportunity for these so-called legal loan sharks," she said.

"The guidelines the OFT brings in can set the standards for the new FCA (Financial Conduct Authority). They can also send the industry a clear message about what they can do in the UK."

Part of the problem, she added, is that many people who cannot meet repayments take out another loan to pay it off, which further exacerbates the issue.

The MP for Walthamstow, who also works with payday loan campaign organisation Sharkstoppers, has suggested there should be a central register where all loans must be reported at the moment they are provided. This can boost transparency and accountability.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

Bank charges: Halifax offers 12-month fee free overdraft for switchers

Wed, 02 Jan 2013 15:40:30 GMT

Brits who choose to switch from their current bank to Halifax will enjoy an overdraft without any fees for a 12-month period.

This means new Halifax customers can use the planned overdraft for a year without worrying about being hit by any bank charges, providing they keep within the limits.

The offer is available from January 2nd to March 3rd and, during the same period, switchers will also be given £100 on the same day they open the account.

"We want to make our customers better off, and this initiative demonstrates that by switching to a Halifax current account you can not only earn £100 but you can save overdraft fees and charges too," said Anthony Warrington, director of Halifax current accounts.

He added that many other switching offers are just for customers who are in credit, but Halifax is making its deal available to anyone moving an existing overdraft too.

Over the last year, 300,000 customers have switched to Halifax.

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

Loan charges: Many Brits preparing for a fiscally tough 2013

Wed, 02 Jan 2013 12:38:42 GMT

Brits are pessimistic when it comes to finances for the year ahead, with many predicting a tough 12 months for their bank balances due to outgoings such as credit card and loan charges.

Comparison website Gocompare.com found that the nearly two-thirds (64 per cent) of Brits expect a difficult year and most of these (42 per cent) are concerned about the rising cost of living and bills.

This contrasts to the comparatively small number of Brits who are worried about not saving enough (eight per cent), losing their job (seven per cent), running their car (six per cent) and managing their rent and mortgage payments (four per cent).

"Without doubt, 2013 will be a tough year for many people as austerity measures continue to bite," said John Miles, Gocompare.com's business development director.

Food costs is the one area that Brits feel they can cut down on the most, with 37 per cent saying they can make savings on their weekly shop. Other key areas include TV, internet and home phone bills (26 per cent), gas and electricity costs (21 per cent) and petrol and transport costs (18 per cent).

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

Holidaymakers should 'watch out for credit card charges'

Wed, 02 Jan 2013 10:37:07 GMT

Brits heading off on holidays in 2013 should be vigilant to check the terms and conditions of any card they choose to take with them, as there can be hidden costs.

Norwich and Peterborough Building Society (N&P) warned that holidaymakers may get caught out by debit or credit card charges, so they should look out for products that are free to use abroad.

"Trips overseas can be a costly exercise, especially when you factor in the charges that can be added to using your debit card," said Ewan Edwards, N&P's head of current accounts.

He added that if Brits are savvy about choosing the right card, they will find they are already saving cash for their next getaway.

N&P found that saving up for a holiday is one of the biggest motivations for putting money aside, with four in ten people (40 per cent) citing it as a priority. In the north-east, this figure increases to more than two-thirds (67 per cent).

Samantha Clarke
Samantha is a former banking assistant and has over ten years experience in retail banking.

Bank charges: Brits stay in on New Year’s Eve to save cash

Fri, 28 Dec 2012 13:35:35 GMT

Many Brits will stay in on New Year’s Eve for the ‘big night in’, rather than leaving the house for a big night out, as they try to avoid spending too much money.

Post Office Home Insurance found that three-quarters (72 per cent) of people are to shun going out, with more than half (56 per cent) having a quiet night in on their own or with family and one in six (16 per cent) going to a friend’s house for a party or hosting their own.

Hosting may not be the answer, as it can cost as much as £100 to have a party, while going out on the town costs £76 on average. However, this rises to £85 in London and goes as low as £50 in the East Midlands.

"The traditional ‘big night out' steps aside for a ‘quiet night in' with many people opting to stay indoors to avoid the crowds, the cold weather and save a bit of money on New Year's Eve,” said Paul Havenhand, head of insurance at the Post Office.

Staying in on New Year’s Eve or going to a friend’s house should keep some cash free so people can afford any bank charges, or other outgoings they may have.

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

Loan charges: Repaying debts tops 2013 financial resolutions

Fri, 28 Dec 2012 13:34:00 GMT

The new year is a time to turn over a new leaf for many, and pledges related to personal finances are a key part of this, such as making sure loan charges are paid on time.

J.P. Morgan Asset Management found that the number one financial resolution is to repay debts, as cited by 29 per cent of respondents to its survey.

A similar figure have promised to save regularly (28 per cent), while other common pledges include reviewing their financial situation (24 per cent), saving into an Isa (23 per cent) and repaying mortgage (16 per cent).

The survey also found that seven per cent plan to invest for the first time and six per cent will begin to look to their future and start saving into a private pension.

"Whichever way you look at it, and whatever your financial priorities are for 2013 and beyond, the new year is a good time to take a step back and assess spending and saving habits,” said Keith Evins, head of UK funds marketing at J.P. Morgan Asset Management.

Jennifer Haines

Jennifer's speciality knowledge is credit card changes and balance transfers.

Loan charges: Homeowners should 'check their contents insurance following Xmas'

Fri, 28 Dec 2012 13:32:35 GMT

Consumers should check their contents insurance to make sure it covers all the new Christmas purchases.

Sainsbury’s Bank revealed that in the first week of January the average home contains £502 worth of new gifts and £210 worth of new purchases, which includes post-Christmas purchases.

In addition, an estimated 2.1 million homes receive gifts worth at least £1,000 and 690,000 households make purchases worth over £1,000 in the January sales.

As a result, Brits could see the value of the contents in their home go above their insurance limit, which could leave them out of pocket if they have to make a claim, leaving it difficult to meet loan charges.

"Checking the value of your cover, and notifying your insurer of any new high value items will take minutes and will ensure you start the year fully protected," said David Barrett from Sainsbury’s Home Insurance.

"It's always a good idea to keep receipts for any new items you may have, or have bought for someone else as this can help with any home insurance claims."

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

Credit card charges: Xmas shoppers left £3bn out of pocket

Fri, 28 Dec 2012 13:29:49 GMT

Shoppers this year have spent £3 billion on goods that have not lived up to expectations, raising concerns over whether or not people will be properly refunded for problematic Christmas purchases.

The Citizens Advice Bureau (CAB) has dealt with 400,000 complaints between April and November, which totalled £3 billion in value.

More than half of these were for faulty goods or sub-standard services and cost on average £2,800 each, leaving many people seriously out of pocket if they cannot get a refund, making it difficult to pay credit card charges.

"By law retailers must offer refunds, repairs or replacements for faulty products but all too often this is not happening,” said Gillian Guy, CAB chief executive.

“Household budgets are tight meaning many people don't have the money to buy a new item if it’s broken and the seller has refused to sort it out."

CAB’s report Redressing the Balance is calling for a change in the law so that consumers must get a refund within 30 days of getting money back, as well a class action that helps people take businesses to court.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

Credit card charges: Smokers could save a considerable sum by giving up the habit

Thu, 27 Dec 2012 12:21:39 GMT

As well as living for an average of three and a half years longer, smokers who quit can also expect to save as much as £131,000 towards their retirement, according to a new report.

Enhanced annuity provider Partnership found that a 30-year-old who smokes ten cigarettes a day and started at age 20 and continued to retirement at 67 would have spent £61,002 on their habit. If this was put into a pension at three per cent annually, it would reach a total of £131,000.

What’s more, smokers would need £36,000 in their pension to cover their ten cigarettes a day habit during retirement, even though they would receive an increased pension annuity due to a lower life expectancy.

"Enhanced annuities can make a significant difference to someone's retirement income, so smokers approaching retirement [should] make sure they declare it. But, more importantly, if you smoke, try to quit as the benefits to your life expectancy and finances are astronomical,” said Andrew Megson, director of retirement at Partnership.

People that give up will find they have more money available to cover other expenditures, such as credit card charges.

Charles Baker
Charles is a reputed financial analyst with decades of experience under his belt.

Loan charges: Many Brits have no intention to budget in 2013

Thu, 27 Dec 2012 12:20:34 GMT

A third of adults in the UK say they are unlikely to have a regular budget during 2013 in order to keep on top of everyday spending on things such as rent, mortgage, travel, food, clothing and bills, according to new research from the Money Advice Service.

This equates to around 16 million people in the UK, with 19 per cent of budget-dodgers prepared to risk loan charges taking out credit cards or overdrafts to cover costs.

Some 17 per cent of respondents not prepared to stick to a budget say it would not be worth it as they would not stick to it, while 16 per cent want to “live for the moment” and spend however much they like.

A third (32 per cent) are in a comfortable enough position with surplus disposable income at the end of the month, which means they do not need to save.

Jane Symonds, head of service delivery at the Money Advice Service, insists that budgeting is a good idea.

“Keeping track of your money will not only help you cope with the unexpected, but also bring peace of mind. As most budget-keepers will agree - knowing you're on top of your money helps you feel a lot better about life in general,” she said.

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

Loan charges: Swansea Council warns residents about payday loans

Thu, 27 Dec 2012 12:19:20 GMT

Swansea Council is warning those in its constituency not to take out expensive payday loans when trying to afford the expenses of the festive season, according to a report by the South Wales Evening Post.

Many families will find themselves in debt after the Christmas period, but using high interest payday loans to cover this is not advisable, the local authority warned, as they can result in very expensive loan charges.

Instead, it suggests people seek out advice or use a Credit Union that offer much more reasonable terms.

"That's why the council is urging families with debt problems to act as quickly as possible and get support to help deal with the issue," council leader David Phillips told the South Wales Evening Post.

"The council has set up a Debt Panic Button with its partners, which is packed with free information on boosting income, reducing costs and managing debt."

Leading debt charity StepChange expected that the number of people going to the organisation for help was to double over Christmas.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

PPI to dominate FOS workload for ‘years to come’

Thu, 27 Dec 2012 12:18:27 GMT

After what has been the busiest year ever for the Financial Ombudsman Service (FOS) thanks to more than 200,000 complaints over mis-sold payment protection insurance (PPI), the organisation expects the issue to dominate its activity into next year.

Natalie Ceeney, the chief executive and chief ombudsman at the FOS, told the Financial Times Adviser that it has had to adapt to deal with PPI complains, leading to it doubling in size in a year.

“We have fully trained an additional 500 case assessors who are dedicated to dealing with PPI disputes and we’re gearing up to ensure we have the right people in place to deal with the ongoing volume of complaints across all areas next year,” said Ms Ceeney.

The way businesses are charged following a PPI claim is set to be changed too. This should make the process more transparent and fair, while ensuring many small firms do not have to pay case fees at all.

Compensation payouts for mis-sold PPI by British banks is expected to total more than £15 billion, with claims likely to be made for years to come.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

Bank Charges: Scots borrow money to fund Christmas

Fri, 21 Dec 2012 14:39:33 GMT

Half of people in Scotland are being forced to borrow money from relatives to keep Christmas on track.

New research by the Bank of Scotland found that one in five will need help to buy presents, while 48 per cent will rely on some other kind of financial assistance.

Furthermore, 18 per cent of Scots will be calling on family members to provide some of the Christmas dinner, compared to just ten per cent in the UK.

With Christmas likely to pull the purse strings, Scots struggling with debt or bank charges may find it difficult to be merry during season of good will.

"We know that Christmas is a difficult time, with pressures on the family purse strings colliding with winter fuel bills, the cost of entertaining and what can seem like a long wait between pay-days," explained Centre for the Modern Family panellist and Head of Which? Money James Daley.

The figures coincide with research from Halifax, which revealed that Brits are raiding their savings in the run up to Christmas, despite putting the money away for different purposes.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

Edwardians risked loan charges to pay for Christmas with payday loans

Thu, 20 Dec 2012 14:59:17 GMT

Newspaper archives have revealed that payday loans are not a modern phenomenon as many people may have thought, with Edwardians using them to cover the cost of Christmas.

The Telegraph has revealed adverts from 1912 that offer loans to Edwardian Brits from £5 to £5,000 (£460 to £463,000 in today's cash), although it specified that they were only for "trustworthy persons".

No fees were charged up front and they were advertised as "low interest and easy repayments".

Many Edwardians would have risked loan charges to get the cash to pay for presents, food and fuel over the Christmas period.

"We can see that front pages and entire newspaper columns were dominated by advertisements for quick cash to help broke Edwardians to pay for Christmas and it seems that turning to payday loan companies for an extra bit of help is not just a 21st century phenomenon," said Debra Chatfield, spokesperson for the British Newspaper Archive.

Payday loan companies have been criticised in modern times for targeting vulnerable people, such as those studying at university. The National Union of Students has said that six per cent of all people in higher education take out the high interest loans.

Samantha Clarke
Samantha is a former banking assistant and has over ten years experience in retail banking.

Cumbrian couple face 19,400% payday loan charges

Thu, 20 Dec 2012 11:57:46 GMT

A couple in their 40s from Cumbria who took out a payday loan have had to endure 19,400 per cent loan charges, according to a report by the News and Star.

The pair have one child and have worked all their lives. The wife was, however, diagnosed with cancer, leaving her unable to work. They took out a five-day payday loan to "tide them over" a difficult period, but were unable to pay it back and an interest rate of 19,400 per cent means they now owe £4,000.

Details were released by the Citizens Advice Bureau (CAB) for Carlise and Eden, which also explained how a man with a £35,000 salary racked up four payday loans and now has a £3,000 debt.

"We strongly urge anyone experiencing difficulties with a payday loan or thinking of taking one out to visit the bureau and get advice about alternatives," Andy Auld, manager of the Carlisle and Eden District CAB told the newspaper.

The debt charity StepChange has said that some 30,000 people have used payday loans in the last year, which has grown significantly since three years ago.

John Fieldman
Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

PPI claims: UBS to undergo an investigation for 'misconduct' in Hong Kong

Thu, 20 Dec 2012 09:54:36 GMT

Hong Kong is to investigate UBS over "possible misconduct" in regards to the special administrative region's interbank lending rate.

This news comes just a day after the Swiss bank agreed to pay almost £1 billion to regulators for manipulating London Interbank Offered Rate (Libor) and Euro Interbank Offered Rate (Euribor).

The Hong Kong Monetary Authority explained that regulatory authorities overseas supplied it with information regarding misconduct related submissions for the Hong Kong Interbank Offered Rate (Hibor), as well as other reference rates in the Asia region.

Investigations will establish whether misconduct would have had any actual impact on Hibor, which is used as a benchmark for economies in the region.

This news comes as part of a long line of financial scandals in recent years, including the mis-selling of payment protection insurance (PPI).

Jennifer Haines
Jennifer's speciality knowledge is credit card changes and balance transfers.

Loan charges: Older people struggling with heating bills

Wed, 19 Dec 2012 12:42:31 GMT

Millions of over 50s in Britain are already finding it hard to cope with the pressure of heating bills this winter as energy prices continue to rise, according to a new report.

Saga found that more than half (58 per cent) of people over the age of 50 are concerned with the cost of staying warm, with a third (35 per cent), the equivalent to seven million people, already facing difficulties.

A quarter of older people are being forced to cut down on how much heating they use to stay on top of their bills and still afford other expenditures, such as loan charges. They are taking other low-cost steps to stay warm, such as layering up with clothes or staying in bed longer.

This has worrying health implications for Britain's over 50s, with cold linked to many illnesses among older people.

"Recent figures from the Office of National Statistics show that 24,000 pensioners died of cold last winter in the UK," said Dr Ros Altmann, director-general of Saga.

"While this is a welcome reduction from over 26,000 the previous year, this shocking statistic shows that much more needs to be done to protect the most vulnerable in society over the coldest months of the year."

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

PPI claims: UBS fined for misconduct related to Libor and Euribor

Wed, 19 Dec 2012 10:40:10 GMT

UBS has been fined £160 million for misconduct related to the London Interbank Offered Rate (Libor) and the Euro Interbank Offered Rate (Euribor) in what is the largest penalty ever levied by the Financial Services Authority (FSA).
UBS' offences were wide-reaching, involving a variety of issues, numerous employees across a number of countries over the course of many years.

One example involved traders making requests to individuals at UBS responsible for determining Libor and Euribor asking them to adjust submissions to boost their own position.

Another issue was that UBS gave the jobs of determining Libor and Euribor to people who could make a profit or loss depending on what the rates were.

Manipulation was openly discussed at the firm and at least 45 individuals were aware of the practice of influencing submissions.

"The integrity of benchmarks such as Libor and Euribor are of fundamental importance to both UK and international financial markets. UBS traders and managers ignored this," said Tracey McDermott, FSA director of enforcement and financial

"They manipulated UBS' submissions in order to benefit their own positions and to protect UBS' reputation."

The Libor and Euribor scandal is among many examples of bad behaviour among banks in recent years, including the mis-selling of payment protection insurance.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

Credit card charges: Consumer credit market regulation 'not going far enough'

Wed, 19 Dec 2012 10:36:07 GMT

While the National Audit Office (NAO) has found that regulation of the consumer credit market is bringing benefits to consumers, it is not delivering value for money because dodgy trading practices are continuing to operate.

The NAO has said that the Office of Fair Trading (OFT) delivered £8.60 of savings to consumers for every £1 it spent enforcing regulations in 2010-11. Yet, during the same period, consumers lost £450 million as a result of problems that regulations did not address.

However, consumers often did not help themselves, with the OFT estimating that consumers could have saved up to £120 million on things like credit card charges had they looked for the best deal in the market.

Part of the problem is that the OFT can only act when it receives information notifying it of non-compliant behaviour from a finance firm. It does not monitor companies on a day-to-day basis. This means that someone has had to have lost out before any action can be taken.

"Good value for money in consumer credit regulation means minimising avoidable harm, and doing so cost-effectively," said Amyas Morse, head of the NAO.

"The OFT has achieved a good return for a small outlay, but has not been able to tackle the full extent of harm to consumers in credit markets."

He added that it could do with more resources in order to be able to regulate properly.

Amir Hussain
Amir specialises in personal loans, consumer debt and debt management.

Young people ‘facing highest rate of inflation’

Wed, 19 Dec 2012 08:42:55 GMT

Young people certainly do not have it easy these days when it comes to finances, and new research has revealed that the under-30s are continuing to suffer from the highest rate of inflation.

The latest figures from the Alliance Trust Economic Research Centre revealed that the youngest age group are facing an inflation rate of 3.4 per cent, which is mainly down to the recent jump in university tuition fees.

This could see younger people facing larger amounts of debts due to things like bank charges if they go over their limit.

By comparison, all the other age groups face lower rates of inflation.

People aged between 30 and 49 and 50 and 64 are looking at an inflation rate of 2.4 per cent, while people in the 65 to 74 and over-75 demographics are experiencing the lowest rate of inflation at 2.1 per cent.

It was also found that food, non-alcoholic beverages and tobacco all contributed to the high rate of inflation in November.

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

Household finances ‘strained in November’

Wed, 19 Dec 2012 08:41:10 GMT

After a difficult year for household finances, budgets have remained squeezed in the run up to Christmas, new figures have shown.

The Lloyds TSB Spending Power Report found that a mixture of rising inflation on non-essential items and a lack of income growth made for a miserable November for many Brits.

Many people get caught up in debt as they try to pay for the festive season, with numerous individuals left with spiralling bank charges as they enter the new year.

The research revealed that, after inflation, spending growth plummeted to -0.1 per cent in November. This is the equivalent of around £11 less to spend on non-essential items every year.

Meanwhile, income growth continued to exhibit weak rates at 2.6 per cent on a year ago, and -0.3 per cent in real terms.

In a bid to stay afloat, it appears that many Brits are cutting back on expensive utility bills, with growth in spending on gas and electricity falling back for the seventh month in a row.

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

Bank charges: Few savings accounts 'beat inflation'

Tue, 18 Dec 2012 15:05:08 GMT

High inflation continues to hit Britain's savers, as the Bank of England has revealed that the Consumer Price Index (CPI) remains high at 2.7 per cent.

Comparison website MoneySupermarket explained that this means basic rate taxpayers need to have a rate of at least 3.39 per cent to get gain benefit in real terms, while higher rate taxpayers require a rate of 4.51 per cent.

As a result, the importance of searching around for the best rates and the lowest bank charges is more important than ever. Only 35 savings accounts now actually beat inflation.

"Today's news that inflation has remained high at 2.7 per cent after last month's increase is a further blow to savers and struggling UK households, and is a bitter pill to swallow for those planning to make savings goals a big part of their New Year resolutions for 2013," said Keven Mountford, head of banking at MoneySupermarket.

He recommends that savers use cash Isas to take advantage of tax free benefits. Other alternative products include offsetting savings against mortgage borrowing, peer-to-peer lending or structured savings products.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

Loan charges: Home insurance theft claims to 'peak in January'

Tue, 18 Dec 2012 13:03:46 GMT

Brits should be wary of burglars this Christmas, as thieves see the festive period as a lucrative time to break into homes.

Comparison website Confused.com revealed that home insurance claims peak in January, June and November, with the winter month experiencing claims 2.4 per cent higher than the monthly average thanks to Christmas thefts.

An expensive claim just following Christmas could really risk putting Brits into debt, and even cause them to miss paying loan charges.

Therefore, it is sensible for homeowners to take some precautionary steps this year to prevent themselves from becoming a burglary victim.

These include ensuring the gifts do not push the contents value above what the house is insured for, not leaving presents in view from outside and asking a neighbour to keep an eye on the house if they are away for the Christmas period.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

Brits risking credit card charges to buy Christmas turkeys

Tue, 18 Dec 2012 11:02:55 GMT

Around four million Brits will risk getting hit by credit card charges this Christmas by putting their Yuletide turkeys on plastic, according to a new report.

Comparison website uSwitch.com found that 38 per cent of Brits will pay for their turkey with a credit card, while 59 per cent are using plastic to buy Christmas presents.

As pay drops and prices rise, credit cards are becoming more and more necessary for Brits to be able to enjoy Christmas, with the average consumer putting £448 on their credit card over the festive period.

It is particularly concerning for one in ten (13 per cent) people who say they would rather get further into debt than inform their friends and family they couldn't afford to buy presents this year.

"In true British spirit, Brits are determined not to let money worries cast a shadow over the festive cheer this Christmas. Many are turning to their flexible friends to help see them through to the new year," said Michael Ossei, personal finance expert at uSwitch.com.

John Fieldman
Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

Bank Charges: Debt is damaging all aspects of life

Mon, 17 Dec 2012 14:44:25 GMT

Around three-quarters of people say that worries about debt are having a damaging impact on their health.

New research by the Citizen’s Advice Bureau found that the stress associated with debt can infiltrate and impact every aspect of life, from work to health and relationships.

Over half of people say they find it hard to concentrate at work because of debt, while a similar number said it was affecting their relationship with their partner.

More than a third said it was causing problems in their relationship with their children and 79 per cent said they lose sleep most nights over debt.

The study polled 1,700 people, the majority of whom had debt between £1,000 and £20,000, although one in ten had debt of over £30,000.

It comes as the Trade Unions Congress found living standards across the UK have dropped compared to other European countries as families struggle to make ends meet and pay their bank charges.

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

Bank charges: Radical measures required to avoid fuel poverty

Mon, 17 Dec 2012 10:34:28 GMT

There should be radical measures implemented by the government to avoid homes ending up in fuel poverty, according to Consumer Focus.

Mike O'Connor, the organisation's chief executive said in response to the annual report from the Fuel Poverty Advisory Group (FPAG) that determined action must be taken or else the prevalence of the issue will continue to increase, leaving Brits with less money to cover other costs such as bank charges.

"Current government plans for energy efficiency schemes are inadequate to deal with the scale of the fuel poverty problem," he said.

"Millions of older people, families and people with disabilities will be left living in cold homes and struggling to afford their bills unless extra measures are taken."
Therefore, a better energy efficiency programme is integral to bring down fuel poverty levels, as well as inspire economic growth, generate jobs and cut carbon emissions, which he explains is a "win-win" for the government.

Whitehall is set to receive £4 billion every year in carbon taxes over the next 15 years, of which a proportion could be used help create the programme.

Samantha Clarke
Samantha is a former banking assistant and has over ten years experience in retail banking.

Loan charges: Many Brits fear 2013 to be an unlucky year

Mon, 17 Dec 2012 10:31:02 GMT

Many Brits may be opting to not take out any credit in 2013, with the perceived unlucky year potentially causing some expensive loan charges further down the line.

New research from comparison website GoCompare.com revealed that one in five (18 per cent) of Brits are to be more cautious in 2013, with seven per cent concerned with the bad omen of the '13' year.

One in ten (nine per cent) of Brits say they will not buy a car with a '13' registration plate. The Society of the Irish Motor Industry in the Republic of Ireland was so concerned that it asked the Irish government to modify the number plates to '131' and '132'.

Some three per cent of Brits are avoiding getting married next year and four per cent are waiting until the following year to start a new business.

The fear of the number 13 is known as triskaidekaphobia, and 22 per cent of Brits say they feel uneasy about the figure. However, just seven per cent say the number has actually been unlucky for them, with more than double that (16 per cent) saying it has actually brought them luck.

"It's difficult to pin down the exact root of the belief that the number 13 is somehow unlucky and in some cultures, such as in Tibet and Italy, 13 is actually seen as a lucky number," said John Miles, Gocompare.com's business development director.

Jennifer Haines

Jennifer's speciality knowledge is credit card changes and balance transfers.

Bank charges: Brits raid savings in the run-up to Christmas

Mon, 17 Dec 2012 10:23:59 GMT

Brits have been raiding their savings accounts in the months running up to the festive Christmas, according to a new report.

Halifax Savings found that in the three months to the end of November, people have headed to their savings to take out an average of £1,186 to pay for surprise costs and bills.

At the same time, consumers have only been able to save £555, which is less than half the average spent.

To stop themselves from raiding their savings too much, 72 per cent of Brits try to set a buffer limit, which they aim to keep their savings above, while 34 per cent try to cut back on other costs.

However, a quarter (27 per cent) do not even try to stop themselves from venturing into their savings, which could mean they struggle to afford bank charges and other costs further down the line.

"At this time of year people often use their savings to buy gifts so taking simple steps, such as having different savings accounts for different purposes, can be an effective way to stop hard-earned savings being spent on things they aren't intended for," said Richard Fearon, head of Halifax Savings.

Charles Baker
Charles is a reputed financial analyst with decades of experience under his belt.

Bank charges: Chimneys a fire threat this winter

Fri, 14 Dec 2012 11:57:41 GMT

Thatched homeowners across Britain are being warned to check their chimneys before lighting up open fires or wood burners this festive season.

Insurer Aviva revealed that there have been 900 thatch fires in the UK since 1995, which is around one every week. These are largely caused by chimney problems and the intense heat of fires.

The typical thatch fire can cost homeowners around £160,000, which could leave people struggling to pay loan charges.

"The use of woodburners and open fires in thatched properties can be a toxic mix. Many fires start in poorly maintained chimneys or are due to faulty flue-liners," said Colin Connor, household underwriting manager at Aviva.

As such, taking precautions is vital. He recommends getting a professional sweep twice a year, as well as the chimney brickwork and flue lining regularly inspected.

Although fires in home with thatched roofs are less common than standard houses, the damage is much greater once the fire takes hold.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

Credit card charges: EU agrees to banking union

Fri, 14 Dec 2012 11:35:37 GMT

The European Central Bank (ECB) is set to be handed new powers that allows it to supervise the eurozone's biggest banks to prevent problems as soon as trouble arises.

Finance ministers from the European Union's 27 countries have come to an agreement followings months of tough negotiations in what is considered the first step to help underpin the euro.

The system is set to be introduced in stages from 2013, with Germany's finance minister Wolfgang Schaeuble earmarking March 2014 as the goal for full implementation.

ECB will have control over around 200 of the 6,000 or so lenders in the eurozone, as only institutions with assets of more than €30 million (£24 million) will be covered.

"It's vital that non-eurozone countries retain a say in how the single market operates, so it's necessary that the voting system should reflect this," said CBI director for competitive markets, Matthew Fell.

"A single market in financial services is critical and this agreement has gone some way to allaying fears of it becoming fractured."

This could be good news for British consumers facing credit card charges, as it could boost the economy and help to bring an end to the Europe-wide economic crisis.

Charles Baker
Charles is a reputed financial analyst with decades of experience under his belt.

Loan charges: UK living standards 'drop'

Fri, 14 Dec 2012 11:05:18 GMT

Eurostat figures showed this week that living standards in the UK have fallen from the fourth to sixth highest in Europe, and the Trades Union Congress (TUC) has said that families are feeling the pain.

TUC general secretary Brendan Barber explained that the news will not be a surprise to many ordinary families across the country who struggle to make ends meet during this tough economic climate, which leaves them struggling to pay loan charges.

"With wages failing to keep pace with rising prices, and many households soon to take an additional hit as tax credits and benefits are either frozen or taken away, people are understandably being careful with what little money they have and are reining in their spending," he said.

This is having a knock on impact on the high street, he added. With spending down, shops and businesses are suffering. People need to spend and businesses must invest for expansion to occur and the economy to grow again.

Mr Barber believes the government should focus on improving consumer and business confidence through placing jobs and growth at the top of the priority.

John Fieldman
Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

Loan charges: Milestone reached in smart meter rollout

Thu, 13 Dec 2012 13:35:01 GMT

A key milestone has been reached in the rollout of smart meters to homes and businesses across the UK, as the government has published rules on consumer engagement, privacy and security.

Conclusions include allowing consumers to choose how regularly energy companies can look at their data and suppliers not using data for marketing purposes without consent.

Suppliers will also have to remind customers on the choices they have made and how they can change their minds.

A Central Delivery Body will also be established to ensure that smart meters are used effectively to manage energy consumption and expenditure, so Brits have more cash available to cover outgoings such as loan charges.

"Let me be clear: the consumer comes first. That's why we are tackling issues such as privacy, security, consumer protection and communications now, working with industry and consumer groups to make sure we get this right ahead of the mass rollout," said energy and climate change minister Baroness Verma.

The government is aiming for every home and business in the UK to have a smart or advanced energy meter, as it tries to move the country towards a low-carbon economy.

Samantha Clarke
Samantha is a former banking assistant and has over ten years experience in retail banking.

Bank charges: Smoking could cost Brits £62,000 over lifetime

Thu, 13 Dec 2012 10:26:01 GMT

Smokers are not only knocking time off their lifespan, but also reducing their income by tens of thousands of pounds, leaving less money to cover other outgoings, such as utility bills and bank charges.

Annuity providers Partnership found that Brits could save as much as £62,000 if they had not smoked ten cigarettes a day for the majority of their life.

What's more, the firm explained that a retiree would need a pension pot of £36,000 just to cover the costs of smoking ten a day during their later years.

"Enhanced annuities can make a significant difference to someone's retirement income, so if you are a smoker and approaching retirement, make sure that you declare it," said Andrew Megson, director of retirement at Partnership

Research from the British Medical Journal found that one cigarette can knock 11 minutes off someone's life expectancy. If an individual smokes ten per day between the ages to 20 and 65, they will have knocked three years, 160 days, 14 hours and 30 minutes off their lives.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

Bank charges: More and more Brits having to 'work past retirement'

Wed, 12 Dec 2012 12:33:29 GMT

British workers approaching retirement are having the daunting prospect of staying in employment beyond the traditional end to working life, according to new research.

Insurer Aviva found that a quarter of individuals aged 65 to 74 are still earning a wage, while at the same time over 55s are having to cut back on spending to prioritise their household budgets, as well as expenditures such as bank charges, over non-essential items.

As Brits get older, they increasingly have to turn to savings to maintain the same standard of living, with the percentage of people with savings of less than £2,000 growing from 23 per cent in the third quarter of 2012 to 30 per cent in the fourth.

"Whether it's through choice or necessity, the fact that people are working for longer shows how vital it is to work hard to achieve financial stability, so you can enjoy your retirement without the constant worry about making ends meet," said Clive Bolton, managing director of Aviva's At Retirement business.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

Bank charges: Brits spend a year's salary on Christmas in working lifetime

Wed, 12 Dec 2012 10:15:11 GMT

Adults in Britain spend nearly an average person's annual salary on Christmas across their whole working lifetime, according to a new report.

According to the National Employment Savings Trust (NEST) and comparison site MoneySupermarket, Brits spend £20,072 on Christmas during their 50-year working life.

The average adult will spend £445 this Christmas, which is up from £437 last year and leaves less money for people to cover costs such as bank charges.

It may come as no surprise that given the global economic crisis, 77 per cent of Brits are concerned with the cost of Christmas and 52 per cent think they spend too much over the festive season.

Money may not even be that important to Christmas anyway, as 68 per cent say that spending time with family is the most important part of the holiday, which comes at no cost at all.

"Shaving just a little bit off the annual festive bill and focusing on enjoying time with family could mean more peace of mind now and big savings over the long term," said Helen Dean, managing director of scheme development at NEST.

Jennifer Haines

Jennifer's speciality knowledge is credit card changes and balance transfers.

Loan charges: Skype chats on the cards for Brits this Christmas

Tue, 11 Dec 2012 13:30:09 GMT

The high cost of travelling is leaving many Brits having to catch up with their friends and family using technology this Christmas, according to a new report.

Comparison site Gocompare.com found that a fifth of Brits (22 per cent) are neglecting a face-to-face get-together with their loved ones due to the high cost of fuel.

Some 18 per cent will instead using technology such as Skype and Facetime to wish people Merry Christmas who they would have otherwise travelled to see, which should leave more money after the Christmas period to cover any credit card charges.

More than half (52 per cent) of Britons feel that owning and running a car was an activity that only someone reasonably rich could afford, with a third (29 per cent) concerned that their children may not be able to cope with the high costs of driving when they come of age.

Over two-thirds believe the government should do more to bring down the costs of having a car.

"Christmas is traditionally a time for catching up with friends and family but it seems that the cost of fuel will keep many Brits at home this year," said Scott Kelly, Gocompare.com's head of motor services.

Jennifer Haines

Jennifer's speciality knowledge is credit card changes and balance transfers.

Higher bank charges necessary, says ABI

Tue, 11 Dec 2012 13:24:54 GMT

British financial institutions will have to increase their bank charges for loans or else stay "uninvestable", according to a leading expert.

The Association of British Insurers' (ABI) director of investment Robert Hingley told the Financial Times that at present it is tough for banks to generate any equity, which means they will have to increase the amount they charge customers.

In the run up to 2007 investors were happy for banks to generate returns on equity with over-leveraged balance sheets, but this is no longer the case.

What's more, Mr Hingley believes investors are agitated by regulatory uncertainty, which is a big issue in the UK. There are plans in place to ring-fence retail banking behaviour to control risky investment banking through the Vickers Commission reforms.

This does have implications for household budgeting, as it could mean families are spending more on basic banking services, potentially pushing them into debt.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

HSBC to pay $1.9bn in bank charges for money laundering penalties

Tue, 11 Dec 2012 13:23:54 GMT

HSBC has been hit with bank charges totalling $1.9 billion (£1.2 billion) for money laundering, in what is the largest every settlement paid by a bank.

A US investigation had found that the bank was guilty of disguising money tied up with "drug kingpins and rogue nations", and the firm has admitted that it has poor laundering controls.

"We accept responsibility for our past mistakes. We have said we are profoundly sorry for them, and we do so again," said Stuart Gulliver, group chief executive at HSBC.

"Over the last two years, under new senior leadership, we have been taking concrete steps to put right what went wrong and to participate actively with government authorities in bringing to light and addressing these matters."

It has now spent $290 million on improving systems to prevent money laundering.

The report from the US Senate concluded that HSBC did not view its Mexico arm as high risk, despite the rampant drug trafficking and money laundering. It also circumvented US safeguards that would have otherwise blocked transactions to criminals and rogue states. This included some 25,000 transactions with links to Iran over seven years.

Credit card charges: Insolvency law to give banking access for un-discharged bankrupts

Mon, 10 Dec 2012 11:09:24 GMT

Reforms have been introduced that make it easier for banks to provide basic accounts to un-discharged bankrupts.

Presently only Barclays offer them, with the Co-operative Bank pulling the accounts in September.

However, the numbers should increase as a legal change means it is unlikely the bank can be sued. Yet, it does not mean the accounts are compulsory, it will still be a commercial design by individual financial institutions.

"Having access to a bank account means being able to make vital transactions quickly and safely, avoiding the risk of carrying around large sums of money," said consumer minister Jo Swinson, adding that it is difficult for bankrupts to restore their coffers without an account.

It should mean bankrupts can manage their cash better, and avoid credit card charges due to missed payments.

Mike O'Connor, the chief executive of Consumer Focus, has said that banks need to start offering these accounts as soon possible.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

Credit card charges: HMRC should 'reinvest in customer service'

Mon, 10 Dec 2012 11:08:25 GMT

As HM Revenue and Customs (HMRC) is being protected from budgets cuts that other government departments are suffering, the Low Incomes Tax Reform Group (LITRG) is calling for it reinvest in customer service.

Robin Williamson, technical director of LITRG explained that the department has made progress in the last two or three years towards improving response times and correspondence handling, but there still is some way to go.

"Improving customer service generally will reduce low value work, in turn freeing up HMRC resource which can be deployed to tackle deliberate avoidance and evasion," said Mr Williamson.

"Besides, investing in customer service may indirectly (or even directly) fulfil the remit of tackling evasion and avoidance."

He added that if people are able to engage with HMRC, it is less likely that they will end up mis-paying their taxes.

Individuals may also find that the likelihood of overpaying tax is reduced, which will leave more money to pay for other expenditures, such as credit card charges.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

Loan charges: Brits to cut down on Christmas dinner spend

Mon, 10 Dec 2012 11:07:19 GMT

Brits are expected to spend around 13 per cent less on Christmas dinner and drinks this year, as concerns over the cost of the festive season mounts.

Research from Santander found that the average spend per adult will drop to £77 this year, compared to £89 last year. A further 13 per cent will do their best to not have to host any Christmas celebrations, leaving more money to cover things like loan charges.

The vast majority (82 per cent) of people will have a family meal at home to celebrate Christmas, but nine per cent (4.5 million people) will go to a pub or restaurant. Another nine per cent will have a less traditional Christmas meal, tucking in to curry, pizza, Chinese or fridge leftovers.

More than half (51 per cent) will only have their immediate family present, while 31 per cent will extend it to other relatives.

"It's easy to forget just how expensive it can be catering for friends and relatives over the Christmas period," said Alan Mathewson, chief executive of Santander Cards.

"People are reining in their spending on everything from presents to their main Christmas dinner and many are even doing their best to avoid hosting altogether."

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

Credit card claim: Telephone scam targets customers' pin

Fri, 07 Dec 2012 11:03:58 GMT

A new investigation has revealed the severity of a telephone-based scam that sees fraudsters trying to get hold of British credit and debit card holders' details.

Financial Fraud Action UK and the UK Cards Association revealed that more than £7.5 million worth of fraud has already occurred in the first eight months of this year, with 1,600 customers falling foul of the scam.

The average loss per case is more than £4,200, affecting their ability to afford credit card charges and other expenditures.

There have been more victims between January and August this year than the whole of 2011, and the police are concerned with this spike.

Gangs are targeting elderly and vulnerable bank customers, with the average victim age standing at 69.

The con artists trick the victim by reassuring them that the call is genuine by asking them to hang up and call their bank for confirmation, when really they just stay on the end of the line.

They then ask them for their PIN or get them to key it into the number pad, before sending a courier to collect the card, with the owner believing it is on the way to the bank.

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

Loan charges: Ofcom fined for abandoned calls

Fri, 07 Dec 2012 11:02:14 GMT

Watchdog Ofcom has found Npower guilty of breaching rules regarding abandoned calls, imposing a financial penalty of £60,000 for the violation.

An investigation found that the firm had made 1,756 abandoned calls to UK numbers over a seven-week period, playing marketing messages to those on the other end.

The case was found to breach legislation and Ofcom rules, but it was not one of the most serious incidences the firm has dealt with, which could have been from companies that impose loan charges.

Abandoned calls occur when a consumer picks up a phone to find a message being played down the receiver, rather than a person talking on the other end.

"Our rules are there to protect consumers from suffering annoyance, inconvenience or anxiety from abandoned calls," said Ofcom's consumer group director Claudio Pollack.
"Organisations using call centres must comply with the rules or face the consequences."

Jennifer Haines

Jennifer's speciality knowledge is credit card changes and balance transfers.

Risk of PPI mis-selling still alive, says Which?

Fri, 07 Dec 2012 11:01:26 GMT

The likelihood of banks still mis-selling their products is high, as consumer watchdog Which? reveals that the pressure among frontline staff to sell remains a part of the financial industry's culture.

It found that two-thirds (65 per cent) of bank staff who have sales roles and targets say there is "now more pressure than ever to meet them", with nearly half (46 per cent) saying they have mis-sold products to meet their goals.

This has worrying implications for the financial industry, which is still reeling from the fallout of the payment protection insurance (PPI) mis-selling scandal.

Some 81 per cent of respondents said the pressure to meet sales targets has remained the same or grown. Only six per cent of employees were told to sell based on the customer's best interest.

"Senior bankers say the culture is changing but this shows it just isn’t filtering through to staff on the front line who remain under real pressure to put sales before service, even after incentives are taken away," said Which? chief executive Peter Vicary-Smith.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

Loan charges: Payday lenders target vulnerable students

Thu, 06 Dec 2012 11:13:57 GMT

The National Union of Students (NUS) is calling for tougher rules to prevent payday lenders from targeting vulnerable students, according to a report by the Guardian.
This comes after the organisation revealed that one in ten students who have children have had to take out a payday loan to get through university of college, leading them open to expensive loan charges.

Research suggests that across all students only six per cent have used payday loans, but this grows to ten per cent among student-parents.

"It's immoral for payday lenders to target students – they're an especially vulnerable group because of the low levels of income they have to live on," Pete Mercer, NUS vice-president for welfare told the Guardian.

"If students are in need of financial support, they should contact their university and apply for a hardship fund."

Recently a former student riddled with debt committed suicide after writing a note on the back of a bank statement, indicating the trauma that money troubles can cause young people in education.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

Loan charges: cold weather to cost Brits £7 a week

Thu, 06 Dec 2012 11:13:12 GMT

Brits could be paying as much as £7 extra a week thanks to the cold weather, according to a new report, compounding the misery energy customers are suffering after the recent price hikes.

Comparison website uSwitch.com found that the freezing weather setting in for a month could cost households as much as £30 on their next energy bill, leaving less cash available for loan charges and other expenditures.

The vast majority (87 per cent) of households are expected to ration their usage in the winter to save on bills. Last year the figure stood at 75 per cent, and 15 per cent said it impacted their quality of life and health.

"As we enter this cold snap I would urge consumers to look at the low-cost or free home insulation offers currently available," said Ann Robinson, director of consumer policy at uSwitch, Ann Robinson.

"These will help to reduce your energy usage by making your home more energy efficient. These deals are disappearing and are expected to be gone by the end of December so people really do need to act fast."

Charles Baker
Charles is a reputed financial analyst with decades of experience under his belt.

Ryanair faces criticism over new credit card charges

Thu, 06 Dec 2012 11:10:07 GMT

Low budget airline Ryanair has decided to scrap an unlawful £6 fee on customers who buy tickets with a debit card, but have introduced a £6 website admin fee and two per cent credit card charges.

The firm has said the two per cent levy means it will be able to comply with a ruling by the Office of Fair Trading (OFT), but the government has rejected this claim.

"We have not required any airline to introduce new payment charges, increase their credit card charges or scrap any discounts they wish to offer,” said an OFT spokesman.

"We took action to make sure that debit card charges are included in the headline price and credit card charges are transparent and not sprung on shoppers towards the end of the booking process."

Ryanair responded by saying that the OFT was trying to distance itself from "anti-consumer rulings" and that before the legislation airlines could work with card providers so that customers could avoid these fees.

It then added that, since it has put customers in a position where it has to pay these fees, then the OFT should step forward to pay on the flyer's behalf.

These new charges add to the existing charges of 25p per person, per flight in response to the EU's Emissions Trading Scheme and £2 per person, per flight for the EU 261 Levy, which is paid to compensate passengers for delays.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

Credit card charges: EDF Energy customers to be hit by price hike Friday

Wed, 05 Dec 2012 10:56:43 GMT

This Friday (December 7th) EDF Energy customers will be hit by planned price hikes, increasing their utility bills by around £120 a year.

The 10.8 per cent gas and electricity price increase is to cause the average bill to go from £1,202 to £1,332 a year, leaving consumers with less money to cover other expenditures, such as credit card charges.

EDF Energy will be the last of the big six suppliers to introduce a price increase this side of Christmas.

"The high cost of energy is already burning a hole in consumers' pockets and this winter's price hikes will only serve to make the situation worse," said Ann Robinson, director of consumer policy at uSwitch.com.

"Families face a ticking time bomb - all it will take is a plunge in the temperature for them to feel the full brunt of these higher prices."

EDF Energy's price increases still leave it the second cheapest energy supplier, behind E.ON, which has frozen its prices for the rest of the year.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

Many Brits to risk loan charges this Christmas through payday lenders

Wed, 05 Dec 2012 10:53:30 GMT

Almost one in ten Brits will use payday lenders to help them pay for the festive period, according to a new report.

R3, the insolvency trade body, found that eight per cent of Brits will use payday loans to cover the cost of Christmas, which equates to around four million people potentially suffering financially due to high interest loan charges.

Meanwhile, debt charity StepChange said it expects to deal with 30,000 more people with debt problems related to payday lenders before the end of the year. This is double the 17,414 people who had similar problems in 2011.

"A significant proportion of these individuals will not be able to pay off the loan in time - meaning they will need to take out another one or roll it over and could end up facing high penalty charges," said Louise Brittain, R3 council member.

She urges those who are considering taking out a loan to think again about how much they need the presents, partying or luxury food.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

Student hit by huge loan charges wrote suicide note on bank letter

Wed, 05 Dec 2012 10:52:26 GMT

A promising, young former student who had generated £8,000 in debts wrote his suicide note on the back of a bank letter.

Toby Thorn, 23, who was being hit by loan charges due to a £3,000 overdraft and £5,000 in debts took his own life surrounded by bank statements and final demands from Barclays.

The message on one statement read: "Thank-you to all my friends. I appreciate all your support."

He had been studying for a computing degree at Anglia Ruskin University in Cambridge, before dropping out half-way through his second year. He then rejoined in 2011 but left once again to start a business with some friends, while debts from his studies grew.

"The bank gave him a bigger overdraft but must have known he did not have a job and would struggle to pay the money back," said his mother Anne.

"I don't think Toby could see a future and that is why he decided to kill himself. Young people can't find jobs so they can't see a way out of debt."

Anne is now trying to raise awareness of the pressures of debt on young people.

John Fieldman
Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

Brits at risk of credit card charges using plastic to plug spending gaps

Tue, 04 Dec 2012 10:43:47 GMT

Brits are using forms of credit to plug spending gaps, as the amount they earn cannot cover all of their outgoings, according to new research.

Comparison site uSwitch.com found that 23 per cent of individuals are just breaking even at the end of the month, while a further seven per cent find themselves in the red.

More than a third (37 per cent) of these people are using overdrafts to fund their expenditure, while 28 per cent are using savings and 23 per cent turn to credit cards.

This is putting Brits at risk of expensive overdraft and credit card charges that may impact them further down the line.

"If you do need to borrow money, take time to look at the best loan and credit card deals on the market," said Michael Ossei, personal finance expert at uSwitch.com.

"It might seem like a good idea to take the first deal that comes along, but the chances are you'll end up regretting it and paying more over the long term."

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

Scale of loan charges from payday lenders could be capped

Tue, 04 Dec 2012 10:42:09 GMT

Payday loan companies could find they have their interest rates capped following an agreement to amend the upcoming Financial Services Bill.

Firms such as QuickQuid, Wonga and Payday UK currently charge annual interest rates of around 4,000 per cent, which can force vulnerable people into a downward spiral of debt as they cannot afford to pay off the loan charges.

However, the government has announced that the Financial Conduct Authority (FCA) will have the power to cap these interest rates thanks to the Financial Services Bill amendment.

The move was announced by Treasury minister Lord Sassoon, after it was put forward by shadow business minister Lord Mitchell. It was backed by peers such as Lord Welby and Baroness Grey-Thompson.

"We need to ensure that the Financial Conduct Authority grasps the nettle when it comes to payday lending and has specific powers to impose a cap on the cost of credit and ensure that the loan cannot be rolled over indefinitely," said Lord Sassoon.

Amir Hussain
Amir specialises in personal loans, consumer debt and debt management.

Bank of England calls for fresh bonus crackdown

Tue, 04 Dec 2012 10:35:33 GMT

British banks are facing a renewed crackdown on bonuses, with the Bank of England (BoE) calling for directors' remuneration to be reined in ahead of the new year pay round.

The latest Financial Stability Report from the central bank, institutions were told to lengthen the incentive periods of directors from three years to between five and eight years.

Although it acknowledged that improvements to pay structures have been made since the financial crisis, the BoE said in its report that there is "further to go".

According to a report from the Centre for Economics and Business Research issued in early November, total City bonuses for 2012 will drop to £1.6 billion. This compares to £4.4 billion last year and a high of £11.6 billion in 2007.

The Financial Services Authority has previously warned that deferred bonuses should be clawed back this year following financial scandals involving the mis-selling of interest rate derivatives and payment protection insurance and the rigging of Libor rates.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

Credit card charges: Brits loyal to credit card providers

Mon, 03 Dec 2012 10:34:31 GMT

British credit card holders are loyal to their providers, with a fifth of customers too apathetic to switch to a better deal, according to a new survey.
Comparison website MoneySupermarket found that, on average, Brits have been with their current provider for six years, despite credit card charges being lower at other institutions.

Just nine per cent of credit card holders intend to switch cards in the next six months and two-thirds say it is unlikely they will move to a different provider.

The longer someone keeps hold of a card, the more likely they are to stick with it, with only four per cent of those who have had the same one for ten to 15 years likely to switch in the next six months, compared to a quarter who have had their card for a year.

"Apathy certainly reigns with many credit card holders who are happy to languish on high interest rates with their existing provider," said Kevin Mountford, head of banking at MoneySupermarket

"As a result, the tempting offers which will have initially swayed people to that credit card are likely to have changed or expired over time."

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

Loan charges: Fixed price tariffs could cost Brits £210

Mon, 03 Dec 2012 10:32:30 GMT

British energy customers on fixed price tariffs could find their energy bills soar by an astonishing £210 next year, according to a new report.

Comparison site Confused.com explained that being on a fixed tariff can save a customer money. However, when it comes to an end, they could find their bills quickly rise as they get automatically switched to the most expensive tariff, leaving less cash available to cover expenditures such as loan charges.

The government has plans in place to ensure energy firms can no longer do this, but it is only in consultation at present and may not come into force until 2014.

Those on the Online Energy Saver 15 (Paperless Billing) tariff will find their bills grow by £210.38, while others will grow by between £131.21 and £162.84.

"We regularly recommend that consumers look at fixed and capped tariffs as a way of protecting themselves against price rises, however these figures clearly highlight the need for consumers to make a note of when their fixed price deals come to an end," said Kate Rose, head of energy at Confused.com.

If they do not, it could eradicate the savings they have made by being on the fixed tariff in the first place.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

PPI cases offloaded to workers in India

Mon, 03 Dec 2012 10:31:00 GMT

The firms processing the flood of claims for mis-sold payment protection insurance (PPI) are having to offload cases to India in order to cope with the demand and cut costs, according to the Financial Times.

Several of the biggest accountancy companies dealing with the claims have moved operations to India, as the increased competition has pre-empted the need to streamline the process.

"There are a large number of [claims processing] players and therefore, in order to gain the competitive edge from a cost and speed perspective, they are all looking at different solutions and offshoring is very much top of the radar," Angela Hickmore, director at Interim Partners, told the Financial Times.

Outsourcing of PPI has occurred among the big four accountancy firms - PwC, Deloitte, Ernst & Young and KPMG, as well as a number of others.

This trend could be set to continue, as the number of claims remains constant. The caseload increased by 129 per cent in the first half of the year, according to the Financial Services Authority.

Jennifer Haines

Jennifer's speciality knowledge is credit card changes and balance transfers.

Bank charges for overdrafts excessive, report claims

Fri, 30 Nov 2012 16:54:15 GMT

The Bank of England has revealed that soaring bank charges on overdrafts could be having a negative impact on consumers, with the average rate reaching 19.65 per cent.

This is nearly 40 times higher than the base rate, which is at an historic low of 0.5 per cent, reports the Daily Mail.

An overdraft of £1,000 utilised for a year would cost a consumer an additional £196, which could be especially problematic for those living on the breadline or using facilities such as this to pay their bills.

Andrew Hagger, a personal finance analyst from the website Moneycomms.co.uk, said: "The record cost of overdraft borrowing is an unwelcome drain on the family budget which is already being hammered by rising fuel, food and energy bills."

He added that there is a concern the official figures do not show the actual cost of borrowing from banks.

Many Britons have turned to payday lenders in recent years, a trend that could increase with the government set to cap their base interest rate.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

Consumers with good rating 'not offered best bank charges'

Fri, 30 Nov 2012 16:53:06 GMT

Concern has been expressed that consumers are not being offered the best bank charges available to them despite having strong credit ratings.

A report from This Is Money revealed that several Britons with 'excellent' credit ratings have contacted the magazine in recent months to query why they are not being offered better rates for their cards and loans.

Lenders only have to offer the best advertised representative APR rates to 51 per cent of successful applicants, but those with the strongest rating should theoretically be given the best treatment.

However, banks have pointed out that they are under no obligation to offer the best rates and said a number of factors go into their decision.

"It is important to note that all our advertising highlights the fact that this is a representative rate, and is not the rate guaranteed to all accepted applicant," said a Halifax spokesperson.

A study from Which? recently warned that the number of credit card deals on offer is muddying the waters and confusing consumers.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

Credit card charges: Cashback deals could be too complex

Fri, 30 Nov 2012 16:20:15 GMT

The strong competition between cashback credit card providers could make comparing the best products on the market increasingly confusing.

According to a Which? study, the number of deals on offer are at the their highest level in three years, seeing the range available double in recent times.

The consumer body has warned that this rise in choice could result in credit card owners becoming overwhelmed by the complex range of fees, rates and conditions when looking to get the best deal.

The card, which accrues cashback each time it is used depending on the user's spending habits, can still run up credit card charges if consumers are unable to stay on top of their finances.

Looking at a number of providers, including American Express, Capital One and Barclaycard, Which? discovered vast differences between the minimum and maximum amounts of cashback available as part of the deal.

It also found the terms and conditions, and annual fee charges varied from product to product.

Jennifer Haines

Jennifer's speciality knowledge is credit card changes and balance transfers.

PPI mis-selling claims could top £14bn

Fri, 30 Nov 2012 16:19:11 GMT

Claims regarding the mis-selling of payment protection insurance (PPI) in the UK appear set to breach the £14 billion mark in the coming months, new figures from Gilbert Financial Research have revealed.

To date, the study shows £8 billion-worth of claims have been settled, while a further £4 billion are in the process of settlement. In addition, it is estimated that up to £2 billion in mis-sold PPI deals could be awaiting refunds.

Meanwhile, the survey also revealed that two out of every nine UK adults could have been affected by the mis-selling scandal.

Peter Warburton, director of Economic Perspectives, commented: "PPI payments are reminiscent of the privatisation proceeds of the 1980s and 1990s and are sufficiently large and widespread to influence the seasonal mood."

The news follows the announcement that the deluge of complaints and claims regarding the mis-sale of PPI has led to the Financial Ombudsman Service being required to take on an additional 500 members of staff to deal solely with the issue.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

Flood of PPI claims lead to long wait for cash, says FOS

Thu, 29 Nov 2012 11:35:20 GMT

Due to the flood of claims for mis-sold payment protection insurance (PPI) to the Financial Ombudsman Service (FOS), Brits can expect a long wait for their cash to come in.

According to This is Money, the FOS expects the number of claims to double in the next year, which means claimants could be waiting for up to a year, when normally the period is between three and six months.

It is expected that there will be double the 165,000 claims in the 2012-13 period, which is double the number estimated at the beginning of the year.

The deluge of claims has meant that the FOS has had to increase its staff levels by 25 per cent just to be able to process the claims.

Banks have to not only pay compensation for the mis-sold premiums but also must pay for FOS staff to process the claims and case fees.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

PPI furore leads FOS to increase staff by 25%

Wed, 28 Nov 2012 11:31:21 GMT

The staff required to cope with the deluge of payment protection insurance (PPI) claims received at the Financial Ombudsman Service (FOS) has required the organisation to boost its employee numbers by 25 per cent.

Over the last year, the FOS has recruited an extra 500 staff solely to deal with PPI claims, which brings the total workforce to 2,500.

If the number of claims continue at the current rate, the FOS has said that the organisation will have to continue recruiting more staff.

"We’ve now received half a million complaints in total about PPI – and so far this year we’ve handled double the number of cases that we had geared up to receive, following public consultation last year," said FOS chief executive Natalie Ceeney in the organisation's new publication.

This is presenting the FOS with growing challenges, as it tries to cope with caseloads in matters unrelated to PPI. Ms Ceeney said that many of the cases should have been sorted out by financial businesses before they reach the independent dispute service.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

Findel to spend £4.8m on PPI mis-selling

Wed, 28 Nov 2012 11:30:08 GMT

Retailer Findel is the latest organisation to receive a large charge for its role in the mis-selling of payment protection insurance (PPI).

The Financial Times reported that the Hyde-based group will have to take a £4.8 million hit, with £1 million already refunded and a further £3.8 million expected to be paid out.

Between 2005 and 2008 the firm, which works in the home shopping, educational and healthcare sectors, sold PPI to 267,000 customers.

A study indicated that "a small proportion [of customers] may have suffered material financial detriment through being mis-sold an unsuitable insurance product".

Findel recently posted a half-year operating profit, with sales of brands such as Kitbag, Kleeneze and Express Gifts generating sales of £275.1 million, up 8.1 per cent from £254.6 million.

In the same period last year it reported an operating loss of £600,000, which it managed to turn around to a £500,000 profit.

Jennifer Haines

Jennifer's speciality knowledge is credit card changes and balance transfers.

Loan charges: payday lenders have new code of practice in place

Tue, 27 Nov 2012 12:59:55 GMT

Payday loan companies now have to follow a new code of practice to protect financially vulnerable individuals who use them from loan charges.

The Consumer Finance Association (CFA) has put the code in place, as well as proposing a deadline for when the firms have to adhere to the standards outlined.

It will instate a limit on the rollover of the loans to three occasions, customers can have a minimum of 30 days to tackle financial troubles and interest will be frozen for those in hardship.

This should serve to give individuals more time to pay back their high interest loans.

"While this is a significant step forward for the responsible members of the payday industry, it is far from the end of the journey," said Russell Hamblin-Boone, chief executive of the CFA.

He added that there will be an independent monitoring framework to work alongside the government and other groups to ensure high standards are met.

The code is voluntary, but if a firm does not obey it, they could face being expelled from the CFA if they do not change their ways.

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

Credit card charges: Brits to spend £22 billion on Christmas

Tue, 27 Nov 2012 12:59:08 GMT

Christmas is an expensive time of year for Brits, with a new survey suggesting that in total £22 billion will be spent during the festive season.

Comparison site MoneySupermarket.com revealed that the average spend is around £445 per person, which is up 1.8 per cent on last year's figure of £437.

Those aged 35 to 54 spend the highest amount of money at £491 per person, while 18 to 34 year olds spend just £415. Children are set to receive £132 worth of presents each, on average.

Worryingly one in five (19 per cent) expect that Christmas will put them further into debt, which could result in extra credit card charges. Among 18 to 34 year olds this rises to 25 per cent.

"Christmas shopping is a significant area of expenditure for parents in particular. And with only one pay day left for most people until Christmas, it is important to take steps now to manage your finances in the run up to the big day - and beyond," said Clare Francis, financial expert at MoneySupermarket.com.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

Nationwide suffers losses due to PPI payouts

Tue, 27 Nov 2012 12:58:06 GMT

British bank Nationwide has suffered a slump in its half-year profits thanks to losses caused by payouts for allegedly mis-sold payment protection insurance (PPI) and commercial property loans.

Its pre-tax profits fell by almost 50 per cent to £124 million in the six months to September. Earlier in the year they stood at £238 million.

The fall in profits has been attributed to the £45 million put aside for compensating those who were supposedly mis-sold PPI and a £193 million impairment charge for commercial property loans.

Nationwide has now set aside a £173 million PPI provision.

Despite this, Nationwide's chief executive Graham Beale has called the figures "credible", considering the difficult climate.

The bank underwent its highest mortgage lending period in the six months for four years, with gross residential mortgage lending increasing 15 per cent to £10.2 billion.

It has also revealed plans to expand its market involvement and move into lending to small and medium-sized enterprises, beginning in 2014.

Jennifer Haines

Jennifer's speciality knowledge is credit card changes and balance transfers.

Loan charges: Brits hoarding millions of pounds worth of loose change

Mon, 26 Nov 2012 13:32:11 GMT

Brits have £317.5 million in loose change gathering dust around their homes, according to a new survey.

Lloyds TSB found that UK adults have on average £14.15 at home, with men keeping £18.18, compared to women who leave £10.19 lying around.

A quarter (27 per cent) of respondents said they have more than £20 stashed away, while ten per cent have between £50 and £100 and three per cent have more than £100 in coins at home.

This money is used by 37 per cent of Brits to pay for small items such as parking and coffee. However, ten per cent of men and nine per cent of women do put the money into savings accounts.

"By hoarding our loose change we are not making the most of this money," said Greg Couglan, head of savings at Lloyds TSB.

"It could be working a lot harder if it were invested directly into a savings account, earning interest. As the saying goes we need to look after these pennies, so that the pounds can look after themselves."

This money could also be used to put towards loan charges and utility bills.

Samantha Clarke
Samantha is a former banking assistant and has over ten years experience in retail banking.

Payday loan bank charges lead to growing debt problems

Mon, 26 Nov 2012 13:30:38 GMT

Bank charges resulting from high interest payday loans are causing debt problems to grow, according to a new report.

The Citizens Advice Bureau (CAB) found that there has been a ten-fold increase in individuals who are seeking help for multiple debts that include payday loans in the last four years.

In the first quarter of 2009/10, just one per cent had a debt problem due to payday loans. In the corresponding quarter this year it had grown to ten per cent.

"Quick cash payouts can have damaging long-term consequences," said CAB chief executive Gillian Guy.

"Citizens Advice Bureaux up and down the country are seeing people who are already in long-term financial difficulty and are using payday loans as a desperate way to try to stay afloat."

The CAB is trying to get payday loan customers to "name and shame" the company they used if they have not been keeping to their self-regulating charter.

Amir Hussain
Amir specialises in personal loans, consumer debt and debt management.

Low pay figures sound warning over loan charges

Fri, 23 Nov 2012 16:55:09 GMT

Women and part-time workers could be the most likely to be hit with sky-high loan charges as they try to make ends meet.

Low pay estimates for April 2012 show that there were 287,000 jobs paid below the national minimum wage held by people aged 16 and over.

This constitutes 1.1 per cent of all employee jobs in the UK labour market.

People in part-time work were nearly twice as likely as people in full-time work to be paid less than the minimum wage, with 1.7 per cent of part-time jobs and 0.9 per cent of full-time jobs below the minimum wage.

Jobs held by women were more likely to be paid less than the minimum wage than jobs held by men - 1.3 per cent compared with 0.9 per cent.

People on low pay are more likely to take out loans to cover day-to-day costs, adding further to their financial problems.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

Bank refunds: reform gap puts savers' cash at risk

Fri, 23 Nov 2012 11:59:25 GMT

Attempting to get bank refunds could be made harder for customers as a loophole in proposed banking reforms may put savers' cash at risk.

Bank of England chief Sir Mervyn King claims taxpayers could be left footing another huge bill if there were a second financial crisis, reports the Telegraph.

He called for protection for depositors whose savings temporarily rise above the £85,000 compensation limit, otherwise there would be “enormous pressure” to resort to a state bail-out again.

New plans to spare taxpayers another bailout mean that bondholders will be forced to take a big hit if a bank is about to collapse.

However, savers would take equivalent losses on anything above £85,000 as they rank alongside bondholders.

"For any big bank on any given day, there will be thousands of people who – through no fault of their own – happen to have deposits in their bank of more than £85,000," said Sir Mervyn.

Anyone waiting for a house purchase to go through, or who has just received an inheritance or divorce settlement, could inadvertently be subject to losses.

However, a depositor guarantee to protect customers who had innocently breached the limit would also cover bondholders, leaving the taxpayer to foot the bill again.

Sir Mervyn also told the Parliamentary Commission on Banking Standards that it will still be necessary to "ring-fence" consumer banking from more risky investment activities.

The Bank of England will take over regulation of the banks from the Financial Services Authority next year.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

Soaring credit card charges pose long-term debt risk

Fri, 23 Nov 2012 11:56:16 GMT

Consumers could be sidled with debt for decades because of soaring credit card charges and cuts to minimum repayments, new figures indicate.

Interest rates on credit cards have risen to an 18-month high of 19.1 per cent, according to Moneyfacts.

It means someone with a £5,000 debt on a card repaying one per cent each month will repay an additional £692.

At the same time, a handful of lenders have reduced minimum monthly payments, meaning consumers could take a lot longer to clear their debt.

Some banks have reduced minimum repayments from the normal 2.5 per cent to one per cent or £5. The difference between paying off one per cent or 2.5 per cent is huge in the long run as interest mounts for longer.

Moneyfacts finance expert Rachel Springall said: "Since last year, the majority of credit card lenders allow their customers to pay as little as one per cent of the original debt each month, which means card holders will be taking longer to repay their balance and are incurring interest for a longer duration."

Meanwhile, transferring the balance to another card will still incur credit card fees. For example, a debt of £5,000 would cost £200 to move with a four per cent transfer fee.

Jennifer Haines

Jennifer's speciality knowledge is credit card changes and balance transfers.

Payday lenders warned over loan protection

Fri, 23 Nov 2012 08:23:23 GMT

Formal investigations into "aggressive debt collection" practices by a number payday lenders have been opened by the Office of Fair Trading (OFT).

It comes as the OFT warns all 240 payday loan firms over emerging concerns about loan charges, loan protection and other important consumer rights issues.

Specifically, the body is concerned over the adequacy of checks made by some lenders on whether loans will be affordable for borrowers.

The OFT is also worried about the proportion of loans that are not repaid on time and the frequency with which some lenders roll over or refinance loans.

Other concerns include the lack of forbearance shown by some lenders when borrowers get into financial difficulty and some debt collection practices.

David Fisher, OFT director of consumer credit, said: "We have uncovered evidence that some payday lenders are acting in ways that are so serious that we have already opened formal investigations against them.

"It is also clear that, across the sector, lenders need to improve their business practices or risk enforcement action."

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

Bank charges hit £650m last year

Thu, 22 Nov 2012 15:59:36 GMT

Consumers forked out nearly £650 million in credit card and bank charges last year, new figures show.

Almost two million people have been forced to shell out for a late payment fee or unauthorised overdraft charge in the last three months, according to the data from OnTrees.

According to the Telegraph, the finance management service says this is a 29 per cent increase from the previous quarter.

Much of the problem stems from consumers who have accounts with more than one bank or credit card provider.

Twenty-seven per cent of those polled said they cannot remember all the financial institutions they are customers of.

It comes as a survey from Which? suggests that people could be incurring bank charges because account terms and conditions are too complicated.

Peter Vicary-Smith, Which? chief executive, said: "Banks should drastically reduce the length of their terms and conditions, so that their customers are not put off from reading them in the first place, and make sure they are clear, jargon-free and easy to understand."

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

PPI claims bill tops £7bn

Thu, 22 Nov 2012 14:22:47 GMT

More than £7 billion in mis-sold payment protection insurance (PPI) has been paid back to customers in just 18 months, new figures from the Financial Services Authority (FSA) show.

The bill for PPI claims was £516 million in September, bringing the total amount paid back since January 2011 to over £7 billion, the city regulator said.

Some analysts have predicted that the total for mis-sold PPI claims could reach £15 billion.

The most recent figures were taken from 24 companies that make up 96 per cent of all PPI complaints.

In January 2011 just £36 million was paid back by the banks, rising to over £535 million by the end of the year.

Last year the FSA reported on 16 firms which accounted for 92 per cent of PPI complaints.

Since the start of 2012 and the inclusion of eight more firms in the figures, the amount returned has not fallen below £400 million.

May saw the biggest bill with over £730 million paid back in just the one month.

Seven in ten PPI claims are upheld and the typical payout is £2,750.

Jennifer Haines

Jennifer's speciality knowledge is credit card changes and balance transfers.

Bank charges: Lloyds TSB T&Cs 'hardest to follow'

Wed, 21 Nov 2012 16:51:49 GMT

Lloyds TSB has the most complex set of terms and conditions (T&Cs), Which? has found as part of a new study into how institutions inform customers of bank charges, claims, rights and refunds.

The consumer champion put the terms and conditions of eight standard current accounts from major banks and building societies to the test, asking people a series of questions to see whether they understood the T&Cs correctly.

Despite testers being given unlimited time to answer the questions, none of the banks scored 100 per cent.

In fact the percentage ranged from Lloyds TSB's lowly score of 53 per cent to NatWest's barely commendable 67 per cent.

The T&Cs of current accounts from Barclays, HSBC, Santander, Nationwide, First Direct and Halifax were also tested.

Which? chief executive Peter Vicary-Smith called on banks to "drastically" improve their terms and conditions.

The study was carried out as part of the Big Change campaign, which is calling for banks to work for customers, not for bankers.

Big Change demands banks put customers first, not sales, and for bankers to be punished for mis-selling (PPI claims, for instance) and bad practice.

Jennifer Haines

Jennifer's speciality knowledge is credit card changes and balance transfers.

Bank refunds – check the small print

Wed, 21 Nov 2012 14:53:30 GMT

Terms and conditions (T&Cs) detailing consumers' rights to bank refunds, charges and claims are "frustratingly complex and difficult" to understand, according to a new survey.

Only one in ten Which? members said they had read their bank's T&Cs thoroughly when they opened their account.

This is perhaps unsurprising when the research suggests it would typically take between 25 minutes and over an hour to read a set of terms and conditions from the ten major banks.

HSBC is the worst offender, with its terms and conditions running to nearly 30,000 words, which would take an hour-and-a-half to read.

The T&Cs of First Direct and Halifax would also take more than an hour to read, with both sets running to over 20,000 words.

Peter Vicary-Smith, Which? chief executive, says it is "completely unrealistic" for customers to be expected to plough through 30,000 words of jargon and small print.

"Banks should drastically reduce the length of their terms and conditions, so that their customers are not put off from reading them in the first place, and make sure they are clear, jargon-free and easy to understand," he added.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

Loan charges: BoE minutes reveal interest rate cut 'unlikely'

Wed, 21 Nov 2012 13:21:58 GMT

Loan charges are unlikely to fall in the near future as the Bank of England (BoE) voted unanimously to hold the lending rate unchanged at 0.5 per cent.

Minutes from the bank's most recent Monetary Policy Committee (MPC) meeting reveal all nine members elected to hold interest rates at their historic low.

The document reveals the MPC discussed the likely effectiveness of reducing the Bank Rate to below 0.5 per cent, with staff consulting over a possible reduction with building societies and the Financial Services Authority.

"While it would be beneficial for some existing borrowers, there were concerns that a cut in Bank Rate might prove counterproductive," the BoE said, adding that a cut was "likely to cause a reduction in the profitability of some lenders, especially building societies".

A cut in interests would weaken balance sheets and could lead to banks and building societies increasing other loan rates or restricting lending, according to the BoE.

In light of this, the MPC said it was "unlikely" to reduce interest rates in the foreseeable future.

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

Loan charges: British roads full of motorists with driving convictions

Tue, 20 Nov 2012 11:09:17 GMT

Roads in the UK are fraught with motorists who have had a driving conviction in the past, according to a new report.

Comparison website MoneySupermarket.com found in its Monitor on Car Insurance that, of 14 million quotes it provided, nearly 3.4 million (23.9 per cent) of these were from individuals with prior convictions.

Nearly three-quarters (70 per cent) of the offences were for speeding, followed by careless and reckless driving (12 per cent) and then drink or drugs related convictions (4.3 per cent).

"Our data shows, speeding convictions top the chart for most reported conviction, and not only are motorists who commit speeding offences risking the lives of other road users and pedestrians as well as their own, there is also a significant impact on their insurance costs," said Kevin Pratt, car insurance expert at MoneySupermarket.

This can cause a price hike to car insurance quotes, leaving those with motoring offences with less money to cover other expenditure, such as utility bills and loan charges.

Charles Baker
Charles is a reputed financial analyst with decades of experience under his belt.

Credit card charges: Npower customers to be hit by price hike next week

Tue, 20 Nov 2012 11:06:43 GMT

Brits who receive their gas and electricity from Npower will be hit by the company's price hikes from next week, boosting the average annual bill by £108.
Gas bills are set to go up by 8.8 per cent, while electricity is to rise by 9.1 per cent from Monday, November 26th, increasing the average household bill for a dual fuel Npower customer from £1,244 to £1,352.

Npower is the third of the big six energy suppliers to implement the price hike, which will leave it the fourth most expensive supplier after all initiate their price increases.

"The high cost of energy will not go unnoticed this winter. As warnings of sub-zero temperatures come together with a wave of price hikes, many households will be left struggling to keep their heads above water this Christmas," said Ann Robinson, director of consumer policy at uSwitch.com.

She suggests that consumers do not take the price hikes "lying down" and instead move to a cheaper supplier, seeing as there is a £300 difference between the cheapest and most expensive tariff on the market. The extra cash could mean Brits have more to spend on utility bills and credit card charges.

Banks gave in to PPI mis-selling due to their unpopularity, says Dunstone

Tue, 20 Nov 2012 10:46:32 GMT

Financial institutions gave in to the payment protection insurance (PPI) mis-selling because they were not popular enough to be able to fight billions of pounds worth of compensation claims, according to Sir Charles Dunstone, co-founder of the Carphone Warehouse.

The former HBOS retail risk committee member said that the numbers seem "completely mad" and that he does not believe policies were mis-sold in the way the Financial Services Authority claims.

"It seems to me that the banks have just surrendered. That they are so unpopular that they should pay the money," he said.

Britain's banking industry gave up on its appeal against the High Court ruling last May, which precipitated the waves of claims that have cost the sector more than £11 billion.

Lloyds Banking Group, which took over HBOS, was hit worst by the PPI mis-selling claims, with the firm putting aside £5.3 billion for compensation, much of which could be attributed to HBOS.

Jennifer Haines

Jennifer's speciality knowledge is credit card changes and balance transfers.

Credit card charges: British tradespeople working over five hours unpaid every week

Mon, 19 Nov 2012 11:33:28 GMT

The majority of British tradespeople are working unpaid overtime every working week, according to new research.

Direct Line for Business found that seven in ten tradespeople do extra work every week without getting any financial reward. This is worth some £4.8 billion to UK economy annually.

The average tradesperson carries out 5.29 hours of unpaid work a week, totalling 275 hours across a year and £1,702 in wages, based upon the minimum wage, which could lighten the financial burden of credit card charges.

One in ten individuals work more than ten extra hours a week, which amounts to 520 hours a year.

"Tradespeople are the unsung heroes leading the way in nursing our economy back to health," said Jazz Gakhal, head of Direct Line for Business.

"The research shows that, despite the sometimes negative publicity that surrounds the work ethic of tradespeople, they are doing more than their fair share and setting the right example for the rest of the UK's workforce."

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

Bank charges: Minimal savings accounts beat inflation

Mon, 19 Nov 2012 11:32:36 GMT

In the wake of last week's news from the Bank of England that inflation has risen to 2.7 per cent, MoneyVista revealed that very few savings account beat the figure.

The financial planning service found that only 1.65 per cent of savings account beat the Retail Prices Index (RPI) and two per cent beat the Consumer Prices Index (CPI).

To put this into context, of the 2,534 savings accounts available, only 42 beat RPI and 52 beat CPI.

Savings accounts have dropped in number overall, falling 811 from 3,345 in June to the present figure.

Technically speaking, Brits earning less than 3.25 per cent after tax on their savings account are losing money in real terms by keeping it in a bank, leaving less cash to cover bank charges and other expenditures.

"It's essential for consumers to keep track of what rate they are getting and to be ready to switch, especially during these harder economic times," said Teresa Fritz, consumer finance expert at MoneyVista.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

Loan charges: Homeowners buying their 2nd property face expensive step to the next rung

Mon, 19 Nov 2012 11:31:51 GMT

First-time buyers (FTBs) who bought a home in 2007 now face an average gap of £62,281 to move into their second property, according to the bank First Direct.

To secure a deposit for a house on the second rung of the ladder costs £6,464, while the additional capital they will need to borrow tops £55,817.

FTBs who bought a property for the average price of £167,417 in 2007 had a deposit of £16,742. However, thanks to the falls in house prices, just £8,923 is left from the down payment. Based on typical capital repayments, individuals will have only have generated a total equity of £23,521.

The cost of stamp duty, conveyancers and estate agents amounts to £29,985. This leaves FTBs £6,464 short of the ten per cent deposit required for the average £229,435 house. The remaining £55,817 is required on top of their current mortgage.

"In a climate of falling house prices in many parts of the country, first time buyers can no longer rely on funding their next move with profits from the sale of their home," said Ian Bartholomew, senior mortgage product manager at First Direct.

He recommends young homeowners overpay their mortgage to build up extra equity, but this could leave them sort of cash to pay utility bills and loan charges.

Jennifer Haines

Jennifer's speciality knowledge is credit card changes and balance transfers.

Loan charges: Brits feel 'worse off' than they did a year ago

Fri, 16 Nov 2012 15:15:01 GMT

Almost half of all Brits feel worse off than they did a year ago, according to a new survey.

Comparison website Gocompare.com found that 49 per cent consider themselves worse off than 12 months ago, seven per cent higher than the figures from July 2012.

As a result, a fifth of Brits are worried about their finances and a quarter (23 per cent) say they run out of cash before payday after spending money on bills and loan charges.

Despite this, an astonishing quarter (24 per cent) of Brits have never switched the most common 20 finance products, such as insurance, mobile phone operators and energy providers.

"Don't accept your insurance renewal quotes or energy tariff changes without checking that the new price is competitive, and take time once or twice a year to review your finances and check that you are not paying over the odds for your household bills," said John Miles, Gocompare.com's business development director.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

Bank charges: Gas prices could be artificially lowered, expert says

Fri, 16 Nov 2012 10:46:01 GMT

Gas prices could have hypothetically been lowered as a result of a individuals making a number of small trades below the market price, according to a leading expert.

David Hunter, analyst at M&C Energy Group, explained to the BBC Wake Up to Money podcast that this may be done to benefit other trades or contracts they have.

The comment come following allegations that there has been manipulation of UK wholesale gas prices, which is being investigated by the Financial Service Authority and Ofgem.

Mr Hunter has suggested that this lack of transparency in the market is a concern.

"The link between wholesale price and the retail price is actually a slightly different area that affects domestic bills in terms of how and when suppliers buy their aggregate gas supplies to sell onto us as domestic consumers," he said.

"That is certainly opaque and certainly needs reform regardless of what's happening today."

Energy firms have increased their prices once again this year, leaving customers out of pocket who may be struggling with bank charges.

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

Loan charges: Families require almost £25,000 to 'break even'

Thu, 15 Nov 2012 12:40:38 GMT

The average family in Britain requires an annual income of £24,801.51 in order to simply break even, according to new research.

Mutually-owned financial adviser Skipton Financial Services revealed that this figure is a £129.35 increase on last year's income, which takes into account mortgage or rent, utilities, insurance, food, car costs, clothing, phone costs, property maintenance and travel.

It does not, however, include luxuries such as nights out, restaurants, loan charges and holidays.

"It is easy to understand why the large majority of Brits are so cash strapped," said Andrew Barker, managing director of Skipton Financial Services.

"While there has been some change in spending habits this year compared to last, families are still paying out almost as much money on the food shopping as they are on their mortgage payments."

He adds that it is worse than it looks too, as after tax and national insurance contributions families need to have a before tax income of more than £30,000.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

Loan charges: ECB demands market interest rate overhaul

Thu, 15 Nov 2012 10:40:42 GMT

The European Central Bank is calling for the system that sets market interest rates within the eurozone to undergo a serious overhaul following the Libor manipulation scandal.

In response to a European Commission consultation, the organisation, along with the its associated 17 national central banks, has suggested that there should be greater transparency in the system and the rate should be set based on real date, not just bank estimates.

"In the short term, the focus should be on improving the governance process, as well as on providing a clear road map for both the regulation and supervision of Euribor," EBC said in an eight-page response.

This would serve to reinstate the lost confidence in the banking system and prevent any future scandals.

EBC has said that it would not take on the responsibility itself, but suggests that the European Banking Authority or the European Securities and Markets Authority would be well placed to carry it out due to fewer conflicts of interest.

Barclays has already paid £290 million in penalties for manipulating rates and many other banks, including Royal Bank of Scotland, are under investigation.

John Fieldman
Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

Canadian Competition Bureau claims RBS 'lack of cooperation'

Thu, 15 Nov 2012 10:39:40 GMT

The Canadian Compeition Bureau investigating the Royal Bank of Scotland (RBS) over accusations it manipulated global interest rates has claimed that the bank has showed a lack of cooperation and given misleading statements.

RBS, the Ottawa-based agency claims, is not obliging requests for information, as the probe tries to establish if the bank is complicit in fixing the yen Libor rate.

"The suggestion that the RBS Group is 'co-operating fully' with the bureau is false," the Canadian organisation said.

RBS has said that the investigators' techniques for acquiring information raises concerns over confidentiality, but has assured that it is willing to use alternative methods.

"It is simply not accurate to imply that we do not want to cooperate with the Canadian Competition Bureau," the bank said.

The organisation was successful in gaining a court order that required RBS to handover documentation that would aid the investigation in May 2011.

RBS is one of over a dozen banks under investigation for fixing Libor.

Jennifer Haines

Jennifer's speciality knowledge is credit card changes and balance transfers.

Loan charges: Brits 'losing trust in energy firms'

Wed, 14 Nov 2012 11:53:10 GMT

British consumers are becoming increasing distrustful of energy companies as bills continue to rise at the same time as profits, according to a leading expert.

Adam Scorer, director of policy and external affairs at Consumer Focus, made the announcement as one of the UK's biggest energy suppliers revealed that its half year profits grew by 38.3 per cent shortly after putting up its gas and electricity prices up by nine per cent.

He concedes that energy firms do need to make profit so they can invest in their infrastructure, but action needs to be taken to reinstall trust in the sector.

"The information that all energy firms are required to provide must be fully transparent, comparable, and include profit and trading information from across the whole of their business," he said.

He insists that the government and regulators should ensure that consumers can take simple actions to save them money on their bills by making the market less complex, as well as implementing further energy efficiency measures. This could save people money to spend on other expenditures, such as loan charges.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

Bank claim: Barclays forced to name 208 employees connected to Libor-rigging

Wed, 14 Nov 2012 11:50:50 GMT

The High Court has required Barclays to reveal the details of 208 employees at the firm who were connected to the Libor-rigging, according to the Telegraph.

It will have to provide the names to the legal team supporting care home operator Guardian Care Homes, which is suing the bank to the tune of £38 million for mis-selling complex interest rate derivatives.

Barclays had tried to argued against the forced disclosure, but Mr Justice Julian Flaux insisted that it to not reveal the names would be "unacceptable".

The bank refused to comment on the matter, saying: "It would be premature to comment on proceedings before the Judge has made his decision."

Earlier this year Barclays was fined £290 million for its role in manipulating the benchmark, causing its chief executive Robert Diamond and chairman Marcus Agius to resign.

Barclays is the only bank to have admitted complicity in the Libor rigging scandal, affecting bank claim customers, although Lloyds, RBS and HSBC are being investigated.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

Banks chose not to withdraw PPI, says Virgin Money boss

Wed, 14 Nov 2012 11:49:49 GMT

Banks could have removed payment protection insurance (PPI) from sale years before the scandal came to light, but chose to keep selling it due to its profitability and concerns over share prices, the chief executive of Virgin Money revealed.

Jayne-Anne Gadhia explained how when she worked for the Royal Bank of Scotland (RBS) staff were aware of the risks of selling PPI.

She spoke with senior staff about withdrawing the product but no one was prepared to take the step due to the impact on the bank's bottom line.

Ms Gadhia left the firm in 2006 to join Virgin Money but it was not until 2009 that RBS stopped selling PPI, right after Stephen Hester was made chief executive when the bank was bailed out to the tune of £45 billion.

The mis-selling scandal has now cost the banking industry more than £12 billion, with the figure set to rise even further.

Charles Baker
Charles is a reputed financial analyst with decades of experience under his belt.

Loan charges: Savers impacted as inflation rate grows

Tue, 13 Nov 2012 11:27:33 GMT

The inflation rate in the UK has increased from 2.2 per cent to 2.7 per cent in October, according to the Consumer Prices Index (CPI).

This means that those on the standard tax rate must have a rate of 3.39 per cent to make real gains, while those in the higher bracket require 4.5 per cent.

MoneySupermarket.com recommends that savers check their rates to ensure they are maximising their returns. The comparison website recommends Brits look into fixed rate bonds.

"The difference between the average and top paying rates can be significant, so moving to a better deal can go a long way to help savers limit the impact of inflation on their pots," said Kevin Mountford, head of banking at MoneySupermarket.com.

It has also been revealed that food and petrol prices have also grown, adding to other problems, such as loan charges, which Brits face.

The Office for National Statistics has attributed the increase in inflation to the costs of education, which has been hit by increases to tuition fees.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

Bank charges: Millions of pounds in fuel wasted every winter

Tue, 13 Nov 2012 11:18:38 GMT

Drivers in the UK are set to waste almost £50 million of petrol this winter from leaving their car running while trying to defrost the windows, a new study has indicated.

Direct Line Car Insurance found that some 300 million road miles are wasted through idle engines, which could take the average car around the world 13,000 times.

The sky high figures are due to the fact that fuel costs are so expensive at present, as it only takes three minutes to defrost a car.

Yet, five per cent of drivers leave their car running for over ten minutes, causing them to be responsible for £2.45 million of all fuel wasted.

"With fuel prices having risen more than 40 pence per litre since 2007, it makes more sense than ever to consider alternative methods of defrosting your car on icy days," said Steve Price, head of Direct Line Car Insurance.

He recommends Brits invest in a windscreen frost guard and night aerosol sprays to prevent the build up of ice to try to save money, which can be put towards other expenditures such as bank charges.

Charles Baker
Charles is a reputed financial analyst with decades of experience under his belt.

Credit card charges: FSA is to investigate Libor-like price fixing by gas companies

Tue, 13 Nov 2012 11:16:52 GMT

The Financial Services Authority (FSA) is looking into accusations that the wholesale gas market is undergoing manipulation by energy companies to fix prices in a way that is similar to the Libor-fixing scandal, energy secretary Ed Davey is set to tell Parliament.

It revealed that the regulator has come across information provided by a whistleblower, which was also handed to Ofgem, and is now to analyse it to see if any foul play is involved.

"I am extremely concerned about these allegations and will be keeping in close touch with the regulators while they get to the bottom of this," Mr Davey will say in Commons.

The Guardian has also revealed that a person who used to work as a reporter for gas price examiners and publishers ICIS Heron found irregularities and subsequently raised concerns.

This news comes at the same time British Gas revealed it was to increase its gas bills by six per cent, adding to other issues facing people in the UK, such as credit card charges.

John Fieldman
Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

Loan charges: Brits waste billions on not switching broadband providers

Mon, 12 Nov 2012 16:35:48 GMT

British consumers nationwide are throwing billions of pounds away through not switching their broadband providers, according to a new survey.

Research by Broadbandchoices.co.uk found that more than half (58 per cent) of adults have had the same fixed-line broadband connection provider for the last five years, with each one missing out on hundreds of pounds of savings.

The typical internet user could decrease their bill by as much as £75 a year. Yet, 40 per cent of those with a fixed-line broadband connection do not intend to switch in the next five years.

A third (29 per cent) of respondents said that moving providers was too much "hassle" to switch, even if it could free up money to pay off loan charges.

"People are used to shopping around for insurance, energy or even petrol, but being more ‘switch-savvy' with broadband could save households across the UK hundreds of pounds - many consumers do not realise the money they could save," said Dominic Baliszewski, broadband expert at broadbandchoices.co.uk.

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

Bank charges: HSBC faces money laundering charges

Mon, 12 Nov 2012 15:10:46 GMT

HSBC is facing money laundering accusations after the Daily Telegraph published an expose on its Jersey accounts.

The arm of the global banking giant is typically used by wealthy expats looking to make the most of the low-tax channel island.

On Friday it was revealed, however, that many of its account holders are people who have low income jobs, while others are convicted criminals.

One account, which had £1.2 million deposited into it, is held by a man who lives a former council home in the neglected estate of Newport, South Wales.

Financial institutions are legally required to check the source the funds in their bank accounts and report any suspicious activity to authorities.

Catherine McKinnell, Labour's shadow exchequer to the Treasury said: "This case underlines why we need major culture change in our banks as well as a much tougher approach to tax avoidance and evasion."

She added that HM Revenue and Customs and the Financial Services Authority should act quickly and take any action required to get to the bottom of it, avoiding any bank charges.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

PPI payouts should have a time limit, says CBI

Mon, 12 Nov 2012 15:09:25 GMT

There should be a deadline on when Britain's banks can stop paying out compensation for payment protection insurance (PPI) claims, according to the Confederation of British Industry (CBI).
The lobbying group's director-general John Cridland, explained that there should be a line drawn underneath PPI, with the government introducing limitations on claims.

He described the mis-selling scandal as a "millstone" around the necks of banks, with the bill set to exceed £15 billion.

"This is money which can only be spent once and I can’t help thinking that the time has now come for it to be put to work more productively through lending into the economy," he said.

The news should encourage those who have outstanding PPI claims to get their legal claim in motion.

On a similar note, he added that it could be dangerous for banks to be held responsible for products sold that relate to Libor, which has been subject to fixing.

He said: "Government needs to be prepared to step in to head off judge-led law if necessary."
Jennifer Haines

Jennifer's speciality knowledge is credit card changes and balance transfers.

PPI: BBA to scale back Libor rates following scandal

Fri, 09 Nov 2012 15:37:32 GMT

Libor interest rates should be cut by next April in order to restore trust in the benchmark after it was fixed by Barclays and other financial institutions, according to a leading trade body, which is adding to the issues currently facing the bank, such as the PPI mis-selling scandal.

The British Bankers Association (BBA) said that only 30 of the 150 variants of Libor should be kept, which would mean ending quoting rates in Australian dollars, New Zealand dollars and Danish and Swedish kronor early next year.

Rates left behind will be spread across five currencies and six maturities under the plan and BBA has also proposed to stop quotes in sterling.

"In the event that oversight of Libor is transferred away from the BBA prior to these proposals being fully implemented, any changes should be open to ongoing review by the new administrative body," the BBA said.

"However, based on initial feedback from stakeholders, the BBA feels that the time-frame proposed in this paper should be achievable."

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

Bank staff 'forced into mis-selling PPI'

Fri, 09 Nov 2012 14:47:43 GMT

A former member of staff at NatWest has revealed how employees were pushed into selling payment protection insurance (PPI), even when it was not suitable for the customer's needs, according to a new expose from the Guardian.

The NatWest staff member worked for the bank between 2002 and 2004 and explained how the focus of her work was to sell PPI.

"In my role as a customer adviser I had to sell 10 loans a week with seven or eight having PPI," said the anonymous source.

"There was plenty of training in 'disturbance techniques', making the customer feel anxious about their ability to repay the loan in the event of accident, sickness, unemployment or death."

Individuals who did not meet the quota were put under great pressure through a performance development plan. If they then continued to not get the sales after a few weeks, it could lead to their dismissal.

This deliberate mis-selling has cost the banking industry in the UK more than £11 billion.

Samantha Clarke
Samantha is a former banking assistant and has over ten years experience in retail banking.

Loan charges: Low earners have experienced the lowest income growth, TUC says

Thu, 08 Nov 2012 16:44:29 GMT

Britain's lowest earners are the ones who have suffered from the weakest earning growth in the last 26 years, according to the Trades Union Congress (TUC).

The organisation's general secretary, Brendan Barber, explained that despite the introduction of minimum wage representing a boon to the lowest earners, inequality across the country has ensured that others raced ahead.

"The top one per cent benefitted most from the boom, played the biggest role in causing the crash and then protected their earnings during the recession," he said.

Lower income earners, meanwhile, have had to bear the brunt of the economic crisis, having to fork out on loan charges. Workers on average incomes have lost more than £600 and below that the impact is even sharper, he added.

He suggests that the 'Living Wage' be introduced, which is designed to meet a minimum standard of living, as well as a bold reform of executive pay to stop incomes at the top soaring off.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

Bank charges: Child benefit cuts mean households will have to 'tighten the belt'

Thu, 08 Nov 2012 12:37:35 GMT

Households that receive child benefits will have to "tighten their belts" when cuts reduce the amount of money they receive to cope with bank charges, according to a leading expert.

Speaking to the BBC Radio 5 Live podcast, Kevin Mountford, spokesperson for MoneySupermarket.com, explained that families are likely to be around £1,000 a year worse off due to the impacts of the austerity measures.

"We knew that some of the plans were back-ended and as we move out of 2012 and beyond, we're going to start to see the impact," he said.

From next year, he added, it is likely to get even tougher.

Coming up to Christmas and the cold weather of the winter, not just low-income homes are going to feel the bite. Everyone will have to look at their outgoings to try to stick to a budget.

Since April 2010, HM Revenue and Customs has been paying £20.30 a week for the first child and then £13.40 for each child after that.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

Towergate to sell off PPI arm, Sky reveals

Thu, 08 Nov 2012 12:35:21 GMT

Financial firm Towergate is lining up the sale of its payment protection insurance (PPI) division, which could lead its owner to make hundreds of millions of pounds, Sky News has revealed.

Owner of the firm, insurance broker tycoon Peter Cullum is looking to sell Paymentshield, the arm of the company that sells policies to cover mortgage payments and home insurance as well as PPI. Although there have been other considerations for the division's future, including expanding it within Towergate.

The arm has enjoyed a great deal of success in recent years and has avoided becoming embroiled in the wider mis-selling scandal.

Speaking to Sky News, a spokeswoman from Towergate revealed the firm was "proud" of not being guilty of mis-selling, adding that it was very pleased with its growth in recent years.

The payment protection insurance scandal has cost the banking industry in the UK upwards of £11 billion.
Jennifer Haines

Jennifer's speciality knowledge is credit card changes and balance transfers.

Loan protection: The Co-operative Group and Camden Council to tackle London house prices

Wed, 07 Nov 2012 13:30:21 GMT

The partnership of the Co-operative Group and Camden Council is to tackle high house prices in London by creating more affordable housing options in the north London borough.

Camden has the third highest house prices in Greater London, pricing out many on low incomes or first-time buyers. However, the two organisations are introducing a new shared ownership scheme to help people in the area buy locally.

The Co-operative Bank has made its whole range of mortgages that are usually at a 90 per cent loan-to-value ratio for just a five per cent deposit, with rates beginning at 3.99 per cent, providing mortgage loan protection for many homeowners.

These products will be available to many homes being built by the local council across a number of developments.

"We're really pleased to be working with The Co-operative Bank to try and buck the trend and encourage home ownership across a wide range of backgrounds rather than it being something exclusively for the borough's higher earners," said Camden Council Cabinet member for housing, councillor Julian Fulbrook.

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

Credit card charges: Energy price increases push thousands into fuel poverty

Wed, 07 Nov 2012 13:29:19 GMT

When energy companies push up their prices by one per cent, an extra 40,000 British households are pushed into fuel poverty, according to a leading expert.

Sarah Wright, senior campaigns and communications officer at National Energy Action (NEA), explained that the elderly are particularly at risk.

Not only can this leave these individuals in fuel poverty out of pocket, but it could lead to credit card charges through missed payments.

In addition, she added, older people may choose to limit the amount of energy they use to save money, but living in a cold house can lead to or exacerbate a range of health conditions, including strokes, heart attacks and bronchitis.

"It is really important that you do all you can to ensure that your home is as energy-efficient as possible," said Ms Wright.

"The government's Warm Front scheme provides grants to help with the costs of heating and insulation measures for low-income households."

She warns that it ends in March 2013, so it is important to act now to avoid missing out.

Government statistics suggest that there are 3.5 million households in fuel poverty and another 5.3 million classed as fuel-poor.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

Credit card charges: Brits to use savings to 'pay for Christmas presents'

Wed, 07 Nov 2012 13:28:34 GMT

British consumers hoping to get their families the presents they want this Christmas are having to dip into their savings, according to a new survey.

MoneySupermarket.com found that almost a quarter (23 per cent) will raid their savings kitty, which is up 15 per cent on last year, while just 38 per cent will use their disposable income.

Just one in ten have had the foresight to start a savings scheme earlier on in the year to fund Christmas.

More concerning, however, is the ten per cent who put their festive spend on a store or credit card, potentially leading to expensive credit card charges further down the line.

"It comes as no surprise that a quarter of those polled plan to break into their personal savings pot to get through the Christmas season. Yuletide can be an expensive time and it's easy to get swept up in the festivities and spirit of spending," said Kevin Mountford, head of banking at MoneySupermarket.com.

He added that there is still time for Brits to create a budget for Christmas and stick to it. This should help stop consumers spending more than they want.

Jennifer Haines
Jennifer's speciality knowledge is credit card changes and balance transfers.

Credit card charges: London Living Wage has grown to £8.55, says mayor

Tue, 06 Nov 2012 13:06:08 GMT

Mayor Boris Johnson has revealed that the London Living Wage will increase from £8.30 to £8.55, while elsewhere in the country it will grow from £7.20 to £7.45.

The amount is based upon the actual cost of living in the capital and the rest of Britain that would allow workers to live comfortably, ensuring they can pay off their credit card charges.

Although the wage is not a legal requirement, there are some 200 employers that have backed the scheme and pledged to pay their staff the living wage. This has benefitted around 11,500 since its introduction in 2005.

Mr Johnson has said that the living wage not only benefits its recipients but also the businesses too.

"By building motivated, dedicated work forces the living wage helps businesses to boost the bottom line and ensures that hard working people who contribute to London's success can enjoy a decent standard of living," he said.

Neil Carberry of the CBI employers' group criticised the proposal, saying that whether or not businesses pay their staff more should be based upon their own situation.

Loan charges: Economic crisis has 'boosted levels of stress'

Tue, 06 Nov 2012 13:03:50 GMT

The financial crisis has caused more and more Brits to suffer from stress, according to new research.

Life insurance and pension provider Friends Life found that a third (32 per cent) of workers in Britain have called in sick to work due to stress, with more than half (52 per cent) doing so in the last year.

The report, which coincides with National Stress Awareness Day on November 7th, revealed that the main cause of stress is money, impacting 36 per cent of respondents through problems such as loan charges. This is followed by work (25 per cent) and relationships (16 per cent).

Nearly half (48 per cent) said they have experienced more stress since the recession hit in 2008, with 49 per cent concerned with their job security.

"There is still much work to be done to ensure that stress caused by the working environment is recognised as a serious condition that impacts on the wellbeing of the individual and the productivity of the company," said David Williams, director of Group Protection at Friends Life.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

Credit card charges: Brits have insufficient salary cushions

Mon, 05 Nov 2012 14:55:23 GMT

Many Brits do not have enough savings in their bank accounts to meet the recommended salary cushion, which serves as a safety net, according to new research.

The recommended salary cushion is three months' average monthly take home (£5,756). Yet, HSBC found that a third (31 per cent) of UK households have £250 or less put aside.

Going by the average monthly household outgoings of £1,669, on expenditure such as rent and credit card charges, these savings would last just five days.

Those aged 16 to 24 and 35 to 44 are the least prepared, even more so than last year. Nearly half of the younger group have less than £250 in savings, compared to 32 per cent in 2011, while 42 per cent of the older age bracket are in the same position.

"These findings highlight a lack of financial preparation among the British public that appears to have worsened slightly over the past year," said Bruno Genovese, head of savings at HSBC.

"In today's uncertain economic climate, it is important that families are setting aside a realistic sum of money to be used in emergencies."

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

Bank charges: Retirement plans put 'at risk' by economic downturn

Mon, 05 Nov 2012 14:54:33 GMT

People approaching retirement are having to put their retirement plans on hold due to the negative fallout of the economic crisis and bank charges, according to new research.

Age UK Enterprises, the commercial services arm of charity Age UK, found that although three-quarters (74 per cent) of people over the age of 60 have exciting retirement plans, nearly a third (29 per cent) feel concerned about their financial situation.

A quarter (27 per cent) of those who are worried feel that it is the financial crisis that has impacted their retirement, causing annuity rates to fall and poor returns on savings.

Yet, four in five (81 per cent) say part of the reason their retirement plans are looking uncertain is because they didn't spend enough time preparing.

"In this challenging economic environment it is more important than ever to properly plan ahead to maximise income in retirement, so that the needs and aspirations of later life can be met," said Gordon Morris, managing director at Age UK Enterprises.

Charles Baker
Charles is a reputed financial analyst with decades of experience under his belt.

HSBC puts aside another £500m for PPI claims

Mon, 05 Nov 2012 14:52:13 GMT

HSBC has had to put to one side another £500 million to cater for the growing tide of claims resulting from mis-sold payment protection insurance and money-laundering charges.

The bank was fined by US authorities for allowing rogue states and drug cartels to launder billions of pounds through its American operation.

So far the lender has put aside £925 million to cover the scandal, but it has concerns that the figure could rise further as no actual agreement on the final figure has been made.

"The US authorities have substantial discretion in deciding exactly how to resolve this matter. Indeed, the final amount of the financial penalties could be higher, possibly significantly higher, than the amount accrued," said HSBC chief executive Stuart Gulliver.

An agreement on the settlement is expected in the next few weeks.

These penalties have caused a 51 per cent drop in the bank's pre-tax profits to £2.2 billion in the three months to September 30th.

Jennifer Haines

Jennifer's speciality knowledge is credit card changes and balance transfers.

Bank charges: Industry action needed for 'basic bank accounts'

Fri, 02 Nov 2012 16:23:08 GMT

The financial services industry must ensure there is a minimum standard for bank accounts in order to move away from some of the poor products on offer by some firms, according to The Co-operative Bank.

Basic bank accounts typically have fewer features than a standard current account and are designed for those who may find it otherwise difficult to get an account, for example, if they have a poor credit history or bank charges.

The move towards these accounts came after more and more households reported they were struggling to open an account, but consumer groups have noted that this has created a "race to the bottom" in terms of basic accounts.

As part of this minimum standards framework, The Co-operative Bank believes there should be no extra cost to access money through a cash machine, an inclusive attitude towards customers with poor financial histories and improved transparency so basic accounts are advertised alongside other alternatives.

"If no action is taken on this issue, we believe that standards for basic banking will continue to deteriorate and as a leader in financial inclusion we are not willing to sit back and let that happen," said John Hughes, managing director of retail banking at the Co-operative Bank.

John Fieldman
Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

Loan claim: Consumers adopting 'professional' budgeting techniques

Fri, 02 Nov 2012 16:22:16 GMT

More and more British consumers are adopting a 'professional' form of budgeting where people manage their finances and loan charges in a semi-professional style, according to a leading expert.
Pippa Goodman, trend consultant at independent global consumer research business The Future Foundation, said that this in part means people are using apps on their phone to stay on top of things.

For example, they may use an app to notify them when they are about to go overdrawn.

"What's great for Brits is that there are so many different options now that businesses are putting forward," said Ms Goodman.

They are able to manage their money better by making the most of options such as renting a car by the hour or paying for something in instalments, she added.

"Consumers are really empowered through technology to find out the best options and make those choices."

This is great for everyday consumer who can now adjust how they spend their money to fit their particular needs.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

RBS sets aside another £400m to account for PPI claims

Fri, 02 Nov 2012 16:21:24 GMT

The Royal Bank of Scotland (RBS) has put aside another £400 million to account for the cost of claims from customers who were mis-sold payment protection insurance (PPI).

This brings the total amount the bank has put aside to £1.7 million and comes just as it announced a pre-tax loss of £1.26 billion for the quarter to September 20th.

So far this year RBS has posted losses of £3.4 billion. Although in the same quarter last year the bank made profits of £1.2 billion.

Of the £1.7 billion put aside, RBS has paid out £1 billion in compensation.

The bank, which is 80 per cent owned by the government, conceded that the financial cost of the fallout of the PPI scandal could grow even further.

In addition to the PPI compensation, RBS has had to put to one side £50 million to compensate those customers impacted by a recent computer error that saw individuals locked out of their accounts.
Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

Lloyds sets aside further £1bn for PPI claims

Fri, 02 Nov 2012 09:32:13 GMT

Lloyds Banking Group has allocated a further £1 billion to cover compensation for customers who who mis-sold PPI, bringing its total pot to £5.275bn.

The further provision means that Lloyds has will now post a loss of £144 million for the third quarter of the year.

However, despite this news, Lloyds shares rose by seven per cent in morning trading, indicating it has not harmed its reputation.

A number have banks have had to set aside further money to deal with PPI claims, with Barclays' recently adding an extra £700 million to their pot.

In total, banks have now set aside £5.275 billion for PPI compensation.

Lloyds said the need to set aside further PPI provision was a disappointing 'legacy issue'.

The organisation's chief executive Antonio Horta-Osorio said: "The volume of complaints received in relation to legacy PPI business during the third quarter declined when compared to the previous quarter."

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

Total PPI compensation 'could be highest bill ever'

Fri, 02 Nov 2012 08:21:56 GMT

The total compensation bill for people who have been mis-sold PPI is likely to be the biggest in modern history, analysts have said.

Experts at JP Morgan have forecast that the final bill for banks could hit £15 billion, which will break the current record of £13.5 billion handed out during the pension mis-selling scandal in 1994.

British banks have so far set aside around £11.5 billion to compensate the individuals they allegedly mis-sold PPI to.

Lloyds banking group has the biggest bill so far with £5.3 billion, with Barclays coming in second with £2 billion and the Royal Bank of Scotland is expected to allocate another £300 million on November 2nd, which takes its PPI pot to £1.6 billion.

Although the issue of PPI being a poor-value product was originally raised as far back as 1998 by consumer magazine Which?, the FSA did not release its first report on the subject until November 2005.

In 2011 the High Court ruled that banks had to re-open thousands of cases of claims of PPI mis-selling.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

Total PPI compensation 'could be highest bill ever'

Thu, 01 Nov 2012 17:02:03 GMT

The total compensation bill for people who have been mis-sold PPI is likely to be the biggest in modern history, analysts have said.

Analysts at JP Morgan have forecast that the final bill for banks could hit £15 billion, which will break the current record of £13.5 billion handed out during the pension mis-selling scandal in 1994.

British banks have so far set aside around £11.5 billion to compensate the individuals they allegedly mis-sold PPI to.

Lloyds banking group has the biggest bill so far with £5.3 billion, with Barclays coming in second with £2 billion and the Royal Bank of Scotland is expected to allocate another £300 million on November 2nd, which takes its PPI pot to £1.6 billion.

Although the issue of PPI being a poor-value product was originally raised as far back as 1998 by consumer magazine Which?, the FSA did not release its first report on the subject until November 2005.

In 2011 the High Court ruled that banks had to re-open thousands of cases of claims of PPI mis-selling.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

PPI payouts should be made 'without a claim'

Wed, 31 Oct 2012 17:00:42 GMT

British consumers who have been a victim of the PPI mis-selling scandal should be able to receive a payout without having to file a claim, according to the Financial Ombudsman.
Natalie Ceeney, the chief ombudsman, told MPs that because banks "dragged their feet" the clean-up operation grew and grew. She believes that if banks were forced into paying the compensation pro-actively, it would avoid scandals such as these in the future.

The Financial Ombudsman itself, which acts as a middle man in disputes between banks and customers, has had to double its staff count and budget in the last 12 months in order to deal with the fallout of the PPI scandal.

In 2011/12 its annual budget was £103 million, but this grew to £191 million in 2012/13. Half of the Financial Ombudsman's workload is accounted for by four financial services institutions, including around 5,000 cases per month from customers of Lloyds Banking Group.

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

New regulatory inspections for Barclays in wake of PPI fallout

Wed, 31 Oct 2012 14:51:15 GMT

Barclays is to become subject to two new regulatory probes as part of the fallout of the series of scandals, including the mis-selling of payment protection insurance.

Authorities in the US are concerned that the financial services firm may have breached the Foreign Corrupt Practices Act in the way that it won business.

"The spectre of more damage to the bank's reputation in the form of further regulatory probes is weighing heavily on the shares in early trade," said Richard Hunter, head of equities at Hargreaves Lansdown, as shares in the bank fell four per cent.

The first of the two probes is by the US Department of Justice and the Securities Exchange Comission, which is addressing the methods in which Barclays won business. The second is by the US Federal Energy Regulatory Comission, which is looking into power trading in the US between 2006 and 2008.

Barclays revealed that it intends to vigorously defend itself.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

PPI costs lead to a £47m third-quarter loss at Barclays

Wed, 31 Oct 2012 12:29:36 GMT

Barclays have posted a third-quarter loss of £47 million as the cost of PPI claims and the impact of the charges on the value of its debt mount.

In the same period last year the financial institution posted profits of £2.4 billion and £1.2 billion in the second quarter.

The loss has been mostly caused by the £1.1 billion charge against its own debt and £700 million for PPI compensation. When adjusted, the figures indicate a profit of £1.7 billion, which is close to City analysts' forecasts.

Barclays has, in total, set aside £2 billion for PPI claims.

As a result of the losses, the bank has reduced its bonus pool by ten per cent when compared to the same period in 2011. It would also have performed better if it did not have to meet the costs of deferred bonuses from previous years, which stood at £942 million this year.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

Credit card claim: Energy companies owe their customers £1.2 billion

Tue, 30 Oct 2012 15:31:38 GMT

Millions of British energy consumers are overpaying their energy bills, leading utility firms to owe their customers around £1.2 billion, according to new research.

The study carried out by comparison website Gocompare.com revealed that more than half of Brits (55 per cent) are in credit with their gas and electricity supplier, with the average owed standing at £80.

Despite missing out on large sums of money, just a fifth (22 per cent) of customers have asked for a refund for their overpayment, while more than half (51 per cent) are just waiting for it to sort itself out over time.

What's more, a third (29 per cent) of Brits believe the firms are overcharging them on purpose.

"If utility bills were easier to understand then people would feel more confident in managing their accounts and overpayment would be less of an issue," said Mark Greening, head of home services at Gocompare.com.

"More straightforward bills would also make it easier for customers to compare prices from different suppliers to check that they aren't paying over the odds for their energy."

Jennifer Haines

Jennifer's speciality knowledge is credit card changes and balance transfers.

Bank charges: millions of Brits have forgotten direct debits

Tue, 30 Oct 2012 15:30:33 GMT

Many British consumers are forgetting about their direct debits and bank charges from their current accounts, according to new research, indicating a lack of financial management among savers.

Comparison website MoneySupermarket.com found that 2.68 million Brits have direct debits they forgot about after looking at their bank statement, while its research found that one in three (38 per cent) do not know how much money leaves their account each month.

The worry is that many consumers are paying direct debits for services that they no longer use.

"You should have a clear idea of what is coming in and going out of your account each month - spend five minutes looking at statements and identifying any mysterious payments you don't recognise," said Kevin Mountford, head of banking at MoneySupermarket.com.

He recommends that people really think about whether they need that seldom used gym membership or any other unnecessary subscriptions, as removing them could cut a significant amount off their monthly expenditure.

Jennifer Haines

Jennifer's speciality knowledge is credit card changes and balance transfers.

PPI claims businesses turning to interest-only mortgages

Tue, 30 Oct 2012 15:28:46 GMT

PPI claims firms are setting their sights on interest-only mortgages, which are being lined up to be the next mis-selling scandal.

According to the Observer, a multitude of claims companies are ready to launch TV advertising campaigns and make live websites aimed to raise awareness of the issue to individuals who have been potentially mis-sold their mortgage.

With interest-only mortgages, the borrower does not pay off any capital on a property, they only meet the monthly interest payments. Once this mortgage expires, they are expected to have a repayment plan in place to pay it off.

The concern is with individuals who do not have sufficient provisions to cover the capital, if they have any at all.

Many are accusing banks and buildings societies for not making the correct checks before issuing the loans and there are hints that the mortgages could be banned outright.

Property data firm Xit2 revealed that in the last ten years, more than 1.28 million interest-only only loans have been issued for home purchases where there has been no precise repayment plan.

Charles Baker

Charles is a reputed financial analyst with decades of experience under his belt.

Credit card charges: 5m people paid 'below living wage'

Mon, 29 Oct 2012 15:04:01 GMT

An astonishing one in five UK workers in UK is earning below a wage that provides them a basic standard of living and allows them to pay off their bank charges and loan claims, according to a new report.

This equates to around five million people, according to the research by financial services firm KPMG. However, when taking into account only waiters and bar staff, this increases to 90 per cent of workers.

In London, the Living Wage is considered to be £8.30 an hour, while it stands at £7.20 for the rest of the UK.

Paying a member of staff the Living Wage is voluntary, as the National Minimum Wage, which is set by law, is only £6.19 an hour.

"Times are difficult for many people, but of course those on the lowest pay are suffering the most," said Marianne Fallon, head of corporate affairs at KPMG.

"Paying a Living Wage makes a huge difference to the individuals and their families and yet does not actually cost an employer much more."

He added that if businesses can pay the Living Wage it would increase the opportunity for upward social mobility and generally improve their life prospects.

Jennifer Haines

Jennifer's speciality knowledge is credit card changes and balance transfers.

Lloyds to cut sales incentives 'to offset PPI losses'

Mon, 29 Oct 2012 15:02:46 GMT

Lloyds Banking Group has revealed that it will remove any incentive schemes linked to product sales and instead reward its staff based on their customer service performance.

According to the Financial Times, the move was made in order to rid the company of the bad mis-selling practices that led to the payment protection insurance scandal.

The decision has seen senior executives at Lloyds making a complete u-turn, after originally saying that product sales must form a part of employee targets.

Martin Wheatley, head of the Financial Services Authority's conduct division, told the finance industry last month that it should remove sales-based incentives. The Co-operative Bank was the first firm to take heed of the advice.

Barclays has also ended its sales volume objectives and HSBC and the Royal Bank of Scotland are considering the move, ensuring that, in the future, customer needs will be at the forefront of staff concerns.

John Fieldman

Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

Payment protection scandal eating away at banks' profits

Mon, 29 Oct 2012 14:59:57 GMT

The Lloyds Banking Group, Barclays and the Royal Bank of Scotland (RBS) are expected to reveal wholesale losses due to the consequences of the payment protection insurance (PPI) scandal.

Third quarter results are set to push the financial institutions into the red. Lloyds has to put aside £2 billion for PPI claims, bringing its total losses up to over £6 billion, while Barclays has had to increase its provisions by £700 million.

Barclays is to disclose losses of £100 million and RBS is anticipating that more than £500 million will have to be put to one side for PPI, as well as £200 million for interest rate swaps that were also mis-sold.

The latest statistics will bring the overall cost of the PPI scandal to the UK banking industry to more than £10 billion.

Lloyds also has further concerns that it could end up becoming embroiled in the global Libor rate fixing scandal, which could have further impacts on its bottom line.

Amir Hussain

Amir specialises in personal loans, consumer debt and debt management.

Nottinghamshire County Council Trading Standards warns of PPI claims scam

Fri, 26 Oct 2012 16:24:33 GMT

Nottinghamshire County Council Trading Standards have warned members of the public to be on the look-out for PPI claims scams, following a number of reports the organisation has received from people in the area who were targeted by these criminals.

The offence involves fraudsters cold-calling residents and telling them they are due a PPI refund, before asking for an 'administration fee' through Ukash vouchers or cash transfers from money unions.

They request this under the pretence that the person on the other end of the line will send them their payment protection insurance refund once the initial fee goes through.

When the victim passes the payment details to the caller, criminals steal the cash and provide no PPI compensation services.

Anyone who has been affected by this crime is asked to speak to Action Fraud by going to www.actionfraud.org.uk or by calling 0300 123 2040.

People are also asked to tell their friends and family about the scam.

Amir Hussain
Amir specialises in personal loans, consumer debt and debt management

South Yorkshire Police makes PPI claims warning

Fri, 26 Oct 2012 15:22:00 GMT

Scammers have been striking in South Yorkshire, targeting people who have made online loan claims.

These individuals are called by an organisation that tells them if they purchase a Ukash voucher to cover administration expenses, they can receive a loan claim of any size.

Cold-callers are also falsely offering PPI refunds of around £4,000 or offering fraudulent credit.

PC Andy Woodruff said members of the public - particularly elderly and vulnerable people - ought to be "on their guard" against scams of this type to avoid becoming a victim of the crime.

"If someone phones you and seems to have knowledge of your personal details or circumstances, do not confirm any information with them or provide them with any missing details," he recommended.

The policeman also recommended that people ask for contact numbers and names so they can verify the details of any cold callers.

Anyone with any doubts ought to call the police, PC Woodruff added.

Amir Hussain
Amir specialises in personal loans, consumer debt and debt management

Have PPI claims damaged HSBC's reputation?

Thu, 25 Oct 2012 16:46:35 GMT

HSBC "isn't as pure as the driven snow", a leading financial services company has pointed out.

In an article in The Motley Fool, financial journalist Harvey Jones highlighted its involvement in the misselling of payment protection insurance (PPI) as evidence of this.

The bank has had to pay "huge sums in compensation" to people who have made PPI claims to it, he declared, with $1.3 billion (£805 million) set aside to deal with this issue.

Furthermore, the US Senate recently fined the company $1 billion as part of an investigation into money-laundering, while it was also implicated in the Libor rate-rigging scandal, the expert pointed out.

It has also been accused of interest rate swap misselling, the specialist declared.

"Well, it is a bank after all," he noted.

HSBC is headquartered in London and has become one of the world's largest financial services and banking organisations, with 7,200 offices in 80 nations.

Samantha Clarke
Samantha is a former banking assistant and has over ten years experience in retail banking.

Loan claims: Schools 'should review uniform policies'

Thu, 25 Oct 2012 14:25:02 GMT

With many British people struggling to cope with credit card charges and finding it impossible to make loan claims, it may be time for schools to look at the cost of their school uniforms.

The Office of Fair Trading (OFT) has sent a letter to 29,500 secondary and primary schools across the nation asking them to look into their clothing policies.

A survey of educational facilities revealed that 74 per cent of state schools have a restricted list of retailers that parents can buy certain uniform items from.

This is resulting in some people being charged elevated prices, with one secondary school's sweatshirt costing £12 under this arrangement, when it could be sold for as little as £5 from a supermarket.

If parents are able to freely shop around for their clothes, they could save between £5 and £10 for certain uniform items.

Schools claim to use single suppliers to ensure consistency and high-quality, but the OFT suggested they could still achieve these goals by working with multiple retailers.

"When families are able to shop around for school uniform items, it can drive competition and bring down prices for all," assistant director in the OFT's Goods and Consumer Group Susan Oxley said.

Samantha Clarke
Samantha is a former banking assistant and has over ten years experience in retail banking.

Barclays increases PPI claims pot

Thu, 25 Oct 2012 11:53:40 GMT

Barclays has increased its payment protection insurance (PPI) payouts pot following higher-than-expected complaint volumes in the first six months of 2012.

As of September 30th, the company increased its fund for PPI refunds by £700 million to meet what the bank claims is the estimated cost of redress.

This is in addition to the £1 billion provision the firm made in 2011, as well as the extra £300 million it earmarked in the first quarter of 2012.

It elected to spend the £700 million to deal with the scandal by analysing the PPI claims it has received to date, as well as projected future volumes.

Barclays Bank is to reveal its Interim Management Statement for the third quarter of 2012 on October 31st but predicts that the group's adjusted profit before tax will be broadly similar to the current market estimate of £1.7 billion.

"The banks must set aside more money for PPI claims and make it easier for customers to get back what they are rightly owed," Which? chief executive Peter Vicary-Smith recently said.

Charles Baker
Charles is a reputed financial analyst with decades of experience under his belt.

PPI charges: People in fuel poverty 'should ask for assistance'

Wed, 24 Oct 2012 16:49:07 GMT

Brits who are worried about how they will pay their bank charges and utility bills could benefit from free assistance.

National Energy Action is urging people to see whether they could receive improvements to their insulation and central heating.

Around 3.5 million English households are currently in a state of fuel poverty, with many members of the public rationing their power consumption in order to deal with rising prices and the squeeze on incomes.

However, this could lead to health problems including bronchitis, heart attack and stroke.

As a result, people ought to see whether they can receive any help before the Warm Front initiative or one of the other energy-efficiency initiatives come to an end.

"Our Warm Front scheme offers cash to help the most vulnerable households with heating and insulation so that they can keep warm this winter," energy and climate change minister Greg Barker said, adding: "It's easy to apply."

These comments were made to mark Big Energy Saving Week, which runs from October 22nd to 27th.

Jennifer Haines
Jennifer's speciality knowledge is credit card changes and balance transfers.

Credit card charges: Breakfast clubs 'feeding hungry children'

Wed, 24 Oct 2012 16:46:05 GMT

Parents struggling to pay off bank charges and loan claims could be ensuring their children have a good meal every morning by taking advantage of school breakfast clubs.

Research from Kelloggs has shown that 79 per cent of teachers say some youngsters are hungry when they turn up to school, with a lack of money cited in 57 per cent of cases as the reason for this.

Food charity FareShare revealed a 57 per cent increase in the number of schools that are reliant on teachers to feed famished children with hand-outs, with 31 per cent of these professionals bringing food in for their pupils.

Furthermore, one-twelfth of these individuals spend between £16 and £25 every month on cereal bars or fruit.

"Breakfast clubs can provide a lifeline for these families," ContinYou chief executive Karin Woodley said.

However, 40 per cent of these clubs have shut down in the last year.

"We're extremely concerned to hear that many are being forced to close," Ms Woodley added.

John Fieldman
Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

Ombudsman receives 500k PPI complaints

Wed, 24 Oct 2012 11:56:40 GMT

Half a million PPI claims have been received by the Financial Ombudsman Service.

The 500,000th complaint was made by a female from Wolverhampton, who was missold PPI by her bank as she was self-employed when she was provided with the policy.

Currently, as many as 400 PPI complaints are received by the body every hour, with more than 140,000 complaints received so far this financial year.

This compares with less than 158,000 during the whole of 2011 to 2012.

Typically, the ombudsman upholds around seven in ten of these claims and the average PPI refund has hit £2,750.

As a result, payment protection insurance is the most complained-about product the public body has ever dealt with.

"It's extraordinary that we've today received our 500,000th complaint about PPI - and despite these record numbers, this misselling scandal shows no sign of slowing," chief financial ombudsman Natalie Ceeney declared.

She called for banks to deal with any complaints "quickly and fairly".

Samantha Clarke
Samantha is a former banking assistant and has over ten years experience in retail banking

American Express offering cashback credit card charges

Tue, 23 Oct 2012 14:59:18 GMT

American Express has launched a new product aimed at people who are trying to minimise their credit card charges.

The Platinum Cashback Credit Card provides five per cent cashback on expenditure up to £2,500 during the first three months, providing people with the potential of receiving an extra £25 at this rate.

It also delivers an ongoing 1.25 per cent flat rate, with this applying immediately thereafter.

Head of credit cards at American Express Nick Stefanovitz pointed out that a significant number of people are using debit cards and other tools for everyday spending.

He explained the new product could offer these individuals "a financial return for the way they pay".

Personal finance expert at uSwith.com Michael Ossei said: "Competition in the cashback credit card market is hotting up in the run up to the Christmas spend-athon."

He noted that people who make a credit card claim for one of these tools could get a return on their spending.

Charles Baker
Charles is a reputed financial analyst with decades of experience under his belt.

Loan claims: Homeowners 'worried about mortgage charges'

Tue, 23 Oct 2012 11:58:45 GMT

CCTV security images of a car have been released by Greater Manchester Police as part of an investigation into the sexual assault of a woman in Wigan.

On October 14th at around 04:10 BST, the 29-year-old victim was waiting in the town centre when what she thought was a taxi picked her up.

The driver took the woman to her destination and when she offered to pay, he refused her cash and sexually assaulted her, so the woman screamed and left the vehicle.

Police describe the perpetrator as a white male in his 50s who had a slight moustache, dark hair and a local accent.

At the time of the incident, he was wearing a t-shirt.

"The victim was terrified throughout the ordeal - she managed to fend him off and raise the alarm by screaming," Detective Constable Kevin Byrne said.

He urged people who recognise the car in the CCTV systems' image or the description of the offender to get in touch with the police force immediately.

Bank charges: Parents 'tightening purse strings' following higher bills

Mon, 22 Oct 2012 16:39:40 GMT

Parents could be struggling to pay essential bills and may have to make a loan claim in the future, research from the Citizens Advice Bureau has revealed.

Half of all respondents to the organisation's poll said they are planning to spend less money than they normally would this Christmas, with a similar proportion also planning to reduce their food shopping to cover other household expenses.

Furthermore, three-fifths of the parents surveyed said they have tightened their belts during the last 12 months to allow them to handle other rising daily outgoings.

A total of 46 per cent of respondents are using less electricity than they used to and 38 per cent have insulated their house, while one-third have checked with their energy company to ensure they are on the right tariff.

"Big energy bills and rising daily costs are putting extra pressure on household budgets that are already stretched thin," Citizens Advice's chief executive Gillian Guy said.

Charles Baker
Charles is a reputed financial analyst with decades of experience under his belt.

Interest charged on loan claims made through 'bank of mum and dad'

Mon, 22 Oct 2012 15:48:19 GMT

While many people may borrow money from their parents to avoid bank charges and other expenses involved in loan claims, many mothers and fathers expect interest to be paid on these debts.

Research from HSBC found that while 19 per cent of first-time buyers (FTBs) in the last year received some cash from their parents, 52 per cent of the family members who provided the money expect it to be paid back.

Also, 73 per cent of these individuals wish to receive some interest on the debt as well, with common rates ranging from 2.1 per cent to 2.5 per cent.

Only 31 per cent of families who provided FTBs with financial assistance gave outright cash gifts, while 17 per cent requested part-ownership in the real estate.

"Family support has become an important part of the first-time buyer financing mix," HSBC head of mortgages Peter Dockar said, adding: "It is best to agree the terms with family members at the outset."

Charles Baker
Charles is a reputed financial analyst with decades of experience under his belt.

Banks 'struggling with volume of PPI claims'

Mon, 22 Oct 2012 15:07:04 GMT

Banks are struggling to deal with the total volume of PPI claims and are finding it difficult to source and retain staff, a study has shown.

Brightpool, a financial services recruitment firm, pointed out that annual staff turnover has grown to reach over 50 per cent at outsourced contractors that have been hired to deal with missold PPI refunds.

Very few people are competent enough to process these cases and capable of dealing with the pressures the huge backlog brings, it continued.

Barclays Bank recently set aside an additional £700 million to deal with PPI claims, with the overall industry bill expected to hit more than £10 billion.

Managing director of Brightpool Angela Hickmore suggested that companies processing PPI refunds are "swimming against the tide".

"It's becoming a real struggle to keep staff, as PPI claims handling departments tend to be very high-pressure environments, with extremely repetitive and target-based tasks," the representative pointed out.

Charles Baker
Charles is a reputed financial analyst with decades of experience under his belt.

Loan protection: Bank of Scotland fined over mortgage record failings

Fri, 19 Oct 2012 11:56:32 GMT

The Bank of Scotland (BOS) has been hit with a £4.2 million fine for loan protection failings relating to mortgage data.

An investigation by the Financial Services Authority found shortcomings in BOS' data systems meant mortgage records for 250,000 customers were inaccurate.

As a result, many complained that they had been excluded from a programme put in place to amend potentially confusing information relating to Halifax mortgages and had not received goodwill payments.

Furthermore, payments totalling £20.4 million were mistakenly sent to 22,700 Halifax mortgage holders who should not have been included in the initiative.

Recent research from Which? revealed over half of Halifax customers are dissatisfied with the service they receive. The bank achieved a 48 per cent satisfaction score, second only to Santander on 46 per cent.

The FSA found BOS was using incorrect mortgage records between 2004 and 2011 and director of enforcement and financial crime at the body Tracey McDermott noted the breach "is particularly serious because the inaccuracies built up over a period of seven years.

"There was no structure in place to identify errors as they occurred," she added.

Samantha Clarke

Samantha is a former banking assistant and has over ten years experience in retail banking.

Too many loan claims 'can lead to bankruptcy'

Thu, 18 Oct 2012 16:47:57 GMT

Many people who relied on loan claims and other forms of credit before the financial crisis could find themselves in serious difficulties nowadays.

Life coach and mentor Annette Greenwood said: "The recession hits us all unless you are wealthy."

Both companies and people are falling into bankruptcy after "living beyond their means", she declared.

Organisations are "cutting back" and streamlining their operations in order to boost their revenue and redundancies are being made, the expert continued.

While people are suffering stress from bank charges, she also claimed that resentment and disharmony are being fostered in this environment.

This "has a negative impact on individuals and can lead to depression", she warned.

Instead of resisting the situation, acceptance is a healthier outlook, Ms Greenwood argued.

Director of the Anglo European Clinic and consultant psychiatrist Lars Davidsson recently pointed out that people can feel anxiety when they cannot pay bills and mortgages.

Charles Baker
Charles is a reputed financial analyst with decades of experience under his belt.

'Reclaim credit card charges' when buying shoddy goods online

Thu, 18 Oct 2012 15:47:20 GMT

People buying goods online could reclaim credit card charges if there are problems with the purchase.

This is according to a guidance document created by Blackhair Magazine using tips from the Financial Ombudsman Service, which noted this payment protection does not apply to every circumstance.

If members of the public have any problems, they should discuss these with their card provider, it continued.

However, credit card refunds can often be received when goods do not reach the agreed standard or do not arrive at all, the publication noted.

It also highlighted the dangers posed through phishing emails and other scams, as these can result in people incurring fraudulent bank charges.

Unless a person is "certain the request is genuine", they should not provide banking details, dates of birth, addresses or other personal details over the internet, Blackhair Magazine asserted.

"If in doubt, don't give it out," it warned, stating: "There are lots of phishing scams doing the rounds."

John Fieldman
Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

Tenants 'vulnerable to unmanageable loan claims'

Thu, 18 Oct 2012 11:02:05 GMT

Tenants in the private rented sector could be particularly susceptible to making unaffordable loan claims or incurring serious bank charges.

Figures from National Debtline revealed that more than 50 per cent of all calls to the charity are from renters, representing the first time that this has occurred.

Furthermore,since 2007, there has been a 99 per cent rise in the number of people contacting the organisation who are in rent arrears, with almost 12,000 people getting in touch with the group because of this problem between January and August 2012.

Chief executive of the Money Advice Trust Joanna Elson said: "Rising rent prices are not only making it harder for people to save for a deposit, they're also pushing more people in debt."

She claimed sharp increases in the cost of a tenancy can force people and families "over the edge" and into unmanageable debts.

Growing demand and limited supply are pushing average rents up, the specialist pointed out.

Amir Hussain
Amir specialises in personal loans, consumer debt and debt management

Could loan claims impact love lives?

Wed, 17 Oct 2012 15:32:28 GMT

People struggling with loan claims and credit card charges could find their love life takes a hit as well as their finances.

Research from MoneySupermarket.com found 38 per cent of Brits would allow the monetary situation of their partner to determine whether or not they would stay in the relationship.

Furthermore, while 45 per cent of women said this issue would influence whether or not they stayed with someone, only 30 per cent of men did.

While 38 per cent of respondents said they would reconsider dating someone who is seriously in debt, only 30 per cent claimed they would be interested by the amount of savings they had.

A total of 63 per cent of the people polled said they would not want to have a partner who is unreliable with money.

"It seems being sensible with finances, having a secure job and a good grasp of money may improve your chances of finding Mr or Miss Right," MoneySupermarket.com head of banking Kevin Mountford declared.

Samantha Clarke
Samantha is a former banking assistant and has over ten years experience in retail banking.

Elderly Poulton woman victim of PPI claims scam

Wed, 17 Oct 2012 10:38:30 GMT

Police have warned people in Lancashire to be on the lookout for PPI claims scammers, after a 76-year-old Poulton female was duped out of hundreds of pounds.

The victim received a phone call on September 30th from a man who said she was owed a refund for bank charges of £4,700.

However, the caller claimed the woman would need to pay £310 if she wished to receive her PPI compensation and the elderly female paid the money through Ukash transactions.

Later, she realised the telephone call was from a fraudster.

Detective Constable Tony McClements from Lancashire Police said: "An elderly and vulnerable person has been conned out of money."

He noted that PPI refunds are "topical" at present, while the recession means members of the public are "struggling to make ends meet".

"No reputable company would ever ask you for advance payment," the policeman asserted, advising people to ensure their elderly or vulnerable friends and relatives are aware of this issue.

John Fieldman
Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

Loan charges: Grandparents 'helping youngsters with finances'

Tue, 16 Oct 2012 16:39:29 GMT

Brits are helping their grandchildren avoid loan claims and deal with bank charges.

Yvonne Goodwin Wealth Management managing director Yvonne Goodwin pointed out that when people die, their family members can lose as much as 40 per cent of their inheritance through taxation.

As a result, people would prefer to see the benefit of their money being delivered to their grandchildren immediately, she explained.

Youngsters are finding it increasingly difficult to find the cash to pay for the deposit on a mortgage and are struggling to attain a decent interest rate on these loan claims, the specialist suggested.

She said: "Financial planning is all about moving the money from the family - from where it is, to where it is needed most."

Previously, Ms Goodwin recommended that people set up an emergency fund so they can cope with any unexpected changes to their circumstances without having to incur bank charges or fall into debt.

Samantha Clarke
Samantha is a former banking assistant and has over ten years experience in retail banking.

FCA 'will learn from PPI claims scandal'

Tue, 16 Oct 2012 13:18:28 GMT

The Financial Conduct Authority (FCA) is to learn from the payment protection insurance (PPI) misselling scandal, it has been said.

Chief executive officer designate of the FCA and managing director of the Financial Services Authority Martin Wheatley stated during a Thompson Reuters Newsmaker event that the organisation will take lessons from the PPI scandal by taking decisive action at an earlier stage when issues begin to arise.

A larger number of resources will be devoted to the analysis of possible risks and the examination of cross-industry issues, he added, stating this should help the body to "get to the root cause of problems".

Companies that sell the correct problems in the proper manner to customers who want them "have little to fear", the representative remarked.

He revealed that the organisation will be able to ban the sale of any goods or services that are deemed to "pose unacceptable risks to consumers" for as long as a year, without holding any consultations.

Jennifer Haines
Jennifer's speciality knowledge is credit card changes and balance transfers.

'Speak to bank' if struggling with loan charges

Tue, 16 Oct 2012 11:59:42 GMT

People with unsustainable loan claims or insurmountable credit card charges ought to talk to their lender, it has been said.

The Cooperative Bank's head of banking Robin Taylor explained that it is in both the customer and the lender's interest to talk about the financial difficulties of borrowers.

Speaking about debts is done in a "more relaxed atmosphere" than it was historically, he remarked, noting it is not longer "a case of having to sit in front of the bank manager".

"The banks are there to help," the representative declared, although he pointed out a number of other organisations can provide confidential, free advice to debtors.

Some of the groups highlighted by Mr Taylor include the Consumer Credit Council and National Debtline.

Recently, the Consumer Credit Counselling Service revealed it has helped 69,663 people with their overdrafts during the first six months of 2012, with this form of debt becoming an increasingly common problem.

Amir Hussain
Amir specialises in personal loans, consumer debt and debt management

Could Christmas costs lead Brits to make loan claims?

Mon, 15 Oct 2012 16:18:07 GMT

Many Brits are nervous that they will have to make loan claims and deal with credit card charges to get through Christmas, research has indicated.

A MoneySupermarket.com poll found that 53 per cent of consumers are currently worried about how they will pay for festivities this year, despite December 25th being around ten weeks away.

While 53 per cent of these respondents are concerned that their budgets will be tighter, 47 per cent think they will make cutbacks to cope with the expense.

People could be able to minimise their credit card charges by using a card that provides interest-free purchases, MoneySupermarket.com head of banking Kevin Mountford said.

"Using a cashback credit card such as the Barclaycard Cashback Credit Card or the American Express Platinum Cashback Card can help reward your spending over Christmas," he added.

The specialist also recommended that people use a "jam jar approach to savings" by investing a small amount of money on a regular basis.

Samantha Clarke
Samantha is a former banking assistant and has over ten years experience in retail banking.

Bank claims: Youngsters 'more likely to pay on plastic'

Mon, 15 Oct 2012 15:01:04 GMT

Young people are more willing to make bank charges with their debit card than older men and women, a study has shown.

Research from Clydesdale and Yorkshire Banks revealed that 12 per cent of 16 to 24-year-olds would be willing to use this method of payment for a transaction of under £1, but among people older than 55, the proportion who said they would was just two per cent.

Furthermore, 93 per cent of the younger demographic would cover sales of up to £5 with their bank cards, compared with just 67 per cent of older respondents.

However, this spending pattern could leave people susceptible to unsustainable loan claims, statements from a psychologist have indicated.

Dr Jane McCartney said: "People just using cards will both simultaneously underestimate how much they have spent and overestimate what they have remaining."

"The pleasure comes now, the reality of the statement comes later," she pointed out.

Jennifer Haines
Jennifer's speciality knowledge is credit card changes and balance transfers.

Bank claims: Unsustainable overdrafts becoming more common

Fri, 12 Oct 2012 17:09:04 GMT

Unsustainable credit card charges or personal loan claims are being replaced by bank overdrafts, a study has shown.

The Consumer Credit Counselling Service revealed that in 2007, it helped 58,069 people with their overdrafts, but this skyrocketed to reach 134,540 in 2011.

During the first half of 2012, 69,663 people approached the charity to request help with this type of debt.

Furthermore, the average amount owed on overdrafts was £1,748 in 2007, but this has now jumped to £2,082.

The charity suggested that the rising figures could represent the fact that it is harder for people to succeed when making loan claims or applying for a credit card, so they are using overdrafts to cover additional expenses.

"Hard pressed consumers are increasingly turning to more expensive forms of credit such as overdrafts and pay day loans just to make ends meet," Which? executive director Richard Lloyd said.

"The regulator must clamp down on rip off bank charges," he added.

Amir Hussain
Amir specialises in personal loans, consumer debt and debt management

Credit card claims: Government publishes draft Banking Reform Bill

Fri, 12 Oct 2012 16:07:54 GMT

The government has published the draft Banking Reform Bill in the wake of the Libor rate-rigging scandal and the misselling of payment protection insurance.

Greg Clark, financial secretary to the Treasury, said the proposals illustrate the coalition's "ongoing commitment to reforming the banking sector".

The plans will now be reviewed by the Parliamentary Commission on Banking Standards, which is chaired by Andrew Tyrie MP and should issue its report on the scheme by December 18th.

All legislation related to this review should be on the statute books by the end of this parliamentary term.

"We want to ensure that taxpayers are protected whilst retaining our status as a global financial centre," Mr Clark said.

He revealed that ministers intend to formally introduce the policy in the beginning of 2014.

It should implement some of the key recommendations made by the Independent Commission on Banking, with banks obliged to meet all aspects of this guidance by 2019.

Jennifer Haines
Jennifer's speciality knowledge is credit card changes and balance transfers.

Help kids avoid loan claims 'by teaching them about budgeting'

Fri, 12 Oct 2012 11:43:35 GMT

Parents may be able to prevent their children from making unsustainable loan claims by educating them about budgeting before they go to university.

Author of Leaving Home and freelance journalist Glynis Kozma said mums and dads should teach their offspring how to cook meals that are cheap and healthy, economically use a washing machine and understand the expenses involved in utilities.

"Not all students have parents who budget wisely themselves, so ultimately it is down to the student," she noted.

Some youngsters could be more susceptible to making credit card claims than others, as the specialist revealed that people who went to boarding schools can often find it harder to adjust to taking care of their own finances.

However, Ms Kozma noted many of these educational establishments "include finances as part of the sixth form curriculum" in recognition of this fact.

In a recent MoneySupermarket.com poll, 73.7 per cent of respondents said that financial education should be compulsory in schools.

Samantha Clarke
Samantha is a former banking assistant and has over ten years experience in retail banking.

Bank charges and other hidden expenses 'cost average person £430 annually'

Thu, 11 Oct 2012 15:24:01 GMT

Consumers are being "ripped off" by an average of £430 every year due to bank charges and other expenses from financial services companies, a Labour Party report has found.

The study predicted that Brits miss out on a total of £11 billion every year due to hidden bank charges, a lack of competition, misselling and other practices.

For every £1 that a person is aware they lose because they are "ripped off", around £3 is also lost through other hidden costs, the report found.

The Office of Fair Trading had previously revealed that in 2006, banks made £8.3 billion in revenue from current accounts.

Net interest income from debit or credit balances accounted for £4.6 billion of this, while bank charges associated with insufficient funds made up a further £2.6 billion, representing more than 85 per cent of this revenue.

"We need to change the rules of the game to stop people getting a raw deal, restore trust and back responsible businesses," shadow business secretary Chukka Umunna MP said.

Amir Hussain
Amir specialises in personal loans, consumer debt and debt management

PPI claims: Public 'do not believe' politicians will change banking sector

Thu, 11 Oct 2012 13:11:14 GMT

In spite of the recent misselling of credit card payment protection insurance (PPI), the rigging of Libor rates and other scandals in the financial services industry, the public do not believe politicians will legislate effectively against banks.

This is according to a recent poll by consumer advocacy organisation Which? that found 58 per cent think if the coalition tried to drive change in the sector, it would be fruitless.

The Labour Party's results were only mildly better, with 55 per cent saying the opposition would be ineffective, while 29 per cent said they could not trust any politician to do it and 28 per cent saying the same about political parties in general.

Consumers said during the poll that issues such as PPI claims have reduced their levels of confidence in the industry, with 43 per cent complaining banks had tried to sell them services or products they did not require or need in the last 12 months.

"This public mistrust is a consequence of the way banks have been allowed to get away with mass misselling, poor service and one scandal after another without any individuals being properly held to account," Which? chief executive Peter Vicary-Smith said.

Samantha Clarke
Samantha is a former banking assistant and has over ten years experience in retail banking.

PPI scandal 'damaged consumer confidence in banks'

Thu, 11 Oct 2012 11:10:29 GMT

British banks will have to regain the trust of consumers in the wake of the payment protection insurance (PPI) misselling scandal, the rigging of Libor rates and interest-rate swaps.

This is according to chief ombudsman at the Financial Ombudsman Service Natalie Ceeney, who said at Consumer Credit Counselling Service fringe events at the Labour and Conservative Party Conferences that the public's faith in the sector has been shaken "to the core".

She revealed that in the last three years, bank charges, credit card charges, mortgage endowments and PPI claims have accounted for more than half of the ombudsman's workload.

Furthermore, the organisation deals with some "pretty horrible cases of personal hardship", Ms Ceeney added.

She argued banks and other financial organisations ought to see any complaints they receive as being legitimate, adding: "Our own evidence shows that the majority are justified."

Furthermore, companies should be willing to learn from any problems their customers have and use them to "put things right", the specialist stated.

Recently, a survey from Which? found 67 per cent of people do not believe a banker would lose their job if they cheated or lied.

John Fieldman
Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

Bank claims: Brians and Helens 'have best credit ratings'

Wed, 10 Oct 2012 16:44:46 GMT

Men called Brian could generally find it easier to make a loan claim than other people in the UK.

A new study from Confused.com revealed that males with this name typically have the best credit profiles, while those called Daniel have the worst.

On average, Helens have the best credit profile among females, while Lisas could have had difficulties meeting their credit card charges, as they have the poorest.

Furthermore, individuals with the surname of Thompson typically have the lowest credit scores, while Edwards have the best.

Young people generally have a worse credit profile than older men and women, with the average 18 to 24-year-old's falling four per cent below the national average and with people older than 65 typically achieving eight per cent above the norm.

"A good or bad score can have a number of implications, such as your likelihood of acceptance for credit cards and also loans and mortgages," head of credit cards at Confused.com Nerys Lewis said.

Amir Hussain
Amir specialises in personal loans, consumer debt and debt management

PPI claims: FOS reveals rise in number of complaints

Wed, 10 Oct 2012 15:59:39 GMT

It is unsurprising that the Financial Ombudsman Service (FOS) is receiving a massive number of complaints.

This is according to chief executive and chief ombudsman of the organisation Natalie Ceeney, who said: "The mounting number of cases reaching us isn't just down to PPI."

She revealed that the organisation is receiving complaints regarding a number of other issues and is uploading a similar proportion of these that it always has.

Furthermore, the body can dismiss any issues that it believes are "frivolous and vexatious", the specialist remarked.

Ms Ceeney said that while the FOS uses this power, there are not many cases of this nature "outside of PPI".

Consumer behaviour does not indicate that there is a 'compensation culture' at present, she asserted, arguing that instead, bank claims and other financial industries are partially responsible for the rising number of enquiries the FOS deals with.

On an average year, the organisation deals with at least 250,000 disputes and answers one million customer enquiries.

Samantha Clarke
Samantha is a former banking assistant and has over ten years experience in retail banking.

Bank charges: 'Save money' with roast dinners

Wed, 10 Oct 2012 11:08:18 GMT

People might be able to accumulate a bit more cash to pay off loan claims and credit card charges if they reduce their spending on food.

Singer and actress Suzanne Shaw recommended buying cheap roast dinners, pointing out that Aunt Bessies provide cost-effective meals that are priced under £10.

She advised people to try to ensure leftovers "go further" when they have finished with the food.

While some people think making a roast dinner is "too much time and effort", the former Hear'Say member claimed it "doesn't have to be that difficult".

Parents do not necessarily need to "slog over the stove" to make a good roast dinner, she asserted.

Many men and women will put a roast as their "first choice meal" when asked what they would like to eat, Ms Shaw added.

Furthermore, roasts could be essential to longevity, with 102-year-old Elburton resident Darrell Love citing this meal as the key to his long life.

Amir Hussain
Amir specialises in personal loans, consumer debt and debt management

Loan charges: Public sector workers face biggest debt threat

Tue, 09 Oct 2012 16:03:38 GMT

Public sector workers have been told they are facing the greatest likelihood of coming up against debt problems over the coming months.

Yvonne Goodwin, founder of Yvonne Goodwin Wealth Management, explained that cuts are still coming for public organisations and many people are seeing their income frozen.

Some might find that they are forced to turn to unsecured borrowing in order to maintain their lifestyle and keep a roof over their head, which can result in loan charges being paid.

Commenting on public sector workers, Ms Goodwin stated: "In real times their income has gone down because inflation is so high. So that is one reason why people could be getting into debt."

She went on to note that while she is yet to see evidence of a spike in the number of people struggling with debt, Britons still need to stay on top of their finances and turn to the right credit options when required to do so.

Amir Hussain
Amir specialises in personal loans, consumer debt and debt management.

Loan charges: Lending cash 'is costly to banks'

Mon, 08 Oct 2012 16:23:24 GMT

It may be no surprise that loan charges can be so high, as it can be expensive for lenders to provide people with cash.

Although the base rate of interest has been held at 0.5 per cent for a number of years by the Bank of England, Largemortgageloans.com mortgage broker Nigel Bedford said banks and mortgage lenders do not get their cash at this rate.

He claimed that actually, this factor has "become divorced from the true cost of lending", which is essentially based off two issues.

Firstly, there is the actual cost that banks have to pay to access the funds, followed by the expenses involved in lending it out, the expert said.

Some of these costs include the need to earmark finance through a variety of regulations, as well as the need to provide loan claims "with more compliance", Mr Bedford declared.

He said one way in which bank charges enable lenders to keep low initial rates is by increasing their standard variable rates slightly.

"Once people roll off of their initial deals, [banks] can get some money back from them in that way," the specialist asserted.

Amir Hussain
Amir specialises in personal loans, consumer debt and debt management.

Credit card charges: Financial squeeze 'damaging mental health'

Mon, 08 Oct 2012 16:07:36 GMT

People struggling to meet loan charges or deal with their credit card claims could be putting their mental health at risk.

Consultant psychiatrist and director of the Anglo European Clinic Lars Davidsson pointed out that difficulties paying mortgages and bills can increase levels of stress and depression among people.

"There is a connection between the financial downturn and mental health," he remarked, noting that cashflow problems relating to redundancies or troubles paying the loan charges on a mortgage "puts extra pressure" on men and women.

Furthermore, while there ought to be plenty of support for people with mental health problems available, the expert said: "I don't think there is."

He pointed out that reducing the expenditure of the NHS by 20 per cent in the coming years has put the healthcare system under "great financial pressure".

Even students are feeling financial stresses at the moment, with 61 per cent of university attendees polled by GoCompare.com claiming money was one of their most significant causes of anxiety at present.

Jennifer Haines
Jennifer's speciality knowledge is credit card changes and balance transfers.

Could the mortgage industry be facing a PPI-style scandal?

Mon, 08 Oct 2012 10:46:42 GMT

The UK's mortgage industry could be facing another scandal similar to the payment protection insurance (PPI) issue, it has been said.

Headlinemoney.co.uk editor Andrew Michael said the interest-only mortgage lending sector has been said by some extreme messengers to be "another PPI misselling-style scandal waiting to happen".

Some people have warned that borrowers who used this route to purchase a house could face "all manner of ghastliness", the expert continued.

He noted that some lenders have been adopting different stances on providing this type of home loan recently, with Leeds Building Society, ING Direct, Santander and Coventry Building Society cutting the maximum loan-to-value rates for these products to 50 per cent, from an original figure of 75 per cent.

Furthermore, Nationwide has stopped offering these loans to new borrowers, Mr Michael added.

"I suspect the mortgage market will swerve a misselling scandal, especially one of PPI-style proportions," he predicted.

So far, the UK's largest lenders have set aside more than £10 billion to deal with PPI refunds.

Samantha Clarke
Samantha is a former banking assistant and has over ten years experience in retail banking.

Bank claims: Crimestoppers warns about bank fraud scam

Fri, 05 Oct 2012 15:56:15 GMT

Crimestoppers has provided advice to people to help them avoid being the victims of fraudulent bank charges.

It recommended that people do not give their PIN to anyone, especially not cold callers, noting that banks never ask people to provide this information.

Furthermore, people should be willing to confirm callers' identities by asking for details and then calling their bank back to verify the communication was genuine.

This warning came after an elderly woman received a phone call from a criminal claiming to come from her bank.

The 77-year-old victim was asked if she had been given her new debit card and when she said she did not have an account with the bank in question, she was told the companies had merged and she was automatically being issued with a new card.

Afterwards, the caller asked the victim to confirm her PIN and address "for security" and unfortunately, the victim obliged.

Later that day, a male collected her old card from the door and eventually it was discovered the elderly woman had lost £15,000 from her account.

Amir Hussain
Amir specialises in personal loans, consumer debt and debt management.

Brits oppose obligatory bank charges and support 'free banking'

Fri, 05 Oct 2012 11:36:46 GMT

The overwhelming majority of Brits are opposed to incurring bank charges for owning a current account, a survey from uSwitch.com has found.

A total of 75 per cent of respondents would be opposed to banks charging a fee for this service, with 81 per cent saying they would not even pay a small fee.

This is despite the fact that the "myth of free banking" could have reduced transparency in the sector, encouraging lenders to make money through incidents such as the payment protection insurance scandal.

While 38 per cent of those polled by uSwitch.com said they would be concerned about the expense involved in account fees, a further 16 per cent argued they would be unable to afford it.

However, only 43 per cent of people think it will still be 'free' to own a bank within a year.

"Banking is only really free for those who never go overdrawn - everybody else is paying in some way or another through myriad charges or less competitive rates," personal finance expert at uSwitch.com Michael Ossei said.

Samantha Clarke
Samantha is a former banking assistant and has over ten years experience in retail banking.

Credit card claims: Teach children about cash 'by not giving pocket money'

Thu, 04 Oct 2012 16:44:51 GMT

Parents may be able to prevent their children struggling with credit card claims in adulthood by refusing to give them pocket money, it has been said.

This is according to Ray Black, money-minder.com managing director, who said this is "the best way to teach children about money".

"If they want money, they need to earn it," he argued, suggesting that children must be taught that "money doesn't grow on trees".

His statements directly contradict those made by author of Raising Children: The Primary Years Liat Hughes Joshi, as well as head of banking at MoneySupermarket.com Kevin Mountford, who both said that giving cash to kids could help them get to grips with financial planning.

Mr Black revealed he does not give his teenagers any pocket money, but instead pays them for completing "specific jobs", such as vacuuming, dusting, ironing or mowing the lawn.

Other jobs, such as washing up or cleaning bedrooms, do not result in the youngster getting any cash as these are "expected duties of being part of a family household", he added.

Jennifer Haines
Jennifer's speciality knowledge is credit card changes and balance transfers.

Bank charges: UK workers' wage dive 'will last until 2021'

Thu, 04 Oct 2012 16:44:24 GMT

While many British workers could be finding the squeeze on incomes is making it hard for them to pay off loan claims or deal with credit card charges, the Trades Union Congress (TUC) suggested that this state of affairs will continue for considerably longer than had been previously thought.

It will be another nine years before income levels reach those seen in 2009, the organisation claimed, pointing out that employees are therefore only one-quarter of the way through a 12-year drop in incomes.

By 2021, the average worker will have lost around £8,500 in real terms, it warned.

Higher-than-expected inflation and a tough economic climate mean a person on a median wage of £25,800 has lost approximately £1,600 since 2009.

The TUC is to host a protest against the coalition's austerity measures on October 20th and will call for the government to enact a new agenda that puts an economy that helps families and growth in the heart of its policy.

Brendan Barber, TUC general-secretary, said: "The dire state of the economy has pushed down wages."

Samantha Clarke
Samantha is a former banking assistant and has over ten years experience in retail banking.

'Half of UK' eligible to make PPI claim

Thu, 04 Oct 2012 10:42:08 GMT

As much as half of the UK's adult population could be eligible to receive a refund for payment protection insurance (PPI), it has been said.

The Star reports that the misselling of PPI lasted for around a decade, with banks selling the "highly profitable" insurance to people who made a loan claim or sought credit in other ways.

Around £10 billion in PPI compensation is set to be paid out as a result of the scandal, it continued.

Recently, two individuals were fined by the Information Commissioner's Office for sending spam text messages regarding the misselling of PPI or personal injury compensation claims.

It has given the suspects 28 days from October 1st to demonstrate that they were abiding by the law before the final penalty notices are issued.

The news source asked: "Is there anyone left in Britain who hasn't had a text message or cold call promising them a windfall stemming from PPI misselling?"

Amir Hussain
Amir specialises in personal loans, consumer debt and debt management

PPI charges: Ed Miliband says UK should fix the banks

Wed, 03 Oct 2012 16:15:33 GMT

The rigging of Libor rates and the misselling of payment protection insurance has led many people into believing that the UK's financial system is broken.

Speaking to the Labour Party Annual Conference, the party's leader Ed Miliband said: "We need banks that serve the country - not a country that serves its banks."

He suggested that the next Labour government would "sort out our banks", not only to prevent another financial crisis but to ensure the sector supports the populace.

Money lenders should either fix their operations before the next election or expect the Labour government to break them up "by law", the politician declared.

Richard Lloyd, executive director of consumer advocacy organisation Which?, claimed that the general public would agree with Mr Miliband that a "big change" is required in the financial services sector.

Not only must practices change, but regulations and the overall culture of the industry will also have to be altered, he argued.

Amir Hussain
Amir specialises in personal loans, consumer debt and debt management

People struggling with loan charges 'should seek help'

Wed, 03 Oct 2012 14:57:26 GMT

People who cannot afford to meet their credit card charges and loan claims may wish to seek professional help.

CashQuestions.com editor Annie Shaw said members of the public with "serious debts" could benefit from speaking to Citizens Advice, the Consumer Credit Counselling Service or Credit Action.

Struggling people might not be able to pay bills or are "getting behind with things", she explained.

"Get it sorted at the root and don't be afraid to do it," the expert argued, stating that there is "nothing embarrassing or shameful" about receiving help with debt.

The representative said those with more "minor" problems may wish to change their spending habits.

Some of the money-saving tips Ms Shaw provided include purchasing supermarket own-brand goods instead of name-brand products and avoiding having "that extra meal out".

Previously, she noted that Brits seem to be less willing to make credit card claims or borrow money through other lenders than they used to be because they are concerned about debts.

Samantha Clarke
Samantha is a former banking assistant and has over ten years experience in retail banking.

Loan claims: Freshers 'expect to owe £39k when they graduate'

Wed, 03 Oct 2012 11:36:09 GMT

First year university attendees expect to have made enough loan claims to leave them with debts of around £39,000 by the time they finish their studies, a study from the Money Advice Service has found.

YouGov polled 1,434 students and graduates in the UK on behalf of the organisation and revealed that this is almost double the predicted debts of non-first years, with these individuals expecting to owe £20,000 on graduation.

Furthermore, 14 per cent of the people polled are dealing with credit card charges, while 34 per cent are racking up overdrafts and 80 per cent of respondents made a student loan claim.

Parents and grandparents could be a good source of cash for people who wish to avoid bank charges, with 25 per cent of respondents borrowing money from these individuals.

Furthermore, 30 per cent of freshers would consider staying at home to avoid ending up in deep debt.

"I think it's important to remember that yes I will be leaving with debt, but my student loan is not bad debt, it is debt that has helped me further my career," first-year student Jane told the Money Advice Service.

Jennifer Haines
Jennifer's speciality knowledge is credit card changes and balance transfers.

Loan charges: Many Brits 'spend more on debt and bills than they earn'

Tue, 02 Oct 2012 16:01:33 GMT

Many Brits have unaffordable loan charges and bank claims to deal with, research has found.

A report by Legal & General, entitled 35, found one-fifth of 35 to 44-year-olds say they spend more than they earn every month on bills and debts, making this demographic the most likely to be in this situation.

People aged 18-24 were the least likely to be struggling with this difficulty, followed by those at pensioner age.

Furthermore, half of all those aged between 35 and 44 have received financial assistance from a member of the family, while they would like to have £100,000 in the bank in order to feel safe and comfortable.

This age group also claimed that on average, £2.3 million would be a life-changing amount of cash - the highest figure of any demographic.

"More work needs to be done by the government, care and financial sectors so younger people can look forward to a happy old age," chief executive of Anchor Jane Ashcroft said.

Charles Baker
Charles is a reputed financial analyst with decades of experience under his belt.

PPI refunds: Which? welcomes Cooperative's focus on customers

Tue, 02 Oct 2012 13:55:30 GMT

Which? has welcomed the move by the Cooperative Bank to only reward staff based on customer service, rather than sales.

The Financial Services Authority previously suggested that sales incentives pose risks to customers, linking them to the misselling of payment protection insurance (PPI).

Executive director of Which? Richard Lloyd said the move by the Cooperative is "good news for consumers", adding that he would like to see more companies in the sector doing the same.

A main focus of the organisation's Big Change campaign is for banks to put their customers first, with one of its key messages that appropriate bonus schemes ought to prioritise service over sales.

Members of the public have bailed out the banks, dealt with the misselling of PPI and seen the Libor rates rigging scandal unfold, but bankers have still received "excessive bonus payments", Which? argued.

"Consumers have been let down by the banks for too long," Mr Lloyd said.

Jennifer Haines
Jennifer's speciality knowledge is credit card changes and balance transfers.

RBS: PPI scandal 'was caused by banking culture'

Tue, 02 Oct 2012 11:54:54 GMT

The payment protection insurance (PPI) misselling scandal and the manipulation of Libor rates were some of the British banking industry's "last vestiges" of the pre-credit crunch era.

This is according to chief executive of the Royal Bank of Scotland (RBS) Stephen Hester, who was quoted by Bloomberg as saying that the PPI scandal and similar problems are "bound to dominate public perceptions" of the industry.

Speaking to the London School of Economics, he claimed the culture of banks will have to change if the public's trust in the sector is to be restored.

Banks had lost sight of their duty to serve their customers, the representative added.

He explained that while some people may look at issues such as this as "individual episodes of bad judgement or wrong behaviours", they are actually all related to "one big scandal".

Mr Hester said this is that banks have failed to be "good enough servants of their customers" in recent years.

Amir Hussain
Amir specialises in personal loans, consumer debt and debt management

Loan charges: Students 'are struggling to budget'

Mon, 01 Oct 2012 16:47:26 GMT

Students could be increasingly concerned about loan charges, statements from a specialist have indicated.

Royal Bank of Scotland (RBS) head of student accounts Judith Fraser pointed out 84 per cent of Brits think university attendees are under "too much financial pressure".

A third of students claim that paying off loan claims and other debts will take them as much as ten years, while owing increasing sums of money while in higher education is now considered a "fact of life", she continued.

Furthermore, 60 per cent of people at university say they do not feel like they are ready to manage their finances, the specialist remarked.

RBS NatWest research also found that nearly two-fifth of students are paying or have paid off fees and debts by working part-time during their studies.

Ms Fraser noted that being a student is often the first time that a youngster has had to manage their cashflow and budget, although the current batch of university attendees will have to deal with a money situation that is "tighter than it's ever been before".

Charles Baker
Charles is a reputed financial analyst with decades of experience under his belt.

PPI claims: Cooperative 'to incentivise customer service'

Mon, 01 Oct 2012 15:34:49 GMT

The Cooperative Bank is to launch a bonus scheme for its sales staff that aims to only incentivise good customer service.

While the bank claims to have always rewarded its employees based on this factor, it pointed out that October 1st represents the first time this issue has been the only element of its reward schemes.

This comes as the Financial Services Authority suggested that the payment protection insurance misselling scandal is partially the result of poorly-managed sales incentives within the industry.

Furthermore, the Cooperative revealed its Customer Service Bonus Scheme will reward branches instead of individual staff, with a similar programme scheduled to be rolled-out to call centre workers at a later point in 2012.

"Many people are crying out for a high street bank they can trust and we are committed to providing customers with an alternative which puts their needs and experience first," the lender's chief executive Barry Tootell said.

Jennifer Haines
Jennifer's speciality knowledge is credit card changes and balance transfers.

Loan claims: FTBs borrow from 'bank of mum and dad'

Mon, 01 Oct 2012 13:58:53 GMT

With Brits increasingly finding it hard to make bank claims through traditional sources of finance, research has shown an increase in the number of first-time buyers (FTBs) who have turned to the "bank of mum and dad".

A study undertaken by the Centre for Economics and Business Research (CEBR) for HSBC found that more than 100,000 FTBs have gone for the "family financing" option in order to purchase a house between 2008 and 2011.

It is thought that this has contributed to an estimated £23 billion worth of FTB house purchases over this timeframe, with 18.7 per cent of all transactions in this market over 2011 unlikely to have occurred without financial assistance from parents.

Avoiding bank charges could be an incentive for many borrowers who secure money from their mother and father, with 85 per cent who got cash in this way stating that the loan was cheaper than some traditional mortgages, as well as less risky and stressful.

"Families' contributions have been invaluable, helping thousands to get on to the housing ladder who would have missed out otherwise," chief economist of CEBR and chief author of the report Daniel Solomon said.

John Fieldman
Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

ICO fines PPI claims spammers over £250k

Mon, 01 Oct 2012 11:28:36 GMT

Two companies that spammed members of the public with texts informing them they could be eligible to make a payment protection insurance (PPI) claim or receive compensation are to be fined by the Information Commissioner's Office (ICO).

Fines against the illegal marketing firms will reach a total of over £250,000, with the ICO writing to the PPI claims spammers to inform them it intends to issue the penalty in relation to breaches of the Privacy and Electronic Communications Regulations.

These requirements state that people must not be sent automated marketing calls or unsolicited texts unless they have previously given their permission to be contacted in this way.

ICO director of operations Simon Entwistle said that the public have informed the organisation that they are becoming "increasingly concerned" about this type of correspondence.

He said these marketing calls and texts are "often made by rogue companies claiming to offer payouts for accidents a person has never had, or PPI claims that they are not necessarily entitled to".

Amir Hussain
Amir specialises in personal loans, consumer debt and debt management

Bank claims: Rent day 'could be final straw' for struggling retailers

Fri, 28 Sep 2012 16:41:41 GMT

"Rent quarter day" is due, which could lead businesses struggling with loan charges and bank claims to sink in the immediate future.

The Association of Business Recovery Professionals (R3) claimed 18 per cent of retail sector companies are currently finding it hard to pay their debts.

However, this weekend will be the quarterly rent payment deadline, in which commercial property occupants pay three months' advance rent.

R3 suggested this expense could be "the final straw" for some of these organisations.

JJB Sports has recently revealed it intends to appoint administrators, while Game Group filed a similar notice before rent quarter day in March.

"Many leases will have been set up a long time ago and in today's economic climate are not sustainable," R3 president Lee Manning said.

"The retail sector is under enormous strain," he added.

Nonetheless, the Office for National Statistics reported that retail sales in August 2012 were higher than in the same month in 2011, with the overall number of goods purchased realising an annual growth of 2.7 per cent.

Amir Hussain
Amir specialises in personal loans, consumer debt and debt management.

Loan claims: Fall in mortgage lending 'hitting high street retail'

Fri, 28 Sep 2012 16:09:31 GMT

First time buyers are finding it difficult to succeed when making a loan claim for a mortgage, with this issue causing shocks to the wider economy.

The British Retail Consortium (BRC) and analysts from mortgage insurance provider Genworth claimed delivering more housing loan claims to this demographic would boost sales of floor coverings, gardening tools, furniture, homewares and DIY.

An eight-year trend analysis revealed a strong link between levels of mortgage lending and the total volume of sales on the high street.

Since the financial crisis of August 2007, there has been a 77 per cent drop in mortgage lending volumes, which the organisations linked to a 15 per cent fall in expenditure on household retail goods.

"It's not in our best interests to disenfranchise a generation of aspiring homeowners who could afford to repay their mortgages but are excluded because they can't meet a prohibitively high deposit threshold," chief executive officer of Genworth's European mortgage insurance business Angel Mas pointed out.

John Fieldman
Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

PPI claims scam warning issued in Suffolk

Fri, 28 Sep 2012 14:47:53 GMT

Payment protection insurance (PPI) claims scammers are operating in Suffolk.

The East Anglian Daily Times reports that one woman lost £5,000 after being contacted by a bogus caller that claimed to deal with PPI claims.

Manager of the Leiston, Saxmundham and District Citizens Advice Bureau Nick Mayo told the publication that people ought to avoid giving out personal information and bank details to callers.

Furthermore, he recommended that people do not agree to send money to anyone unless they have checked out who they are dealing with.

The specialist advised members of the public to ask unknown callers for contact details and telephone numbers so they can determine the validity of the call.

Alternatively, Mr Mayo said people could ask unknown callers to write to them, claiming this would give them "time to think about it".

PPI claims scammers also recently struck in Macclesfield, leading Cheshire Police to issue a warning about the crime.

John Fieldman
Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

PPI claims: Landlord with poor credit 'struggling to access finance'

Fri, 28 Sep 2012 13:27:09 GMT

People who are finding it hard to cope with credit card charges may have difficulty securing a buy-to-let mortgage loan claim.

Landlord Mortgages director Lee Grandin said that the "most important thing" for first-time landlords to do is to "try and keep clean credit" when attempting to access finance.

Banks and other lenders will not be interested in clients with negative information on their files, he pointed out, explaining this includes late payments on credit card claims or loan charges.

This is despite falls in buy-to-let mortgage rates, with Skipton Building Society recently reducing interest by 0.1 per cent on a range of landlord mortgages.

"You do need to have a personal income unless you are already an experienced landlord," Mr Grandin said.

He also pointed out that properties with lower rental yields may only be available to purchase at lower loan-to-value rates and added that the number of lenders providing funds is relatively low when compared to historic figures.

Amir Hussain
Amir specialises in personal loans, consumer debt and debt management.

Financial education 'needed to stop fraudulent bank charges'

Thu, 27 Sep 2012 16:23:24 GMT

If people do not wish to suffer from fraudulent debit and credit card charges, financial education will be essential.

This is according to Personal Finance Education Group chief executive Tracey Bleakley, who said falling prey to this type of offence is easier than people might think.

"We can sometimes be too willing to trust someone purporting to represent our bank or credit card company," she remarked.

Data from the UK Cards Association found that between January and June 2012, £185 million of fraudulent bank charges occurred through UK cards.

This represents a nine per cent increase on figures from the same timeframe in 2011, but is 39 per cent lower than the peak in the first half of 2008, when £304.2 million was lost.

According to Ms Bleakley, the "best place" to start combating this type of crime is through a "programme of financial education in schools".

Although this will not be enough to stop the problem altogether, it will help to protect members of the public, she argued.

Jennifer Haines
Jennifer's speciality knowledge is credit card changes and balance transfers.

FSA notes continuing rise in PPI complaints

Thu, 27 Sep 2012 15:36:30 GMT

The payment protection insurance (PPI) scandal is continuing to push up the overall number of complaints made about financial service providers.

According to the Financial Services Authority (FSA), there were a total of 3,577,599 complaints received during the first half of 2012, representing a 59 per cent increase on the previous six months.

Furthermore, 62 per cent of all complaints, or 2,232,294 overall, related to PPI claims, which is a 129 per cent increase on figures for the second half of 2011.

However, the number of people who contacted the FSA about current account problems fell by 13 per cent during this timeframe, although savings and other banking products realised a two per cent rise.

"We do not want to keep hearing of instances, such as PPI, where consumers think they had to buy a product or protection on another product when they did not need it," managing director of the FSA Martin Wheatley recently said.

Jennifer Haines
Jennifer's speciality knowledge is credit card changes and balance transfers.

Which? says £10bn PPI claims fund could run out

Thu, 27 Sep 2012 14:15:45 GMT

Banks may have to earmark even more money to cope with the payment protection insurance (PPI) scandal, Which? has said.

The consumer advocacy group predicted that the £10 billion set aside for PPI refunds could be all spent within a matter of months.

Barclays Bank could run out of PPI reclaim money by December 2012, with Lloyds possibly requiring more cash from November and the Royal Bank of Scotland potentially running out of money in six months, it continued.

Furthermore, Which? said that banks should take back the bonuses they paid to senior executives who ran the companies during the PPI scandal in order to deal with the cost of renumeration.

"With well over two million PPI complaints being made in just six months, PPI is now the biggest financial scandal of all time," chief executive officer of the organisation Peter Vicary-Smith claimed.

He had previously claimed the banking industry "has no credibility".

Amir Hussain
Amir specialises in personal loans, consumer debt and debt management.

Loan charges: Brits can save money 'by switching utility supplier'

Wed, 26 Sep 2012 17:12:32 GMT

People may find it easy to pay off loan claims and bank charges if they manage to reduce their utility bills.

Candidmoney.com spokesman Justin Modray said that switching energy suppliers could potentially allow people to save significant sums of money.

He recommended that bill-payers use comparison tools to compare the whole market, allowing them to find the gas and electricity deal that is best for them.

Some offers are only available for a limited period of time, the expert continued.

As a result, he said: "It is well worth shopping around once a deal you've locked into comes to an end."

Energy deals can have wide variation, Mr Modray said, noting this can occur "between different suppliers and within suppliers themselves".

Insulation could also help members of the public reduce their power bills, with the Energy Saving Trust stating lagging wall spaces can save people as much as £135 every year.

Amir Hussain
Amir specialises in personal loans, consumer debt and debt management.

Bank charges and debts 'causing stress for students'

Wed, 26 Sep 2012 16:12:02 GMT

Credit card charges are a significant source of stress for students, research has found.

A poll of university attendees by GoCompare.com revealed that 61 per cent of respondents said that money was one of their biggest stressors at present.

Only exam pressures pose a more significant form of anxiety for students, as this was cited by 65 per cent of the people surveyed as one of their largest worries.

As well as bank charges and unsustainable loan claims, rent, tuition fees and utility bills represent some of the financial stresses students face.

Furthermore, 38 per cent said that leaving university with a large student debt was one of their key concerns.

Other worries included juggling other commitments with university work (53 per cent), finding employment after graduation (48 per cent) and meeting new housemates and people (26 per cent).

"Having to perform the juggling act of managing their own finances, staying on top of domestic chores, maintaining long-distance relationships and excelling in their studies can have the effect of overwhelming some," GoCompare.com's business development director John Miles said.

Jennifer Haines
Jennifer's speciality knowledge is credit card changes and balance transfers.

Credit card charges: Skimming device found on Andover cash machine

Wed, 26 Sep 2012 11:20:26 GMT

People in Andover could have suffered from fraudulent credit card charges recently after skimming devices were found on cash machines in the town.

The tools were discovered at the Tesco Extra on River Way in the town on September 22nd.

Police Constable Rebekah Moffat advised anyone who used the cash machines at this retailer before 12:30 BST on the date the skimmers were discovered to check their accounts for any unusual bank charges and withdrawals.

She also reminded people to "cover the keys when inputting your PIN" and asked members of the public to call the police if they discover any unusual equipment on a cash machine.

"Please be extra-vigilant when using cash machines in the Andover area and have a good look at the machine before using it," the police officer said.

Anyone who saw suspicious activity in the area around the time of the offence or has information about the crime was asked to contact Hampshire Constabulary on 101 or Crimestoppers on 0800 555 111.

The reference number for this incident is 44120372990.

Amir Hussain
Amir specialises in personal loans, consumer debt and debt management.

Attendees at PCBS panel oppose bank charges

Tue, 25 Sep 2012 16:55:55 GMT

When asked whether bank charges should be levied against them for owning a current account, customers at a meeting held by Which? opposed the concept.

Many attendees to the event, which contained a panel from the Parliamentary Commission on Banking Standards (PCBS), were shocked to find out that they are already paying for their bank account through high overdraft charges or lost interest.

This is despite the fact that free banking has been called a "myth" by Which?, as well as by chairman of Barclays Bank Sir David Walker.

Following in the wake of the payment protection insurance scandal, it was also not a surprise that attendees at the PCBS panel meeting criticised banks for trying to sell people products that they do not require.

"Consumers' best interests must be at the heart of reforms to the financial sector to prevent the public suffering from further mis-selling and scandals," Which? executive director Richard Lloyd said.

Jennifer Haines
Jennifer's speciality knowledge is credit card changes and balance transfers.

Parents avoiding credit card charges by 'borrowing' from piggy banks

Tue, 25 Sep 2012 14:48:32 GMT

Many parents believe it is easier to borrow cash off their offspring than deal with bank charges, research has shown.

A study by MoneySupermarket.com revealed that 15 per cent of mums and dads think borrowing from their children is easier than making a bank claim or asking for money through another lender.

Furthermore, 11 per cent admitted that they use their child's money to avoid credit card charges or other fees they would have to deal with through traditional sources of finance.

A total of 30 per cent of parents admitted taking cash or borrowing from their child's savings account or piggy bank, with these people removing an average of £50.26.

Raising a child can be expensive, however, with LV='s Cost of a Child report finding taking care of a youngster from birth until the age of 21 typically costs over £218,000.

"Using cash lying in a piggy bank is a good way of avoiding being stung by fees, although it is an idea to find other ways of arranging your finances to avoid these traps," MoneySupermarket.com head of banking Kevin Mountford said.

Amir Hussain
Amir specialises in personal loans, consumer debt and debt management.

Elderly people in Macclesfield warned of PPI claim scammers

Tue, 25 Sep 2012 12:00:54 GMT

Cheshire Police has warned elderly residents that payment protection insurance (PPI) scammers are operating in the region.

Several incidents of the offence have been reported in Macclesfield and victims are thought to have lost around £5,000 in total so far.

Criminals cold-call victims asking them whether they are eligible to make a claim for PPI compensation.

A few weeks later, the scammers call back again, stating that the claimant needs to send Ukash vouchers in order to receive their PPI refund.

"We would like to highlight this scam to people and ask them to make their elderly relatives and friends aware of it," Police Community Support Officer Melissa Mellor said.

Victims of this scam do not receive their PPI refunds and the offenders have been known to call people back to ask for even more money.

A Ukash spokesperson recently advised people to never provide cold callers and doorstep sellers with Ukash voucher details, adding: "We are appalled that scammers are targeting people to defraud their money."

John Fieldman
Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

Credit card claims: Financial crisis 'leading to stress'

Mon, 24 Sep 2012 17:33:01 GMT

With many Brits struggling to pay off credit card claims or deal with bank charges following the credit crunch, it may come as no surprise that the international financial crisis has been linked to increased levels of personal stress.

International Stress Management Association UK vice-president and AMC2 managing director Ann McCracken noted that many people want to maintain the same lifestyle they had before the economic downturn in terms of possessions and holidays.

However, she claimed that financial issues have resulted in people receiving less money than they used to, with the difference significant in many cases.

Furthermore, workloads are increasing for employees as many organisations are making personnel redundant but not replacing them, the specialist continued.

She argued managers and staff ought to discuss problems with each other to minimise risk factors and come up with solutions to problems.

Recently, Ms McCracken claimed an AMC2 study found fewer than 15 per cent of firms had undertaken an Organisational Risk Assessment for stress, despite the fact that this is a legal requirement.

Amir Hussain
Amir specialises in personal loans, consumer debt and debt management.

Volume of PPI cases 'will increase for three years'

Mon, 24 Sep 2012 15:33:01 GMT

The number of payment protection insurance (PPI) complaints is going to rise for at least three years, it has been said.

Charter UK chief executive officer Paul Clark said financial services organisations no longer think the PPI misselling scandal is a "short-term 'business as usual' problem" that they can use existing systems to deal with.

Instead, they ought to expect claims for PPI refunds to continue to demand "attention and resources" for a minimum of three more years, he argued.

More than £10 billion has been set aside by moneylenders to deal with the cost of this crisis, while 63 per cent of all complaints the Financial Ombudsman Service received during the first half of 2012 related to PPI.

On an average day over this timeframe, more than 1,500 PPI compensation cases were heard by the adjudication body.

"A more robust, strategic approach to PPI remediation is a critical necessity," Mr Clark said.

Amir Hussain
Amir specialises in personal loans, consumer debt and debt management.

Are insecure PINs leaving people vulnerable to fraudulent bank charges?

Mon, 24 Sep 2012 11:16:03 GMT

Many people are leaving themselves susceptible to fraudulent bank charges because they have insecure PINs.

A study by Data Genetics revealed that the most popular four-digit password, out of a database of 3.4 million PINs, was 1234.

Approximately 11 per cent of all PINs were this combination, the investigation found.

The second most commonplace PIN was 1111, shared by six per cent of individuals, followed by 0000, which was used by 1.8 per cent.

By using the top 20 most common passwords, a scammer could make credit card charges with 26.83 per cent of all accounts, while using the top five numbers could crack 20 per cent of all codes, the research found.

The researcher used information condensed from exposed, released and discovered credit card password tables, as well as data from security breaches.

"Whether banking online or entering your PIN details in a public place, you should always be vigilant," the Royal Bank of Scotland warns.

John Fieldman
Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

Loan charges: Consumer Focus welcomes proposed jam-jar accounts

Fri, 21 Sep 2012 16:30:37 GMT

Consumer Focus has given its strong support to government plans for financial products that could help benefits claimants to budget.

This could help some of the most vulnerable people in the UK avoid making loan claims, struggling with credit card charges and falling into unsustainable debts.

Ministers intend to have found providers to deliver the budgeting products before the roll-out of Universal Credit, which is scheduled to commence in October 2013.

Head of post offices at Consumer Focus Andy Burrows said research from the organisation has indicated there is a "significant need" for bank accounts that support budgeting.

He called these "jam-jar accounts" and suggested that they could help people deal with a "major change in how benefits are paid".

Without assistance, many benefit recipients could face "face real problems paying rent, utility bills and other essential payments", he noted, claiming two-thirds of people likely to suffer a negative impact as a result of the move to Universal Credit believe they would be better able to cope with a jam-jar account.

Jennifer Haines
Jennifer's speciality knowledge is credit card changes and balance transfers

Lancashire Police give advice to prevent fraudulent bank charges

Fri, 21 Sep 2012 15:05:52 GMT

Lancashire Constabulary has provided advice to members of the public to prevent them becoming the victim of fraudulent credit card charges.

Police Constable Lesley Brown recommended that people ought to be "vigilant" when entering their PIN if they are making a transaction and should "ensure they conceal the numbers".

His recommendations follow fraudulent bank charges sustained by elderly people in Chorley and Ormskirk, which are believed to be the result of criminal activity undertaken by a woman and two men.

A 62-year-old man's bank and credit cards were used to withdraw £300 and pay for goods worth £1,000, while an 83-year-old woman had £2,500 illegally taken from her account after she was pick-pocketed.

The police force has released CCTV images of individuals they wish to identify in connection with these offences, which occurred in Ormskirk and Chorley.

NatWest Bank claims anyone whose card is lost or stolen ought to contact their bank immediately so the lender can arrange a replacement and inform the customer of any further action they ought to take.

Jennifer Haines
Jennifer's speciality knowledge is credit card changes and balance transfers.

Bank claims: Ministers look for financial products to support Universal Credit claimants

Fri, 21 Sep 2012 09:50:47 GMT

The coalition is to examine the feasibility of innovative financial products that could help benefits claimants manage their money and budget, allowing them to avoid making loan claims or incurring bank charges.

It is seeking a range of providers who will roll out products with additional budgeting functions as benefit recipients move towards Universal Credit.

Payments though Universal Credit will occur monthly and shall replace income-based Job Seeker's Allowance, Income Support, income-related Employment and Support Allowance, Housing Benefit, Child Tax Credits and Working Tax Credits.

It will be distributed as a single household payment and the roll-out will begin in October 2013.

Ministers expect a wide range of financial provider will be interested in supplying new budgeting products, including pre-pay card providers, mobile phone operators and high street banks.

"Accounts that provide people with extra budgeting services could help to ensure people's essential bills are covered, helping them to build up their credit rating and break the cycle of financial exclusion," minister for welfare reform Lord Freud said.

Samantha Clarke
Samantha is a former banking assistant and has over ten years experience in retail banking.

PPI refunds: Which? says PCBS should be customer-focused

Thu, 20 Sep 2012 17:00:30 GMT

Consumer advocacy organisation Which? has made statements on events being held by the Parliamentary Commission on Banking Standards (PCBS).

Executive director of the group Richard Lloyd said the PCBS ought to speak to people who have "had enough of being short changed" due to bank charges and other expenses.

Furthermore, the commission should speak to people about why they have "lost trust and confidence in the industry", he continued.

"Now is the time for the Big Change in banking," the representative declared, arguing the government, the PCBS, regulators and banks themselves must listen to comments by the public and reform the industry with the public's interest in mind.

He noted a recent survey by Which? revealed banking is one of the least trusted professions in the UK.

In the poll, only six per cent of respondents associated the sector with ethical behaviour, while 11 per cent said they would trust bankers to act in their customers' best interests.

Amir Hussain
Amir specialises in personal loans, consumer debt and debt management.

PPI claims: PCBS examining standards in banks

Thu, 20 Sep 2012 16:02:51 GMT

The misselling of payment protection insurance (PPI), the rigging of Libor rates and other scandals in the banking industry has led the government to examine issues relating to small businesses' and consumers' experiences of banks.

As a result, the Parliamentary Commission on Banking Standards (PCBS) has been set up and will be visiting Birmingham to hear about the relationship between lenders and the public.

Lead member of the panel Pat McFadden MP said: "Recent scandals show serious problems have developed in the relationship between banks and their customers.

"This panel will try to find out what lies behind this and how it might be addressed," he added.

Leaders from the UK's three main political parties called for the PCBS to be set up so it could report on the culture and professional standards within the UK's banking sector, taking account of competition and regulatory investigations.

Furthermore, it will consider what lessons can be learnt about transparency, corporate government and conflicts of interest through its reviews.

Jennifer Haines
Jennifer's speciality knowledge is credit card changes and balance transfers.

Bank claims: Some older people 'excluded from financial services'

Thu, 20 Sep 2012 11:13:21 GMT

Many older members of the public do not have a current account, preventing them from making bank charges and potentially impacting their quality of life.

According to a study by the International Longevity Centre - UK (ILC-UK) and Age UK, this could contribute to social isolation and exclusion.

Research by the organisations found 9.3 per cent of people older than the age of 80 have become excluded from credit card claims, loan charges and other financial products.

ILC-UK head of research Dr Dylan Kneale suggested that part of this effect may be due to reporting errors.

"The results nevertheless show a surprising degree of instability in the use of financial products by older people," he added.

Age UK charity director-general Michelle Mitchell said her organisation "hears from older people who want to use banking services, but can't".

Some of the issues these individuals face include inaccessible call centres, closed local banks and difficulties taking out cash, she remarked.

ILC-UK is the UK's leading demographic change and longevity think-tank.

Charles Baker
Charles is a reputed financial analyst with decades of experience under his belt.

Ombudsman is dealing with 'thousands' of PPI claims

Wed, 19 Sep 2012 16:03:40 GMT

The Financial Ombudsman Service (FOS) is dealing with hundreds and thousands of bank refunds, it has been revealed.

Chief ombudsman Natalie Ceeney told the Association of British Insurers' conduct regulation conference that the FOS is handling disputes about "mortgage endowments, bank charges and payment protection insurance (PPI) - not to mention other systemic and large-scale problems".

So far, more than £10 billion has been earmarked for PPI refunds, with the average recipient receiving almost £3,000.

Ms Ceeney suggested that everyone who works in the financial services sector would currently agree that the behaviour of firms in the industry has fallen below the standards the public expects.

Brits are loudly demanding change in the sector, she suggested, pointing out a "litany of misselling scandals and fines" have taken place in the last 12 years.

Furthermore, many money lenders have been trying to prevent action being taken against them, the ombudsman remarked, arguing banks attempted to challenge the PPI guidance from the Financial Services Authority in the High Court around one year ago.

Jennifer Haines
Jennifer's speciality knowledge is credit card changes and balance transfers.

Bank charges: ONS reveals drop in CPI and RPI inflation

Wed, 19 Sep 2012 14:09:47 GMT

A slight fall in inflation could help households cope with bills and bank charges without having to resort to loan claims.

The Office for National Statistics (ONS) revealed that Consumer Prices Index (CPI) annual inflation hit 2.5 per cent during August 2012, compared with July's figure of 2.6 per cent.

It suggested downward pressures from reduced expenditure on household services and housing, domestic gas, equipment and maintenance, furniture, clothing and footwear were responsible for this slight decline.

Furthermore, Retail Prices Index (RPI) annual inflation fell from July's figure of 3.2 per cent to 2.9 per cent in August.

However, general-secretary of the Trades Union Congress Brendan Barber argued these falls are inadequate in the face of "anaemic" wages.

"The combination of low wage growth, higher indirect taxes, in-work benefit freezes and tax credit cuts add up to an unprecedented attack on the living standards of low-paid workers," he remarked.

According to Mr Barber, the prospect of the squeeze on incomes coming to an end currently appears "remote".

John Fieldman
Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

PPI refunds: Banking 'one of the least trusted professions'

Wed, 19 Sep 2012 09:56:44 GMT

Following the payment protection insurance (PPI) misselling scandal and the rigging of Libor and Euribor rates, a Which? poll has found that banking is one of the least-trusted jobs in the UK.

Only 11 per cent of respondents said they trust bankers to act according to the interests of their customers, with just six per cent associating ethical behaviour with the sector and ten per cent calling bankers "well-regulated".

However, 67 per cent believe a banker who cheats or lies is unlikely to lose their job, while 63 per cent predicted a bank worker who failed to comply according to codes of conduct would not be fired.

A further 64 per cent claimed a banker who received a high number of complaints would still be in their job, with the same proportion anticipating that a bank worker who consistently delivered poor service would still remain employed.

"We thought we'd seen banking at its lowest point when the public were forced to bail out the banks, but since then we've seen the libor rate-rigging scandal and continued misselling," Which? executive director Richard Lloyd remarked.

Charles Baker
Charles is a reputed financial analyst with decades of experience under his belt.

Should Brits be protected from payday loan claims?

Tue, 18 Sep 2012 16:34:45 GMT

Consumers could be protected from high loan charges if the government effectively regulated payday lenders.

Director of Women in Debt and ReleaseMoneyGroup.co.uk representative Georgina Earle noted that while many consumers "abuse lending", creditors can also be "unscrupulous" in the loan claims they approve.

Payday loan companies make extra money when their clients fall behind on their repayments, she noted.

Recent alterations were made to payday lenders' codes of practices in order to protect vulnerable members of the public and improve the transparency of the market.

Ms Earle argued that the government ought to control advertising in the sector and introduces regulation into the industry.

She pointed out there has been a "big rise" in the number of people who have taken out a payday loan and are now facing bankruptcy.

"If you can't afford what you need to pay out each month now, then don't borrow any more," the expert advised.

Charles Baker
Charles is a reputed financial analyst with decades of experience under his belt.

PPI claims: Which? survey gives all high street banks low customer satisfaction ratings

Tue, 18 Sep 2012 15:33:03 GMT

With the misselling of payment protection insurance and increasing loan charges, it may come as no surprise to learn that all of the UK's major high-street banks received low scores in the latest customer satisfaction ratings report from Which?

The best-performing lender was HSBC, which received a customer satisfaction of 60 per cent, although this is still underneath the average score of 62 per cent received in the consumer advocacy group's analysis of 30 financial brands.

NatWest achieved 56 per cent, while Barclays received 54 per cent and Lloyds 51 per cent.

The lowest-rated banks were Santander (46 per cent) and Halifax (48 per cent), while the Bank of Scotland received 49 per cent and the Royal Bank of Scotland 50 per cent.

Which? has also asked members of the public to rate their satisfaction with credit card claims and mortgage providers, as well as their current and savings accounts, in the last year.

"We want to see fundamental changes in the culture of banking and a return to banking for customers, not bankers," Which? executive director Richard Lloyd said.

John Fieldman
Having worked in the city for 19 years, John's main focus is interest rates and corporate finance

FoI reveals lack of accountability following PPI scandal

Tue, 18 Sep 2012 11:39:39 GMT

A Freedom of Information (FoI) request has revealed the Financial Services Authority has not brought any enforcement cases against people in relation to the payment protection insurance (PPI) misselling scandal.

The FoI was sent by independent financial advisors Wexdon Financial Services and the FSA's response was reported by Money Marketing.

It revealed that the FSA has not disciplined any FSA-regulated individuals in connection with the misselling of PPI in the last three years.

Furthermore, the public body said "there are no cases currently being formulated" in regards to bringing cases against FSA-regulated professionals who are alleged to have missold PPI.

The FSA said to the news source: "To bring a case against an individual, there needs to be strong evidence about that individual's culpability."

In July 2012, the amount of cash paid back to customers as PPI refunds or compensation hit £5.9 billion and more than £10 billion has been earmarked to cover the cost of the scandal.

John Fieldman
Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

PPI claims: Youngsters 'should be taught money management'

Mon, 17 Sep 2012 16:46:05 GMT

Almost three quarters (73.7 per cent) of respondents to a MoneySupermarket.com poll support providing compulsory financial education in schools.

While this would help youngsters to understand jargon in bank claims and reduce their likelihood of making unsustainable loan charges, 21.9 per cent still said it is a job that should be done by parents.

A further 1.8 per cent suggested that there are more important things for youngsters to be taught about, while 1.9 per cent said understanding money management is not needed until people start dealing with their own finances.

Head of banking at MoneySupermarket.com Kevin Mountford recommended that mums and dads who wish to help their children avoid bank charges should provide them with pocket or birthday money and encourage them to put it aside for a rainy day.

Part-time employment for teenagers was also recommended by the expert, who said this can be "the first time they experience regular payments into their bank account".

"It's vital young people understand the charges and interest involved when using credit," he noted, pointing out that people are often offered the opportunity to borrow through credit card claims and authorised overdrafts when they reach 18 years old.

Samantha Clarke
Samantha is a former banking assistant and has over ten years experience in retail banking.

Young Brits 'making more credit card claims'

Mon, 17 Sep 2012 15:08:07 GMT

Young Brits are at greater risk of suffering from high credit card charges and loan claims than older people, a study has shown.

Investigations by MoneySupermarket.com found that 11 per cent of 18 to 34-year-olds have made cash withdrawals through a credit card, compared with eight per cent of the general populace.

Furthermore, 15 per cent of this demographic admitted that they had left themselves susceptible to bank charges by using an unauthorised overdraft, while the UK average is just seven per cent.

While four per cent of Brits have made a payday loan claim, seven per cent of younger people have.

A total of 19 per cent of 18 to 34-year-olds who have used credit said they are relying on it more this year than last year because their budget has been squeezed, with this averaging 12 per cent across the UK.

"The cost of living is going up, driven in part by the rising cost of household bills and as a result, millions of people are regularly borrowing money to make ends meet," banking director at Santander Reza Attar-Zadeh recently said.

John Fieldman
Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

Loan claims: Which? calls on banks to make it easier to switch accounts

Mon, 17 Sep 2012 11:48:36 GMT

Brits who are trying to reduce their bank charges could benefit if banks made it easier to switch services, Which? has suggested.

Research by the organisation found 59 per cent of people would be more likely to change their bank if they could keep their account number.

Furthermore, 55 per cent of respondents said they have never switched to a different bank account, with 19 per cent of these saying the process seems too complicated.

A total of 63 per cent of people support introducing portable account numbers across the UK, while 76 per cent said this would make it easier for them to change the lender they use.

Doing so would remove the need for people to change standing orders, direct debits and other bank charges when moving an account from one bank to another, Which? pointed out.

Executive director of the organisation Richard Lloyd said: "One of the most important ways that consumers can influence the broken banking culture in this country is by voting with their feet and switching to another bank."

Charles Baker
Charles is a reputed financial analyst with decades of experience under his belt.

Expert: Budget to cope with bank charges

Mon, 17 Sep 2012 10:07:38 GMT

Brits who cannot cope with their bank charges and credit card claims ought to confront their financial problems.

Yvonne Goodwin Wealth Management managing director Yvonne Goodwin suggested some people are "burying their heads in the sand" when it comes to money worries as they "don't want to give up their habits".

She recommended that people falling into debt write down all of their incomings and outgoings "right down to the cappuccino on your way to work", before determining the expenses that are not necessary.

Generally, people can curb the amount of money they spend on treats such as this and can also reduce their utility bills, the expert stated.

Ms Goodwin argued that breaking a habit can take 21 days, which means people may have to challenge themselves.

Previously, she had suggested that young people in particular can find it hard to budget and are tempted to make credit card claims to buy items they want.

Jennifer Haines
Jennifer's speciality knowledge is credit card changes and balance transfers.

Bank claims: Debt 'causes anxiety in students'

Fri, 14 Sep 2012 16:55:25 GMT

Students may have to be skilled in financial planning if they do not wish to find themselves juggling bank claims and credit card charges.

Author of Leaving Home and freelance journalist Glynis Kozma argued money is one of the most significant factors in anxiety among students, with this issue even potentially impacting their overall academic performance.

While some university attendees use part-time work to supplement their student loan claims, the expert pointed out such employment "can't always be guaranteed".

She noted students generally need to implement a weekly budget and stick to this, but added that many find this "challenging".

Spreadsheets and other tools to help people manage their cashflow were recommended by the expert, as dipping into overdrafts can leave graduates with substantial bank charges.

MoneyVista recently pointed out that the average student starting university this year is likely to leave education owing approximately £53,400 through student loans and other debts.

Jennifer Haines
Jennifer's speciality knowledge is credit card changes and balance transfers

Ban on excessive credit card charges 'is long overdue'

Fri, 14 Sep 2012 15:37:16 GMT

Credit card charges and other additional expenses ought to be "completely obvious" when a consumer enters into a transaction.

This is according to CashQuestions.com editor Annie Shaw, who said: "Meticulous profiteering should not be made on cards."

Recently, the government announced it is going to hold a consultation on excessive bank charges when people make payments using credit or debit cards and could ban these altogether.

Ms Shaw suggested this policy is "long overdue", calling the fact that a reform did not happen earlier "a pity".

If these fees are abolished, consumers will be likely to see what they are going to pay at the start of a transaction rather than suffer a "hefty" credit card claim at the end, she added.

Some expenses, such as cheap airline tickets, can have their prices as much as doubled as a result of these fees and surcharges, the specialist pointed out.

"It catches out a lot of people," Ms Shaw said.

Charles Baker
Charles is a reputed financial analyst with decades of experience under his belt.

Government plans consultation on credit card charges

Fri, 14 Sep 2012 14:06:40 GMT

The government is considering clamping down on excessive credit card charges.

Consumer affairs minister Norman Lamb made the announcement, arguing that people ought to be able to pay for goods and services without having to deal with these bank charges.

He announced that he plans to hold a public consultation into the issue that will investigate limiting the fees consumers can be charged by traders due to the payment method they use.

This should mean companies can no longer profit by enforcing credit card charges that go beyond the cost of processing a transaction.

Mr Lamb said the policy forms part of a "wider strategy" that will modernise, strengthen and simplify competition and consumer frameworks.

"This government is committed to delivering growth and increasing consumer confidence will help markets work at their best," he argued.

Previously, the coalition sought to curtail the practice of excessive surcharges when buying items or services and the current consultation should complement this move.

At that time, financial secretary to the treasury Mark Hoben argued that consumers should not be hit by "a hidden last minute payment surcharge".

Jennifer Haines
Jennifer's speciality knowledge is credit card changes and balance transfers.

FLA: Credit and loan claims realise annual growth in July

Thu, 13 Sep 2012 16:48:41 GMT

Brits made more credit card charges and personal loan claims in July 2012 than they did over the same month in 2011, data from the Finance & Leasing Association (FLA) has revealed.

According to its consumer lending figures, there was a two per cent growth in the amount lent to people through credit cards and personal loans during the month when compared with July 2011.

Furthermore, there was an 11 per cent annual increase in the credit lent through second-charge mortgages, while store instalment credit jumped by 33 per cent and car finance by 28 per cent.

M&S Money recently recommended that people buying a new car should check borrowing costs and rates when singing up for finance with the vehicle trader.

"The government will soon be taking decisions on a proposed new regulatory regime for consumer credit and must ensure that high street businesses can grow and deliver consumer choice," FLA head of consumer finance Fiona Hoyle said.

John Fieldman
Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

Credit crunch 'has changed the way Brits view loan claims'

Thu, 13 Sep 2012 15:57:40 GMT

The recession has made many Brits reluctant to incur bank charges or deal with credit card claims, a study has shown.

An investigation by MoneySupermarket.com revealed 33 per cent of people believe the "buy now, pay later" culture that existed before the credit crunch was wrong, while a further 28 per cent said they now understand that owning savings is important.

Furthermore, 14 per cent of people said they see the recession as normal and are dealing with the fact that their incomings and outgoings will never be the same.

Additionally, 47 per cent of adults think the UK's economy has a long way to go before it returns to strength, while 18 per cent believe the tough fiscal climate will continue forever.

An optimistic 13 per cent said the recession will come to an end within the next five years.

"The lack of affordable credit, little or no pay rises, increased unemployment and reduction in benefits has put further strain on households," head of banking at MoneySupermarket.com Kevin Mountford said.

John Fieldman
Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

Bank charges: Women increasingly managing household finances

Thu, 13 Sep 2012 11:59:31 GMT

Working women are increasingly taking control of bank claims and calling for loan refunds, a study by Provident has indicated.

The research revealed 57 per cent of females who are in full-time employment say they make the majority of their household's financial decisions, rising from 2011's figure of 47 per cent.

However, 84 per cent of female respondents admitted that they do not currently have a critical illness policy, with the expense of the cover cited by 57 per cent of these women as the reason they do not have it.

Data from the Office of National Statistics' Labour Market Statistics report of March 2012 revealed there are around 12.5 million working adult females in the UK, while the employment rate for all people aged between 16 and 64 was 70.3 per cent over this timeframe.

Scottish Provident senior product development manager Jennifer Gilchrist noted women are increasingly taking on monetary responsibilities in the household, making spending decisions and earning money.

"Despite becoming ever more responsible for financial decisions, women are not making appropriate choices to safeguard their futures," she argued.

Amir Hussain
Amir specialises in personal loans, consumer debt and debt management.

Bank charges: Children 'copy parents' attitude to money'

Thu, 13 Sep 2012 11:50:31 GMT

If parents are juggling credit card charges and making payday loan claims, there is a good chance their children will do the same when they grow up, statements from a specialist have indicated.

Sue Atkins, author of Raising Happy Children for Dummies and Parenting Made Easy: How To Raise Happy Children, said: "You are a blueprint for how your kids will handle savings, how they will talk about money and how they behave around the whole issue of finance."

She suggested that mums and dads who are a "spendthrift" and who do not budget or plan ahead will see their children either copy their actions or become excellent savers as a reaction against this behaviour.

Adults who continually say that they do not have enough cash will be likely to raise children that are "fearful" about money, the specialist added.

Liat Hughes Joshi, author of Raising Children: The Primary Years, recently claimed giving kids pocket money could help them with financial planning.

Charles Baker
Charles is a reputed financial analyst with decades of experience under his belt.

Loan charges: Struggling Brits urged to look into Warm Front

Wed, 12 Sep 2012 18:43:22 GMT

Brits who think they could only afford their energy bills by making a loan claim have been advised to research the Warm Front Scheme.

National Children's Bureau, Age UK, Citizens Advice and Consumer Focus made the recommendation, pointing out that people could be eligible to receive free insulation and heating upgrades through the initiative.

Consumer Focus research revealed that 39 per cent of households are concerned about how they will pay for energy in the coming winter, with 70 per cent of these people planning to reduce their use of central heating as a result of this issue.

This is despite the fact that the Warm Front scheme under-spent by £50.6 million last year out of a total budget of £145 million.

"We know many families are struggling to cope with rising fuel bills and are having to cut back on other essentials like food," senior development officer for health and well-being at the National Children's Bureau Rachel Monaghan said.

Jennifer Haines
Jennifer's speciality knowledge is credit card changes and balance transfers.

Bank claims Brits 'rely on credit' to get through month

Wed, 12 Sep 2012 16:42:17 GMT

Many Brits can only get through the month because of credit card charges and payday loan claims, a study has shown.

Research from Santander found 26 per cent of Britons take out loans to cover their household bills every month.

Furthermore, around £2 billion is borrowed from payday lenders every year to help Brits deal with essential expenses, with two per cent of British people borrowing an average of £153 per cent each on a typical month.

On average, Brits borrow approximately £259 every month to pay for council tax, utilities and other outgoings.

The most popular way people receive credit is by using an overdraft, with 17 per cent of adults in the UK utilising this service and taking out an average of £264 monthly.

Despite how many people are incurring bank charges through the number of debts they are accumulating, only 32 per cent of respondents said they regularly look for cheaper deals on their subscriptions.

"Times have been undeniably tough over the last couple of years and the economic downturn is taking a toll on households," Santander banking director Reza Attar-Zadeh recently said.

John Fieldman
Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

Loan refunds: Men 'less frugal' than women

Wed, 12 Sep 2012 10:58:38 GMT

Men could be more willing to incur credit card charges than women, as they can be reluctant to find the best deals.

This is according to Quidco, which found 15 per cent of males believed frugality would impact their "street cred".

A further 15 per cent of male respondents to the poll claimed using discount codes or vouchers is not acceptable behaviour.

This is despite the fact that the UK is in recession, with Office for National Statistics data showing gross domestic product falling by 0.5 per cent during the second quarter of 2012 and household consumption expenditure dropping 0.4 per cent in this timeframe.

Women are also more likely to discuss money-saving tips with each other, with 27 per cent of females sharing economical hints with friends and family, compared with around 20 per cent of males.

"Almost half of the men surveyed felt that talking about wealth is acceptable, so accumulating it is something we encourage more of them to do," Quidco managing director Andy Oldham said.

John Fieldman
Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

PPI claim scammers strike in Cheshire

Tue, 11 Sep 2012 15:58:47 GMT

Cheshire Police have warned of door-to-door scammers focusing on payment protection insurance (PPI) claims.

The crime involves individuals travelling from house to house asking people if they are owed money through a PPI refund and requesting personal information from members of the public, claiming this is needed to investigate who should be given cash.

A spokesperson for the police force said the offenders contact the residents later, informing that they are owed a "large sum of money".

However, to unlock the cash, people are asked to send Ukash vouchers to the criminals.

"Once this money has been taken by the scam team no money is received by the victim," the police representative remarked.

Officers advise members of the public to refuse to make any upfront payments and to deal with the "proper and reputable companies" that can help with PPI claims.

Similar frauds and scams have been reported all over the UK, with Nottingham Trading Standards reminding people to avoid giving personal information to cold-callers.

Samantha Clarke
Samantha is a former banking assistant and has over ten years experience in retail banking.

PPI misselling scandal 'lasted for years'

Tue, 11 Sep 2012 14:07:48 GMT

It is a shame the Financial Services Authority took so long to deal with incentive schemes that encouraged sales staff to sell payment protection insurance (PPI) and other risky products, a Guardian editorial has said.

The newspaper pointed out that a member of the public could enter a bank and exit with a "hideously complicated financial product that he didn't need and that could end up costing him thousands".

While "useless" loan or credit card payment protection insurance is now in the public's eye, misselling also happened on mortgages and investments, it added.

This behaviour is not a recent occurrence or accidental but is instead "entrenched and vastly profitable" for banks, the editorial stated.

It pointed out that the newspaper first began discussing the PPI scandal in 2004, with a series of articles by Colin Cottell and Phillip Inman arguing that this insurance was an exceptionally good way for the banking industry to make money.

The PPI "scam" is set to result in billions of pounds of bank refunds, the Guardian stated, suggesting that the system "needs to be reformed - and fast".

John Fieldman
Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

FOS releases PPI claims data

Tue, 11 Sep 2012 11:36:59 GMT

The Financial Ombudsman Service (FOS) received 85,562 new PPI claims during the first six months of 2012.

This compares with the 49,419 received during the first half of 2011 and represented 63 per cent of all the new complaints the organisation dealt with.

Furthermore, 71 per cent of all new PPI complaints the FOS received over this timeframe came from five banking groups.

Currently, the ombudsman is dealing with an average of around 1,500 new claims for PPI refunds daily and is receiving 3,000 calls on the subject every day.

Overall, the number of new complaints made about financial industries hit 135,170 during the first half of the year, which is a rise of 27 per cent against the previous six months.

"People parting with their money need to be sure they are being sold a product for the right reasons, rather than just because it makes a lot of money for those selling it," managing director of the Financial Services Authority Martin Wheatley recently said.

Jennifer Haines
Jennifer's speciality knowledge is credit card changes and balance transfers.

Vulnerable and poor people 'eligible to make payday loan claims'

Mon, 10 Sep 2012 16:48:59 GMT

Vulnerable members of the public who will be unable to afford the loan charges incurred through payday loans may find they are still eligible to make loan claims through payday lenders.

Writing for the Guardian, Heydon Prowse, who writes and stars in BBC3 show The Revolution Will Be Televised, explained that he used to work for a payday loan firm called Provident Financial Group.

He revealed that in a sketch for the show, his business partner Jolyon Rubinstein visited a number of payday loan companies pretending to be a "simpleton".

Mr Rubinstein acted like he had to make a payday loan claim because of gambling and drug debts, while informing the lenders that he had "just been released from a mental asylum", Mr Prosse said.

"Without exception, he was offered the option to apply for loans - one of £5,000 on the condition he pay back £11,398," he revealed.

The government recommends that people only use payday lenders if they are aware of all the costs and loan charges involved in this form of credit.

Amir Hussain
Amir specialises in personal loans, consumer debt and debt management

Bank charges: Pocket money 'teaches children about financial management'

Mon, 10 Sep 2012 14:40:55 GMT

Brits who wish to help their children avoid incurring loan charges or making credit card claims could introduce them to financial management through their pocket money.

Author of Raising Children: The Primary Years Liat Hughes Joshi called this a "brilliant" way to introduce youngsters to monetary issues.

He recommended that mothers and fathers start giving their children spending money from around the ages of six and seven, as this is usually the time that people develop the mathematical skills needed to deal with cash.

"Some parents link pocket money to chores or good behaviour," the expert pointed out, claiming this approach is "fine" but recommending that rules about payments are consistent and clear.

Mums and dads may also be able to assist their children in financial matters by "being good role models about consumerism", such as by demonstrating how there is "more to life than the fanciest gadget or the flashest trainers", Mr Joshi suggested.

A recent study from Skipton Building Society found parents typically spend almost £500 every year on trendy products for their offspring.

Charles Baker
Charles is a reputed financial analyst with decades of experience under his belt.

PPI claims: FSA's sales incentive plans welcomed by uSwitch.com

Mon, 10 Sep 2012 13:10:55 GMT

The Financial Services Authority's (FSA) proposal to remove bank sales incentives has been welcomed by uSwitch.com.

FSA managing director Martin Wheatley had suggested the policy of incentivising staff to sell payment protection insurance (PPI) to customers was "rotten to the core".

Michael Ossei, personal finance expert for uSwitch.com, suggested that the plan could help to rebuild the public's trust in bank claims.

While it could reduce the likelihood of the PPI misselling scandal from occurring again, the specialist suggested it might also help people to feel that they can enter a bank "without felling scared they will be pressurised into buying something".

"An incentive culture has been rampant in the banks for far too long," he declared, arguing banks should move towards delivering good customer service and away from "sales targets".

Many Brits struggle to cope with credit card charges and loan claims and Mr Ossei remarked that financial mismanagement is "hardly surprising" when people have no confidence in the companies they should be able to ask for assistance.

John Fieldman
Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

Loan claims: Payday loans 'a problem for many Britons'

Fri, 07 Sep 2012 19:02:07 GMT

A large number of people in the UK are making loan claims for payday deposits and then rolling them over when they are unable to repay the balance.

Georgina Earle, of the ReleaseMoneyGroup.co.uk website and director of Women in Debt, has revealed her belief that payday loans are a major issue in the country.

While she admitted they can help people to make ends meet, they are dangerous when not repaid by the original date.

Commenting on those who take out payday loans, Ms Earle said: "They can't pay it back this week, this month, so they will then roll it into another payday loan - and that is where the payday lenders make their money."

She recommended only using a payday loan when it is certain that the balance can be repaid.

Otherwise, people can run out of control and end up making numerous loan claims as they struggle to stay afloat.

Jennifer Haines
Jennifer's speciality knowledge is credit card changes and balance transfers.

Credit card charges: Start saving early to avoid financial trouble

Fri, 07 Sep 2012 19:01:11 GMT

Britons who have decided they want to avoid a life of credit card charges could take one expert's advice and start to save as early as possible.

Simon Rose of Save our Savers has spoken of the importance of getting into the habit of putting money aside at as young an age as is realistic.

He suggested those who start to save at a young age will find it easiest to build up the largest sum of cash.

When hard times hit - just as they have in the UK in recent years - these individuals will be in the strongest position to ride out the storm.

Although low interest rates are, on the face of it, not good for savers, it can mean mortgage holders are paying less to live so have more funds to save each month.

The best news of all is that there are new Junior Isas, specially designed for parents who want to get their youngsters off to a good start in life.

Jennifer Haines
Jennifer's speciality knowledge is credit card changes and balance transfers.

Bank charges may remain static after BoE interest rate hold

Thu, 06 Sep 2012 19:12:33 GMT

The fate of bank charges may be of huge interest to consumers around the UK after the Bank of England once again announced it is holding the country's base rate at 0.5 per cent.

Some may consider the institution's decision to stick with the record low interest rate as a sign of a lack of faith in the British economy at a time when it has received a reminder of the country's poor financial performance.

The Organisation for Economic Co-operation and Development has already slashed its expectations for growth in 2012, indicating all is not well.

Consumers in the nation may be worried that their jobs are at risk if the economy shows no signs of picking up, but they can at least rely on a relatively low rate of borrowing at a time when interest rates are as low as they are right now.

In addition to its announcement on the base rate, the Bank of England said it is holding its quantitative easing programme at a value of £375 billion.

"We would need only a relatively small deterioration in economic conditions to prompt a further extension of the asset purchase programme later this year," observed the CBI's head of economic analysis Anna Leach.

The UK's base rate has been stuck at 0.5 per cent since March 2009. It is also the first time in history the rate has plummeted to such a low amount.

If matters do not improve in the near future, there is always the possibility of further cuts being made in British industry and jobs being put at risk.

In such instances, the use of payment protection insurance and other safeguards could become a considerable hit with British workers and consumers as they bid to beat the economic downturn and live without the worry of being without cash.

John Fieldman
Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

PPI claims: Metro Bank and BSA welcome FSA focus on bank incentives

Wed, 05 Sep 2012 16:59:17 GMT

A number of organisations have welcomed the speech Financial Services Authority managing director Martin Wheatley made on how sales incentives could have encouraged the misselling of payment protection insurance (PPI) and other products.

Metro Bank chief executive Craig Donaldson said: "If you incentivise your staff to sell, you shouldn't be surprised when they miss-sell."

He pointed out that if a worker is earning extra money for selling a particular product to customers, then they will do so regardless of whether or not it is appropriate for their client's needs.

The business leader suggested that the problem is "cultural", remarking that resolutions to the issue will have to come from "the very top of financial institutions".

Building Societies Association (BSA) director-general Adrian Coles similarly welcomed Mr Wheatley's comments.

He claimed the speech "underlines the key problem of misselling".

While incentives could have led to banks having to earmark money for PPI refunds, Mr Coles said providing staff with bonuses in this manner could be "fine", providing that they are "balanced in favour of the fair treatment of customers".

Jennifer Haines
Jennifer's speciality knowledge is credit card changes and balance transfers.

FSA to combat bonuses in wake of PPI scandal

Wed, 05 Sep 2012 16:39:31 GMT

In the wake of the payment protection insurance (PPI) scandal and the rigging of interbank rates, the Financial Services Authority (FSA) has set up an initiative to end sales incentives that could encourage banks to sell inappropriate services to customers.

Speaking at a Thomson Reuters Newsmaker event to an audience of consumer and trade groups, compliance officers and senior bankers, FSA managing director Martin Wheatley said: "Incentive schemes on PPI were rotten to the core and made a bad problem worse."

Bonuses have had an important role in a number of scandals that have struck the industry recently, he pointed out.

The expert pointed out that historically, people making bank claims would be going to an institution that was providing a service.

Members of the public would "have a pleasant chat with the clerk" and continue their daily business, but nowadays if someone wants to deal with their credit card charges, the worker at the bank will ask them if they would like to take out an insurance policy, examine the firm's mortgage loan claims or extend their credit, he pointed out.

"Our report today must act as a wake up call to all firms," Mr Wheatley stated.

John Fieldman
Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

Bank refunds: Brits 'comparing prices when shopping'

Wed, 05 Sep 2012 12:03:09 GMT

Britons, who are unwilling to incur excessive credit card charges, are becoming increasingly careful when shopping.

Research from QuidCo has shown 87 per cent of consumers in the UK go to a number of retailers before deciding to buy an item.

Furthermore, 39 per cent of people visit more than three shops before purchasing anything.

Young people could be the most reluctant to deal with bank charges, with almost half of respondents aged between 18 and 24 admitting that they visit at least three businesses before parting with their cash.

Recently, the firm also revealed that more than one-sixth of UK adults are prepared to mend and repair clothing rather than buy new garments.

However, 22 per cent of males said they dislike shopping frugally, with 16 per cent settling for the first option they see.

"It is hardly surprising that the persistently tough financial climate has led to a significant shift in consumer shopping habits," QuidCo managing director Andy Oldham said.

Jennifer Haines
Jennifer's speciality knowledge is credit card changes and balance transfers.

Loan claims: Childrearing 'is becoming more expensive'

Tue, 04 Sep 2012 17:54:42 GMT

A new study has revealed how childrearing leaves mothers and fathers susceptible to loan charges.

Research from the Child Poverty Action Group found raising a youngster from birth to 18 costs an average of £143,000, or £150 every week.

However, full-time employment on minimum wage is not enough to cover this cost, reaching just 89 per cent of the basic requirement for single parents and 82 per cent for couples, with these figures taking account of tax credits and benefits.

Halifax figures recently claimed it costs £91,337 to raise a youngster to the age of 11.

Parents juggling credit card claims and bank charges to deal with the cost of childrearing might therefore have unsustainable finances.

Joseph Rowntree Foundation head of team (poverty) Chris Goulden said mothers and fathers who took part in the study "were clear that not being able to afford to take part in school activities, go to birthday parties or have a modest annual family holiday" will have "serious consequences" for their children's development.

Charles Baker
Charles is a reputed financial analyst with decades of experience under his belt.

PPI claims: Britain 'becoming a cashless society'

Tue, 04 Sep 2012 16:54:07 GMT

Brits are no longer using cash to deal with their finances but are instead using credit card charges, direct debits, online transactions, standing orders and similar tools.

This is according to a study from Clydesdale and Yorkshire Banks, which found that 29 per cent of people spend less than ten per cent of their wage as cash, while 19 per cent take out between 11 and 20 per cent.

Furthermore, eight per cent of people are reliant on electronic bank charges, as they do not withdraw any of their income as paper money.

Just four per cent withdraw more than half of their wage.

The research, which involved a sample of 1,066 adults in the UK, also found 34 per cent of men claim to regularly carry at least £30, compared with 21 per cent of women.

However, paying with bank cards could leave people vulnerable to having to make loan claims, with behavioural expert and psychologist Dr Jane McCartney stating: "Research shows those who pay with plastic will tend to focus on the benefits of a purchase, whereas those who pay with cash have a tendency to think about the cost more."

John Fieldman
Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

Many Brits 'need help with payday loan charges'

Tue, 04 Sep 2012 11:48:33 GMT

Many people who have made payday loan claims are struggling to cope with the amount of money they owe, new figures have indicated,

Amigos Loans has revealed the number of people who have come to it seeking assistance with debt consolidation has jumped by 21 per cent since 2011, going from seven million to around 8.5 million.

This indicates that both the awareness of funding options with more sustainable loan charges and the understanding of the harm payday lenders can cause is rising.

Chief executive officer of Amigo Loans James Benamor said many of the firm's customers are finding it hard to deal with their debts because of these short-term loans.

"What started off as a bit of extra cash to see them through to payday has turned into a mountain of rolled over loans, unmanageable debt and extortionate charges," he explained.

Recently, bodies representing more than 90 per cent of the payday lending sector published revisions to their code of practices in order to enhance consumer protection.

Amir Hussain
Amir specialises in personal loans, consumer debt and debt management.

Bank claims: Raising child to 11 'costs over £90k'

Mon, 03 Sep 2012 16:09:31 GMT

Raising a child until the age of 11 could leave a family vulnerable to credit card charges and loan claims, as a study by Halifax has found this sets the average household back £91,337.

In 2007, the annual cost of childrearing was £7,222, but this has risen by £1,085 within five years to hit £8,307, or a 15 per cent increase.

The yearly price of schooling is thought to have grown the most, jumping 24 per cent since 2007 to reach £849, compared with £684.

Some of the expenses academia incurs include class materials, lunches, uniforms and field trips.

Over this timeframe, the Retail Price Index measure of inflation increased by 18 per cent.

Typically, mothers and fathers spend 18 per cent of their household income on raising their offspring, with some of the expenses highlighted by the firm including pocket money, personal care, food, holidays, childcare and educational costs.

According to insurance firm LV=, raising a child from birth to 21 now costs an average of £218,024.

Charles Baker
Charles is a reputed financial analyst with decades of experience under his belt.

British banks reveal 'soaring' number of PPI complaints

Mon, 03 Sep 2012 16:07:48 GMT

The number of payment protection insurance (PPI) claims made against British banks has soared, figures have shown.

During the first six months of 2012, Barclays revealed the number of PPI claims it received jumped by 76 per cent, while the Royal Bank of Scotland saw the amount of PPI refund cases made against it increase by 128 per cent.

"Clearly a small rise in complaint volumes is disappointing and not the direction we wanted to be heading," Barclays Group chief executive Antony Jenkins said.

"Our goal is to cut complaints further," he added, stating the company aims to "get it right first time, every time".

However, the largest increase was seen by Lloyds, which received 860,026 complaints over the timeframe, of which nearly 738,000 related to the PPI misselling scandal.

NatWest received 295,934 complaints, with 209,000 of these asking for PPI refunds, while almost £10 billion has been earmarked by British lenders to help them deal with the misselling of these insurance policies.

Samantha Clarke
Samantha is a former banking assistant and has over ten years experience in retail banking.

Lenders 'unwilling to approve credit card claims'

Mon, 03 Sep 2012 11:43:35 GMT

Brits are not unwilling to make credit card charges, but lenders are unwilling to offer members of the public greater debts.

This is according to Women in Debt director and ReleaseMoneyGroup.co.uk representative Georgina Earle, who said: "I don't see any reluctance in spending or borrowing."

However, Bank of England data revealed that the amount of loan claims people made using credit cards fell by £147 million in July, which is the largest drop seen since August 2006 and the first decline in three months.

Ms Earle suggested that this result is because banks are reluctant to extend their customers' credit.

Many times, people will come to a company asking to make a credit card claim, although they will already use store cards, high-street cards and loans, she argued.

When they are not offered any credit, they could begin making payday loan claims, the specialist warned.

"People are getting desperate to borrow more money," she stated.

John Fieldman
Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

Loan claims: Brits 'should choose fixed-price energy plan'

Fri, 31 Aug 2012 15:06:49 GMT

Brits who are struggling to deal with energy bills may wish to change their tariff now, before they are forced to make loan claims in the winter.

According to uSwitch.com, only a ScottishPower plan and EDF energy provide fixed prices without early-exit penalties.

Furthermore, it pointed out that both of these offerings are in 'best-buy' tables, which indicates that their tariffs will be competitive and could help people to avoid incurring bank charges when paying their utility bills.

SSE recently revealed it plans to increase its gas and electricity prices by nine per cent from October 15th, although it admitted this will cause some people to fall into fuel poverty.

Following this revelation, uSwitch.com claimed that a "flurry of customers" took the opportunity to protect themselves from further rises in gas and electricity bills by attempting to secure fixed-price deals.

"Consumers who want to fix their energy prices cannot afford to hang around - these deals are flying off the shelves and could be pulled at any time," energy expert for the price comparison site Tom Lyon said.

Amir Hussain
Amir specialises in personal loans, consumer debt and debt management

PPI claims: Basic account holders 'should have unrestricted access to cash machines'

Fri, 31 Aug 2012 11:40:30 GMT

Brits with basic bank accounts should be able to incur credit card charges and make transactions with cash machines run by independent third parties or other lenders, the Treasury Committee has said.

In a report entitled Access to cash machines for basic bank account holders, the public body urged Lloyds TSB and RBS to remove any restrictions in this area.

HSBC, Barclays Bank and Santander have already committed to provide unrestricted access to basic customers and the committee revealed it intends to write to other lenders asking them to clarify their positions.

"Given the current model for banking and bank charges", these three banks' promise to continue providing unrestricted access to cash machines "is to be welcomed", chairman of the Treasury Select Committee Andrew Tyrie MP said.

Citizens Advice chief executive Gilliian Guy argued Lloyds TSB and RBS "are treating basic bank accounts customers like second class citizens".

Preventing people from using automated teller machines for free can force poor members of the public to incur additional bank charges by paying to access their money, having to travel to their bank or buying goods to receive cash-back, she pointed out.

John Fieldman
Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

PPI refunds: Card skimmer found in Scarborough

Thu, 30 Aug 2012 14:33:00 GMT

People in Scarborough could have suffered from fraudulent bank charges after a card skimmer and camera were recovered from an automated teller machine.

The devices, which can enable criminals to make credit card charges with other people's accounts, were found on an Aberdeen Walk post office on August 26th by a member of the public.

After the tools were discovered, the cash machine was powered down.

Anyone who thinks they could have been affected by the crime ought to speak to their bank and the local police force has asked anyone with information about this offence to get in touch with them.

"Cover your hand while you are typing in your pin number," investigating officer Police Constable John Coleman advised.

"Without your pin, thieves have limited opportunity to use the card," he added.

Barclays Bank noted that most people do not realise they have been a victim of card skimming until their account statement arrives.

Samantha Clarke
Samantha is a former banking assistant and has over ten years experience in retail banking.

New car buyers could avoid high loan charges through research

Thu, 30 Aug 2012 11:39:26 GMT

Frequently, people make a personal loan claim so they can purchase a new car.

Figures from Nationwide Building Society reveal this is the reason 37 per cent of consumers apply for a loan.

However, the lender suggested that people are incurring high loan charges unnecessarily because they apply for credit from their current account provider.

A person who purchases a £10,000 Ford Fiesta with Nationwide's annual percentage rate (APR) of 6.3 per cent over five years will pay £11,634.60, but this figure would be £12,727.80 when a Barclays Bank loan claim is applied for, as this lender offers an APR of 9.9 per cent.

As a result, buying a new car with a Nationwide loan rather than a bank claim from Barclays could save a customer £1,093.20.

"People will often put the time and effort into shopping around to find a new car, but when it comes to securing the finance they opt for the first deal they are offered," Nationwide head of personal loans Paul Wootton said.

M&S Money head of personal loans John Harnett recently recommended that people research the market for a few minutes when buying a car, with M&S offering a representative APR of six per cent.

Charles Baker
Charles is a reputed financial analyst with decades of experience under his belt.

Bank claims: Could Brits trust John Lewis more than Barclays?

Wed, 29 Aug 2012 14:08:53 GMT

Brits could be more trusting of bank claims made by major retailers than those made by traditional sources of finance, a study has shown.

John Lewis would be trusted to provide banking services to 75 per cent of respondents, while 25 per cent said they would have faith in Amazon, uSwitch.com research revealed.

Furthermore, the misselling of payment protection insurance, libor-rate swaps and other issues in the financial services sector appear to have led Britons to mistrust money lenders, with 68 per cent claiming new players in the industry care more about their clients than the established banks do.

While only 37 per cent think that high street banks provide good customer service, 69 per cent believe that retailers and supermarkets do, the investigation revealed.

"It's clear that Barclays and the other big banks not only don't care about their customers but are willing to completely undermine the UK economy, just to line their own pockets," former Barclays Bank customer and graphic designer Stephanie Lee recently said.

Charles Baker
Charles is a reputed financial analyst with decades of experience under his belt.

Brits in relationships 'hiding loan claims from partners'

Wed, 29 Aug 2012 10:28:51 GMT

Many Brits could be making loan claims and buying goods through credit card charges while neglecting to tell their partners.

An investigation by The Cooperative Bank revealed that 13 per cent of all people in relationships are hiding some debt from their significant other.

Furthermore, 62 per cent of couples have individual debts, such as in mortgages, overdrafts, credit cards and loan claims.

Overall, Brits in relationships are hiding borrowings worth a total of £41 billion from their other half, with the average lover owing £17,112.

While the average man has a debt of £14,228, this hits £22,418 among women, while people younger than 35 generally owe three times more money than those older than 35.

ICM Research conducted the study through a representative sample poll of 2,000 adults in the UK.

"A problem shared is a problem halved and being honest with your loved ones about debt is always preferable to being caught out in the long run," head of home and family at The Cooperative Bank James Hillon said.

John Fieldman
Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

Loan claims: Number of debtors 'likely to rise'

Tue, 28 Aug 2012 17:14:55 GMT

People could fall even further behind on bank charges and find themselves having to make additional loan claims in the next few years, statements from an expert have indicated.

CashQuestions.com editor Annie Shaw suggested that some people are "seeing their debts rise" as a result of the growing cost of living.

"There are people who really can't help their debts," she argued.

Previously, the expert claimed old people could be more likely to suffer from inflation than the young.

However, the specialist pointed out that some other men and women are attempting to reduce their debt burden, such as by paying their credit card claims off and ensuring they do not borrow any money.

Many members of the public are reluctant to take on additional debts, she remarked, pointing out this might cause "quite a divide in society".

In the past, people would have been willing to have made a loan claim so they could buy items or go on holiday, but are now "afraid of it", Ms Shaw stated.

Charles Baker
Charles is a reputed financial analyst with decades of experience under his belt

Bank claims: Brits 'donning schoolchildren in second-hand clothes'

Tue, 28 Aug 2012 16:14:06 GMT

Parents, who could be particularly reluctant to incur credit card charges or make loan claims, are up-cycling or using hand-me-downs instead of spending money on new school equipment for their children.

This is according to data from Quidco, which revealed that six per cent of mums and dads said they would never have considered giving their children second-hand clothes before the economic downturn, but now one-eighth of all shoppers are doing so.

Furthermore, one-sixth of respondents suggested that they might use a sewing machine rather than buy new clothes, while more than one-third are using vouchers and discount codes regularly.

Quidco argued that the recession is changing the way Brits pay for sportswear, stationery and uniform when getting youngsters prepared for a new school year.

"Kitting out the kids can be an expensive process, but it's encouraging to see shoppers increasingly using the wide range of resources available to them to cut costs," the enterprise's managing director Andy Oldham said.

Jennifer Haines
Jennifer's speciality knowledge is credit card changes and balance transfers.

Credit card charges analysis reveals 'summer of social spending'

Tue, 28 Aug 2012 14:00:29 GMT

Brits will incur more bank charges in restaurants and bars this summer than they did a year ago, Santander has predicted.

An analysis of the lender's customers' credit card charges revealed that people spent 27 per cent more money on dining and drinking establishments in July to September 2011 than they did during the rest of the year, as well as performing 21 per cent more transactions.

Santander forecasts that Brits will spend even more this year to celebrate sporting successes and the summer weather.

There is a "summer of social spending", the bank claimed, noting members of the public are socialising with family and friends during the warmer months.

Furthermore, men are spending significantly more than women in restaurants and pubs, with 67 per cent of all money spent and 66 per cent of transactions made in these businesses undertaken by males.

"Last year, we saw a marked increase in how much customers spent in restaurants and bars over the summer months," Santander Cards chief executive officer Alan Mathewson said.

Amir Hussain
Amir specialises in personal loans, consumer debt and debt management.

PPI refunds: CAB warns of debt help scammers

Fri, 24 Aug 2012 16:34:52 GMT

People who are struggling with escalating credit card charges and spiralling loan claims may be relieved to receive a phone call from the Citizens Advice Bureau (CAB), but the organisation has warned any contact such as this is likely to be a scam.

It confirmed that no genuine CAB advisor will text or call a member of the public "out of the blue", nor will anyone connected with the charity.

Criminals can also offer to help people with payment protection insurance claims or a range of other financial matters.

These callers are imposters, preying on men and women with financial problems and offering "fake 'debt help'", the CAB warned.

Furthermore, text messages or cold calls from a person who claims to be from the recipient's bank are also "almost certainly a scam", it continued.

The group recommended that people who receive these communications should ensure they do not confirm or provide any of their personal details before contacting Action Fraud.

Samantha Clarke
Samantha is a former banking assistant and has over ten years experience in retail banking.

Difficulties with loan charges 'can make mortgages hard to access'

Fri, 24 Aug 2012 13:49:34 GMT

People who have struggled to pay off credit card charges and have been forced to make payday loan claims could find they are ineligible to apply for a mortgage.

Your Mortgage Decision director Dominik Lipnicki said the coalition's funding for lending scheme has reduced rates for housing finance loans, but lenders are "still trying to attract the same clients".

As a result, only members of the public with sizable deposits, sufficient provable income and a "clean credit rating" will be eligible to take advantage of the lower mortgage rates, he added.

The representative noted that mortgage lending has fallen since the credit crunch "because of lending criteria rather than high interest rates".

Many people are therefore unable to remortgage, move house or purchase their first home because they "do not fit the lender's very tight lending criteria", Mr Lipniki said.

Recently, the British Bankers' Association reported that the number of mortgage approvals granted to people who wished to buy a home was 17 per cent lower in June 2012 than it was in the same month one year prior.

John Fieldman
Having worked in the city for 19 years, John's main focus is interest rates and corporate finance

PPI claims pull Co-op profits down

Fri, 24 Aug 2012 12:48:21 GMT

The Co-operative Banking Group has revealed the number of payment protection insurance (PPI) claims it has received so far in 2012 has risen.

In its interim results, it pointed out that the rising number of PPI refunds it is dealing with is seen in many of its competitors.

While the bank's revenue increased by 3.9 per cent over the year to reach £1 billion, when PPI reclaim provisions are taken into account, it actually fell by 1.1 per cent.

Furthermore, compensating people affected by the scandal also caused its operating profit to drop 67.9 per cent to reach £36.9 million.

The Scotsman reports that chief executive of the lender Peter Marks expressed remorse for the firm's involvement in the PPI scandal.

"If we could turn the clock back, we would not have done it," he said, admitting that the enterprise is "not perfect".

"We are not just about maximising profit. We have social and ethical goals," he stated.

Samantha Clarke
Samantha is a former banking assistant and has over ten years experience in retail banking.

Loan charges: Renters 'fail to look for cheap energy'

Thu, 23 Aug 2012 17:24:07 GMT

Tenants - who are already in a financially precarious situation due to high housing costs - could be forced to make loan claims to deal with energy bills.

Research from uSwitch.com revealed only 38 per cent of renters have changed their power supplier to a cheaper firm.

Furthermore, 33 per cent of respondents said they are less likely to consider changing gas and electricity companies as a tenant than they would be as a homeowner, while 27 per cent reported that they are not particularly interested in the energy efficiency of their home.

This is despite the fact that landlords will not be able to rent buildings that do not meet certain sustainability standards from 2018.

"With more and more people renting, it's vital that people don't feel that being a tenant means relinquishing the right to control their household bills," director of consumer policy at uSwitch.com Ann Robinson said.

People who receive an energy bill in their name have the "right to shop around", she argued.

John Fieldman
Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

Loan refunds: Brits 'hitting affordability tipping point'

Thu, 23 Aug 2012 16:22:51 GMT

Almost half of all Brits make loan claims, incur credit card charges or take on debts in other way to make it through the month.

This is according to research from the MoneySupermarket.com Affordability Tipping Point report, which also found that if the average UK household's monthly outgoings grew by £50, 36 per cent of all respondents said this additional expense would be impossible for them to meet.

A total of 44 per cent of British adults said they are now utilising credit more frequently to help them get through the month, with 24 per cent making additional credit card claims and 17 per cent using authorised overdrafts.

Furthermore, 79 per cent of all households are budgeting, while 41 per cent have curtailed their expenditure on new clothes to cope with day-to-day expenses.

Recent investigations by Bright Grey found that on average, 41.22 per cent of a person's income is taken in tax, while housing costs an additional 14.96 per cent of their wage.

"As news of rising costs continue to hit consumers, all the signs suggest that 2012 is set to be another tough year for many households," personal finance expert at MoneySupermarket.com Clare Francis remarked.

Charles Baker
Charles is a reputed financial analyst with decades of experience under his belt.

Loan claims: New car buyers 'should examine finances'

Thu, 23 Aug 2012 11:31:00 GMT

Motorists might be able to save money by making a loan claim instead of using finance options in car dealerships when buying a new vehicle.

M&S Money has recommended that people look at borrowing costs, loan charges and rates when applying to purchase a new '62-plate' car on September 1st.

Data from The Society of Motor Manufacturers and Traders forecast that approximately 330,000 new motors will be registered over the month, with around £4.95 billion set to be spent by British drivers on the latest models.

Personal contract plans acquired in car dealerships were used to pay for 63 per cent of new vehicles in the last 12 months, the Finance and Leasing Association revealed.

Head of personal loans at M&S Money John Hartnett suggested that people spend "just a few minutes looking at some of the best finance options available" before buying a car.

This will give them with enough information to be able to determine whether the car salesman's deal is worth using, he pointed out.

Amir Hussain
Amir specialises in personal loans, consumer debt and debt management.

Students 'must consider overdrafts' to avoid bank charges

Wed, 22 Aug 2012 16:48:26 GMT

Students can avoid excessive bank charges by carefully considering the accounts they use.

MoneyVista claimed it is more important than it has ever been for university attendees to consider this matter, pointing out that student loan claims and other costs are set to result in graduates leaving education with debts of around £53,400.

Young people ought to check their fee-free overdraft and interest rates, as well as the penalties that are incurred when these limits are breached, the firm stated.

Some lenders charge their customers "hefty fees" when they use unauthorised overdrafts, it continued.

MoneyVista advised people not to be influenced by any special offers, noting that the most important feature of a university attendee's account ought to be "the interest-free and fee-free overdraft facility".

Consumer finance expert for the organisation Teresa Fritz said: "Borrowing is a fact of life for most students."

"We urge students to think carefully about which student account is right for them," she added.

Jennifer Haines
Jennifer's speciality knowledge is credit card changes and balance transfers.

Nottingham Trading Standards warns against PPI claims scammers

Wed, 22 Aug 2012 13:50:12 GMT

A payment protection insurance (PPI) claims scam has affected a number of residents in Nottingham.

Echoing statements made by police officers and local authorities all over the UK, the council's Trading Standards service has told residents that cold callers are contacting members of the public and offering to assist them with PPI refunds.

Criminals tell the victim that the money from their PPI claim will arrive in the post and ask for a fee, which is to be paid in Ukash vouchers.

Scammers often prefer to use this payment method as it is difficult to trace and contains limited amounts of information, Trading Standards warned, although the fraud has also been perpetrated with Western Union cash transfers.

Victims never receive a cheque and have been known to provide criminals with financial details over the phone, which could leave them susceptible to fraudulent bank charges.

"Trading Standards want to encourage all local residents to think twice before giving anyone their personal information, particularly cold callers," Nottingham City Council's portfolio holder for community safety councillor Alex Norris said.

Samantha Clarke
Samantha is a former banking assistant and has over ten years experience in retail banking.

End of free banking 'will promote transparency in bank charges'

Tue, 21 Aug 2012 17:41:38 GMT

While people who have avoided bank charges could be "outraged" by the end of free banking, other consumers will appreciate the transparency it provides.

This is according to uSwitch.com personal finance expert Michael Ossei, who pointed out countless people are paying for their bank account through hidden loan charges and fees that are concealed in small print.

Sweeping these costs "under the carpet" has made it hard for members of the public to understand which accounts meet their needs or compare the different products on the market, he added.

Millions of pounds are being paid by customers in "stealth fees and charges", the representative remarked, noting this expenditure could be avoided if bank claims provided the right information or if people were on the best accounts for their requirements.

Furthermore, if high street banks begin rolling out fees, Sainsbury's, Tesco and other new entrants to the market could "end up mopping up dozens of disgruntled current account customers", Mr Ossei declared.

Which? recently found some people spend £900 on bank charges every year, which it said exposes the "myth of free banking".

John Fieldman
Having worked in the city for 19 years, John's main focus is interest rates and corporate finance

PPI claims scammers strike in Isle of Wight

Tue, 21 Aug 2012 16:40:51 GMT

People in the Isle of Wight have been warned about a scam dealing with payment protection insurance (PPI) claims.

Trading Standards officers at the local authority have received a number of calls from members of the public who report that a PPI claims company has contacted them informing them that they are entitled to a bank refund of around £2,000.

However, they are asked to pay a fee of £200 through Ukash vouchers so they can receive the money.

Anyone who receives a call of this type should hang up the phone and contact Trading Standards, the Isle of Wight Council stated.

Regulatory services manager for the local authority Amanda Gregory revealed an elderly man managed to recognise this call as the PPI claims scam that it was, as specialists had visited his accommodation a week earlier and provided residents with advice on how to identify frauds.

Anything that sounds "too good to be true" is probably a scam, Ukash warned.

Samantha Clarke
Samantha is a former banking assistant and has over ten years experience in retail banking.

Which? research unveils 'high' bank charges

Tue, 21 Aug 2012 10:56:01 GMT

Some consumers pay hundreds of pounds every year in bank charges, a consumer advocacy group has said.

Which? found that a person who used an unauthorised overdraft for two days every month would lose between £120 to £900 annually.

It pointed out that even some people with authorised overdrafts will have to deal with sizable loan charges, with HSBC and NatWest holding interest rates that are higher than personal loan and credit card charges.

This research "shatters the myth of free banking", it remarked.

People who remain in credit also incur bank charges when they withdraw money abroad and are losing interest, Which? stated.

It confirmed that it believes agreements between banks to roll-out monthly fees would constitute a breach of competition law, highlighting comments made by the Office of Fair Trading regarding price-fixing agreements.

Which? chief executive Peter Vicary-Smith said it's "a disgrace" that consumers are having to pay more for their bank accounts "while the industry continues to be rocked by scandals like PPI misselling, LIBOR rate-rigging and IT failures".

Charles Baker
Charles is a reputed financial analyst with decades of experience under his belt.

Future current accounts 'will not have hidden bank charges'

Mon, 20 Aug 2012 16:28:38 GMT

There should be no hidden bank charges in the future, a specialist has said.

Advanced Payment Solutions chief executive officer Richard Wagner said banks will eventually have to come up with transparent, alternative pricing models.

He pointed out that high street banks are being affected by regulations that relate to "stealth fees" and penalty charges.

"No hidden charges will ultimately rule the day," the specialist forecast.

Mr Wagner explained banks probably do not want to make their fees more transparent but are being forced to.

He said around five years ago, approximately 90 per cent all the consumer current accounts on the market were "free", while nowadays, at least half have "some sort of transparent monthly fee attached".

Typically, consumers want an "open transparent account", the expert remarked.

Mr Wagner is not the only person to criticise the myth of free banking, with Barclays Bank's new chairman Sir David Walker saying in an interview with the Sunday Telegraph that the misselling of interest rate swaps and payment protection insurance are "the consequence of not charging for bank accounts".

John Fieldman
Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

Bank charges: Today 'is Household Bill Freedom Day'

Mon, 20 Aug 2012 15:48:45 GMT

Household Bill Freedom Day is today (August 20th), Bright Grey has announced.

Research from the organisation's Financial Safety Net report found that when tax payments, bills and housing costs have been deducted from the typical Brit's salary, today is the day in which they are earning for themselves.

In a study that indicates why credit card charges can be so hard to cope with and loan claims can seem essential, the investigation found the average person works 150 days every year to pay the state, followed by another 55 days to cope with housing costs.

Bills represent a further 28 days of employment, representing 7.58 per cent of the average Brit's salary.

However, this proportion is dwarfed by the 41.22 per cent of a British person's income that is taken in tax and the 14.96 per cent spent on accommodation.

Bank charges and other debts consume 4.57 per cent of the typical wage, or 16.7 working days.

"It is the end of October - ten months' salary - before the average Briton can really use their money on anything they want to rather than necessities," Bright Grey managing director Roger Edwards pointed out.

Charles Baker
Charles is a reputed financial analyst with decades of experience under his belt.

PPI charges: Brits 'are keener savers'

Mon, 20 Aug 2012 10:35:21 GMT

Brits could be less likely to incur credit card charges or make loan claims than they once were, with an expert recently highlighting the fact that people are becoming more "savings-orientated".

MyMortgageDirect director Catherine Hearnden said: "It is not all about borrowing now."

In recent years, members of the public have typically had higher debts than savings, the specialist stated, remarking that this appears to be "turning around a little bit" at the moment.

Recent research from Santander revealed that 35 per cent of adults in the UK intend to use cash individual savings accounts (Isas) at some time this year.

Furthermore, young people are typically more likely to use a cash Isa than older men and women, with 40 per cent of 18 to 34-year-olds planning on taking advantage of this option, compared with 30 per cent of people aged between 35 and 54.

Willpower is useful when trying to set cash aside, Ms Hearnden suggested, claiming people must be able to avoid dipping into their funds.

Samantha Clarke
Samantha is a former banking assistant and has over ten years experience in retail banking.

PPI refunds: University 'costs £53,330 per student'

Fri, 17 Aug 2012 16:21:46 GMT

Thousands of young people are making student loan claims and preparing for university, but they may be unaware how expensive it actually is.

Research from LV= has found the total cost of higher education for the current batch of university starters is set to reach £53,330 per person, with the average university charging £8,770 in fees.

The price of accommodation is the second-highest financial burden, which typically costs £4,159 over the year, with this followed by £1,440 budgeted on food and £1,331 on leisure.

Many parents seem keen to help their children avoid loan charges, with 20 per cent willing to cover the total cost of university and 28 per cent expecting to pay for part of it.

However, 21 per cent of parents with children under the age of 18 said they expect their offspring to go on to higher education but admitted they have no idea how they will afford it.

LV='s Cost of University study was completed by Opinium Research on behalf of the insurance company, with 2,010 adults completing the poll.

"The huge cost of attending university makes it a massive financial commitment," LV='s head of protection Mark Jones said.

Amir Hussain
Amir specialises in personal loans, consumer debt and debt management.

Bank claims: Olympics cause ATM use to rise

Fri, 17 Aug 2012 15:13:22 GMT

Brits used cash machines to incur a huge number of bank charges over the Olympics, data from Link has revealed.

The firm revealed that during the 17-day period in which the London 2012 Olympic Games took place, automated teller machines (ATMs) in the UK dispensed £270 million more than they did during the same timeframe in 2011.

Between July 27th and August 12th 2012, the overall amount of money taken from Link cash machines realised an annual increase of 4.6 per cent to hit £6.108 billion, compared with £5.838 billion in 2011.

These figures do not contain the vast majority of credit card claims or bank withdrawals Brits made in other countries, the use of ATMs within Olympic venues or when people used cash machines in their own building society or bank.

Better weather could have also impacted this data and caused transaction volumes to rise, the Link Scheme noted.

Chief executive officer of the firm John Howells said: "August is normally a quiet month for ATM withdrawals but so far 2012 has proved the exception."

"This extra cash should boost spending, which should prove a valuable bonus to retailers," he added.

Charles Baker
Charles is a reputed financial analyst with decades of experience under his belt

Bank claims: HSBC offers financial advice to students

Fri, 17 Aug 2012 11:55:53 GMT

Students moving on to university have been provided with tips by HSBC, which could help them to reduce the amount of bank charges they incur.

The lender suggested that people ensure the bank account they choose meets their personal requirements.

It recommended its Student Bank Account, which it pointed out does not incur bank charges when overdraft are arranged and offers as much as £3,000, subject to conduct and status.

Furthermore, the account pays interest on credit balances of as much as £1,000 during the first 12 months.

The bank claims it is "packed with a range of great benefits that suit whatever stage you're at in your studies".

University attendees can also avoid having to make loan claims by budgeting and saving money, HSBC added.

It advised students to consider travel fares, bills, leisure activities, tuition costs and accommodation when managing their money.

Part-time workers should research their tax requirements, the company noted, pointing out that people who earn less than the personal allowance will not have to worry about tax.

Samantha Clarke
Samantha is a former banking assistant and has over ten years experience in retail banking.

Loan charges: Parents 'spend £500 annually' on trendy goods for children

Thu, 16 Aug 2012 15:57:32 GMT

Many mums and dads are incurring bank charges and making credit card claims in an attempt to help their children to fit in, a study has shown.

Research from Skipton Building Society found the average parent spends nearly £500 every year ensuring their children do not stand out from the crowd, buying them the same gadgets, clothes and toys as their peers.

Furthermore, six in ten respondents to the company's poll purchase faddy items as soon as their son or daughter asks for them, rather than wait until they decide their child has earned it.

Some of the reasons adults say they buy their children these items include encouraging them to do their homework, bribery or because they feel guilty for working long hours.

A total of 17 per cent of mothers and fathers reported that their child's peers are pressuring them into owning these goods, so they buy them.

"We've been living through a credit crunch for four years now which - although difficult - could also result in youngsters better understanding how important it is to spend and save money wisely," head of corporate communications at the building society Tracey Fletcher said.

John Fieldman
Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

Ombudsman receives over 1,500 PPI claims daily

Thu, 16 Aug 2012 14:57:03 GMT

More than 1,500 new complaints about missold payment protection insurance (PPI) are being received by the Financial Ombudsman Service every day.

The public body reported in its newsletter Ombudsman News that in total, it has received more than 400,000 PPI complaints.

"Ever rising volumes of PPI complaints" are "currently arriving at double the forecast level" chief ombudsman and chief executive of the body Natalie Ceeney said.

The ombudsman revealed that when it receives a PPI claim, it first examines whether or not the company that provided the policy gave the customer fair, clear information that did not mislead them.

This enables the ombudsman to determine if the PPI policyholder made an "informed choice" about the transaction.

Furthermore, the public body then looks as to whether the lender took steps to ensure it was recommending a suitable policy to its clients when providing recommendations or advice.

Customers will be more likely to make a successful PPI claim if the lender did neither of these, the ombudsman revealed.

Amir Hussain
Amir specialises in personal loans, consumer debt and debt management.

Avon and Somerset Police warn of PPI claim scammers

Wed, 15 Aug 2012 16:42:24 GMT

Payment Protection Insurance (PPI) claim scammers are striking in the south-west of England.

Avon and Somerset Police have issued a warning about these criminals, who contact members of the public offering to help them with a PPI refund they are entitled to.

They ask victims to pay them fees through Western Union money transfers, Ukash vouchers or other untraceable routes but then do not provide any services.

Detective Constable Greg Brunt, from the police force's financial investigation unit, warned that genuine companies will never ask for money to be paid before the claimant has received their PPI compensation payout.

Furthermore, wire transfers or vouchers are not used as payment options by these firms, he added.

"If you are a PPI customer and you receive a telephone call asking you to make a payment or buy vouchers, hang up," he advised, adding that people should then "call the company back via the official phone number".

Ukash tries to keep on top of scams that use its service and publishes details of them on its website.

Charles Baker
Charles is a reputed financial analyst with decades of experience under his belt.

Incurring credit card charges 'is becoming easier'

Wed, 15 Aug 2012 15:36:09 GMT

Consumers ought to be especially wary of credit card claims, as companies that provide these devices are increasingly targeting the unemployed.

Confused.com has warned members of the public of the dangers credit card charges present, after research showed that the range of providers that accept people without a job grew by 26 per cent between July 2011 and July 2012.

Last year, 17 credit cards would have provided loans to people who were not in work, but this figure has now risen to 23.

This comes as the Office for National Statistics' Labour Market Statistics report found the number of unemployed people in the UK reached 2.56 million in the quarter before June, which is 51,000 higher than during the same period in 2011.

Furthermore, in 2011, the average income an applicant would require to successfully receive a credit card was £9,718, but this has dropped to just £9,035.

"We are warning consumers of the dangers of debt, as it appears to be increasingly easy to obtain yet more expensive to get rid of," head of credit cards at Confused.com Nerys Lewis said.

Amir Hussain
Amir specialises in personal loans, consumer debt and debt management

Loan claims: Free banking 'is a complete myth'

Tue, 14 Aug 2012 17:05:11 GMT

Bank charges, fees and lost interest cost consumers more than £9 billion every year, Which? executive director Richard Lloyd has pointed out.

He argued that the claim banking is free is a "complete myth", adding the suggestion that these companies would stop misselling if they charged people for using current accounts is "completely ridiculous".

The sector has let the public down "so badly" that their customers should not "keep having to foot the bill", the representative noted.

Mr Lloyd called for a "fundamental change" to the practices and culture within this industry, as well as "greater transparency about the true cost of banking".

He also said the inquiry into the sector being undertaken by parliament ought to put the interests of the public at the "centre" of any reforms it imposes.

The consumer advocate is not the first to claim free banking does not exist, with executive director at the Bank of England Andrew Bailey recently calling this concept a "dangerous myth".

Samantha Clarke
Samantha is a former banking assistant and has over ten years experience in retail banking.

New Barclays chairman could remove free banking and impose bank charges

Tue, 14 Aug 2012 16:03:26 GMT

Barclays Bank's new chairman Sir David Walker has announced he agrees with the principle of making customers pay bank charges to use current accounts.

In an interview with the Sunday Telegraph, he remarked that if these fees would have existed, some of the scandals that have hit the banking sector recently might not have occurred.

Missold payment protection insurance (PPI) and interest rate swaps for smaller enterprises are "the consequence of not charging for bank accounts", the business leader declared.

"Because banks are not charging, it drives them inexorably into this sort of position," Sir David said.

He told the publication that he is not committed to changing the business plans of former chief executive Bob Diamond, other than that he wants to get it "right".

Mr Diamond announced he was stepping down from the post on July 3rd after working for the company for 16 years.

At the time, he said working for the firm was a "privilege".

John Fieldman
Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

Loan refunds: ONS reveals rise in CPI annual inflation

Tue, 14 Aug 2012 13:45:22 GMT

A rise in Consumer Price Index (CPI) annual inflation might lead Brits to become increasingly reliant on credit card charges and bank claims.

The Office for National Statistics (ONS) has increased the CPI inflation rate to 2.6 per cent for July 2012, compared with 2.4 per cent in June.

Furthermore, Retail Price Index yearly inflation hit 3.2 per cent during July, up from the 2.8 per cent seen in the previous month.

According to MGM Advantage, this means that the average UK household will need an additional £897 every 12 months if they wish to maintain their current standard of living.

Collectively, the country will need an additional £23.6 billion if it wishes to continue the same lifestyle enjoyed a year earlier, the firm added.

"The surprise rise in inflation will come as a shock for many people who continue to feel the pinch," distribution and marketing director for the enterprise Aston Goodey pointed out.

It could lead millions of families to see their living standards "dramatically" fall, he added.

Charles Baker
Charles is a reputed financial analyst with decades of experience under his belt

Students 'should shop around' to avoid bank charges

Mon, 13 Aug 2012 16:23:07 GMT

Students have been advised to avoid incurring unnecessary bank charges by ensuring they choose the right financial institution for their needs.

MoneySupermarket has pointed out it can be "inevitable" that many students will require an overdraft at university.

It pointed out that Halifax and HSBC offer interest-free overdrafts of up to £3,000 for the duration of a person's studies, while many other banks offer up to £2,000.

However, university attendees will have to pay these loan claims off eventually and will start incurring interest on them when they leave university, it pointed out, adding that there are also unauthorised overdraft interest rates that can prove very costly.

Furthermore, while some lenders will offer freebies, such as discounted insurance, travel or shopping, the organisation recommended that people check whether or not these products can be found elsewhere, as well as consider if they will actually use them.

"Although these freebies may be useful, the value of them will be low compared to interest-free overdrafts, which should be the key focus for those considering a student account," head of banking at MoneySupermarket Kevin Mountford said.

Samantha Clarke
Samantha is a former banking assistant and has over ten years experience in retail banking.

FLA research finds rise in loan claims

Mon, 13 Aug 2012 16:10:26 GMT

Brits made more loan claims and credit card charges during the second quarter of 2012 than they did in the previous year, a study has shown.

However, figures from the Finance & Leasing Association (FLA) revealed the growth in the amount of cash borrowed from FLA members providing this funding option realised an annual increase of just one per cent over the timeframe.

Overall, £8.134 billion was sourced by British consumers through these organisations over this period, while £32.902 billion was taken out over the year leading to June 2012.

The most substantial rise seen in the amount of consumer credit borrowed was seen in the store instalment credit market, which grew 25 per cent in the second quarter when compared with the same three months in 2012.

Consumers typically use this source to purchase washing machines, fridges, electronics and larger electronic appliances.

This growth "has been helped by the good deals currently on offer via retailers", FLA head of consumer finance Fiona Hoyle said.

Charles Baker
Charles is a reputed financial analyst with decades of experience under his belt.

PPI claims: Children 'have money worries'

Mon, 13 Aug 2012 11:28:28 GMT

Many mothers and fathers could be concerned about how to pay off credit card claims or meet their bank charges, but research has indicated these issues could be impacting their children.

The annual Pocket Money Survey by Halifax found 58 per cent of people aged between eight and fifteen are anxious about cash, while 88 per cent think their parents worry about this issue.

Furthermore, 21 per cent of youngsters said these concerns take place "all the time", while only three per cent of children think their mum and dad "never" worry about finance.

While 57 per cent of eight-year-olds involved in the poll said they do not ever feel concern about cash, this drops to 47 per cent among 11-year-olds and just 34 per cent among those older than 12.

Parents could be more likely to be struggling to meet loan charges than people without children, with LV='s recent Cost of a Child report stating raising a person from birth to 21 currently costs an average of £218,024.

"By introducing positive saving and spending practices from an early age, children can get into habits that will help them to manage their money," head of Halifax Savings Richard Fearon said.

Amir Hussain
Amir specialises in personal loans, consumer debt and debt management.

Bank claims: Nationwide loan is 'lowest ever'

Fri, 10 Aug 2012 17:38:37 GMT

People looking to reduce their loan charges might benefit from the 5.8 per cent annual percentage rate (APR) representative offering launched by the Derbyshire Building Society.

This is the lowest rate ever offered by the Nationwide Group and is available for loan claims of between £7,500 and £14,999.

Money can be taken out for up to a maximum of five years and people can contact the bank online or through comparison websites to start borrowing the cash.

Nationwide head of personal loans Paul Wooton pointed out many people could be looking to make a "big purchase" at present.

Summer is frequently the time when Brits consider refurbishing their house, investing in a new car or "booking a dream holiday", he said.

"Since its launch earlier this year the Derbyshire personal loan has been a regular feature in best buy tables," the representative added.

The company pointed out that interest rates will be dependent on the personal circumstances of the borrower and all loans are subject to the status of the applicant, although this particular product does not involve any arrangement fees or upfront bank charges.

Charles Baker
Charles is a reputed financial analyst with decades of experience under his belt.

Bank charges: OFT penalises payday lender MCO

Fri, 10 Aug 2012 16:37:40 GMT

Customers who have had to face loan charges from payday lender MCO Capital may be pleased to hear that the Office of Fair Trading (OFT) has revoked the firm's consumer credit licence and fined it £544,505.

The OFT claimed the business failed to adequately determine the validity of the identities of people who made a loan claim through the company and had breached Money Laundering Regulations 2007.

According to the regulatory body, MCO had been targeted by criminals who made successful applications for loans worth millions of pounds by accessing the personal details of more than 7,000 people.

Furthermore, the lender had written to customers it knew might not have taken out a loan through the company and had asked them for repayment, while ignoring the OFT's demands to stop doing so.

"This financial penalty sends out a strong message that businesses lending to consumers must have adequate anti-money laundering procedures in place," OFT director of credit David Fisher said.

Jennifer Haines
Jennifer's speciality knowledge is credit card changes and balance transfers.

Bank charges: Government launches review into Libor scandal

Fri, 10 Aug 2012 11:49:26 GMT

An independent review has been launched by the government into the Libor rigging scandal.

This issue could have increased the rates loan charges were set at for millions of bank customers and follows a swathe of other issues that have struck the industry, including the misselling of payment protection insurance.

Martin Wheatley will lead the review and the paper is seeking feedback on stakeholders regarding the role Libor pays in international markets, the options for reform and the flaws in the current ways in which these rates are set.

It will also contain initial proposals on how the framework around Libor can be altered.

Financial secretary to the Treasury Mark Hoban added that the government is working with international organisations to work towards a "globally-consistent solution" to the scandal.

"Mr Wheatley has said it's vital to rebuild trust in the Libor setting process, but the bigger job is to rebuild trust in banking," Which? chief executive Peter Vicary-Smith pointed out.

Charles Baker
Charles is a reputed financial analyst with decades of experience under his belt

Credit card claims: Parents 'taking adult children on holiday'

Thu, 09 Aug 2012 17:29:28 GMT

With young people finding it increasingly difficult to succeed when applying for finance through a loan claim or bank charges, many are opting to go on holiday with their parents.

Research from LV= travel insurance revealed nearly two million parents will take offspring in their 20s, 30s or 40s on a holiday over 2012, with many of these mothers and fathers covering the entirety of the cost.

While 33 per cent will subsidise the expense by paying for accommodation or flights, 67 per cent will not let their adult children pay a penny towards the excursion.

This is despite the fact that people reported taking a grown-up son or daughter on holiday with them typically adds an additional £380 to the cost of the vacation.

A total of 26 per cent reported that their child would not be able to afford a break without their assistance, with 24 per cent stating that if they did not pay, their offspring would not take a holiday at all.

"Young adults and even some middle-aged ones are trying to save money where they can and holidaying with the parents is becoming a growing trend," managing director of LV= travel insurance Selwyn Fernandes said.

Amir Hussain
Amir specialises in personal loans, consumer debt and debt management.

Bank claims: Moving home 'incurs unexpected costs'

Thu, 09 Aug 2012 16:28:56 GMT

People moving to a new home could end up having to make loan claims, as they are likely to face unexpected expenses.

This is according to research from the Money Advice Service, which found nearly three million people who recently moved to another house described themselves as "surprised" by how expensive it was.

A total of 37 per cent of respondents who incurred additional fees said the cost of moving home was higher than they had anticipated, while 68 per cent said it was surprising how quickly their outgoings added up.

This research was commissioned as part of the organisation's newly-launched Smart Move campaign, which could help people avoid making bank claims when they move home.

"It's important to be realistic about the costs, which can rack up and catch you by surprise if you don't plan ahead," Money Advice Service head of service delivery Jane Symonds said.

According to the recent House Price Index report from Land Registry, approximately 200,000 households are expected to move over the summer.

Samantha Clarke
Samantha is a former banking assistant and has over ten years experience in retail banking.

PPI and Libor scandals add to Brits' mistrust of banks

Thu, 09 Aug 2012 13:46:52 GMT

It is five years since the official beginning of the banking crisis, yet this sector has failed to win back the public's confidence, consumer advocacy body Which? has stated.

The group highlighted the misselling of payment protection insurance (PPI), as well as the rigging of Libor rates, duplicate or incorrect bank charges caused by IT failures at Nationwide and NatWest and other scandals to hit the industry as some of the reasons for this disillusionment.

A survey by the organisation found 71 per cent of people do not believe the financial crisis has taught UK banks a lesson they have learnt from, compared with 61 per cent in September 2011.

Furthermore, 84 per cent do not believe the banking industry has done enough to prevent another credit crunch, while only 26 per cent of respondents are confident that the parliamentary enquiry into the sector will result in change.

John Mann, a member of the British Parliament's Treasury Committee, recently predicted that this investigation will be a "whitewash".

John Fieldman
Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.

Bank claims: Many Brits 'uncertain about retirement income'

Wed, 08 Aug 2012 17:36:12 GMT

Many people could find themselves trying to fund their retirement by making loan claims or incurring credit card charges.

Recent research from Barings Asset Management revealed 25 per cent of Brits do not know how they will pay for things when they reach pension age.

Many UK adults have failed to plan their pension property, with just 56 per cent of people planning to use this income stream to help them in old age.

This indicates that 15.7 million individuals older than 18 but who have not yet retired will not use a pension to cope with retirement.

From 1st October 2012, employers will be obliged to automatically enrol their staff in a workplace pension scheme.

However, 29 per cent of respondents to the Barings poll forecast cash to play a role in their retirement planning, with the same proportion predicting property investments to have some utility at this time.

Furthermore, 17 per cent of people said inheritance would help them meet their expenses in retirement age.

"The suitability of some of these sources can be questioned, such as a reliance on inheritance," chief investment officer at Barings Marino Valensise said.

John Fieldman
Having worked in the city for 19 years, John's main focus is interest rates and corporate finance.