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Lender fined £2.4million by FSA
The Financial Services Authority (FSA) has fined a lender £2.4million after it judged that it had mistreated customers who fell into arrears, being too eager to start repossession proceedings.
The FSA has ordered the lender to repay £7.7million, plus interest to 46,000 customers. This shows that the regulator is getting tough with lenders that do not treat customers fairly and rush too quickly to start repossession proceedings without looking into other alternatives first.
Here is a review of the other top money stories of the past week commencing 26 October 2009.
Monday 26th October
Changes to benefits for single parents – There have been new rules announced today on the benefits that single parents could receive. The charity Gingerbread has estimated that the new rules on benefits will mean that approximately 70,000 single parents over the next year will be required to look for work or risk a benefit cut. From today, new claimants whose youngest child is 10 or 11 will be put on Jobseeker's Allowance rather than on income support. Existing claimants will be switched to Jobseeker's Allowance from February, requiring them to attend fortnightly job interviews and to apply for vacancies or acquire skills in between times. Credit Action has a self-help Moneymanual for single parents which is free to download.
The FSA has ordered the lender to repay £7.7million, plus interest to 46,000 customers. This shows that the regulator is getting tough with lenders that do not treat customers fairly and rush too quickly to start repossession proceedings without looking into other alternatives first.
Here is a review of the other top money stories of the past week commencing 26 October 2009.
Monday 26th October
Changes to benefits for single parents – There have been new rules announced today on the benefits that single parents could receive. The charity Gingerbread has estimated that the new rules on benefits will mean that approximately 70,000 single parents over the next year will be required to look for work or risk a benefit cut. From today, new claimants whose youngest child is 10 or 11 will be put on Jobseeker's Allowance rather than on income support. Existing claimants will be switched to Jobseeker's Allowance from February, requiring them to attend fortnightly job interviews and to apply for vacancies or acquire skills in between times. Credit Action has a self-help Moneymanual for single parents which is free to download.
Tuesday 27th October
Credit cards and store cards under review – The government has unveiled plans today to review many of the terms of credit cards and store cards. The changes that the government has set out for discussion are designed to give consumers a better deal. For example one of the proposals up for discussion is to ban lenders from increasing credit card limits without the borrower's consent. Also up for discussion is increasing the minimum repayment amount that borrower's must repay each month. This is designed to help borrowers pay back their debts quicker.
Credit cards and store cards under review – The government has unveiled plans today to review many of the terms of credit cards and store cards. The changes that the government has set out for discussion are designed to give consumers a better deal. For example one of the proposals up for discussion is to ban lenders from increasing credit card limits without the borrower's consent. Also up for discussion is increasing the minimum repayment amount that borrower's must repay each month. This is designed to help borrowers pay back their debts quicker.
Wednesday 28th October
Good bank, bad bank? – The EU today made the decision to support the government's move to break up Northern Rock into a "good" bank and a "bad" bank. The "good" bank would hold savers' money and be responsible for new lending, whereas the "bad" bank would be responsible to repay government loans. Both banks would hold some mortgages. It is widely believed that the "good" bank will be sold off, whilst the "bad" bank will remain in state control.
Good bank, bad bank? – The EU today made the decision to support the government's move to break up Northern Rock into a "good" bank and a "bad" bank. The "good" bank would hold savers' money and be responsible for new lending, whereas the "bad" bank would be responsible to repay government loans. Both banks would hold some mortgages. It is widely believed that the "good" bank will be sold off, whilst the "bad" bank will remain in state control.
Thursday 29th October
Get clued up on your pension – Saving for retirement is important for us all and this week the Pensions Regulator has said that some pension schemes are not giving enough information to members as they approach retirement. Because the value of your pension will affect your financial situation after you have retired, it's important to be well informed. Both moneybasics and Moneymadeclear from the FSA have information on pensions and retirement.
Housing market picks up in September – Figures from the Land Registry have shown that house prices rose by 0.9% during September. The Land Registry’s figures are broadly considered to be one of the most accurate indicators of the state of the housing market as they are based on completed property sales. The average price of a property in England and Wales is now £158,377. Figures from the Bank of England have also shown that 56,000 mortgages were approved in September, the highest level seen since March 2008. Although this represents good news for the housing market, commentators think the upturn might not last as unemployment is feared to rise further.
Get clued up on your pension – Saving for retirement is important for us all and this week the Pensions Regulator has said that some pension schemes are not giving enough information to members as they approach retirement. Because the value of your pension will affect your financial situation after you have retired, it's important to be well informed. Both moneybasics and Moneymadeclear from the FSA have information on pensions and retirement.
Housing market picks up in September – Figures from the Land Registry have shown that house prices rose by 0.9% during September. The Land Registry’s figures are broadly considered to be one of the most accurate indicators of the state of the housing market as they are based on completed property sales. The average price of a property in England and Wales is now £158,377. Figures from the Bank of England have also shown that 56,000 mortgages were approved in September, the highest level seen since March 2008. Although this represents good news for the housing market, commentators think the upturn might not last as unemployment is feared to rise further.
