The Week Unzipped: Card firms give poor deal to claimants

CREDIT card companies regularly fail to provide sufficient information to customers who are attempting to make a claim under Section 75 of the Consumer Credit legislation, according to research from Which?

If you use your card to pay for goods or services (costing more than 100 and less than 30,000) that turn out to be substandard you can claim compensation from your plastic provider.

But Which? made 120 undercover calls to the 12 biggest credit card providers to ask for advice on making a claim for credit card purchases or orders on behalf of a friend or relative.

Just 10 out of the 120 mentioned Section 75 or the Consumer Credit Act by name. Only one gave the correct money limits for claiming on Section 75 while many suggested false time limits on registering a claim.

Callers were given incorrect advice about where they could reclaim their money or seek further help. NatWest told the caller to pursue the claim for an undelivered sofa through ATOL, the scheme that protects holidaymakers against airline failure.

Tesco and Nationwide failed the Which? test and HSBC staff were particularly unhelpful. Which? is writing to the companies to suggest ways they can improve their service.

Bank changes charges

Santander has radically restructured its overdraft charges so that going into the red will cost different customers differing amounts.

It is introducing a threetiered system, which rewards loyal customers with multiple accounts and introduced daily fees.

Customers with multiple Santander products or a Zero Current Account qualify for the top tiers and escape higher fees while those in the bottom tier must pay more.

Under the new system all unarranged overdrafts will be charged 5 per day. This fine will cap after 10 days for customers who deposit 1,000 a month or hold Santander reward or premium accounts. Customers without multiple Santander products will be capped at 20 days per month.

Stefan Maryniak, personal finance expert at uSwitch.com, described the changes as a double-edged sword: "The structure is simpler, easier and more transparent which is good news. However, it penalises customers who don't have multiple products with the bank."

Sainsbury's bond deal

Sainsbury's has launched a one-year fixed-rate savings bond paying 3.2 per cent. The account is open to new and existing customers and accepts both joint and single applications. It requires an opening deposit of between 5,000 and 50,000 and does not allow withdrawals during the fixed term. Savers can apply online or by telephone.

Home truths on love

Couples are choosing mortgages over marriage vows to show their commitment to each other, according to Post Office Mortgages.

Its survey showed that 55 per cent either have already, or would consider buying a property with their partner before getting married.