August 2015

FCA to write to affected card protection customers

The Financial Conduct Authority (FCA) is writing to two million people that were mis-sold bank card insurance to advise them on how to make a claim for compensation.

The compensation scheme covers anyone that purchased the insurance between January 2005 and August 2013.

Customers paid around £25 a year to protect themselves against the loss or theft of their bank cards.  However, the regulator deemed this unnecessary as cover was already provided by their banks.

Interest rates remain unchanged

The Bank of England Monetary Policy Committee has voted to keep interest rates at 0.5% for the time being.

Fuelling speculation that an interest rate rise isn't too far away, the committee vote wasn't unanimous for the first time in months.

The debt advice sector has been bracing itself for an increase in rates following research from the Bank of England warning that hundreds of thouands of households could see their disposable incomes wiped out if higher interest rates increase debt servicing costs faster than wages can rise.