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Hidden bank charges clobber customers, says Cable

Liberal Democrat Shadow Chancellor, Vince Cable, says: “The Which? report and Liberal Democrat research clearly shows that the penalties for small errors are becoming penal.

For those close to their overdraft limit a little mistake can prove more expensive than a speeding fine.

“For a simple mistake you could find yourself facing over £70 worth of charges. To make matters worse banks tend to put charging information in the small print so many aren&#39t aware of them until it&#39s too late.

“To add insult to injury many of the problems occur in the banks themselves. The long delay time for clearing cheques means that customers are charged even though the transaction may be fully covered.

“Although some banks offer clemency periods for irregular mistakes – most don&#39t.

“Banks have always argued that they do not make excessive profits at the expense of their customers as was alleged in the Cruikshank Report.

“Yet this is an area where, at first sight, banks are imposing charges which are well in excess of their own costs.

“I have asked Office of Fair Trading to investigate charges on those overdrawn to judge whether excessive profits are being made.”


Advantage Home Loans enhances procuration fees

The announcement enhances all deals placed on its Branded S500 range – funded by Southern Pacific Mortgages – by a further £400 provided that the business is submitted on their new generic application form and that it completes by December 31 2004.

ARs and the state of independence

Just as brokers are making their final decisions about which network to join after wading through piles of marketing material, a new issue has surfaced that could influence the route they take. It emerged at the end of last month that networks are divided over whether they want their members to avoid calling themselves independent […]

All change for independence

For firms to describe themselves as independent after Mortgage Day, they must offer consumers a purely fees-based payment option. David Whitely, press officer for the Financial Services Authority, says: “If this is how the consumer chooses to pay, any commission received on a sale will have to be paid to the consumer.” London broker Alexander […]

Monthly house price growth slows to two and a half year low

Nationwide also thinks that the interest rate cycle could be close to a peak, but energy price rises could equate to a further quarter percentage point on mortgage rates for households with £100,000 mortgage. The forecast for house price inflation in year to December 2004 remains at 15%. Alex Bannister, Nationwide&#39s group economist, says: “Price […]


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