Latest: Banking News

PPI costs increase for Lloyds and Barclays

PPI costs increase for Lloyds and Barclays

Lloyds Banking Group has set aside a further £1 billion to cover compensation costs for customers who were mis-sold Payment Protection Insurance (PPI). Yesterday, Barclays revealed £700m of PPI costs in the 2012 third quarter increasing its total provision to £2bn. Lloyds Banking Group, which has made the largest PPI provision out of all the […]

November 1, 2012 More
Banking commission appoints counsel to cross-examine witnesses

Banking commission appoints counsel to cross-examine witnesses

The Parliamentary Commission on Banking Standards has appointed counsel to cross-examine witnesses during its inquiry into the collapse of Halifax Bank of Scotland. Barrister David Quest has been appointed to question witnesses in a public evidence session, as part of a sub-committee panel inquiry into the bank. Andrew Tyrie, chairman of the Commission said: “This […]

October 30, 2012 More
Elderly face difficulties in accessing cash

Elderly face difficulties in accessing cash

Elderly and disabled people are at risk of fraud because of the difficulties they face in accessing their cash. Research commissioned by The Payments Council found that many have to give financial information such as card details, Pin numbers and passwords to friends and family as they find technology too difficult to use. The decreasing […]

October 26, 2012 More
Nationwide may bid for RBS branches

Nationwide may bid for RBS branches

There is growing speculation that Nationwide building society may be considering a bid for the 316 branches being sold by RBS group under EU rules. RBS was ordered to sell the branches under the terms of the £45 billion bailout it received from the UK government during the financial crisis. It had planned to sell […]

October 22, 2012 More
Bank of Scotland fined over inaccurate mortgage records

Bank of Scotland fined over inaccurate mortgage records

The Bank of Scotland has received a £2.4 million fine from the Financial Services Authority (FSA), for failing to keep accurate records on the mortgage payments of 250,000 customers of the Halifax between 2004 and 2011. An investigation by the FSA, following a spate of customer complaints, discovered that 160,000 homeowners were incorrectly excluded from […]

October 19, 2012 More
Barclays increases provision for PPI claims to £2 billion

Barclays increases provision for PPI claims to £2 billion

Barclays has set aside another £700 million to cover claims for mis-sold payment protection insurance (PPI) after claims reached unexpectedly high levels. This is on top of the £1 billion set aside in 2011 and the £300 million provision made in the first three months of 2012. By the end of September, the bank had […]

October 18, 2012 More
RBS initiates talks with Virgin Money over branches

RBS initiates talks with Virgin Money over branches

Royal Bank of Scotland (RBS) is seeking a new buyer for 316 branches after a deal with Santander fell through, and is believed to have approached Virgin Money. RBS is required the sell the branches under the EU conditions attached to the £45 billion bailout it received from the government when it came to the […]

October 17, 2012 More
RBS computer glitch costs Ulster Bank £18m

RBS computer glitch costs Ulster Bank £18m

An IT failure at parent company RBS was a “major disaster” for Ulster Bank, its chief executive Jim Brown told a committee at the Northern Ireland parliament. Following a routine software upgrade on 19 June which went wrong, thousands of Ulster Bank customers were unable to access their accounts. Ulster Bank has paid out £18m […]

October 12, 2012 More
Barclays follows Co-op in banning sales incentives

Barclays follows Co-op in banning sales incentives

Barclays is changing its bonus system for 18,000 branch and call centre staff, following a similar move by the Co-operative bank. Barclays is ending the practice of awarding staff commission for selling financial policies. Like the Co-op, Barclays will now provide bonuses for good customer service rather than for meeting sales targets. Antony Jenkins, who […]

October 10, 2012 More
Co-operative Bank bans sales incentives

Co-operative Bank bans sales incentives

The Co-operative Bank has banned sales incentives for its branch staff and replaced them with an incentive system which rewards good customer service with bonuses of up to £400 per quarter. Around 3 per cent of branch staff were offered incentives to sell products. The Co-op plans to introduce the new customer service incentive scheme […]

Barclays expands through ING Direct acquisition

Barclays expands through ING Direct acquisition

Barclays is acquiring the UK operations of Dutch banking and insurance group ING Direct. Barclays will take on ING UK’s £10.9bn of deposits and its £5.6bn mortgage book, as well as 750 employees and 1.5 million customers. ING, which has its UK headquarters in Reading, is divesting its UK assets to help raise funds to […]

October 9, 2012 More
Frodo Financial launches overdraft service

Frodo Financial launches overdraft service

Frodo Financial, a new financial technology company, has launched an online overdraft system which provides an alternative to a bank overdraft. The new Frodo Flexi account provides a rolling cash-credit facility of between £1,000 and £10,000 that runs alongside a customer’s current account with their existing bank. It offers a 16.9% APR variable interest rate […]

October 8, 2012 More
Security concerns over NatWest mobile banking app

Security concerns over NatWest mobile banking app

NatWest bank has suspended its Get Cash app which allows customers to withdraw money from a cash machine without a debit card, according to a report by the BBC. Customers request the cash on their mobile and a 6 digit pin is generated which they then enter at the cash money to withdraw funds. However, […]

HSBC to close UK Islamic banking operations

HSBC to close UK Islamic banking operations

HSBC Holdings is planning to stop offering Islamic financial services in the UK as part of a global restructuring strategy which will see non-core businesses shut down. Along with the UK, it is closing its Islamic banking operations in United Arab Emirates, Bahrain, Bangladesh, Singapore and Mauritius. HSBC will offer Islamic banking only in Malaysia, […]

October 5, 2012 More
PayPal resolves technical glitch

PayPal resolves technical glitch

PayPal, the internet-based money transfer service, has resolved the technical issues that delayed transactions for UK customers. The problem started on 29 September when a new system was introduced to speed up transactions. Unfortunately it had the opposite effect, with large numbers of transactions being sent for security checks, causing substantial delays in funds being […]

October 4, 2012 More
PayPal hit by technical glitch

PayPal hit by technical glitch

PayPal, the payments business which allows payments and money transfers to be made through the Internet, has been experiencing technical difficulties for the past week. The glitch, which is affecting UK customers, has led to large numbers of transactions being sent for security checks, causing payments to be delayed. The problem is believed to have […]

September 28, 2012 More
Lloyds and Barclays most complained-about banks

Lloyds and Barclays most complained-about banks

The Financial Services Authority has revealed the results of its six-monthly review of complaints, showing that LLoyds and Barclays are the two most complained-about banks. Complaint numbers have rocketed as a result of the Payment Protection Insurance (PPI) mis-selling scandal and have now reached the rate of one PPI complaint every 7 seconds. Between January […]

September 27, 2012 More
Brits urged to choose more secure PIN numbers

Brits urged to choose more secure PIN numbers

A new report from analytics firm Data Genetics suggests that criminals can guess PIN numbers 10 per cent of the time purely because people are choosing PIN numbers that are easy to remember. Data Genetics found that one in nine people use “1234” as their PIN number when withdrawing cash at ATMs or making payments […]

September 25, 2012 More
Which? calls for Big Change to bank culture

Which? calls for Big Change to bank culture

Consumer watchdog Which? has launched a new campaign calling for banks to put customers first. The ‘Big Change’ campaign will put pressure on the banking sector to focus less on profits and more on the services they offer. Its launch precedes a meeting of the Parliamentary Commission on Banking Standards in December, which will consider […]

September 19, 2012 More