Home | Contact Us | Help | About moneybasics
New regulations to ensure better customer service
The Financial Services Authority (FSA) is to take over the regulation of how banks deal with their customers. Banks used to be responsible for regulating themselves in terms of their customer service, yet as many customers have complained recently that they haven't received good customer service when dealing with their bank, the FSA has decided to step in.
The new regulations will try to ensure that communications with account holders will be fair, clear and not misleading. This will include things like speeding up payments between accounts, making sure customers receive adequate notice of changes in terms and conditions to their account and smoothing the procedure for querying an unauthorised or unexpected transaction. The FSA also has the power to fine banks for bad customer service.
Here is a review of the other top money stories of the past week commencing 2 November 2009.
Monday 2nd November
Graduate joblessness on the rise – Recent figures from the Higher Education Careers Service Unit (HECSU) have shown that the number of graduates unemployed has increased by 44% over the 12 months. HECSU warned the situation could deteriorate further for students graduating this year. The last time levels of joblessness were so high was in 1995-96. However for those lucky enough to find a job, research suggests that salary levels have remained largely the same – which goes against the fears that the shortage of jobs and large amount of graduates, would lead to lower salaries.
The new regulations will try to ensure that communications with account holders will be fair, clear and not misleading. This will include things like speeding up payments between accounts, making sure customers receive adequate notice of changes in terms and conditions to their account and smoothing the procedure for querying an unauthorised or unexpected transaction. The FSA also has the power to fine banks for bad customer service.
Here is a review of the other top money stories of the past week commencing 2 November 2009.
Monday 2nd November
Graduate joblessness on the rise – Recent figures from the Higher Education Careers Service Unit (HECSU) have shown that the number of graduates unemployed has increased by 44% over the 12 months. HECSU warned the situation could deteriorate further for students graduating this year. The last time levels of joblessness were so high was in 1995-96. However for those lucky enough to find a job, research suggests that salary levels have remained largely the same – which goes against the fears that the shortage of jobs and large amount of graduates, would lead to lower salaries.
Tuesday 3rd November
Child poverty in the spotlight – The campaign to End Child Poverty (ECP) have said that 2 million British children now have no parent in work and ECP's most recent report predicts that this number is expected to rise to its highest level for a decade adding that, without substantial investment, 2.3 million children would be living in poverty by 2010. This is more than half a million above the Government's target. Campaigners say that investing £4 billion would take the Government close to its aim of halving child poverty. Ministers yesterday pledged 200,000 families struggling with financial difficulties would be £20 a week better off as a result of changes to the benefits system.
Child poverty in the spotlight – The campaign to End Child Poverty (ECP) have said that 2 million British children now have no parent in work and ECP's most recent report predicts that this number is expected to rise to its highest level for a decade adding that, without substantial investment, 2.3 million children would be living in poverty by 2010. This is more than half a million above the Government's target. Campaigners say that investing £4 billion would take the Government close to its aim of halving child poverty. Ministers yesterday pledged 200,000 families struggling with financial difficulties would be £20 a week better off as a result of changes to the benefits system.
Wednesday 4th November
Debt management industry facing review – The Office of Fair Trading (OFT) have launched a review of the debt management industry following cases which have reported misleading advertising and poor debt advice. Debt management companies tend to negotiate on behalf of consumers to reduce their debt burden. However customers often face high fees for this service, alongside making their debt repayments, and vulnerable customers can end up in a worse financial position. This review of the sector will inform the OFT and could potentially lead to the OFT taking action to stop any practice which could be harmful to consumers.
Debt management industry facing review – The Office of Fair Trading (OFT) have launched a review of the debt management industry following cases which have reported misleading advertising and poor debt advice. Debt management companies tend to negotiate on behalf of consumers to reduce their debt burden. However customers often face high fees for this service, alongside making their debt repayments, and vulnerable customers can end up in a worse financial position. This review of the sector will inform the OFT and could potentially lead to the OFT taking action to stop any practice which could be harmful to consumers.
Thursday 5th November
Further £25 billion injected into the economy – The Bank of England's Monetary Policy Committee (MPC) has continued its quantitative easing regime, by injecting an additional £25bn into the economy. The MPC has also decided to keep interest rates at 0.5% for the eighth month in a row. Quantitative easing involves creating money in the hope that this will be invested in the wider economy, which would cause the economy to grow. The bank has already spent £175bn on quantitative easing and the extra £25bn will be spent over the next three months.
New cars sales on the rise – The Society of Motor Manufacturers and Traders (SMMT) have announced that the number of new car sales in October reached a new high for this year. 68,942 new cars were registered In October, which sees an increase of 31.6% compared with a year ago. The car scrappage scheme which gives consumers £2,000 off buying a new car if they trade in one over 10 years old definitely seems to have boosted the car industry.
Further £25 billion injected into the economy – The Bank of England's Monetary Policy Committee (MPC) has continued its quantitative easing regime, by injecting an additional £25bn into the economy. The MPC has also decided to keep interest rates at 0.5% for the eighth month in a row. Quantitative easing involves creating money in the hope that this will be invested in the wider economy, which would cause the economy to grow. The bank has already spent £175bn on quantitative easing and the extra £25bn will be spent over the next three months.
New cars sales on the rise – The Society of Motor Manufacturers and Traders (SMMT) have announced that the number of new car sales in October reached a new high for this year. 68,942 new cars were registered In October, which sees an increase of 31.6% compared with a year ago. The car scrappage scheme which gives consumers £2,000 off buying a new car if they trade in one over 10 years old definitely seems to have boosted the car industry.
Friday 6th November
Latest insolvency figures revealed – The Insolvency Service have revealed that between July and September (the third quarter) this year 35,242 people were declared insolvent. This is 28% higher than this time last year and is 6.6% higher than the number of people declared insolvent between April and June earlier this year. There are three main forms of insolvency – bankruptcy, Individual Voluntary Arrangements (IVAs) and Debt Relief Orders (DROs). Each of these are possible options for you if you are struggling with problem debt, however, it is important to make sure that you understand the serious implications if you do go down any of these three routes to deal with your debt. It is also vital that you seek free and independent advice from a charity such as the Consumer Credit Counselling Service (CCCS), National Debtline or your local Citizens Advice Bureau.
Latest insolvency figures revealed – The Insolvency Service have revealed that between July and September (the third quarter) this year 35,242 people were declared insolvent. This is 28% higher than this time last year and is 6.6% higher than the number of people declared insolvent between April and June earlier this year. There are three main forms of insolvency – bankruptcy, Individual Voluntary Arrangements (IVAs) and Debt Relief Orders (DROs). Each of these are possible options for you if you are struggling with problem debt, however, it is important to make sure that you understand the serious implications if you do go down any of these three routes to deal with your debt. It is also vital that you seek free and independent advice from a charity such as the Consumer Credit Counselling Service (CCCS), National Debtline or your local Citizens Advice Bureau.
