£2bn bank charge claim back on cards
A pot of £2.12 billion is waiting to be claimed by consumers who have been charged by credit card issuers.According to uSwitch, 18.96 million British consumers has been charged a total of £4 billion in bank charges and more than half have not claimed their money back.The price comparison site estimates that 52 per cent of customers have not reclaimed money charged by their banks and credit card providers, equalling £2.12 billion in unclaimed fees. Campaigners claim that charges as much as £30 are unlawful, as banks are only supposed to charge fees to cover administration costs.Consumers are being urged to reclaim bank charges, for bounced cheques and exceeded overdraft limits, as banks have been automatically refunding fees rather than see potentially damaging test cases taken to court. Thousands of pounds has already been paid to consumers in overdraft and other fees, with many people downloading pro-forma letters from internet sites.Nick White, director of financial services at uSwitch, said: "While the majority of banks are bending over backwards to refund bank charges to those consumers that take the initiative to fight back, this is not because the banks have gone soft in the last couple of months."Banks are reported to be considering imposing annual fees for standard current accounts, but 83 per cent of the 4,450 consumers polled by YouGov on behalf of uSwitch said that they would ditch their bank if annual fees were introduced.
FSA to dish out fines to UK banks
The FSA (Financial Services Authority) has today confirmed that two UK banks are in line for significant fines for the mishandling of customer complaints. It was also confirmed that problems have been discovered at five banking groups in the UK, two of which have been referred for further investigation, and five others are currently amending their complaints procedures. Consumers have been conc...Read More
British Bankers Association casts doubt on property market pickup
The British Bankers Association has today issued figures showing that 26,097 mortgages were approved in March down from 28,024 in February. However, more alarming is the realisation that year-on-year mortgage approvals are down 25.3% from March 2008. Even though November last year was the recent low, with only 17,574 mortgages approved, there had been a gradual increase in the number and analysts...Read More
Equities recommended over property
Equities are superior to property as a long-term investment, according to a new study.A report from Skandia revealed that £30,000 invested in 1983 in UK shares would be worth upwards of £545,000 today.However, a house bought at the same time 25 years ago, when the average price was £30,000, would now only be worth £174,000.This put the growth rate of shares at 1718 per cent, compared to just 4...Read More
Britons 'clueless over credit card cash withdrawals'
Consumers are largely unaware of the true cost of making cash withdrawals via their credit cards, according to new research.One million Britons wrongly believe that using ATMs with credit cards is free, as with debit cards, uSwitch says.The price comparison website claims the confusion arises from the way in which credit rates are determined following legal changes? to the display of interest rate...Read More
Lloyds to cut bank charges
Lloyds TSB has announced plans to cut its charges on unauthorised overdrafts.The bank is the first on the high street to announce such a policy on the much publicised charges, which have led to customer uproar and will go the High Court in a test case next year.The new lower charges - which will be introduced on November 2nd - will see the bank cut its interest rates on unauthorised borrowing by a...Read More