Finance Matters

• 17Oct

  Scam tax refunds ‘reach record’

  Money No Comments

  From The BBC:

  A record 83,000 scam e-mails offering fake tax refunds were reported to the UK’s tax authority in September.And on one day this month, 10,000 reports about “phishing” e-mails were made to HM Revenue and Customs (HMRC). The messages tended to start with a claim which read: “Following a review of your fiscal activity you are due a refund of tax of £x.” But HMRC stressed that it would never inform people of a tax rebate by e-mail or on the telephone. Sucker listsJohn Harrison, head of HMRC customer contact online, said that the messages tried to extract people’s credit card and bank account details. This left them at risk of their savings being stolen and the details sold on to professional criminal gangs, in so-called “sucker lists”. The latest version of this scam originated from various different websites, which operated for 20 minutes before changing their domain name. “We only contact customers who are due a refund in writing by post. We never use e-mails, telephone calls or ex…

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• 17Oct

  London travel fares to increase

  Money No Comments

  From The BBC:

  Bus and Tube fares will both rise by above-inflation rates in 2010, London Mayor Boris Johnson has announced.Bus fares are to go up by 12.7% and Tube fares will rise by 3.9%. Oyster card pay-as-you-go bus journeys are to rise from £1 to £1.20. The Congestion Charge is rising to £10, while Mr Johnson said a £9 charge for those using a new account system would be operational next year. The London Labour group said it was a “kick in the teeth” for passengers. The mayor said the price of a seven-day bus pass will also jump from £13.80 to £16.60 but London Travelcard prices will be frozen in the vast majority of cases. Last year Mr Johnson raised prices by 6%, blaming the former administration for creating an £80m financial hole. Mr Johnson said on Thursday: “Nobody wants to make an announcement like this, especially when Londoners are feeling the effects of the recession.”
  He added: “The mistakes of the past and the current economic climate have c…

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• 17Oct

  Germany defends Opel deal

  Business No Comments

  From The BBC:

  Germany says EU concerns about the sale of carmaker Opel to Canada’s Magna do not put the deal at risk.Economy Minister Karl-Theodor zu Guttenberg said the deal was “on track” and ministers could address EU doubts. The European Commission warned on Friday that planned state aid for Opel might breach competition rules. Brussels said there were “significant indications” Berlin pledged the 4.5bn euro ($6.7bn; £4bn) aid only if its preferred buyer for Opel was chosen.
  Even though the German government said it was all a misunderstanding, there’s no doubt that Berlin has had something of a blind spot when it comes to Opel.Magna cleverly played the electoral card with Angela Merkel (who was seeking a second term as chancellor) by promising fewer job cuts in Germany and more in Opel/Vauxhall plants in Spain, Britain and Belgium.But Magna may now have to dig deeper into its pocket if it wants to control Opel/Vauxhall.No-one can ignore or brush aside the strict EU rules on state aid. But…

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• 17Oct

  Iraq cabinet ratifies BP oil deal

  Business No Comments

  From The BBC:

  Iraq’s cabinet has ratified a deal with two foreign energy companies to develop the giant southern oilfield in Rumaila.The contract with Britain’s BP and CNPC of China is the first major deal with foreign firms to be signed since an international auction in June. The project aims to almost triple output at the 17bn barrel field – increasing it by 2m barrels a day. Iraq has the world’s third largest oil reserves, but production lags behind potential due to a lack of investment. The country’s total daily output of 2.4m barrels is lower than it should be due to problems stemming from sanctions against former Iraqi governments, lack of investment and insurgent attacks, analysts say. Bidders withdrawThirty two companies – including Shell, Exxon, BP and Total – bid for contracts to develop six oil fields and two gas fields in June’s televised auction, Iraq’s first big oil tender since the invasion of 2003.
  But most of the bidders withdrew at the last moment, saying the terms on offer were un…

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• 17Oct

  Bereaved savers ‘treated badly’

  Business No Comments

  From The BBC:

  The way some banks treat recently bereaved customers is “inadequate and chaotic”, according to the chairman of the Treasury Select Committee.John McFall MP said that some companies had adequate procedures in place for bereavements, but others did not treat customers fairly. He is calling for a new code of practice to ensure financial services companies act as they should. However, the British Bankers’ Association said training was in place. “The main issues are treating people fairly at the most stressful time of their lives. We have had evidence that people have had to jump through unnecessary hurdles as a result of their business with banks and financial institutions,” said Mr McFall. “I am writing to the Financial Services Authority so that they can remind these institutions that treating customers fairly is a primary responsibility. “They can develop a code of conduct so that it makes things easier for people at the most stressful time of their lives, rather than harder.”
  Ingrid F…

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• 17Oct

  Supermarkets ‘hurting suppliers’

  Business No Comments

  From The BBC:

  Aggressive price-cutting tactics by supermarkets could result in the loss of tens of thousands of jobs in the food industry, a union has warned.Unite has accused retail giants of driving down suppliers’ profits. Deputy general secretary Jack Dromey said: “The supermarkets have immense power but they do not exercise that power responsibly.” But the British Retail Consortium said the stores were just trying to get the best value for their customers. Andrew Opie, the BRC’s director of food and consumer policy, said: “It’s not in retailers’ interest to put UK businesses out of business, we want a sustainable long-term relationship with suppliers.”
  Manufacturers and suppliers have long complained about heavy-handed tactics by supermarkets as they strive for lower prices. One supplier who did not want to be identified told the BBC they were regularly put under pressure by large supermarkets. “You just get an e-mail or a letter demanding an immediate cut in costs,” the supplier said. “They h…

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• 17Oct

  Post union warns of extra strikes

  Business No Comments

  From The BBC:

  The postal workers’ union’s head has said he is prepared to stage further industrial action before Christmas.The Communication Workers Union has announced two nationwide strikes next week due to an escalating row over pay, working conditions and reform. General secretary Billy Hayes told the Times that he was “not ruling anything out”, including more stoppages. Mr Hayes also suggested that he was in a stronger position than former miners’ leader Arthur Scargill in the 1980s. The 24-hour strikes will begin on 22 October. On the first day, mail centre staff and drivers will strike. The next day it will be delivery and collection staff. Mr Hayes told the newspaper that although the CWU was trying to reach agreement with Royal Mail, its planned 48-hour walkout – due begin this Thursday – may not be the last. Asked whether his position was stronger than that of Mr Scargill before the 1984-5 miners’ strike, Mr Hayes replied: “Yes. I think in terms of the impact of the Royal Mail on the econo…

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• 17Oct

  Pin reminder security scrutinised

  Business No Comments

  From The BBC:

  A system used by a High Street banking group to help customers who have forgotten their card Pin number has major security flaws, the BBC learns.Lloyds TSB has told Radio 4’s Money Box programme that it allows credit card customers to text requests for Pin reminders on any phone. Security experts say this could allow fraudsters to order and intercept Pins. Lloyds insisted it had adequate security measures in place to prevent fraudsters doing this. ‘Stolen’In order to request a Pin reminder, customers simply have to text ‘PIN’ and their card number to the bank. The phone does not have to have been registered with the bank for the purposes of telephone banking.
  The customer immediately receives a reply text confirming the request which says if it is successful the bank will send the Pin reminder to the customer’s home address within three working days. A Lloyds TSB customer called Malcolm, from Buckinghamshire, who did not want to give his full name, believed his Pin was stolen this way…

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• 16Oct

  Bank of America reports $1bn loss

  Business No Comments

  From The BBC:

  Bank of America has reported a $1bn (£612m) net loss for the three months from July to September, which was worse than had been expected.The figure compares with a net profit of $3.2bn in the previous quarter and $1.2bn in the same period of last year. But the bank’s boss Kenneth Lewis said he was “heartened by early positive signs”, referring to the levelling-off of bad debts from its credit cards. Bank of America is the fourth major US bank to report third-quarter results.
  It was announced on Wednesday that Mr Lewis, who is retiring as chief executive at the end of the year, would not receive any pay or bonus for 2009. He said in the results statement that the figures had been hit by a number of “non-core items” and that “excluding those items, our revenue continued to hold up well”. The report said that although the rate of debts going bad was slowing, “credit costs remained high as most economies around the world remained weak”. Bank of America set aside $11.7bn to cover cre…

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• 16Oct

  Blow to insurance restrictions

  Money No Comments

  From The BBC:

  Plans to restrict the sale of the controversial payment protection insurance (PPI) have been dealt a blow.The Competition Appeal Tribunal has told the Competition Commission to change its plan to restrict PPI sales at the point when loans are granted. The appeal against this impending restriction was made by Barclays bank. The Commission said it would study the judgement “closely” before deciding what to do next, but pointed out it affected just one part of its plan. “The appeal was upheld on one ground which relates to our assessment of the remedy prohibiting the sale of PPI at the point of sale of credit,” said the Competition Commission. “The Commission has been asked to reconsider the loss of convenience for consumers of not being able to buy PPI at the same time as taking out credit.” Forthcoming restrictionsIn January 2009 the Commission outlined a range of limitations on the sale of PPI, which is supposed to enable people to pay off their loans, such as credit card bills or mort…

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