Weekly Money: the stories we noticed 2 to 6 November

The personal finance stories you may have missed this week

The pressure's on if you don't get your finances sorted (GETTY IMAGES)

6 November

Another energy company has been punished by the watchdog. Economy Energy has been fined £250,000 for misselling and poor communication. Ofgem said the company missold energy contracts between October 2012 and December 2013 when its sales agents quoted inaccurate comparative savings, providing a misleading guarantee of cheaper prices than those offered by the six largest suppliers.

The company also failed to behave fairly and professionally. Ofgem’s Anthony Pygram said: “Economy Energy let its customers down badly. These were predominantly prepayment customers who are more likely to be vulnerable and Economy Energy failed to protect them.”

The company has paid more than £23,000 to around 500 customers hit by the problems and the watchdog said it expected the supplier to identify and compensate any remaining customers caught up.

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Metro Bank has finally gone national with the launch of a range of new savings accounts available online including a new one-year fixed rate bond that pays 2.1 per cent yearly or 2.08 per cent monthly.

“There will undoubtedly be huge demand for these bonds,” said Andrew Hagger of Moneycomms. “Let’s hope they remain on sale for some time to come and are not just another short term headline grabber that we see far too often in the savings market.”

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House prices climbed 9.7 per cent in the last year, according to the Halifax. The average home now stands at £205,240. The bank predicts further “upward pressure” on prices.

5 November

Payday lenders QuickQuid and Pounds to Pocket are being forced to repay £1.7m to 4,000 customers. The Financial Conduct Authority said the high-cost credit firms owned by CashEuroNet had allowed customers to borrow more than they could afford to repay, putting them into financial difficulties.

The payday lender has agreed to write off the loans of 2,523 people and pay a cash refund of interest paid on the unaffordable element of the loan of 961 others. A further 456 will receive both a cash refund and have their loan balance written off.

CashEuroNet will start contacting people affected immediately and said it plans to complete the redress exercise within the next 60 to 90 days.

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Energy suppliers are sitting on an estimated £980m in overpaid bills. Gocompare reckons that 61 per cent of homeowners have overpaid their energy bills by an average of £95.

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Meanwhile Which? warns that millions of people are still stuck on the most expensive energy tariffs. The Government’s latest data shows that since the beginning of last year, the level of people on a standard electricity tariff – paying around £54 more than other deals – has remained stuck at an average of 75 per cent while standard gas tariffs - costing an extra £75 - have stalled at 73 per cent.

“People who would benefit the most from switching are still not moving,” said Richard Lloyd of Which? “The CMA must find ways to protect vulnerable customers from paying over the odds.”

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Eurostar’s express sale from today is offering one-way tickets from £32. The sale runs until 19 November, with tickets valid between 23 November to 17 December this year and between 4 January and 11 February 2016.

4 November

Millions of borrowers who make minimum payments on plastic are so profitable for credit card companies that they are disinclined to help them. In a damning report yesterday the Financial Conduct Authority said there were few incentives for firms to intervene with struggling customers who are most at-risk of falling into a desperate debt cycle.

“For a significant minority who are in persistent levels of debt, the market could potentially work better,” said Christopher Woolard, director of strategy and competition at the Financial Conduct Authority.

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A new fixed rate bond paying 2.25 per cent will help raise money for charity Marie Curie. The Yorkshire Building Society will hand over 0.2 per cent of all money deposited in the two-year bond to the charity to put towards its Hour of Need campaign, which aims to raise £500,000 by December 2016.

The limited issue Marie Curie Fixed Rate Bond can be opened with a minimum balance of £1,000, but no access is allowed during the term of the bond. For more information or to open a bond, call 0345 1200 100 or pop into a branch of the Yorkshire, Chelsea, Barnsley or Norwich & Peterborough.

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We’re getting closer to the introduction of the new Help to Buy Isas on 1 December. They were announced by the Chancellor in March’s Budget and aim “to help for working people who want to buy their own home”.

They will allow first-time buyers saving for a deposit to save up to £200 a month in a dedicated Isa that the government will top up by 25 per cent, up to a maximum of £3,000. Accounts can be opened with a one-off lump sum of up to £1,000 in addition to the monthly maximum.

Couples buying together will be able to combine their bonuses, meaning a potential boost of up to £6,000 towards a deposit. Banks and building societies committed to offering Help to Buy Isas include Barclays, Lloyds, Nationwide, NatWest, Santander, and Virgin Money.

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Columbia Threadneedle is the latest to launch an ethical fund. It will avoid companies involved in activities such as alcohol, tobacco and weapons while targeting companies that have a strong approach to environmental, social and corporate governance as well as those that can achieve sustainable outcomes.

Matt Evans, manager of the Threadneedle Ethical UK Equity Fund, said: “Companies operating in an ethical way are more likely to generate sustainable returns over time.”

3 November

It’s time to clamp down on compensation cowboys, reckons the Association of British Insurers. It’s called for tougher regulation to protect us from rogue claims management companies that plague people with nuisance calls, charge high fees and push up the cost of insurance for honest customers.

“No one should be pressured into making a compensation claim,” said Rob Cummings of the ABI. “For too long some claims management companies have helped fuel a compensation culture through nuisance calls, misleading adverts and high charges.”

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The AA’s new FuelSave credit card offers up to 4 per cent cashback on fuel and 0.5 per cent on all other non-fuel spending. On top of that cardholders new to the AA will get a year’s free breakdown cover and then subsequent annual free MOTs for as long as they hold the card. AA members will receive annual free MOTs from the start.

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Students face a more serious financial challenge this academic year, according to the Money Charity. Its research shows that rent is rising faster than loans and grants and students from average-income families are being forced to ‘pay up front’ for university – or not go at all.

Average rent has increased by £277 outside London and £174 in the Capital, outstripping the average rise in maintenance of £121. And things will get worse. Gains from proposals to increase English maintenance loans for 2016-17 by 10 per cent will be entirely eaten up by rent rises by 2019, leaving students worse off.

Michelle Highman, chief executive of the Money Charity warned: “We are leaving lasting problems that undermine a generation of students.”

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Taxpayers saw a 43 per cent jump in their capital gains tax bills last year – paying £5.5bn in CGT in the last year, up from £3.4bn the year before, said UHY Hacker Young. London and the South-east still bear the brunt of the cost, it added.

2 November

Complaints about toys double in January as an army of fed up people face problems returning defective Christmas gifts. Meanwhile problems with DVDs, video games, games consoles, and sound systems climb by two thirds, reports Citizens Advice.

To mark National Consumer Week it’s urging people to find out about their rights before they face seasonal problems. The charity has developed a ‘Know Your Rights’ guide explaining big changes to consumer law that came into effect in October that Christmas shoppers should know.

Now, if you get a product that’s faulty, poor quality or not fit for purpose, you can return it within 30 days for a full refund. And full consumer rights apply to items bought online, including downloads. Find out more about your rights at www.citizensadvice.org.uk

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Pension investors are set to give the Chancellor a massive headache by putting a £6bn hole in the Treasury’s tax plans – and he could respond this month by slashing tax breaks on retirement savings. The warning comes from Hargreaves Lansdown which reckons that higher rate and top rate taxpayers have increased their contributions by an average of 40 per cent in the current tax year.

“We expect a surge in activity ahead of November’s Spending Review,” said the firm’s pension expert Tom McPhail. “We could see an extra £6bn in tax relief being claimed by higher earners this year.” Osborne has already mentioned intentions to change pension tax breaks in next Year’s Budget but he could yet fast forward the plans, McPhail warns.

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Homebuyers should be given more up-front information about a property’s flood risk, according to the Association of British Insurers. It wants property websites and adverts to traffic-light flood risk.

At present no property search websites include crucial flood risk information for the location of properties they list. Instead they data on such things as school catchment areas to most commonly read newspapers in the area.

ABI Director General Huw Evans said: “Flooding can ruin a home, destroying valuable possessions and often force you to move out while repairs are made. At the moment, information on whether a property is at risk of flooding comes too late, often when people have already invested money in conveyancing.”