I just found this on the www.penaltycharges.co.uk website. Those guys really seem to have helped get things moving on this. Let’s hope Santa brings them some great pressies. They deserve it.

Treasury First Report 14/12/2006

“Transaction/penalty charges are not always clear to the card holder; all relevant charges should be expressed in the Summary Box. Consumer bodies questioned how far charges reflected the actual costs to the issuer. We are not convinced the current level of payments is reasonable; the issue needs further investigation by the DTI. For low income and vulnerable consumers with low credit limits, fees can represent a large proportion of the outstanding balance and unreasonable fees can make debts spiral. Conclusion We hope that the coming months will provide evidence of effective action. This is not to say that nothing has been done already. But this seems largely to have followed pressure from this Committee. There is a need for a more active approach from the Office of Fair Trading to protect the interests of the consumer.”

Money Magic: Seven Simple Steps to True Financial Freedom (Quick Reads)

There are a lot of upset and disappointed people who had flexible loans with the Cahoot Online Bank. Cahoot have suddenly and without warning increased the interest rate to nearly double what it had been before. Once again we see that the banks really don’t care about their customers. They want you when it suits them but they are happy to dump you when they change their strategies and decide they don’t want a particular type of business any longer.

The lesson is that you should never feel any loyalty towards your bank unless they have demonstrated that they are loyal to you. I doubt there are many examples of banks that behave like that so if you see a better rate offered by another bank or financial institution then go for it. Obviously you should check the small print as it is bound to be less attractive than it at first appears but if you go through the small print and you really will benefit then don’t hesitate.

If your savings account rates are disappointing then you might like to look at this account that Sainsbury’s bank is offering. It seems like a good deal but I repeat that you must read all the small print and make sure it suits your needs and if still unsure then consult a professional adviser . Go and have a look here and see what you think. Sainsburys Internet Savings Account

Money Magic: Seven Simple Steps to True Financial Freedom (Quick Reads)