The Financial Ombudsman Service (FOS) has criticised banks and insurance companies for their slow response to payment protection insurance (PPI) compensation claims. The huge numbers of PPI claims are overwhelming UK banks, with the result that customers are becoming tired of waiting and are taking their cases to the FOS. The FOS says that number [...]
Home repair company Homeserve has announced plans to outsource its complaints handling operations. It previously handled complaints from its call centre in Walsall, but complaints were found to have been dealt with incorrectly during last winter’s period of severe weather. Homeserve received an unprecedented number of calls and some of its customers were forced to [...]
Following the recent revelation that HSBC subsidiary NHFA mis-sold asset-backed investment products to elderly people in care, HSBC has promised to consider complaints dating back to before it took over NHFA in 2005. The decision means that HSBC could face thousands more potential claims for compensation, adding to the £30m compensation bill it already expects [...]
HSBC subsidiary NHFA, which offered advice on financial provision for people in long-term care, has been fined £10.5m by the Financial Services Authority (FSA). NHFA was found to have mis-sold asset-backed investment products to 87 per cent of 2,485 elderly people or their representatives, who bought the products to fund care costs. The products were [...]
Homeserve revealed today that it expects to spend around £10 million on overhauling its sales practices following the recent mis-selling scandal. The decision by repair and insurance group Homeserve to suspend sales activity after problems with its selling practices came to light will also result in significant costs. The reduction in marketing is expected to [...]
Customers who were mis-sold payment protection insurance (PPI) are liable for tax on the compensation they receive. The Financial Services Authority awarded compensation to PPI customers who had been mis-sold policies, plus 8 per cent interest on the money they originally spent on the policy. This interest is subject to tax it has been revealed, [...]
It has been confirmed that Yorkshire Building Society will merger with smaller rival Norwich and Peterborough (N&P) Building Society. The announcement comes after much consolidation in Britain’s mutual sector, as a result of funding pressures. Meanwhile, the news comes after N&P, which is Britain’s tenth largest society, was fined earlier this week by the Financial [...]
The Financial Services Authority (FSA) has today announced that it has fined the Norwich and Peterborough Building Society (N&P) £1.4 million for giving unsuitable advice on its Keydata products. The Watchdog said the group failed to properly assess the financial circumstances of many of its customers and often designated them as having a higher tolerance [...]
It has been revealed that Yorkshire Building Society is in talks with smaller rival Norwich and Peterborough (N&P) which could lead to an acquisition. The announcement comes after much consolidation in Britain’s mutual sector, as a result of funding pressures. Late last year, Coventry Building Society and Stroud & Swindon merged, creating a business with [...]
Following a review, City watchdog the Financial Services Authority (FSA) has announced financial advisers must hold accreditation if they want to provide independent or restricted advice from the start of 2013. The FSA said retail investment advisers will need to possess a Statement of Professional Standing (SPS) if they want to give independent or restricted [...]
Norwich & Peterborough Building Society has been hit with claims of mis-selling of investments between 2006 and 2009. The building society, which is Britain’s tenth largest, is expected to receive letters tomorrow from solicitors acting on behalf of 250 customers, demanding compensation for investment advice they received in the society’s branches about its Keydata products. [...]
The Financial Services Authority (FSA) has given Alliance & Leicester (A&L) a record fine of £7 million for mis-selling payment protection insurance (PPI). The FSA found that the bank had trained its staff to put pressure on customers who questioned the inclusion of optional PPI in a loan. During the period January 2005 to December [...]
One person per minute declared bankrupt
National money education charity Credit Action today revealed that one person is declared insolvent or bankrupt every 60 seconds during the working week. Based on statistics gathered in the third quarter of 2011, the charity estimates that 331 people are made insolvent or bankrupt every working day and 101 properties are repossessed every day. The [...]
Mortgage market improving for first time buyers
The number of first time buyers increased significantly last year as more high loan to value (LTV) mortgages became available, according to the latest Mortgage Monitor from e.surv chartered surveyors. The number of mortgages advanced at an LTV of 85% or more increased by 32 per cent to 57,301 in 2011 compared with 43,379 in [...]
Wonga causes outrage by targeting students
Payday loan company Wonga has removed an article from its website which suggested that students should take out a payday loan rather than a Student Loan. The article suggested that student loans, which charge around 5 per cent, encouraged students to live beyond their means. With Wonga charging around 4,000 per cent for its loans, [...]
MPs call for action over whiplash claims
Car insurance costs are spiralling and claims for whiplash injuries are one of the main causes, according to a new report by MPs, launched today. Although the number of road accident casualties has fallen by 23 per cent in the past six years, the number of motor insurance injury claims has grown by 70 per [...]
70% of websites break EU credit rules
A pan-European investigation carried out in September 2011 revealed that 70 per cent of websites offering credit cards, loans and finance are failing to meet EU standards. The investigation, which followed a large number of customer complaints, looked at 562 websites across the 27 member states and found that 393 of the sites were failing [...]
AA reveals surge in motor insurance claims
Stormy weather caused the number of car insurance claims to shoot up by 28% in the first five days of the New Year, the AA has revealed. Many parts of the UK suffered winds of up to 90mph resulting in thousands of pounds worth of damage to vehicles. Cars were hit by an array of [...]
Pensions hit by low annuity rates
People who retire this year will be £3,000 worse off than those who retired four years ago because factors such as the credit crunch, the recession and the eurozone crisis have pushed down annuity rates to a record low. Annuity rates fell by eight per cent in 2011, which was the fourth consecutive year of [...]
UK faces stagnation but may escape recession
Britain’s economy stagnated in the final quarter of 2011 and is “very likely” to contract in the first half of 2012 according to the British Chambers of Commerce (BCC). The euro zone debt crisis caused the economy to stagnate in 2011 and it has failed to improve this year, with the survey suggesting that one [...]
Unrealistic house prices hamper market
Although more new houses were put up for sale in December, transactions were hampered by sellers asking too high a price for their properties, according to the Royal Institution of Chartered Surveyors (RICS). December saw the number of houses put up for sale increase for the third month in a row, especially in London where [...]
Post Office launches reward saver account
The Post Office has strengthened its range of savings products with a reward saver account offering 3 per cent interest and a notice period of only 30 days. If savers make a withdrawal without giving 30 days notice, they will lose 30 days interest on the amount withdrawn. The interest rate includes a 1.25% bonus [...]
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