January 2015

New compensation scheme for credit card security policies

The Financial Conduct Authority has announced a new credit card-linked compensation scheme. This one relates to card security policies, most of them under the Sentinel brand name, which were sold to customers of 11 high street banks.

One of the features of the card security products was insurance to cover fraudulent use if a card was lost or stolen. However, customers were already covered, because the card companies were mostly responsible for payments made with a stolen or lost card.

New help for people struggling with debt

The level at which people in debt can be forced into bankruptcy has been increased for the first time since 1986. The Insolvency Service has announced that the minimum amount for which someone owed money can start bankruptcy proceedings is to rise from £750 to £5000.