The Week Unzipped: Don't think twice about contacting Lloyds TSB over card double charges

THOUSANDS of credit and debit card users were double-charged on New Year's Eve because of a fault with a Lloyds TSB payment service.

The bank estimates that more than 200,000 cardholders for a variety of banks will find two identical charges on their statements after using their card in restaurants and shops on 31 December.

Lloyds said the affected retailers experienced a system error with wireless card payment terminals. The bank has reversed duplicated transactions and is reimbursing cardholders. Lloyds has set up a telephone helpline on 01268567100, option 4. Cardholders who think they have been penalised as a result of a transaction being charged twice should contact the bank.

Ring changes on costs

Campaigners for taxpayers on low incomes are calling for an end to the system which leads to them paying disproportionately high costs when phoning the taxman.

Many low income tax payers use mobile phones when contacting the tax authorities. In light of this evidence, telephone regulator Ofcom is consulting on whether to change the system for non-geographic telephone numbers such as 0800 and 0845 numbers.

Currently HMRC requires their customers to use 0845 numbers to contact them. Unlike 0800 numbers, which are free from landlines, these incur a charge. Costs from some mobile phones to an 0845 number are particularly high - up to 40p a minute.

John Andrews, chairman of the Low Incomes Tax Reform Group, said: "Most of the time, HMRC force their customers to use 0845 numbers to make contact with them. This is not discretionary contact; HMRC rules mean that you have to ring those numbers if you are to avoid significant financial penalties."

Loan rates at 2-year low

Personal loan rates are at their lowest level for two years but those borrowing less than 5,000 will not see the benefits of rate cuts, according to moneysupermarket.com

The average rate on an unsecured loan of 7,500 has fallen to 7.89 per cent, the lowest level since November 2008. Eight providers have reduced their rates on loans of between 7,500 and 15,000 since December. Last week alone Santander cut its rate from 7.8 to 7.3 per cent, Sainsbury's Finance to 7.4 per cent and M&S Money introduced a new loan at 7.5 per cent.

By contrast the typical rate on a 3,000 loan has increased by 2.19 per cent to 15.12 per cent over the same period.

Tim Moss, the head of loans and debt at moneysupermarket.com, said: "With many consumers reviewing their finances in the new year, it is great to see providers creating some healthy competition in the unsecured loans market after a period of relative inactivity." However, he warns that these low rates are only available to those with excellent credit histories.