Cloudworks.co.uk Personal Finance - Money With Attitude

Passenger Rights During Current Flight Disruption

Editor — Thu, 10 Aug 2006 22:59:10 +0100

We are receiving a number of questions about passenger rights during the current disruption to flights to and from the UK.

Airlines are taking a pragmatic approach to the situation aimed at being able to return to normal operations as soon as possible. It is inevitable and sadly unavoidable that some passengers will be considerably inconvenienced. The answers below will help answer some common questions regarding the situation as at 9am 11th August.

Office of Fair Trading Eyes BAA Airport Ownership

tudder — Mon, 12 Jun 2006 10:59:40 +0100

The Office of Fair Trading has announced an investigation in the UK airport market, a move that is likely to see scrutiny of the way in which the BAA Group has operated in the key market areas of London and Scotland.

The recent acquisition of BAA by ADI, a consortium led by the Spanish group Ferrovial will not affect the terms of the OFT inquiry. ADI has promised full co-operation with the OFT.

Alliance & Leicester Gets Tough Over Bank Charges

tudder — Thu, 8 Jun 2006 19:53:23 +0100

Alliance & Leicester customers who take the bank to the Small Claims Court to recover unfair bank charges are now being asked to take their business elsewhere.

Customers are increasingly aware that the level of charges levied by banks when overdrafts are exceeded, or payments returned, are considered unfair. The Office of Fair Trading (OFT) ruled in April that any charge over £12 would automatically be classed as unfair, warning banks and credit card companies that they could face legal action if they failed to comply.

BMI Demonstrates Good Practice Over Route Closure

tudder — Sat, 3 Jun 2006 09:17:28 +0100

A few days ago, BMI Regional announced that they were closing their service between Edinburgh and Stornaway due to insufficient demand. The airline ensured there would be no inconvenience to their customers already booked by transferring their tickets to the continuing British Airways service.

When the route was introduced a couple of years ago, many might have been puzzled as to why a remote Scottish island would be interested in another daily service to the capital. However, increases in tourism, and the developing governance of the Scottish Executive would have been good reason to believe that passenger numbers were likely to increase. Whilst numbers have increased, so has the capacity of the Loganair planes, and there are simply too many empty seats to make it worthwhile for BMI to continue.

We're pleased that BMI have immediately rebooked passengers on the alternative flights. It contrasts with the practice of some low cost carriers who try to avoid rerouting passengers, instead thinking that a refund will be satisfactory. We take a brief look at passenger rights when a route is closed.

Banks Back Down Over Unfair Credit Card Charges

tudder — Fri, 2 Jun 2006 18:22:02 +0100

Strong warnings from the Office of Fair Trading (OFT) have caused Barclaycard, HSBC and Lloyds TSB to reduce their credit card penalty charges by almost half.

On 5th April, the OFT announced that it considered the high penalty charges made by many credit card companies to be unfair and illegal. It warned companies that if they would be defending their charges in court if they didn't take swift action to bring the charges down to a maximum of £12. Penalty charges are made when a borrower misses a payment date or exceeds their credit limit, and should only be set to cover certain administrative costs.

Yesterday the BBC reported that Barclaycard, HSBC and Lloyds TSB had all reduced their penalty charges by almost half from £20 to the new £12 threshhold.

Ryanair Closes Dublin Cardiff Route At Short Notice

Editor — Wed, 3 May 2006 10:03:23 +0100

The budget airline Ryanair has announced an almost immediate closure of its Dublin to Cardiff route having failed to reach an agreement with Cardiff Airport over passenger charges.

The route closed on May 1st, with passengers only being offered a transfer between the two airports until May 10th. The situation starkly demonstrates how passengers can be quickly inconvenienced when a carrier fails to agree terms with an airport or other supplier.

OFT Stops Misleading Magnetic Therapy Claims

Editor — Wed, 3 May 2006 09:51:36 +0100

The Office of Fair Trading (OFT) has successfully stopped claims by a company that claimed its magnetic jewellery could offer pain relief and reduce swelling.

Magna Jewellery Limited had suggested that magnetic therapy could help with a variety of medical conditions and that scientific research backed up their claims. Another company Magno Pulse is shortly to meet the OFT in the High Court having refused to co-operate with their requests to change their advertising of magnetic therapy products.

Telewest Not Able To Offer Broadband To All Customers

Editor — Wed, 3 May 2006 09:38:46 +0100

The digital services company Telewest has been rapped by the Advertising Standards Watchdog (ASA) for falsely suggesting that its broadband service was available to all of its customers.

The company aired a radio ad that suggested all customers in a Telewest area would be able to benefit from its combined broadband, TV and phone service for £30. In reality, nearly 4% of Telewest customers are unable to receive the digital service and therefore not eligible for the offer. Attempts by the company to argue that stating "conditions apply" would cover this eventuality were rejected by the ASA.

Central Trains Operating Franchise Extended

Editor — Thu, 13 Apr 2006 14:03:00 +0100

The train operating company in the Midlands, Central Trains has been awarded an extension to its franchise until November 2007.

The company has been given new terms to encourage service improvements. It will be required to operate the existing timetable. The extension helps facilitate the re-mapping of franchises in the Midlands, which was announced by DfT in October 2005. Three new franchises - East Midlands, West Midlands and Cross Country - will replace the current four franchises operated by Central Trains, Silverlink, Virgin Cross Country and Midland Mainline.

Essex Motor Dealer Refused Consumer Credit Licence

Editor — Thu, 13 Apr 2006 12:56:40 +0100

An Essex motor dealer, Ellite Carriages, has been refused a consumer credit licence by the Office of Fair Trading (OFT) after it was found a director of the company had recent criminal convictions.

Ellite Carriages Ltd of Harlow in Essex, had its application for a consumer credit licence refused on the grounds that Marlon Gordon, a director of the company, was convicted on 31 October 2002 of conspiracy to handle stolen goods.

As a result, the adjudicator decided that the applicant was not fit to hold a consumer credit licence and accordingly the application was refused.

Dorset Fuel Tax Cheats Imprisoned

Editor — Thu, 13 Apr 2006 12:50:35 +0100

Three members of the same family have each been jailed for 21 months after being convicted of cheating the taxman of over £500,000.

The remarkable scam involved the trio forging receipts for fuel purchased for fishing boats operating in Poole Harbour. They claimed rebates on over 1.4 million litres of petrol, which would have gotten the boats around the world hundreds of times. In fact, the boats went nowhere.

Warning for Cold Calling Fraudsters Claiming Emergency Services Connections

Editor — Thu, 13 Apr 2006 12:46:08 +0100

Directors of two companies, that were wound up for fraudulently claiming to be selling advertising spaces on behalf of the emergency services, have been strongly warned about their future business conduct.

The two companies, Cavendish Black Ltd and McAllister Stone Ltd, had been cold calling small traders across the UK asking if they wanted to advertise in magazines and, in the opinion of the Office of Fair Trading (OFT), giving the misleading impression that they were connected to the Police and emergency services in that area and that some traders had placed advertisements when they had not.

Northumberland Car Dealer Refused Consumer Credit Licence

Editor — Thu, 13 Apr 2006 12:41:47 +0100

A second hand car dealer from Blyth in Northumberland has been refused a consumer credit licence by the Office of Fair Trading (OFT) after an investigator uncovered a criminal offence for violence against him.

Nicholas David Fennell had his application for a credit licence refused on the basis he was convicted of unlawful wounding on 18 March 2003. He trades from 113B Front Street, Bebside, Blyth, Northumberland, NE24 4HN.

Southampton Motor Dealer Loses Consumer Credit Licence

Editor — Thu, 13 Apr 2006 12:35:48 +0100

Southampton motor dealer Euro Continental has lost its consumer credit licence after an investigation from the Office of Fair Trading (OFT) found that two of the partners in the business had criminal convictions.

One partner had been convicted of common assault, drink driving and failing to stop after an accident, the second partner had been imprisoned for obtaining money transfers by deception. Both partners failed to declare any of these convictions on their application, an offence itself under the Consumer Credit Act.

Tynemouth Estate Agents Roberts & Reed Warned by OFT

Editor — Thu, 13 Apr 2006 12:28:38 +0100

Two estate agents from Tynemouth have been warned as to their future conduct by the Office of Fair Trading after a complaint revealed that their agency was not complying with legislation designed to protect consumers.

Gordon Reed and Jason Roberts, director and former director of Coast and Country Estate Management Limited, trading as Roberts & Reed, 39 Front Street, Tynemouth have promised the OFT that they will ensure they are fair in their future dealings with customers, in particular:

providing all prospective clients with written details of their charges and fees before they are committed to any liability towards them
not making any misrepresentations as to the existence or status of any prospective purchasers; and
passing on all offers promptly and in writing.

Blackburn Rovers Plane Hit By Lightning

Editor — Thu, 13 Apr 2006 12:20:51 +0100

The Premiership team and officials of Blackburn Rovers were involved in a major scare on Monday as their plane was hit by lightning en route to Manchester Airport.

Players reported hearing an explosion as the 31 seater Dornier 328 aircraft chartered from Scot Airways flew through a storm and turbulence. The lightning strike cause a bolt to be blown out from the back of the plane, but the aircraft landed safely at Manchester Airport shortly afterwards.

Liverpool Landlord Jailed for Tax Fraud

Editor — Thu, 13 Apr 2006 12:15:35 +0100

A property landlord from Formby has been jailed for 12 months after failing to disclose rental income which led to him evading £42,000 of tax, and for cheating the tax credits system.

The fraud was discovered in 2003 when police arrested Formby man Ian Foulkes at the request of HM Revenue & Customs. He plead guilty to all charges at Liverpool Crown Court on 3 March 2006.

Willie Walsh Pleased with Launch of BA Connect

Editor — Thu, 13 Apr 2006 12:06:11 +0100

In a recent interview given to the Manchester Evening News, British Airways Chairman Willie Walsh has expressed satisfaction with the launch of its low cost offering, BA Connect.

BA Connect was launched in March 2006, and is a makeover of its regional airline CitiExpress. With the exception of the London City to Edinburgh route, complementary food service has been withdrawn, but otherwise things are much the same.

The largest difference with BA Connect is its pricing structure. The cheapest seats now start from £25 each way, flights are available as single legs, and a premium service for business travellers offers flexible ticketing and lounge access. The biggest savers will be those booking first, with few last minute bargains available, as is common with all low cost carriers.

Consumers Ripped Off by Unfair Credit Card Charges

Editor — Wed, 5 Apr 2006 19:55:44 +0100

The Office of Fair Trading has finally gotten tough with credit card companies overcharging customers to the tune of £300 million per year through unfair and excessive default charges.

The charges are made by the credit card companies when you go over your credit limit, pay late or fail to honour a payment. By law the charges are supposed to cover the actual costs, but the OFT has found that companies are in fact profiteering by imposing high fees that way exceed the true cost of managing the account.

The move is a further attempt to force the industry to start playing fair with borrowers. Hidden charges throughout the industry subsidise incentives and special offers that lenders use to win over customers. Excessive default charges means that those who can least afford them are paying for card companies to give interest free periods and other incentives.

Large Illicit Fuel Seizure in South Wales

Editor — Wed, 5 Apr 2006 19:20:28 +0100

Customs Offices have seized 20,000 litres of fuel at three locations in Bridgend and Cardiff, South Wales.

The find followed a routine testing exercise on Thursday 23rd March when 14 commercial vehicles were found to be running on a mixture of kerosene and diesel. Investigations traced the source of the fuel back to three bulk storage tanks, one of which was at Bridgend and the other two in Cardiff. Seven of the vehicles were seized and the fuel was removed from the sites the following day.

Romford Car Dealer Refused Credit Licence

Editor — Wed, 5 Apr 2006 19:14:11 +0100

A Romford car dealer has been refused a Consumer Credit Licence by the Office of Fair Trading (OFT) after convictions were discovered against an associated company and one of its directors.

Multilink Trade Limited of 14a Hoghill Road, Collier Road, Romford was found to be related to a company that had been convicted of trades description offences. Further, one of its directors, William Charles Green, was twice convicted of common assault. As a result, the adjudicator decided that the applicant was not fit to hold a consumer credit licence and accordingly the application was refused.

Property Developer DTL Fined for Safety Breaches

Editor — Wed, 5 Apr 2006 18:57:20 +0100

Suffolk company DTL Ltd has been fined £32,000 at Wisbech Magistrates' Court after admitting eight breaches of health and safety regulations at a construction site in Chatteris, Cambridgeshire, with six other offences at construction sites in Wisbech, King's Lynn and Southery also taken into consideration.

The Haverhill company, based at Unit 7, Piperell Way, pleaded guilty during a prosecution brought by the Health and Safety Executive (HSE). The charges related to the management of health and safety at the site.

New Trains for TPE Manchester Airport Line to Blackpool

Editor — Wed, 5 Apr 2006 18:25:59 +0100

Passengers travelling on the line between Manchester Airport and Blackpool can look forward to new trains now that Transpennine Express have officially taken over the franchise from Northern Rail.

Transpennine Express (TPE) have been operating the line on behalf of Northern Rail since December 2004. Now that they have been awarded the franchise, they will be introducing brand new Pennine Class 185 trains over the next few months.

Newbury Woman Jailed for Tax Credit Fraud

Editor — Wed, 5 Apr 2006 18:19:04 +0100

A Newbury woman has been jailed for eighteen after being convicted of cheating the benefit system of almost £9000 through tax credit fraud.

Lisa Margaret Davis of Newbury was sentenced at Reading Crown Court. She completed a tax credits application form by falsely declaring that she was paying childcare charges of £75 per week and omitted details of her partner, his employment and his income. She had also forged the signature on a letter, allegedly from her childcare provider, which she then used to support her childcare claim in order to continue with this lie.

Restaurant Order Pad Manufacturers Fined For Operating Cartel

Editor — Tue, 4 Apr 2006 12:19:06 +0100

The Office of Fair Trading (OFT) has imposed heavy fines on a number of companies that agreed to fix the prices of and share the market for the supply of restaurant order pads, known as stock check pads, in the UK.

One party, Bemrose Group Limited and its subsidiary BemroseBooth Limited, has had its penalty reduced to zero for providing the OFT with information which uncovered the cartel and led to a successful finding of infringement. Another party, Achilles Paper Group Limited, has had its penalty reduced by 50 per cent for also providing the OFT with evidence of the cartel. The penalties imposed (£168,000) would have been significantly higher (around £2.1 million) if these leniency applications had not been made.

MoneyBack Bank Loan Protection Insurance - We Recommend You Shop Elsewhere

Editor — Mon, 3 Apr 2006 12:02:04 +0100

If you are considering a loan from Moneyback Bank, we recommend you take the rate and forget the money back offer. We found that shopping elsewhere for your loan protection insurance could get you a similar product for less than half the price.

Moneyback Bank is a product of Alliance and Leicester. They offer unsecured personal loans at a competitive rate of 5.7%. The "money back" offer only applies if you buy their loan protection insurance. We were quoted for a £10,000 loan over 5 years, and even with the money back the insurance came to £2250. We found insurance providing a good level of cover elsewhere for £929.

Payment Protection Insurance (PPI) To Be Investigated by OFT

Editor — Mon, 3 Apr 2006 11:35:04 +0100

The Office of Fair Trading will today start an investigation into Payment Protection Insurance (PPI), which is often offered by lenders with loans to cover monthly repayments should the borrower get into financial difficulties.

On 10th December last year, we reported that Citizens Advice considered the way this insurance was sold as a protection racket with high premiums and complicated practices that made it difficult for customers to understand the product they were buying. Worse still, borrowers sometimes found that making a claim was impossible due to conditions of the insurance.

Google Romance Searches for Your Soulmate

Editor — Sat, 1 Apr 2006 10:56:37 +0100

With Spring setting in, are you feeling the need to hunt out your soulmate? Fed up with traditional dating agencies? Why not let Google's legendary search technology help you find your dream date with its new Soulmate Search.

Google has long been eyeing the online dating market and looking for ways to bring its world leading search technology to help lonely individuals find friendship and romance online. Google Romance not only helps you locate your match through scores of profiles, it even lines up the date for you, helpfully reminding you by text before the big day and allowing carefully screened advertisers to send relevant messages to your mobile.

If it all goes wrong, all is not lost. A Google advisor is able to help patch up any differences or resolve simple misunderstandings, although it comes at a price, costing nearly £2.00 per minute to call the service.

Waterstone's Given All Clear to Take Over Ottakar's Booksellers

Editor — Sat, 1 Apr 2006 10:36:24 +0100

The government competition watchdog, the Competition Commission has given the go ahead for Waterstone's to take over its rival Ottakar's.

HMV Group, the company that owns Waterstone's, withdrew its offer for Ottakar's in December 2005 when the Office of Fair Trading (OFT) decided to refer the proposed acquisition to the Competition Commission (CC) to investigate whether the move would adversely effect the choice available to consumers.

HMV has not yet announced whether it will reinstate its offer, and is expected to await the final publication of the CC's report in May before making a final decision.

Zopa to Charge Fees to Borrowers and Lenders

Editor — Fri, 31 Mar 2006 18:12:46 +0100

Both lenders and borrowers are set to be charged fees for using the Zopa money lending service, reversing a previously stated intention of only levying charges on borrowers.

Zopa is a service that enables people to lend money to each other without having to using a bank. It claims to be particularly appropriate for the self employed, and others who are creditworthy but have difficulties borrowing from the major banks.

At its launch, Zopa announced that it would be charging borrowers an arrangement fee of 1% when loans were completed. It has run an opening offer that waives all fees.