Credit card cheques are to be banned by the government as part of a new consumer protection scheme.

The Bank of England released figures showing that people living in the UK owe £233 billion on credit cards, overdrafts

and other forms of loans.

The governments plans include creating a Consumer Advocate, who would focus on raising awareness of consumer issues and where necessary represent groups of consumers in court.

The amount of outstanding credit card debt in the UK has begun to rise again after falling back throughout last year, hitting £54.4 billion.

The government is looking to implement actions to encourage more responsible lending practices after debt levels became a topic of concern during the recession.

Credit card cheques offer an alternative method for spending on credit cards, issued to customers by providers.

However, this spending method has proven to be an expensive tool for consumers, as issuers charge handling fees for using them, with no interest free days offered and they do not offer the same level of protection if issues were to arise.

The government has been under pressure to enforce the ban, and now says this payment method will be banned completely, and it well be reviewing card fees and charges

It has been found that around a fifth of credit card users in the UK has seen an increase in credit limits in the past year it being requesting.

The government has also been called upon by consumer groups to aid consumers to resolve issues with businesses that they feel have 'ripped them off'.

Ron Gainsford from the Trading Standards Institute said: “The Consumer Advocate proposal is really good news because it will help to further foster a healthy balance between consumers and businesses”.

UK Price Comparison website Which4U - Compare Credit Cards, Savings Accounts, Compare Fixed Rate Bonds, Bank Accounts, Individual Savings Accounts, Loans, Mortgages, Insurance, TV & Broadband and Gas/Electric bills to find the best UK deals

 

As news of Santander changing all of its Abbey high street branches, into the Spanish banking giant, the same is happening with the credit cards.

In June 2009, Abbey commenced with the rebranding of its credit cards as Santander cards. The rebrand follows the announcements that were made in May, that Santander's three UK businesses, Abbey, Alliance & Leicester and Bradford & Bingley Savings, will adopt the Santander global brand and name in 2010.

Santander is the third largest bank in both England and the world. In the UK the banking giant will have over 1,300 branches and 25 million customers.

All new credit cards will be issued under the Santander name and replacement cards will be issued under the Santander name when it is time for their renewal. There will be a number of Santander Cards available to customers which can offer a wide range of incentives.

Santander Zero & Santander Credit Cards

Such include the Santander Zero. This is said to be the only card on the market with no foreign exchange fee and no cash advance fee, offers 0 per cent on balance transfers for 12 months and purchases for three months.

The Santander Credit Card is another product. This is a best buy card that offers 0 per cent on balance transfers for 15 months, 0 per cent on purchases for three months. After this a highly competitive ongoing APR of 15.9 per cent will be applied after the three month period.

Existing customers have already been informed by writing about the rebranding of their cards and all other terms and conditions of their cards remain the same.

To celebrate the credit card rebranding, all existing Santander Credit Card customers will benefit from fee-free foreign usage in June and July this year. This unique offer has been designed to help customers make their holiday spending abroad less expensive, this summer. Although news of the stronger pound against the dollar and euro also comes as good news for British holiday goers. Existing Zero customers already benefit from ongoing fee-free foreign usage.

Rebranding for cost effectiveness

Roger Lovering the managing director of Santander Cards, said: "We are delighted to rebrand Abbey's credit cards as Santander. Since Abbey brought its credit cards business back in-house in 2007, our commitment has been to provide our customers with innovative and cost effective spending options that offer them ongoing value."

"An example of this is the award winning Zero card, which offers customers fee-free foreign usage anywhere in the world. Operating as part of Santander, we will be able to leverage a global brand that represents strength and financial security to customers in today's difficult economic environment."

A personal finance spokesperson from a comparison website, spoke about the Santander credit cards rebranding.

She said: "For new customers considering the re-branded Santander range, the Santander Zero card is market leading because you don't have to pay overseas usage fees and there is no charge for withdrawing cash while abroad, so it may suit frequent travellers.

"However, as with any credit card, consumers must ensure they are fully aware of all the terms and conditions so they can be confident of choosing a credit card that meets their overall needs."
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An appeal in the House of Lords is due to begin this week that may determine the future of overdraft fees incurred by millions of customers across Britain.

The appeal, put forward by some of the UK's main banks, will be heard by five Law Lords and is in response to a decision made earlier this year by the Appeal Court.

The ruling upheld from last year gave the Office of Fair Trading (OFT) the power to decide whether or not bank account charges were fair.

There are currently around one million people waiting to find out if they can reclaim previous bank charges.

Banks make around £2.5 billion of income every year from charges applied to customers accounts as a penalty for going overdrawn without permission or paying a cheque or direct payment that bounces, billing up to £40 a time.

Marc Gander of the Consumer Action Group (CAG) said: "I hope the House of Lords will make a very clear finding that the bank charge terms are subject to the Unfair Terms in Consumer Contracts rules."

The hearing comes nearly two years after the OFT and the banks made a joint decision to go to court in order to resolve the legality of bank charges.

This came at a time when banks were being bombarded by claims from angry customers that felt the charges were unfair. These claims were being fired both directly and through the courts.

Banks paid out an estimated £784m to around 378,000 customers before the test case agreement in 2007, rather than opposing the attempts made by customers contesting the fees.

However, after both sides agreed to the litigation, it was agreed by the Financial Services Authority (FSA) and the courts that any future claims would be put on hold until a decision was made.

Nick Spooner of the campaign group Legal Beagles said: "It's going to be a very significant outcome, either way.”

The banks have always defended the charging system, describing them as reasonable, fair and legal.

If they are successful in the appeal, it will be a big blow to the OFT and campaigners involved in the bank charges case.

The banks employed Jonathan Sumption QC to represent them in the case - one of the UK's top civil barristers.

Ray Cox QC – a barrister specialising in banking said: "If anyone can do it for the banks, he can, but he's got an uphill task. But you can never be sure; the Law Lords will certainly not rubber-stamp the decisions of the other courts."

If the banks were to suffer a total defeat it would result in bank charges being abolished, which would probably trigger the introduction of monthly fees for current accounts.

It could also mean that banks would have to refund billions of pounds to customers, dating back over six years ago or more.

Some banks such as RBS have already developed contingency plans to prepare them for the possibility of this outcome, allowing them to refund bank fees.

"A victory for the OFT would swiftly open the door for refunds of past charges," said Mr Spooner.

"If the OFT rules they were indeed unfair, I believe they will have to be refunded in total, as the unfair terms triggering the charges will be unenforceable."

UK Price Comparison website Which4U - Compare Credit Cards, Savings Accounts, Compare Fixed Rate Bonds, Bank Accounts, Individual Savings Accounts, Loans, Mortgages, Insurance, TV & Broadband and Gas/Electric bills to find the best UK deals

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Have you never paid your credit card bill late? Have you never gone over your credit limit? Do you pay the entire statement balance each month? Do you use your rewards card - and collect the rewards? Are your credit rating and your FICO scores rated "excellent?"

Then you, my friend, may be a "deadbeat."

That doesn't sound like my definition of a deadbeat, and I'll bet it doesn't fit yours either. But the credit card issuers have a different way of looking at things.

They think you're a deadbeat because they aren't making any money from you. All they get is the fee from retailers when you use the card. They get no interest payments and no fees from you - and they're giving you back rewards on top of it!

They'd like you a whole lot better if you carried a balance so they could collect interest each month, and if you'd pay a day late now and then they'd be pleased. They'd get to collect a fee. The same holds for going over the limit. Of course they want you to pay your bill, but if you mess up just a little now and then, it adds to their profits.

Why do you care about the label they give you? Because you're apt to be punished for it. That means you need to start watching all the notices that come from your credit card issuer - even when they look like junk mail, read them. Be on the lookout for lowered credit limits, higher interest rates, the cancellation of any cards you don't use regularly, changes in the terms of your agreement, and a set of new fees.

The card issuers are already gearing up to stem the losses they'll face when the "Credit Cardholder's Bill of Rights" goes into effect in February. And they're looking to their most creditworthy customers to take up that slack.

One practice that is predicted will put an end to the "free float time" you currently enjoy. Instead of paying interest only if you carry a balance from month to month, they may begin charging interest on each purchase the day it is made.

Experts are also predicting that all cards will carry annual fees or monthly access fees. They may also charge "inactivity fees" if you don't use your card in a given month or other set period of time.

Be alert and for God sake pay attention to your credit report and credit scores. These Laws could strip your credit score and you wont even know it.


http://www.creditscorecowboy.com

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It’s one of the country’s fastest growing crimes – but how do you stop someone from stealing your personal details and using them to get credit in your name? There are a number of ways in which you can help to defend yourself – and your finances – from identity fraud.

The electoral roll is used by lenders to verify that you live where you say you do - if you’re already registered, an identity thief will be unable to register in your name. If you haven’t already done so, protect yourself by contacting your local council to register to vote.

An unidentified or suspicious transaction is often one of the first signs of ID fraud. Ensure you thoroughly check your credit card and bank statements for unusual entries. Your credit report

can also indicate that someone is using your identity to apply for credit, so check it regularly for applications you didn’t make or accounts you didn’t open. You can view your free credit report online by signing up to a credit monitoring service

that will alert you every time there’s a change that could indicate fraud.

If you have had key items stolen, such as credit cards or your passport, report these to the police and any other relevant organisations in order to warn them of potentially fraudulent activity in your name. Thieves may also intercept mail to steal vital information so if any of your mail is going missing, notify the Post Office immediately, and ensure you have mail forwarded when you move.

If you go away on holiday, arrange for your post to be collected regularly to avoid it being stolen and used to commit Identity theft.

An old catalogue with your name, address and account number on it could be useful to fraudsters so ensure that you don’t throw away anything containing personal information that could be used to steal your identity. If in doubt, shred it. Also avoid carrying important documents around unless you really need them. Your passport, driving licence and payment cards can all be used by criminals, so make sure they are kept in a safe place.

Several criminal ploys exist to get hold of your personal details, including cold calls and unsolicited e-mails, so be wary of sharing confidential information with anybody. This includes PINs, bank account details and passwords.

What’s more, steer clear of opening attachments to unsolicited e-mails or visiting dubious-looking web sites - they could contain a virus that will steal important data from your hard disk. Always make sure your computer is protected by installing the latest security patches and anti-virus software on your computer. Increasingly popular social networking sites are ideal for Identity thieves as they can use personal details such as your full address, date of birth, children’s and pet’s names to obtain your password or PIN.

In summary, to protect yourself from ID thieves, use the tips above to ensure that you keep your confidential information secure and stay on top of ID fraud by checking your credit report on a regular basis.

The appeal by eight banks against the decision of the High Court regarding whether or not the OFT have the authority to deal with the fairness of bank charges has been thrown out.

The judges also told the banks that they could not take the case to the Lords for a further appeal but it is almost certain they will ignore this and ask the House of Lords for permission to make a further appeal against this decision.

The hundreds of thousands of claims frozen will remain this way until the investigation by the OFT is concluded

The OFT were said to be pleased with Appeal Court ruling, they were quoted as saying "We expect to reach a final decision on fairness later this year,"

One of the arguments by the banks was that the banks customers do not have protection under the Unfair Terms in Consumer Contract Regulations (UTCCR) the court found that consumers do have protection under the UTCCR as they are not part of the core or essential bargain between a consumer and their bank,

Master of the Rolls, Sir Anthony Clarke, dismissed the appeal, he said the four Appeal Court Judges had now come to the same conclusion as High Court Judges on the issue of the OFT's jurisdiction, he also told the banks they should now allow the OFT to decide whether the banks charges were fair or not he then dismissed their request for a further appeal.

The Banks Next Move

Regardless of the High Court decision and the Appeal court agreeing with this decision the British Bankers' Association (BBA) still believe the Regulations do not apply to bank charges, a spokesman was quoted as saying

"The banks continue to believe that the Regulations do not apply to these type of charges,"
"The banks will apply to the House of Lords for permission to appeal the Court of Appeal's decision.
"The banks will work with the OFT to ensure the next stages in the test case process are progressed as quickly as possible,"

The Case
The banks argument in the original High Court case was that the overdraft charges are not covered by the 1999 Unfair Terms in Consumer Contract Regulations (UCCR) the High court dismissed this claim and ruled that consumers do have protection through these regulations.

The three Appeal Court Judges agreed with the High Court ruling and dismissed this claim, Sir Anthony Clarke said "We have unanimously concluded that the application should be refused," he also said "The issues should now be resolved by an OFT assessment of fairness,"

The banks requested leave to make a further appeal which Sir Anthony denied, the banks are ignoring this and applying to the House of Lords directly requesting permission for a further appeal.

Many organisations and individuals who have been campaigning against the bank charges have spoken out about the ruling and the general consensus regarding the decision is the same, all agree with the High Court and Appeal Court decision and agree the Office of Fair Trading (OFT) should now be allowed to continue with their investigation.

History

In the Summer of 2007 the Financial Services Agency (FSA) put a waiver in place allowing the banks not to deal with all the claims that had been submitted for bank charges pending the outcome of the test case between the OFT and eight banks, also a stay was put in place on all County Court proceedings associated with the recovery of banks charges, Sir Anthony Clarke said "it is sensible that the stay on county court proceedings should remain in place until a final decision on fairness of bank charges was made."

The Deputy Head of Civil Justice has sent a letter to the County Courts inviting them to continue with the stay until a conclusion has been reached by the OFT or the House of Lords. There are around 65,000 claims on hold at County Courts in England and Wales.


Consumer Advice

If the OFT eventually rule that the charges are unfair it is estimated that banks will be paying out billions of pounds in returned bank charges. Most campaigners and companies dealing with reclaiming bank charges recommended people with excessive bank charges who have not already submitted a claim should submit one as soon as possible to ensure they are somewhere near the front of the reclaim queue it is estimated that 378,000 claims have already been and that the banks are holding a further 971,000 claims

In 2006 the Office of Fair Trading ruled that credit card charges were unfair, since then hundreds of thousands of people have reclaimed these charges as they are not affected by the waiver put in place for the bank charges.

There are Companies such as www.chargerefund.com and www.bankrebate.com willing to submit your claim on a no win no fee basis which of course means you are in a no lose situation as you only pay them if you get paid

Roy Smith
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On 26th February 2009, the Appeal Court ruled that the Office of Fair Trading (OFT) has the power to investigate whether charges for unauthorised transactions are unfair and excessive when assessed under the Unfair Terms in Consumer Contract Regulations (UTCCR), confirming the earlier ruling from the High Court. This paves the way for the OFT to conclude their investigation into whether Bank Charges are unfair and excessive.

In addition to the unanimous decision of the three Appeal Court justices in favour of the OFT, Master of the Rolls Sir Anthony Clarke refused the Banks leave to appeal against the decision in the House of Lords. Whilst the Banks still have the right to request an appeal directly with the House of Lords, the fact that the third most senior judge in England & Wales has refused leave to appeal at this stage indicates that the judiciary believes the issues should be resolved by the OFT.

The fact that the Appeal Court has issued a unanimous decision in which they have refused leave to appeal, is a major success for the OFT and consumers. We trust that the Banks will now accept that they are unlikely to win this legal process and begin to work with the OFT to bring speedy resolution to this case, allowing consumers to secure a refund of the Bank Charges they have incurred.

Should the Banks proceed to request leave to appeal directly with the Law Lords, they will incur significant costs for the taxpayer who funds the OFT and the many of the Banks themselves. We believe that following such a clear judgement the Banks should now allow the OFT to decide on whether the charges are fair, although we await news on whether the Banks will appeal.

The OFT stated that it "welcomes the Court of Appeal's very clear confirmation today that the unarranged overdraft charging terms for personal current accounts can be assessed for fairness." The OFT must now conclude and publish a report into the fairness of charges, which it has been working on since April 2007. The OFT stated that they are "...now analysing the implications of the judgment for our ongoing investigation. The OFT has already written to the banks with its provisional view on the fairness of the terms, setting out its concerns that they may be unfair. We expect to reach a final decision on fairness later this year."

Should the Banks appeal to the House of Lords, the case will be unlikely to be resolved this year. The OFT indicates their report will be concluded later this year, although they do not provide a clear timeframe. We therefore believe that despite the Appeal Court ruling, consumers are unlikely to receive a refund of charges until the end of 2009

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About the Financial Services Authority

Author: Peter Kenny

Also known simply as the FSA, the Financial Services Authority is the UK's independent financial regulator, with powers that have been granted through the Financial Services and Markets Act 2000. The Treasury is responsible for appointing an FSA board, and board members are in turn responsible for setting the overall policies of the agency. In addition to board members the Treasury also appoints a Chairman and a Chief Executive Officer.
 
The FSA is answerable to Treasury Ministers, and report to them through parliament. Funding of the FSA actually comes through the variety of financial companies that it regulates. The FSA has a number of aims and goals, and this includes raising awareness and educating about financial issues, protecting consumers, and ensuring fairness. Whilst the FSA is an independent regulator the powers and activities of the FSA are the responsibility of the government. The agency is responsible for regulating most financial markets and companies, and it has the power to take action against firms that are in breach of FSA regulations and policies.
 
The FSA implements are range of guidelines and regulations, which its member companies are expected to adhere to. These policies are introduced to ensure fairness, protect consumers, and reduce the risk of financial fraud and crime. One its website the FSA described its main goals and aims as:
 
Promoting efficient, orderly and fair markets
Helping retail consumers achieve a fair deal
Improving our business capability and effectiveness
 
The agency als has a number of set objectives, and amonst these are raising public awareness of the financial indusrty and markets, ensuring the protection of consumes within the financial sector, increasing consumer confidence in financial products and services, and reducing crime in relation to financial services and products. In short the FSA decribes these ibjectives as:
 
Public awareness
Consumer protection
Market confidence
Reduction of financial crime
 
The standards that are set by the FSA must be met by its members companies, and this in itelf helps to increase confidence amongst consumers. This is why it is important for consumers to ensure that any financial firm or service that they use is FSA regulated, as this ensures that the company is complying with FSA regulations and standards. 
 
The Financial Services Authoirty carries out valuable work and services, and provides consumers with the opportunity to enjoy fairness when it comes to financial products and services. Some of the things that the FSA has been involved in include cracking down on the mis-selling of Paypment Protection Insurance, and taking action against mortgage related fraud, both of which are issues that have hit the financial headlines recently.
 
There are also a number of financial businesses that have to be regulated by the FSA, and this is bcause they have to meet the specific standards that are set out by the agency in order to operate within the law.

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About the Author:
Peter Kenny is a writer for The Thrifty Scot, please visit us at  Personal Loans  and  Credit Card Rewards
Visit  Protecting yourself from credit card fraud