Product category:
General insurance
News Release from: uSwitch | Subject: Insurance
Edited by the Insidemoneytalk Editorial
Team on 06 June 2007
Personal Finance: Industry Insight and
Monthly Predictions from uSwitch.com
Mike Naylor, Personal Finance Expert at uSwitch.com says:
"People who have been hit with unfair bank charges should not be put off claiming their money back from their bank" "Recent court cases in favour of banks have not set precedents and court action is a last resort anyway"
This article was originally published on Insidemoneytalk on 6 Mar 2007 at 8.00am (UK)
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"uSwitch.com estimates that there is over ?500m unclaimed of unfair bank charges".
""Before claiming back charges people should find and switch to a new bank account, just in case their bank closes their account.
People should ask their bank for details of charges over the last 6 years (the most the bank can charge for this information is ?10 under the Data Protection Act).
Further reading
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People shouldn't be put off if the bank fails to play ball and should make a formal complaint.
The Financial Ombudsman Service is the next step and so far cases it has looked at have been settled by the banks.
People should also keep an eye on their banks introducing new charges for their account or increasing charges and fees, and switch to get a better deal." Personal Finance News Reviewed European Union - Plans to open up loans market: Borrowers will be able to shop overseas for the best loan under plans unveiled by the European Commission".
"A standard consumer credit application form will also be introduced across the whole of Europe to make it easier for consumers to calculate the level of interest they pay".
"The Consumer Credit Directive, which is due to be approved by EU Ministers next week, aims to open up the European Credit Market and improve transparency for consumers".
"APACS research: According to new research from APACS, more than half of all credit card holders pay their bills in full each month while most consumers prefer to use their debit cards where possible".
"The trends suggest a culture of responsible borrowing among UK borrowers".
"Financial Ombudsman Services: Customer complaints about bank charges have reached record levels".
"In the annual review the FOS said that while a year ago it typically received around 10 complaints a week concerning bank charges, it was currently handling about 1,000 cases".
"Ambulance chasers: As of May 2007, ?2.12 billion of bank charges were still waiting to be reclaimed by consumers, and 'ambulance chasing' organisations could cash in more than ?500 million for conducting a very simple process".
"For just ?10 - a fraction of the fee such firms are charging - consumers can manage their own claim".
"Competition Commission: Following the Competition Commission's enquiry in March 06 into the store card market, from 1st May 2007 all providers will have to print warnings on statements if they charge consumers annual percentage rates (APRs) of 25% or more".
"Confused.com for sale: Insurance comparison site Confused.com is for sale".
"One of the first entrants to the insurance comparison market, Confused, owned by Admiral Insurance, has a price tag around £700 million".
"The sale of the company shows the growing importance of insurance aggregators in consumers' minds when it comes to buying or renewing car insurance".
"Product changes and developments Credit cards RBS, NatWest and MINT have changed their deals from 0% on balance transfers and purchase for 9 months".
"Balance transfers on RBS and NatWest cards are now 0% for 13 months, with MINT offering 0% until 1st August 2008".
"Purchases on RBS and NatWest cards are 0% for 3 months, whilst MINT is offering 0% on purchases until 1st January 2008".
"A BMW creditcard has been introduced by American Express".
"MBNA has introduced a new card called the MBNA Rewards Platinum Amex".
"Morgan Stanley has increased the cash withdrawal fees on their credit cards from 2% at a min of £2.00 to 3% at a min of £3.00".
"Current Accounts Lloyds TSB has introduced a new Silver account called the Silver Current".
"This is aimed at Polish and other immigrant workers who send money back to family members at home".
"Car Insurance More specialist insurance policies: With the recent launch of Swinton's Specialist insurance policy and Liverpool Victoria's Intune policies, insurers are working harder than ever to segment their markets and offer more tailored policies".
"New insurance policies designed to cater for particular market segments are in theory a great idea and, although this is to be applauded, consumers should not rely on insurers' marketing messages alone, but continue to shop around for the best deal and compare new products against existing market offerings to ensure they get the best value for money uSwitch.com predicts: More bank charge court cases: A district judge at Birmingham County Court dismissed a claim for more than £2,000 in charges and interest from Kevin Berwick on the grounds that they were for a service and not default or penalty fees".
"It is the first time a bank has fought a disputed bank-charge claim in court and won".
"Builder Julian Rudd also had his claim rejected by Lancaster County Court for a refund of ?3,000 in fees and interest from Lloyds TSB.
The claim is believed to have been rejected partly due to a lack of properly drafted paperwork".
"The end of 0% on purchases and balance transfers for the same period: With RBS, NatWest and MINT no longer offering 0% on purchases and balance transfers for the same period, it appears that providers are moving to longer balance transfer periods and recouping lost revenue by offering 0% on purchases for shorter periods".
"The end of Airmiles: NatWest credit card customers are being offered a new travel reward scheme from next month, as Airmiles ends its long-running partnership with the high street bank in favour of rival Lloyds TSB.
NatWest card users who want to stick with the Airmiles scheme will have to switch to Lloyds TSB, whose new duo card offers Airmiles at a collection rate of up to one mile per ?10 spent"".
""Meanwhile NatWest is promoting its "YourPoints" scheme where rewards are redeemed through Ebookers and Easyjet".
"Contactless cards: The introduction of cheques, credit cards and chip and pin has gone a long way towards killing off cash".
"In September, the banking industry plans to launch "contactless" credit and debit cards across the UK, which will allow people to purchase items costing less than ?10 by simply swiping their card across a reader".
"The cards will work in exactly the same way as ordinary debit and credit cards but without the need for memorising a pin number or signing a receipt".
"Drink driving: With more young drivers than ever being convicted of drink driving, insurers and the police need to send a clearer message to young drivers highlighting the dangers of drink driving and the penalties for those convicted of this offence".
"Young drivers: Over the past ten years the cost of car insurance for young drivers has gone up by 92%, from an average premium of ?615 in 1997".
"If premiums continue to increase at this rate, by 2017 the average young driver can expect to pay ?1,820 to insure their car".
"Aron Thompson, Head of Insurance, at independent price comparison and switching website, uSwitch.com, comments: "With a quarter of all arrests for drink driving involving younger drivers, we are concerned that the threat of inflated car insurance premiums is just not enough of a deterrent.
Young drivers would benefit a great deal if the penalty for being 'slightly' over the limit was much tougher.
This would send a much clearer message to young drivers and avoid confusion as to how much they can safely drink and still be in control of their car, as well as remaining law abiding motorists.
For many motorists it is important to remember that drink driving is not just limited to driving whilst under the influence of alcohol as many drivers will still be over the limit the day after a heavy night on the booze".
""Young drivers do get a raw deal when it comes to insuring their cars".
"While they are typically deemed a more risky group of drivers because of their lack of experience on the roads and the prevalence of dangerous driving, unfortunately all young people, even if they are sensible drivers, get tarnished with the same brush".
"There are a few of ways that younger drivers might be able to reduce the cost of insurance such as the Pass Plus driving test or by taking advantage of black box technology".
"Finally, specialist insurers for young driver will often be able to come up with a better deal".
For more information visit uSwitch.com or call 0800 093 06 07.
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