Review carried out into FOS
May 12, 2008
An influential report has recently been released following a six month review of the Financial Ombudsman Service in the UK, with a number of changes recommended as a result of the review. The report was released by Lord Hunt of Wirral, and highlights a number of recommended changes picked up as part of the review into the FOS. Over seventy recommendations were made, all aimed at making the service more accessible and more transparent. Read more
Internet bank withdraws mortgages for non-customers
May 12, 2008
The Internet banking arm of HSBC, First Direct, has recently announced the withdrawal of mortgage products to consumers that are not customers of the bank. The mortgages came off sale to non-customers of the bank at the beginning of this month, and the range that is being taken off sale includes its two year fixed rate offset mortgage. Customers that are with First Direct will still be able to access mortgage products even if they do not currently have a mortgage with the bank. Read more
Bank charge decision to be brought forward
May 12, 2008
The decision relating to bank charges following the high court test case in January has been long awaited. However, many people were disappointed following the case after the presiding judge said that he needed some time to consider the facts before coming to a decision. Earlier this month it was reported that a verdict had still not been reached, and that the judge needed a further three months to consider the evidence, which meant that the verdict would not be made available until July. Read more
Spending levels to be slashed by many
May 12, 2008
According to a recent report many consumers across the UK are set to slash their spending levels, as many struggle to try and cope with higher outgoings and the associated financial strains that have become so commonplace over recent months. The difficult financial conditions that have resulted from the ongoing global credit crunch have impacted on many households, and has resulted in millions of us deciding to try and cut back on spending wherever possible. Read more
Rising energy prices lead to investigation
May 12, 2008
The rising cost of gas and electricity usage in the UK has led to an official investigation being launched by the energy regulator, Ofgem, in order to find out whether anti-competitive practices are being used by energy giants. Earlier this year the major energy suppliers hiked up the cost of gas and electricity usage significantly, stating that the rising cost of wholesale energy meant that they had to raise their prices. The move is likely to send many more households into fuel poverty. Read more
Enquiry into soaring gas and electricity bills launched
May 10, 2008
An enquiry has been launched by the energy regulator Ofgem into soaring gas and electricity prices in the UK, which have rocketed at the beginning of this year forcing an increasing number of households into fuel poverty. The government has also issued a warning to energy giants stating that it will be cracking down on any market abuse that is designed to boost profits. Business Secretary John Hutton said that action would be taken if anti-competitive practices were being used. Read more
Officials claim building societies looking healthy
May 10, 2008
Over recent weeks there have been a number of reports claiming that building societies in the UK are now starting to really feel the effects of the global credit crunch, with a number of building societies having taken action to protect themselves against these effects. It was originally thought that building societies had managed to escape the problems that banks were facing in terms of getting finance on the wholesale markets, as most building societies fund their mortgage lending through savers’ deposits. Read more
Sandler plans to cut the size of the Rock
May 10, 2008
Northern Rock became one of the first high profile victims of the global credit crunch last year, when it was forced to take an emergency loan from the Bank of England to maintain liquidity, and then became the victim of the first run on a British bank in nearly 150 years. This was the start of a long line of problems for the Rock, which quickly entered into talks with various parties relating to the possibility of a private sale. Read more
Estate agency industry still unhappy with HIPs
May 3, 2008
Since they came into force last year Home Information Packs have proven very unpopular with certain industry sectors, particularly the estate agency sector, which has claimed that the packs are costly, time consuming, and ineffective. The government introduced HIPs last summer, but they only became compulsory on all residential properties being marketed for sale in England and Wales in December of last year due to a number of unforeseen delays. Read more
Bank charges verdict delayed until July
May 3, 2008
At the beginning of this year a landmark High Court test case into bank charges in the UK was launched, having been brought by the Office of Fair Trading, which insisted that the charges that banks applied for unauthorised overdrafts, bounced cheques, and returned direct debits were unfair as they came nowhere near reflecting the costs incurred by the banks. Many banks were applying charges of between £20 and £35 per fee, whereas the cost to the banks was only around £2-£5 according to OFT officials. Read more