The week in review
This week: former Labour MP David Chaytor jailed over expenses fraud, credit card users double-charged on New Year’s Eve and protection for savers increases to £85,000.
Former Labour MP David Chaytor has been jailed for 18 months after fraudulently claiming expenses.
Mr Chaytor (61) admitted to three counts of false accounting totalling £22,650. He falsely claimed for IT consultancy work and rent on two properties that belonged to him and his mother.
He is the first politician to be sentenced over the expenses scandal.
Card users double-charged on New Year’s Eve
More than 200,000 people may have been double-charged when using credit or debit cards on New Year’s Eve due to a technical fault.
The glitch in the Lloyds TSB Cardnet system may cause charges to appear twice on customers’ statements.
Customers who do not bank with Lloyds may still have been affected by the error when using a chip and pin machine on New Year’s Eve.
Lloyds has said customers are being reimbursed but has set up a helpline for those affected (01268 567100).
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Protection for savers jumps to £85,000
The Financial Services Compensation Scheme (FSCS) will now guarantee savings of up to £85,000 if a regulated bank or building society goes bust.
This £85,000 limit applies to each account holder per regulated financial institution and increases to £170,000 for joint accounts.
Under new regulations, savers should receive their money within 20 working days.
The FSCS previously compensated savers up to £50,000 per financial institution but increased the sum in line with the EU 100,000 euros directive.
Bonfire of the quangos ‘botched’
Government plans to scrap 192 quangos have been ‘botched’ and will not result in significant savings, according to MPs.
A report from the public administration select committee has claimed there was no meaningful consultation over the decision. It also found the process was ‘rushed’ and ‘poorly managed’.
Defending the bonfire of the quangos, Cabinet Office Minister Francis Maude told the BBC the move would save ‘significantly more than £1 billion’.
Millions pay mortgage on credit card says Shelter
More than 2 million people have used a credit card to cover their mortgage or rent, according to a survey by housing charity Shelter.
This figure represents an increase of almost 50% from the previous year and is based on research conducted in August.
New rights for credit card holders
Changes to the lending code should close some common credit card loopholes and secure a better deal for customers.
Credit card payments will now be used to clear the most expensive debt first which means users will pay less interest in the longer term.
Furthermore, companies will no longer be permitted to send out unsolicited credit card cheques.
Customers will now have 30 days to reject an increase to their credit limit and 60 days to reject an increase to their APR.
**This material is for information purposes only and should not be considered financial advice. We strongly encourage our readers not to rely solely on this content, but to seek independent advice when making financial decisions.**
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