Independent Banking Advisory Service 

UK Bank News - 2007        IBAS latest Comment            UK Bank News 2008

£2,000 fee the norm for a fixed-rate mortgage - Banks are charging home buyers ever higher fees for taking out a mortgage, according to research undertaken by the Daily Telegraph. Customers wishing to fix their mortgages after five interest rate rises in the past 12 months could be faced with an unpalatable arrangement fee of £5,000 or higher. Fees have risen more than 50% over the past two years from an average of £495 to £774. Campaigners said the research proved that banks were finding ways of raking in extra revenue. Eddy Weatherill, the chief executive of the Independent Banking Advisory Service, said: "It is yet another new and unpalatable fee. Unless they can justify that they are giving their customers any more for their money than they were two years ago, I don't see how they can get away with it. It's all about adding to their profits." Up to two million home owners are estimated to be about to come off their generous fixed rate deals taken out two years ago and will need to take out another mortgage. Not only will they be faced with higher interest rates but they will also be hit by higher fees. - Telegraph 06/11/2007

Sub-prime loan blamed for 7,000 lost homes - Seven out of 10 homes repossessed in recent months were owned by people who bought them with the help of so-called "sub-prime" mortgages - designed for buyers with bad credit records. Research shows that sub-prime mortgage lenders are responsible for more than 70 per cent of 7,000 homes repossessed in the last there months. The findings will be presented on Panorama - BBC tonight - campaigners worry, that despite the Northern Rock fiasco - banks are still lending recklessly, especially to first time buyers. Eddy Weatherill, the chairman of the Independent Banking Advisory Service, said: "Northern Rock was an accident waiting to happen and I do not think it will be a one-off. Banks have gone down the route of short-term profits at all costs."  - Telegraph 08/10/2007

The Banking Crisis - Northern Rock savers have withdrawn more than £2billion from the ailing bank since it applied to the Bank of England for emergency funding. The uncertain future of Britain's fifth largest mortgage lender has sparked fears of a financial crash. What does it mean for you and the economy? Are we heading for a recession? - Unlikely, but Eddy Weatherill believes this should be a wake up call for the Government: "Banks often over react when they get bad news. They're going to be extremely cautious about lending money in any direction. The debt mountain in Britain is £1.25trillion and the risk is that the banks will stop lending in the way they have to those they consider riskier customers. People who are stretched on mortgages will be the first banks look at to get their money back, and you could see people going bankrupt or losing their homes." - Full article Daily Mirror 18/09/2007

After the Rock,  who will be next? - Anger of the on-line savers unable to get at their money. Walter May is one of thousands who have tried and failed to access their on-line accounts since Northern Rock ran into trouble. He wanted to transfer £6,000 to his builders but, like so many others, he has been unable to access the bank's website. His case highlights the drawbacks of internet banking which is used by 8.1million Britons. The recent experiences of Northern Rock customers will do little to reassure other savers that online accounts are as convenient and reliable as banks claim. Eddy Weatherill of the Independent Banking Advisory Service, said: "To all intents and purposes we are seeing a run on the bank. In theory, online banking should allow people access to their money more easily, but that is not happening. The reality is that it is not in the interests of the bank to allow people to get  and move their money when you have a situation like this. But that is just not good enough. If an online banking system does not work at a time when the customer really needs it, the public will loose faith in the entire system." - Full article in Daily Mail 17/09/2007.

Banks 'make up to £3.5bn from charges' - Banks are making up to £3.5bn a year from overdraft fees, the Office of Fair Trading said yesterday. The OFT, which is mid-way through an investigation of the industry, released an estimate of the scale of the charges for the first time. The figures are understood to have been gleaned from the banks themselves, which have been forced to disclose details of their finances. Campaigners argue that most of the revenue raised from overdraft charges is pure profit. "I'd say 70 per cent to 90 per cent goes straight to the bottom line," said Eddy Weatherill, chairman of the Independent Banking Advisory Service. "To my mind this is a pure profiteering exercise." - Daily Telegraph 12/09/2007

Foreign card fees cost £37 a year - Holidaymakers are paying an average fee of 37 for using their credit cards every time they go abroad, researchers said yesterday. Banks were accused of "making profit for profit's sake" from customers who chose to use their cards abroad, with campaigners calling for cuts in their fees. Research undertaken for The Daily Telegraph by personal finance website Moneyfacts shows that, in total, banks charged £726 million last year for credit and debit cards used outside Britain. This works out at about £37 for a family every time they go abroad. With people often taking two or more trips a year the fees can mount up to more than £100 a year. Gary Fitton, The Post Office's head of lending, said: "It's shocking not only to see how much people are being penalised to use their cards on holiday, but how few are aware of this." The Post Office and Nationwide are among only three card issuers that do not inflict hefty fees on travellers. Eddy Weatherill, of Independent Banking Advisory Service, which campaigns against banking fees, said: "If the Nationwide and the Post Office don't have these fees it does beg the question why the others can't do likewise." Andrew Hagger, at Moneyfacts, warned that an increasing number of shops and restaurants abroad were offering so-called "dynamic conversions," which allow people to pay in sterling. But Mr Hagger said that while this looked convenient - and sounded as though it might save on currency conversion - it invariably incurred a further fee. - Daily Telegraph 20/07/2007

Fuel 'customers' fraud anger - victims of card cloning at petrol station in Diss - BBC TV Look East 18/07/2007 - BBC TV  interview with Eddy Weatherill.

Cash loans on a credit card cost a fortune - Credit card giants have been accuse of profiteering from hole in the wall cash borrowers. Firms have put up rates for withdrawing money from ATM's by more than two percent on average in the past six months. Britons use credit cards to withdraw around £750million a month, according to recent figures. Interest is charged from the day of withdrawal. To make matters worse, card companies add on a one-off fee every time a customer withdraws money. The average charge is around 2.5 per cent but can be as high as 3 per cent. The most expensive provider is Vanquis which charges 46.19 per cent on cash withdrawals on its Abacus card. It also charges 39.9 per cent on purchases compared with an industry average of 15.9 per cent. Eddy Weatherill of IBAS, said: "The banks have relied on customers being apathetic and not being astute in financial matters to rip them off." - Daily Express 05/06/2007

Lenders ‘profit’ from rate hike - Mortgage lenders who hit homeowners with rate hikes greater than the recent Bank of England increase have been accused of taking advantage of loyal customers. The move has led to accusations that some mortgage firms are profiteering to the detriment to long-standing customers. Eddy Weatherill, of the Independent Banking Advisory Service, said: "Every time the base rate changes, the banks do not comply, they massage the rate to suit themselves. It is this massaging of margins that makes a colossal amount of money and the customer isn't in a position to switch or change quickly." Article -Channel 4 News 30/05/2007

Lenders accused on rate hikes - Homeowners are feeling the pinch after some of the biggest mortgage lenders raised their interest rates by more than the Bank of England's latest increase. Several leading banks and building societies have gone beyond the recent quarter-point rise in the base rate to boost profits. They include three brands that are part of the Halifax group, Britain's biggest mortgage lender. Bank of Scotland, Intelligent Finance and The Mortgage Business have put up the standard variable rate on home loans by 0.35 of a point. The tactic will add millions of pounds to the annual income of the Halifax - Bank of Scotland group, which saw a 31 per cent leap in profits last year to £5.7billion.

Standard Life and Nottingham Building Society have also increased their standard-rate home loans by 0.3 per cent. Lenders have boosted their profit margin by scaling back the gains they offer savers. Most have put up the interest rate paid on savings by 0.25 per cent. Eddy Weatherill, of the Independent Banking Advisory Service, said: "This is nothing short of a scam. The banks are simply lining their pockets at the expense of struggling customers. It is unfair and a disgrace, but there is no regulatory system in place to put a stop to it." Full article - Daily Mail 30/05/2007

Scandal of Mortgage Blunder by banks - Homeowners are being overcharged thousands of pounds because of bank errors in the way their mortgage repayments are being calculated, it emerged yesterday. The news is likely to infuriate thousands of struggling borrowers across Britain who have already hurdled inflated house prices and now face rising interest rates. One farmer paid an extra £56,520 after two separate mistakes by Nationwide. The burden is always on the borrower to find the error and challenge it. The errors affect those people who have taken out repayment-style mortgages. Because some of the capital is paid back every month along with interest, these are more complicated to work out and customers are less likely to realise they are overcharged.

While Alliance & Leicester said that it regularly reviewed repayments for errors, neither Nationwide nor Abbey make routine checks. Alliance & Leicester said new computer programmes would eliminate any future errors. Eddy Weatherill, of the Independent Banking Advisory Service, said: “Banks are supposed to be experts at looking after all sorts of financial services. If they are making basic mistakes with mortgages, what can they be trusted with?” Full article - Daily Express 28/05/2007

Lenders quietly squeeze you for an extra £660m - exclusive scandal of rates 'fiddle' - Greedy lenders are milking an extra £760 a year from homeowners through devious interest rate changes. A Your Money investigation has revealed how the top 10 lenders have taken advantage of interest rate changes in the past six years to boost their annual profits by £660million. Our probe shows that in 2001, when the Bank of England interest rates were last at the current level of 5.5 per cent, standard mortgage rates averaged 6.9 per cent. Today they are a hefty 7.3 per cent - and are set to go higher because half the 10 have yet to pass on the 0.25 per cent rise imposed by the Bank last week. "This goes to show how easily banks are able to manipulate customers," says Eddy Weatherill, from IBAS. "By scraping a percentage point here, and adding a little bit there they are actually taking millions of pounds out of people's pockets." full article - Mirror 16/05/2007

Cash is to ashes - New pay card could spell end of money. The death of cash is just round the corner as banks prepare to launch swipe-and-go pay cards. Shoppers will start using the technology to buy goods under £10 from September. Cards are simply tapped on an oval pad - concluding purchases in seconds. About 20 billion payments of under £10 are made in the UK every year. Independent businesses could now end up forking out more than £15million to get an upgrade. It will cost them about £50 each. Eddy Weatherill of IBAS said "it's all about a quicker way of making money out of us". To prevent fraud, on random occasions shoppers will be asked to input their pin. - Mirror 08/05/2007

Flexible fiends - Card firms fleece us for £1bn..after ruling to cut fees - Greedy credit card firms are raking in an extra £1billion a year from customers despite a ruling meant to cut their rip-off fees. A year after a Government clampdown on late payment charges, Britain's biggest banks and credit card firms are finding new ways to fleece cardholders. A new range of profit-raising tactics, including: Pushing up interest rates on cash withdrawals, imposing monthly admin charges on card accounts and penalizing customers who stay in credit for more than a year. Consumer watchdogs have slammed the stealth charges as "daylight robbery". Eddy Weatherill of IBAS, said: "They are desperate to squeeze every last penny out of customers to recover their lost millions." More than 50 cards have increased their interest rates by up to 12.6% in the last year bringing in an extra £675m. They are also raising balance transfer fees. Consumer champion Which? say credit card firms are making an extra £400million a year from the confusing way they calculate interest charges and has lodged a "super-complaint" with the OFT, urging the government regulator to standardize calculation methods in an effort to make them fairer and easier to understand. - Sunday Mirror 06/05/2007

£12 fine if you forget to tell the bank you've moved - Credit card customers face being fined £12 if they forget to tell their bank about a change of address. The Royal Bank of Scotland, which includes NatWest and Mint, is introducing the fee as finance giants move to impose more 'backdoor charges". The banks claim the fee, applying to more than five million customers, is necessary to cover the cost of tracing those they have not been able to find. But consumer groups believe it is about fuelling profits. Other new charges, which apply to all RBS, NatWest and Mint credit card customers, include the imposition of high interest rates for buying gift vouchers or for placing a bet with a credit card. In the past, such purchases would be treated as any other, such a groceries or a restaurant meal, which attract interest at an annual rate of 16.9 per cent. In future they will be treated the same as a cash advance and attract annual interest of 24.9 per cent. The moves come as the banks and credit card companies retaliate against a decision by the Office Of Fair Trading to cap penalty charges. Banks have been forced to cut them from around £25 for missing a payment to a maximum of £12. But they have responded by putting up the interest rates for any cash withdrawals, generally to about 20 per cent, and reduced the interest-free period for shoppers. Eddy Weatherill, of IBAS, said: "The charges made by RBS are just one of a series of new stealth charges. The banks lost income after being told they must slash their illegal and unfair penalty charges on credit cards, but they are looking to maintain what are obscene levels of profit by pushing up other charges. What kind of a country are we living in where banks are told to get rid of one rip off and they simply introduce another one to protect their profits?" - Full article - Mail on Sunday 29/04/2007

Bonus rap for HSBC - HSBC came under fire yesterday for paying managers huge bonuses despite missing targets. Around 12,000 senior staff shared more than £27million from the three-year incentive scheme. Eddy Weatherill, of the IBAS group, said: "They've been cheating customers for years, so it's no surprise that they can bend the rules if it's going to make them more money." The small print of the bank's annual report confirms the pay committee "exercised its discretion, as permitted by the plan, to waive this performance condition." An HSBC spokesman stressed the bank's senior directors lost out on share options worth around £7m due to the poorly performing share price. - Mirror Money 17/04/2007

Banks put up holiday fees - Pay more to use plastic and cash machines - Britons will face even higher bank charges when they go abroad this summer. They will be hit with extra fees for using their debit cards in shops and restaurants and withdrawing cash from ATM's. NatWest is the first to ramp up its charges before the summer holidays. It is raising fees for overseas debit card deals and cash machine withdrawals from 2.65 per cent to 2.75 per cent. And customers will also pay £1.25 - up from 75p - every time they use their debit card to pay bills. The big banks already rake in £535million a year in hidden charges from holiday makers. But they are determined to compensate for the £12 penalty charge cap imposed by the OFT on missed credit card payments last year. NatWest defended the increases, saying charges have not gone up since 2001. But consumer watchdog IBAS, said: "it's completely obscene. It does not cost that amount to process these transactions." - Sunday Mirror 15/04/2007

HSBC criticised for branch which only serves the rich - Campaigners have condemned plans by a leading bank to set up a branch where only the wealthiest customers receive face-to-face services. John McFall, chairman of the Commons Treasury Select Committee, said the move by HSBC "flew in the face" of commitments by banks and the Government to financial inclusion while charities attacked the decision for neglecting the needs of the elderly. Campaigners say the decision will hit vulnerable banking customers the hardest. Eddy Weatherill of the Independent Banking Advisory Service said: "This is pandering to those that have the 'rich life', but a lot of people do not enjoy that privilege. Banks are taking away more and more services for customers." HSBC's decision comes just months after MP's attacked the banking sector for treating its poorest customers as "second-class citizens." - The Independent 13/04/2007

Bank bans the poor - Greedy HSBC bosses were last night slammed for heaping yet more misery on their long suffering customers. The bank is already under fire for making record profits of £11Billion last year while fleecing people with outrageous penalty charges. Now it has decided to ban its ordinary, hard working customers from a branch that will cater exclusively for the rich. And a bank spokesman twisted the knife by declaring yesterday: "Not everybody in the world is equal. Some people have higher incomes and need greater services through the bank. These customers demand a better service." Ordinary customers can also receive the personal service - but only if they pay £19.95 a month to join the bank's Premier Service account. Eddy Weatherill, of IBAS, said last night: "It's outrageous. People want to be able to walk into their local branch and talk to someone about their account. What is worse is the fact that banking is supposed to be a service industry. Instead they have been steadily removing the service we receive until it has almost disappeared. Services are being cut to make record profits." - Mirror 12/04/2007

The bank that will only talk to you if you are very rich - A high street bank has sparked outrage after ordering staff at one of its branches to serve only rich customers. HSBC bosses have told employees to speak only to Premier account customers - those with either £50,000 in savings, a £200,000 mortgage or a £100,000 mortgage plus a salary of £75,000. All other account holders must travel at least a mile to another branch if they wish to be served personally. The Canford Cliffs bank no longer has a counter service, and customers have to withdraw cash from ATM's and pay in money at self-service tills. But, there are staff available to give advice to Premier account customers about HSBC products. Ray Smith, a local councillor and former mayor of Poole, said: "I'm very unhappy with this policy. The majority of people here are elderly and they might be property rich but they are cash poor. The perception in London seems to be that everybody is rich here. The bank should be ashamed of themselves - it is absolutely outrageous." Eddy Weatherill, from IBAS, said: "This is typical of a bank trying to get the most money from the people they want to target. They seem to forget they are in a service industry." - Daily Express 12/04/2007

Banks' 'blackmail' halts cut in fees - Banks were accused of blackmail yesterday for threatening to end free banking if they were forced to reduce overdraft charges and other penalty fees. John Fingleton, the OFT's chief executive, said he wanted an investigation into current account charges because he feared that a "quick fix" solution would disadvantage customers. But campaigners said that the regulator had been blackmailed. Banks have claimed that free current accounts would no longer be possible if bank charges were capped, because they would need to make up the money somewhere else. Eddy Weatherill, of IBAS, condemned the banks. "They are effectively saying that if you penalize us we'll pursue the customer even further than we already do," he said. "This is commercial blackmail." Which? said: "The OFT is asking the banks to justify themselves in terms of the regulations. If the charges are fair then they have nothing to hide." - Daily Telegraph 30/03/2007

How HSBC sends its poorer callers abroad - Britain's biggest bank is diverting poorer customers to foreign call centres while more profitable clients are dealt with in the UK. HSBC has admitted filtering calls from 8.5 million customers with current accounts and transferring them after assessing factors such as monthly income and credit rating. The number of products an individual has with the bank, and the way in which each manages their money, are also taken into account. Customers are then graded on a scoring system. Their ranking is accessed as they give their account number when calling the bank. Eddy Weatherill, from IBAS, said: 'This smacks of a first-class and second-class system. If you are struggling to make ends meet you will be passed over to a second-class service. It is a fact that money drives the system. The opportunity to make more profit exists with those who have more funds in their accounts.' - Daily Mail 26/03/2007

Bank chief in £8.5m fat-cat row - for only 5 months work - Eddy Weatherill, of the Independent Banking Advisory Service, said: "The banks are a licence to print money and it is clear that rule extends right the way through to the directors and executives. Payments running into millions of pounds for just a few months work will stick in the throat of customers who have been unfairly treated - By any measure, the bank's top executives are picking up huge rewards for failure, the failure to offer customers fair charges and good value financial products." Full story - Daily Mail 06/03/2007

Why don't banks compete harder? - Robert Peston's article and response from Eddy Weatherill, chief executive of IBAS - BBC News - Reporters 01/03/2007