Bradford & Bingley has followed Pru's lead and is to stop paying out endowment compensation through third party claims handlers, reports The Daily Telegraph.
"There is no reason for customers to have to resort to these firms. The complaints service we provide, and that of the Financial Ombudsman Service, are both straightforward and free,” a spokesman for the provider says.
Third party services providers have hit out at the decision, with EndowmentClaims stating: “Using professional help can not only heighten the chances of achieving a successful claim, but also increase the level of compensation," the Telegraph writes.
FURTHER EVIDENCE YESTERDAY from Alliance & Leicester of the issue of bad debt possibly swinging the Monetary Policy Committee towards a rate cut tomorrow.
The Scotsman writes the bank has reported almost no increase in its first half profits against the same period last year, while charges for bad loans increased by a third to about £30m.
A&L will try to offset this setback by pushing harder into the buy-to-let market, targeting low loan-to-value customers, and professional landlords, whom it considers safer than lending to housing market speculators.
The Guardian adds on the issue of a rate cut that Confederation of British Industry figures published yesterday suggest retail sales remained close to a 22-year low in July.
Some 47% of retailers surveyed said sales were down last month, against 29% who reported rising sales.
Because the figures are taken from the period 29 June – 20 July, the CBI says there is no evidence the 7 July bombings in London had much impact on the general trend. Instead, retail analysts suggest there was a ‘displacement’ effect, with shoppers staying out of central London and buying goods and services online or in suburban shopping centres.
ECHOES OF ENRON have reverberated with news Canadian Imperial Bank of Commerce is to pay a record $2.4bn penalty for its role in the scandal, reports the FT
The University of California, which is leading a group of investors in a class action lawsuit chasing recompense has so far managed to pull in about $7bn from those involved in helping the former energy trading company to set up bogus contracts and other deals that made it into one of the world’s biggest companies by market capitalisation value.
Banks that have not so far settled have been warned following that CIBC settlement that $2.4bn is now the benchmark for any further deals.
If you have any comments you would like to add to this story or would like to speak to its author about a similar subject, telephone Jonathan Boyd on 020 7484 9769 or email [email protected].IFAonline
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