PRESS DIGEST - Financial Times - Nov 28

Financial Times

BANKS SET TO ASK FOR DISMISSAL OF CHARGE CLAIMS

Following their Supreme Court victory on bank charges for unauthorised overdrafts, the eight high street banks involved will write to county courts across the country asking for all consumer claims to be dismissed. An estimated 1.2 million outstanding claims were frozen awaiting the outcome of the trial, including tens of thousands in county courts. The Office of Fair Trading is considering the judgment to determine whether it will continue with its investigation into the charges and is expected to make an announcement in December. Consumer champion Martin Lewis, founder of the website Moneysavingexpert.com, said there was still a "glimmer of light" for customers who still believe they were unfairly charged.

TOUGHER TAX FINES EXPECTED

HM Revenue & Customs is expected to extend its offshore tax amnesty to January 4 in a bid to encourage savers to register for its new disclosure opportunity offering reduced penalties for evaders. Dave Hartnett, permanent secretary for tax at HMRC, said the extension would give banks more time to contact their customers in order to comply with legal notices that were served in August requiring the banks to hand over account details. Paul Roberts at Grant Thornton warned that even though the registration period had been extended, the deadline for submitting details remained the same.

RETURN OF THE 90 PERCENT MORTGAGE

According to comparison website Moneyfacts.co.uk, mortgage lenders have increased the availability of products requiring a 10 percent deposit as competition in the market intensifies. The products available now total 114 this month, up from 56 in August. Nigel Bedford at largemortgageloans.com said more banks will offer more high loan-to-value products over the next 6-12 months as long as house prices do not fall significantly. The competition in the high LTV market has not spread to loans for borrowers with deposits of 5 percent. The number of these products available can be counted on one hand.