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Independent Banking Advisory Service |
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UK Bank Customer's 2009 News and Information
The Financial Services Authority (FSA) will begin regulating banks’ and building societies’ day-to-day contact with their customers from 1 November 2009, covering everything from direct debits, payments, instant access and savings accounts through to unauthorised transactions and notification of interest rate changes. IBAS Comment - This news, whilst not appearing to be 'earth shattering' signals the end of banks enjoying 'self regulation' - or as we prefer to call it 'no regulation'. Hopefully, now that the FSA, which also failed badly in the banking crash has got it's act together and now has the necessary support of Government (which has not always appeared to be the case) it will regulate and properly penalize banks and bankers who rip off bank customers for their own greed - 30/10/2009. Backtrack on banking: Why Lloyds needs to be smaller, by the Chancellor who gave it a £17bn bailout - Alistair Darling has been forced into a major rethink over bailed-out superbank Lloyds. The Chancellor last night suggested that he wanted to slim it down to reduce its dominance after admitting that the financial sector needs much more competition. It represents an extraordinary reversal given that Gordon Brown rode roughshod over competition rules in personally approving the merger of Lloyds and Halifax Bank of Scotland last September. Liberal Democrat Treasury spokesman Lord Oakeshott said: 'The Government have been making the rules up as they go along in the banking crisis and now they have been found out. Gordon Brown was only too happy to do a cosy deal which ruined Lloyds, and now they suddenly appear to have changed their tune. 'They are lurching from crisis to crisis.' Eddy Weatherill, of the Independent Banking Advisory Service said: 'Unfortunately we are left with a giant which has not been through the proper competition channels. 'HBOS was handed to Lloyds on a plate. 'To correct that, the Government has now got to take the merger apart again.' - Daily Mail 04/09/2009
The total amount of
personal debt in the UK has fallen All bank customers are now paying for banks to rebuild - Banks and building societies are trying to rebuild their profits at the expense of customers, according to Moneyfacts. Michelle Slade, of the financial information website Moneyfacts, said lenders' potential profit margins were the largest they had seen since they started keeping records in 1988. "Typically we would have seen a 0.8% margin on top of their product. Now we are seeing a 3.1% margin," said Ms Slade. 'Customers pay' as banks rebuild - BBC News 25/07/2009Paying with plastic overseas - a few simple steps to avoid problems with your plastic - 11.06.09Bank charges appeal is thrown out - The banks had argued that their overdraft charges fell outside the scope of the 1999 Unfair Terms in Consumer Contracts regulations. However, the three Appeal Court judges rejected this. "We have unanimously concluded that the application should be refused," said Sir Anthony. "The issues should now be resolved by an OFT assessment of fairness." If the banks wish to appeal further they will have to appeal directly to the House of Lords for permission. - 26.02.09 Fred Goodwin to receive £650,000 for life - what a reward for failure of the bank. Banker's rewards are illustrated well here. A pension pot with £16m and already drawing 650k a year and still only 50 and he will continue to draw that amount for life - are there any suitable words for this? But, where were the regulators and Government whilst this cosy arrangement was being set up? They were all looking very deliberately in the opposite direction, whilst expounding the benefits of the huge profits being made by the banks (which were by then already well out of control) and whilst the banks used more and increased profiteering methods against banking consumers. - 26.02.09 2009 will inevitably be a difficult year for banking consumers due to the global credit crunch and depression created by the banking industry. Having caused the current problems the banks will now 'bleed' all banking consumers, wherever they can, so that banks can restore their own finances. If last year was difficult for many banking consumers 2009 will be difficult for many more. Despite the Bank rate now being set at only 1% we are already aware that banks have increased their lending margins by more than 100% - in some cases this alone will drive businesses to failure as many businesses are facing lower order books and less customers. Government has protected the banks, yet again - but what about banking consumers - how best can they be protected. Consumers need to get their own finances organised, so that banks are cut out of the equation, wherever and whenever possible as every card or online payment inevitably feeds banks money. If you as a consumer face further increased bank fees and rates then complain to your MP - email them wherever possible and make them aware repeatedly. Make them 'feel' and 'see' your problem through your eyes. As UK banking consumers we now almost own two banking groups - it's time the banks acted as the servant instead of the master! 2008 UK Bank Customer's Information
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