The Financial Conduct Authority (FCA) starts the clock on the two-year PPI reclaiming deadline.

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MILLIONS more customers could be due compensation even if they’ve been turned down before because of the Plevin court ruling, experts have warned.

The Financial Conduct Authority (FCA) today is starting the clock on the two-year PPI reclaiming deadline, as it seeks to draw a line under the mis-selling scandal that has already cost banks £27.4 billion. Experts from MoneySavingExpert (MSE) are now reminding customers this also means they can now make claims on the back of a court case known as Plevin.

The ruling means customers can get money back if their bank did not declare that at least 50 per cent of the cost of the PPI policy was in commission. As bank loans with PPI typically averaged 67 per cent and lenders almost never mentioned it, a lot of people are likely to be owed compensation. This means over 1.2 million people who’ve had past claims rejected by the bank or the ombudsman will rightly have their cases reopened due to the ruling. And it’s possible millions more will be able to claim now too, according to MSE.

If you’ve had a PPI claim rejected in the past, you should resubmit it to your PPI provider and ask them to check for undisclosed high commission. Martin Lewis, the founder of MSE, said: “Until now, you were usually only due money back from PPI if the firm had either given you an inappropriate policy, such as employment cover for the self-employed, or lied to you, like saying PPI was compulsory.

“Yet with Plevin, in most cases it’s simply a case of ‘Did you have PPI? Then you are owed money.” “So if you have a loan, credit card or other debt product that has been active at some point since 2008 and had PPI on it, then if you haven’t reclaimed already, you’re almost certainly due some money back, even if you don’t think you were mis-sold in any other way.” Around 60 million PPI policies were sold over the past 30 years – during which there have been 18.4 million complaints, according to the Financial Conduct Authority (FCA).

The FCA is urging people who are “unsure” whether they had PPI to make a claim before the deadline on August 29 2019. The claims industry believes just a third of eligible claims have been paid so far, leaving banks facing the prospect of huge payouts. Last month, Barclays set aside £700m and Lloyds Bank another £1bn to pay for further compensation claims.

Gareth Shaw, a money expert at consumer group Which?, previously said: “With banks now setting aside more money for PPI claims, it shows that the fallout from this mis-selling scandal is far from over and there are significant amounts of compensation due to consumers.”

 


Row breaks out over bin fines

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The town hall has defended its decision to fine residents for leaving their bins out past midnight on collection day.

Workers at Wigan Council issued a notice to Leigh resident, Adam Peers, who returned after a night away to find a note on his wheelie bin. The image of the notice has circulated on social media, forcing a split between people who agree and those who oppose this type of disciplinary action.

The instruction reads: “Please put your house number on you bins as unnumbered bins will be removed from site. “Your bins must be taken in by midnight on day of collection to avoid a FINE.” But the notice has sparked a row on social media, with some people agreeing that bins should be brought in promptly, and others branding the fines as a money-maker for the council.

Mr Peers originally said: “My bins are numbered and they were left out because I wasn’t even at home to bring them in as I’d been at work and slept at another address overnight am I no longer allowed to sleep out or go on holiday in fear of a fine off our council?

“I always recycle and never not paid council tax, just makes me want to not bother anymore,”

But in a statement to the Wigan Observer, the council has explained that the fines are to help rid the streets of bins which can be used as vehicles for vandalism. Paul Barton, assistant director for environmental services at Wigan Council, said: “Bins being left out on the street can become a target for arson, vandalism and theft which not only blights our communities but costs the council more than £250,000 a year to deal with.

“When we receive reports of bins not being removed after collection we do deploy staff to inspect and to remind residents of the need to remove their bins as soon as possible. “We also encourage residents who are out at work to try to make arrangements for someone to remove their bins in their absence.”

Firefighters recently issued a warning to remind residents to lock away their bins where possible as they can be used to start fires which result in time wasted for crews. There have also been some instances where flames have spread from a wheelie bin and caught fire to nearby houses, cars or sheds.

Police have also warned people that burglars can use wheelie bins as a way of accessing higher entrance points to properties, for example standing on the top of a bin to gain access to a window. But the news has sparked a lively debate between residents, with many agreeing with the fines and others going as far to call it a “dictatorship”. Elizabeth McGrath said: “Fire service working in conjunction with the council that have implemented this many years ago…makes sense to me especially with all the recent bins being set on fire.

The fire service attending to bins that have been left out could potentially stop a crew reaching a much more severe incident.” Gary Collinge added: “How’s about us sticking a notice on a WBC bin wagon. Asking those who empty our bins to put bring the bin back to our front instead of leaving in on the kerb next to the main road. I have very little time for bin men these days.”

 

 

 

 

 

 


VW launches new UK diesel scrappage scheme

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Volkswagen UK is offering customers discounts of up to £6,000 to trade in diesel vehicles when buying a new car.

All the Volkswagen UK brands – including Audi, Seat, Skoda and Volkswagen Commercial Vehicles – will participate. VW launched a more generous scheme in Germany in August in the wake of its diesel emissions scandal. Competitors in the UK, including BMW, Ford, Hyundai, Mercedes-Benz and Vauxhall have already launched schemes.

Rival Toyota also launched a scrappage scheme on Friday, offering up to £4,000 off a new Toyota. VW’s UK scheme is a continuation of the initiative launched in Germany, which was brought in after a top level summit between politicians and the country’s leading carmakers, including BMW, Daimler and Opel.

VW’s German scheme offered a discount of up to 10,000 euros (£9,000) to trade in diesel vehicles Diesel cars have been under scrutiny over high levels of nitrogen oxide emissions, sparked by VW’s diesel scandal. Two years ago it was revealed that Volkswagen had cheated emissions tests, affecting 11 million vehicles worldwide. Car manufacturers have been under increasing political pressure, especially in Germany, to encourage consumers to buy less polluting cars.

UK trade-ins

VW’s UK scheme will apply to any diesel vehicle that has emissions standards lower than Euro 5 and was registered before 2010. Incentives range from £1,800 off a new VW Up! to £6,000 off a Sharan people carrier. Electric and hybrid vehicles, which attract government grants, will be included in the scheme. So, for example, an e-Golf, which gets a £4,500 grant from the government, will also have VW trade-in saving of £5,500, adding up to £10,000 off in total.

Tim Urquhart, principal analyst at IHS Automotive, said the move was both about restoring VW’s credibility after “Dieselgate” and boosting sales. “We’ve seen a bit of a drop in the UK car market this year after years of really accelerated growth. I think the manufacturers are looking to get people into their showrooms,” he told the BBC’s Today programme. “At the same time VW are showing they are being socially responsible. They are getting some of these older diesel vehicles off the roads.”

Positive publicity

Jim Holder, editorial director of Haymarket Automotive, told the BBC that VW’s scrappage incentives would vary from country to country, due to factors such as transport costs and vehicles being cheaper in its home market. However, he said VW would probably have pitched their discounts in order to compete with rival schemes in the UK market. VW’s UK scheme offers substantially higher discounts than some of its competitors, which seem to hover around the £2,000 mark as an upper limit. However, Mr Holder added that it was not clear what impact the VW scheme would have on vehicle sales. “Owners of older vehicles typically don’t have the money to spend on a new vehicle, even with these discounts – in normal circumstances it would be far more likely that they would trade up to another, less old, used car. “However, there are some potentially good savings here, and the positive publicity could stir interest at a time when registrations are down across the market,” he said.

‘Win-win solution’

Toyota’s scheme runs from 1 September to 31 December and is open to any vehicle more than seven years old. Customers can get a discount of £2,000 off models including Aygo, Prius and Hilux, and £4,000 off a Land Cruiser. Paul Van der Burgh, Toyota GB managing director, said: “Our scrappage scheme is a win-win solution. Motorists can dispose of their older vehicles and have access to our cleaner, more efficient model range.”


Currency rates hit new low at airport bureaux de change

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Travellers buying their currencies at UK airports are being offered as little as 86 euro cents to the pound.

Foreign exchange broker FairFx, which carried out a survey for the BBC, said this rate, from Moneycorp at Southampton airport, was the worst at any airport bureau de change.

The average euro rate across 16 big UK airports was higher, at 95 euro cents to the pound.

Ten months ago the average at these outlets stood at 99 euro cents. James Hickman, chief commercial officer at FairFX, said the fact that airport rates are so low – much worse even than at High Street banks – shows that the bureaux de change firms are taking advantage.

“In reality they are ripping off the customer, who is effectively captive as they have nowhere else to buy their money at an airport,” he said.

“At most airports and terminals individual companies have a monopoly.

“They should be regulated as there is simply no justification for charging someone 14% [the average margin between the tourist and money market rates] to change their pounds to euros,” he added. That margin is as high as 26% at Moneycorp’s Southampton airport outlet.

Pauline Maguire, Moneycorp’s retail director, said: “The reason for our higher airport rates is the significant cost associated with operating there – from ground rent and additional security, to the cost of staffing the bureaux for customers on early and late flights.”

“An easy and more cost-effective way for customers to buy travel money is to pre-order online and collect at the airport,” she said.

The best euro rate for tourists detected in the airport survey was 1.05 euros, from Travelex at Newcastle airport.

Wide variation

The average tourist rate for the pound against the US dollar is also very low.

Currently the average is $1.12 to the pound at UK airports, ranging from $1.05 at ICE at Norwich airport to $1.15 from Travelex at Heathrow Terminal 3.

Koko Sarkari, chief executive of ICE, which runs bureaux de change at Belfast, Birmingham, Heathrow and Luton airports, dismissed the idea his firm was exploiting a captive market.

“We work hard to keep our prices fair and competitive around the world,” he said.

“However, due to differences in distribution, costs of operation, regional competition and other factors such as ongoing volatility in the market, as we are experiencing now, online prices may not be the same as our ICE branch prices and prices may also vary between branches because of these factors.”

‘Brexit uncertainty’

One reason for the poor rates on offer to tourists is the continued decline of the pound on the foreign exchange markets, in the wake of last year’s Brexit vote.

The pound’s money market rate – the one at which banks buy and sell to each other – has dropped from $1.31 to $1.29 in the past 12 months.

Against the euro it has dropped much more in that time, from 1.18 euro to 1.08 euro.

Continuing Brexit uncertainty is feeding into sterling weakness, said Simon Derrick, a managing director at BNY Mellon.

Traders are looking to see what will happen over the next two months, with the attempted incorporation of EU law into UK legislation through the Great Repeal Bill, and EU negotiator Michel Barnier reporting back to the European Parliament on Brexit talks.

Sterling also hasn’t done that well in August after the Bank of England monetary policy committee voted to keep rates on hold – investors see no prospect of a rates rise any time soon, he said.

However, there are two sides to the story. The euro is also getting stronger because “the eurozone economy is really starting to show some signs of life,” he said.

Eurozone consumer confidence seems to be picking up, and investors think the ECB will start to tighten monetary policy as inflationary pressures build.


NHS ‘leaking millions’ in PFI contracts

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The NHS is “leaking” money to private companies in contracts to build and run hospitals, a report says.

Under the Private Finance Initiative (PFI), companies provide money for new hospitals and then charge annual fees.

The Centre for Health and the Public Interest (CHPI) publication – based on 107 PFI contracts in England – said such companies had made pre-tax profits of £831m in the past six years.

The Department of Health said less than 3% of the NHS budget was spent on PFI.

PFI has always provoked vigorous debate about whether the benefit is worth the long-term cost.

The CHPI argues the money made by private companies could have been spent on patients.

Colin Leys, one of the chairmen of the CHPI, said: “This report shows for the first time the huge amount of taxpayers’ money which is leaking out of the NHS through the profits generated by PFI companies.

“Given the extreme austerity in the NHS, where patients are being denied treatment and waiting times for operations are rising, the government needs to take action to stop this leakage of taxpayer funds out of the NHS.”

The CHPI is calling for:

  • Caps on the amount of profit that can be made from PFI contracts
  • Taxing PFI companies to recoup costs
  • Either renegotiating PFI contracts or using government loans to “buy out” companies

A Department of Health spokeswoman said: “The NHS is recognised by the independent Commonwealth Fund as the most efficient healthcare system in the world and currently spends less than 3% of its annual budget on PFI.

“The first PFI contracts for NHS hospitals, which were signed in 1997, range between 25 and 30 years.

“This report analyses just six years of contracts and, as a result, does not represent the full picture.”


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