Here are some tips for writing a letter of complaint.

1. Be Aware of Potential Refunds.

Banks and financial institutions often make mistakes. Salesman often fail to let you know of all the small print. If you feel you have been paying too much for a product or that bank charges are unfair; investigate whether a refund may be possible. Examples of issues which might involve claiming a refund or compensation:

1. Fees or charges increased or made without the knowledge of customers: (Mortgage exit Fees)
2. Products not properly explained or not fit for the purpose stated.
3. Pushy Salesman who fail to explain all details (e.g. Loan insurance is not essential to get a loan)

2. There is Nothing to Lose.

Similar to the first point, writing a polite letter to the bank is your right as a customer, don’t worry about the time or whether you are 100% right. I’m not suggesting you write for every minor problem. But, if you have been missold a product or have been charged unfairly, a simple letter of complaint may lead to a significant refund. It is a shame to miss out on this.

3. Be Calm and Polite.

Being charged unfairly can make us very angry and upset. However, it is important not to write emotional letters that seek to blame and point the finger. It is more important to calmly state the facts and write in a professional manner. (It is also good for your inner health, getting angry just makes you feel miserable at a later stage) Try to be detached.

4. Be specific.

When writing a letter don’t just say “I was hopelessly overcharged” Give details of your account, state what happened and when. Try to make reference to your terms of contract. If a salesman missold you a product try to give his name or at least a date and time of when it was sold to you. The more details and facts you can give the more the bank will take notice of you.
Ask for a specific remedy or compensation.
Be reasonable in your request as most organisations give discretion to their staff for minor issues

5. Be Knowledgeable.

If your letter gives the impression that you know the correct procedures for complaining they will be more concerned. For example, you should mention that if they fail to deal with your complaint you will follow it up with the correct financial regulator (in UK, probably Financial Ombudsman)

5. Send Your Letter to The Right Place.

Try to send your letter to the person responsible for your account / selling your product. If possible ring your bank and find the name of the best person to send it to; although, often the bank will have a division for complaints e.g. customer services.

6. Follow up the Letter.

Keep track of when you send the letter. If the bank do not respond within a certain time frame, follow it up with a second letter or phone call. This time send a copy to your bank manage or different department (it may just be that you sent letter to wrong place and has been ‘filed’ for later. If this doesn’t work, try writing to the relevant financial service regulator.

• Template of letter of complaint to Bank
• Bank complaints - site dedicated to bank complaints

As the name implies a bridging loan is one made to ‘tide you over’ until a certain event is complete. It bridges one set of circumstances with another.
It is most common when a property is being bought and another one sold and the completion dates are not the same. This can happen when someone is moving home for work purposes and a new home is bought whilst the old home is still on the market to be sold.

Closed bridging finance is where you have a date for the exit of the bridging finance and are sure that the bridging finance can be repaid on that date. Open bridging is higher risk for the lender where the borrower does not have an exact date for the exit as the other property is unsold. A ‘Bridge loan’ is a short term loan pending the arrangement of alternative finance.

When is Bridging Finance Useful

• As a ‘Chain Breaker’ when you are being pressured into a purchase completion by a vendor before your existing property sale has completed.
• To facilitate a property auction when under auction terms the buyer has to complete within tight pre-set deadlines.
• Where property is used as security then bridging finance can be stretched to include buying a property at a discount or other circumstance when a quick completion is crucial to the deal.

Bridging Finance Properties Covered

• Residential Property
• Residential Developments
• Commercial, Investment and Development Properties
• Land
• Offices or Retail

Benefits of Bridging Finance

• Bridging loans have no fixed term but usually have a 12 month maximum before needing refinance.
• Bridging loans have interest only repayments the capital is repaid in one lump.
• Capital can be repaid whenever the borrower wishes.
• Loans are quick, efficient and cheap way of borrowing large amounts.
• Bridging loans will be secured against property over a short term without being locked into a repayment plan or risking high early repayment charges.
• There are a wide range of providers of these loans.

Bridgebank Capital is a member of the Council of Mortgage Lenders and ‘one of the UK’s leading specialist property finance lenders in the area of Bridging and Short Term property finance’. according to their web site but they would say that anyway I guess.

Plastic cards linked to your bank or credit card account referenced by a magnetic strip or chip and a personal pin number provide access to ATM’s. The ATM is part of an online telecommunication network and one machine can access a range of banks and services.

ATM Use & Operation Tips

• In the UK many ATM’s are free to use. They are found close to banks and in some retail outlets.
• ATM’s in convenience areas and leisure premises may charge for the transaction. Try avoid these costs which can be disproportionate to the amount withdrawn.
• In addition to cash withdrawals you can generally check your balance, modify your pin number and print a mini statement.
• Credit cards that allow cash withdrawals start incurring interest immediately. I avoid drawing cash on credit cards for these extra cost reasons
• Cash can be withdrawn abroad in the currency of the country you are visiting. There is a 1-2% handling charge but often the conversion rate is very good. Beware as some countries do not have a large developed network of ATM’s.

Additional Uses of ATM’s

As ATM’s have developed in complexity you may now be able to;

• Pay routine bills, utilities, phone bills, social security, legal fees, etc.
• Load monetary value onto stored value cards including topping up pre-paid  mobile phone credit .
• Purchase stamps, tickets, donating to charities etc
• Cheque depositing and processing
• Transfer money between linked accounts
• Play games, read advertising and bank promotions which are growth areas for ATM’s

Security Issues

• Your physical safety is important. Take care in dark lonely areas if you are withdrawing cash. Forced withdrawals can be a problem in some areas. Do not have all your resources available via one card transaction (there is usually a day limit anyway.)
• Security of access to your account is next most important. Keep your card and pin number safe and confidential.
• Do not use an ATM if you think it has been skimmed or tampered with. Some thieves modify machine so they can see you enter your pin or so the cash is not delivered until they return to steal it. Better bank security measures are beating much of this type of fraud.
• Staff filling the machine with money are prone to attempted robbery. The money is often kept in cassettes which will dye the money if incorrectly opened.
• The ATM’s inside bank premises may be best for safety and complex transactions

History of ATM’s

• Chemical Bank installed the first ATM in the U.S. in 1969 and Lloyds Bank installed the first UK ATM in 1972.
• One bank advertised ”our bank will open at 9:00 and never close again.” The start of 24/7 access to cash.
• The UK has 40,000 free ATM’s out of a total of approximately 63,000 ATM’s but 97% of all transactions are conducted free of charges.
• £125 billion in cash is dispensed every year based on over 100 million plastic cards.

‘Virtually every cash machine in the UK is connected to LINK, and LINK provides the only route through which debit card and ATM card issuers can offer their customers reliable nationwide access to cash. All the UK’s significant debit and ATM card issuers are LINK members.’ The link link is to the new Charity giving feature offered by Link.

Choosing a Bank

First Steps

Tips on Opening a Bank Account

Documentary Evidence Accepted by most Banks

For a business account read ‘Choosing a business bank’.

If these concepts still operated we wouldn’t need as much regulation in the financial services industry!

A snap shot of some current and proposed regulatory bodies that will usher in more reform includes:-

The Bank of England (The Bank)

• Stripped of responsibility for banking supervision by Gordon Brown in 2001. Following which lax supervision and a blind eye led to the current turmoil.
• The Bank of England’s core remaining regulatory purposes is monetary stability providing a framework for non-inflationary economic growth.

Financial Service Authority (FSA)

• The FSA replaced The Bank under Gordon Brown in 2001 to regulate most financial services markets, exchanges and firms. This also includes insurance and mortgage activities.
• Statutory objectives of the FSA are market confidence – financial stability – consumer protection – and reduction of financial crime.
• The FSA set the standards that organisations must meet and can take action against firms if they fail or are failing.

Prudential Regulation Authority (PRA)

• This new authority will be a significantly different model of supervision to that which was in use pre-2007.
• It will be a division of The Bank
• The PRA will ensure banks hold enough capital and liquidity to withstand shocks.
• They claim they will take a judgment led approach so firms comply with the spirit as well as the regulation.
• Over 2000 firms including 157 banks will be covered by this ‘Prudential’ supervision. In theory the firms will be allowed to fail, if necessary rather than be bailed out by the tax payer.
• The PRA will be responsible for supervising both insurance companies and deposit-takers.

Financial Conduct Authority or Consumer Protection and Markets Authority (FCA)

• The FCA is to be established as a specialist regulatory authority focusing on consumer protection and markets.
• The focus will be on creating and ensuring competition to give consumers a better choice.
• FCA will have significant powers for example it can oversee the design of financial products, mandate minimum standards and set basic requirements. It can also ban financial products or force withdrawal of misleading promotions.
• A Retail Distribution Review has been designed to establish an effective and attractive retail investment market.
• The Mortgage Market Review has still to establish terms of reference.

Comment From Finance/blog Team

Financial regulators are usually required to; enforce applicable laws, protect clients, and investigate complaints, license providers of financial services and prosecute cases of market misconduct, such as insider trading. In this way we expect them to retain confidence in the financial system! So the theory goes anyway!

Change is a chance for people to hide from responsibility and accountability – look what has happened since 2000.

Integrity is what should lead regulation. We see precious little of this from public sector expenses and bonuses through to freedom of information.

Training and education both technical and moral should be at the forefront of financial regulation. All these bankers advisers, brokers and professionals need to step up to the plate.

There is lots of good information at UK Fraud Service CIFAS After this incident, an extra password has been put in place for anyone opening a new password. These are some tips to avoid Identity Fraud

There are so many ways your identity can be detrimentally damaged and this will give you some tips to protect yourself against others.

On Line Protection

• Think about the risks when working online. Only buy from reputable sites with Https and recognised padlock security.
• Do not be tricked by online crooks into giving them your information. Beware of fake emails with links to convincing but fraudulent websites. They want to spend your money, tap your bank account and use your credit cards.
• Do not succumb to phishing by giving out your name, bank details, passwords or information to anyone. Block unwanted spam and use a modern browser.
• Beware of responding to seemingly innocent emails if the response is driven by your needs
• If you publish anything on line you have no control over how it is stored, copied or archived. Think twice about publishing something you might later regret.
• Use strong passwords mixing several words, letters, numbers and punctuation. Use different passwords for different sites particularly for financial matters.
• Be careful about giving away too much information on on blogs and social networking sites. Identity thieves can piece together your identity from public information piece by piece like putting together a jigsaw.
• Crooks are very good at persuading you to do what they want. Beware the promise of huge rewards, lottery wins, lost inheritances, upfront payments etc.
• If you get a bad vibe or pressured into a quick decision, walk away.
• If you think you have been compromised consider contacting ecommerce sites like ebay and Amazon and ask them to freeze your accounts.
• Keep your guard up and use your common sense.
• Choose a safe way to pay like PayPal or credit card.
• Remember, if it looks too good to be true, it probably is.

Off Line Protection

• Never carry documents or plastic cards unnecessarily. When not in use keep them in a safe place under lock and key if practical.
• In a shop or ATM make sure other people cannot see or hear your pin or personal information.
• If your credit cards, passport or driving licence have been lost or stolen contact the issuing organisation immediately.
• Keep your passwords and pins safe do not keep with your cards.
• Tell your bank, card issuers and all other organisations that you deal with immediately if you move house. Redirect your mail for at least a year. If you suspect your mail is being stolen. Check whether a mail redirection order has been made in your name without your knowledge.
• Be extra careful if you live in a property where other people could have access to your mail. You can arrange to collect valuable items such as new plastic cards or cheque books from a local branch.
• Destroy unwanted bills, receipts, credit-or debit-card slips, bank statements or even unwanted post in your name using a shredder.
• Check statements as soon as they arrive. If any unfamiliar transactions are listed, contact the company concerned immediately.
• Never give personal or account details to anyone who contacts you unexpectedly. Be suspicious even if they claim to be from your bank or the police.
• Dispose of unwanted computers with great care.

Remember just because you are paranoid it doesn’t mean they aren’t out to get you.

In the words of Hill Street Blues ‘Let’s be careful out there’

However, the global credit crunch and series of financial disasters have helped to shift consumers’ attitudes about spending and saving. There is a general feeling that we have been borrowing too much and saving too little. It is suddenly no longer cool to be buying on plastic and remortgaging to the hilt to afford a new luxury car. Instead the new vogue is to display frugal shopping habits. – Cut price supermarkets like Netto and Aldi are doing very well.  More upmarket food retailers like Marks and Spencer are having to entice customers with price cuts.

It is becoming more popular to look for ways to save money and display frugal spending habits. E.g. avoiding unnecessary Christmas presents.

Any move towards deflation would increase this new incentive to save. As people will delay purchasing in the hope that prices will become cheaper in the future.

This new frugality, is one reason why the government’s tax cuts and the interest rate cuts are not encouraging spending. For example, people are using their lower mortgage repayments to pay off more of their mortgage debt.

• Easy ways to save money
• 10 Tips for saving money
• 10 Painful but effective ways to reduce debt

However, the big banks such as HSBOS may challenge the court ruling, they have until May 22nd to launch an appeal. Given the state of the financial markets, banks are likely to take any lifeline to defer the decision. However, the most likely occurence is that bank charges will become lower, Which magazine have called on banks to admit defeat and start paying back the estimated £1 billion. To benefit from this ruling, it is essential to contact your bank and ask for a refund for any bank charges.

How To Get A Refund for A Bank Charge.

If you have been charged excessively for things such as going overdrawn. Make a list of all the bank charges by looking at your statement.

In the first instance you should write to the bank, stating what you were charged. Then ask for a refund of the excessive amount.

You should go back for the last 6 years, looking at all the bank charges you may have been charged for.

• Bank charges typically affect the lowest income groups and those with the least access to credit. Bank charges can be a powerful way to compound debt and can make it very difficult to pay back overdrafts.
• Although, in the future bank charges are likely to be cheaper. The banks will still be able to charge some amount, possibly £20-£30. It will also affect your credit rating, so it is advisable to take all possible steps to avoid using an unauthorised overdraft facility.
• According to the Times database, banks make £111 every second from overdraft charges.
• However, there are 1 million customers awaiting refunds for upto £800 million.

Related

• How To Write A Letter of Complaint to Your Bank
• Complaining to your bank 

1. Be Realistic

If you plan to reduce your debt by £10,000 in a short space of time, you will only be setting an unrealistic target. It is better to plan to achieve manageable reductions in debt and target a gradual improvement in finances. Unfortunately, there is no magic wand we can wave to solve our financial problems. However, if we our conscious of our financial goals then gradually our situation will improve.

2. Be Aware of Current Situation.

Often the key to improving our finances is simply understanding our current situation and why we are going overdrawn. Sometimes we prefer to ignore our financial difficulties but this only compounds the situation. To have effective planning, we need to know where we spend our money. This alone can be a bit of an eyeopener. If we realise how much we spend on takeaways or magazine subscriptions, we would think much carefully about whether we want to keep spending money on them.

3. Prioritise

When planning your financial future, it is important to prioritise your most important goals. What do you want to aim for? If your aim is to reduce your debt, set aside a certain lump sum from your monthly income to pay off the most expensive debt.  Don’t spend your time and energies in worrying about very small bills or moving money for very small amounts of interest savings. Value your time and prioritise in dealing with the most significant problems first; this will give the biggest return. As many suggest often 80% of our improvements can be made by focusing on 20% of our tasks. Look at your biggest bills and out-goings first; if you can make savings here, then you will have a good chance to make a real difference.

4. Make it Simple

The key to good financial planning is to make it simple and workable. If you have very complicated plans which require careful calculations and frequent balance transfers, you will be spending too long in managing your affairs. The simpler the planning is the more likely you are to stick to it and make it work.

5. Set Targets

A good plan should have a clear goal to aim for. This could be reducing debt by £2,000; increasing income by £2,000 or just saving up a certain amount. If the targets are achievable they will give  a sense of satisfaction when attained. This will encourage to set more optimistic targets the next time. A sense of continual progress is important for developing a positive attitude to money.

6. Be Clear of the Rewards

Financial planning invariably involves making some sacrifices such as reducing spending and putting money aside. We tend to think of these sacrifices in a negative way. But, rather than dwelling on lower consumption levels in the future, remember the long term benefits. At the end of the year use your savings to reward yourself in a memorable way such as buying a good you have long wanted.

7. Don’t spend all your time making plans

Planning is important, but don’t make this mistake of wasting too much time in creating complicated plans. At first, keep the plans simple, when you see that you are sticking to them you will be able to consider more details and target further areas of your spending and income.

8. Understand the Financial System.

If you struggle to understand the difference between tracker mortgages and interest only variable mortgages, it is not going to be difficult to make the best decisions. Take time to learn important concepts; don’t be shy of seeking experts who will help you choose the best products. However, even taking expert advise can be confusing if we don’t understand what they are advising about. Unfortunately, financial education is rarely taught; invest some time in understanding key concepts in the financial system.

9. Snowball.

Don’t forget the power of making small overpayments or small saving commitments. If you make a little extra effort now, the future benefits will be much greater in the future.

10. Don’t just think of next 12 months.

If you only plan to cope with the next year or so, you will be storing up problems for the future. The best time to think about a pension is early on; this maximises your investment and can enable the maximum tax benefits.

• Top 10 Finance Products to Avoid
• Financial mistakes to avoid
• My entry on Simple ways to save Money at Work featured at Festival of frugality hosted by My Dollar Plan
• Interesting post at Digerati Life about People who save and die early

Situations where it is helpful to complain.

Misselling of financial products.

If you think that you have been sold products without the full information being made clear at the beginning. For example, recently UK banks were heavily criticised for misselling insurance of loans. PPI. In many instances, the true cost wasn’t spelt out;  the insurance was often very difficult to claim; and many consumers were given the impression that the insurance was a necessary part of the loan.

Excessive Bank Charges.

If banks change the cost of overdrafts or mortgage exit fees, you may have success in complaining. For example, many mortgage lenders increased the cost of mortgage exit fees from the ones in the initial cost. The increases were often £100 – £200 , far above the rate of inflation. Customers who have made complaints have often received a rebate for the extra cost charged.

Mistakes by The Bank

Banks do make mistakes. This could be on billing, service charges or delays in sending out information. Many of the activities of the bank are automated and these can be wrong. If you think you have been mis charged try claiming the money back and writing a letter of complaint.

Unfair Treatment

If the bank seems to make unfair decisions, you might be able to puruse the matter, asking for justification. For example, Egg recently ended the contracts of many of their credit card holders. egg

When to Contact Your Bank.

Sometimes it is worth writing to your bank, even when they are not to blame. For example, perhaps you go slightly overdrawn or just  miss making a payment in time. If you write a polite letter explaining the unfortunate mistake, they may have pity on you and cancel the charge. We always hear about banks being mean, but, sometimes they can help their customers, even though it is not a requirement. We cannot guarantee any success, but there are occasions when a good letter may help to get a rebate.

• How to Write a letter of complaint to a bank 
• How To Make an Effective Complaint
  

Complaints to UK Banks

When making a complaint it is best to first contact your bank, either by letter or in person. If this proves unsatisfactory, you could take up the complaint with the FSA

Halifax – How To Complain to the Halifax 

Barclays - Complaining to  Barclays Bank

Abbey - Complaints to Abbey 

HSBC – Complaining to HSBC 

Natwest - Complaining to Natwest 

Financial Services Authority FSA