Banks must be wondering if the bad press will ever end. With the mis-selling of payment protection insurance costing banks an estimated £5.5bn, a fresh complaint over misleading customers is all they need. Publicly funded watchdog Consumer Focus has now filed a complaint with the Office of Fair Trading (OFT) against banks and currency providers, saying that it is “unclear how much of the estimated £1bn a year charged in currency exchange fees” is warranted, reports the BBC.
The watchdog claims that it can cost anything from £10 to £30 to turn £500 into euros, “even though the service provided is essentially the same”. Advertising slogans quoting “0% commission” and high charges for using credit and debit cards abroad have been called “unnecessary, complex and confusing”.
The group wants simpler charging structures for using cards overseas and a more transparent explanation of exchange rates, which it hopes will allow customers to make better informed decisions on where they go to change their currency. The OFT says it will provide a response on or before 20 December of this year.
• Ryanair has caused a bit of a rumpus this week with news that it is launching a pre-paid card (the Ryanair Cash Passport), which will be the only way to avoid paying booking fees from early October. Pre-paid cards work in a similar way to pay-as-you-go mobile phones: you load them up with cash and then use the card to spend until it’s empty.
However, the Financial Services Compensation Scheme (FSCS) has pointed out that “pre-paid cards are not covered by the UK compensation scheme”. This means that if the companies providing these cards were to go bust, customers could lose all the money they’d stored on the card. So if you’re planning to get one, keep an eye on how much you keep on it.
• If you are worried about the latest hikes in energy prices, then you may want to think about getting an energy monitor, says Martin Lewis of Moneysavingexpert.com. These small gadgets help you to monitor how much energy you are using – allowing you to moderate your usage by comparing your daytime use with your “go to bed rate”. Using one to help you change your habits could save you up to 15% on your energy bill, reckons Lewis.
• Halifax is hoping to reignite the savings market by introducing a rival to National Savings & Investments’ (NS&I) premium bonds. Customers will have the chance of winning cash prizes each month, ranging from £100 to the top prize of £100,000, with a total of £6m a year being awarded. To be entered into the draw, savers must have at least £5,000 in savings with Halifax or the Bank of Scotland, although this does not have to be in the same account. Halifax will continue to pay interest on savings, and the odds of winning are expected to be higher than the 240 to one chance NS&I offers, says The Daily Telegraph.