The Week Unzipped: Rogue debt management firms forced to close after watchdog clampdown

Seven companies are having their licences revoked, and a further 35 have decided to give up the business after the watchdog began investigations. A further 15 firms face licensing action.

These firms promise to end debt misery for consumers whose credit is out of control. However, the OFT found they misled customers about how much they charged for this service, and when their debts would be repaid.

A spokesman for the Financial Ombudsman Service said it had received almost 400 new complaints relating to debt management companies in the last financial year.

He said: "With these arrangements consumers often make one payment to the company, which promises to distribute the cash to the creditors. However, we have found that debtors are not always told accurately about what the company charges for this service, nor the fact that this money is taken out first before any debt it paid.

"This has led to debts not being settled when the debtor thought they would be."

20m to be claimed

Npower is urging customers to claim their refunds for overcharged gas bills in 2007.

The energy firm announced it would repay 70 million to 1.9 million customers in October following an investigation by regulator Ofgem.

Although 1.2 million have claimed their money, Npower says there is still 20m compensation to be paid. The average refund is 35 plus VAT and interest. The refund programme will run until at least October 2011.

Lagging in home prices

Scotland saw the ninth largest increase in property prices out of the twelve UK regions, rising 83 per cent over the past decade, according to Bank of Scotland.

Across the UK, property prices in the north have outperformed those in the south over the past decade, rising by an average of 102 per cent compared with 75 per cent in the south.

Penicuik in Midlothian has recorded the biggest increase in house prices among Scottish towns since 2000. The average house price in Penicuik increased by 179 per cent from 61,824 in late 2000 to 172,476 at the end of 2010. Irvine up 172 per cent and Peterhead, up 171 per cent were the next best performers.

BM launches bond

BM Savings has launched an Inflation Rate Bond paying 0.25 per cent above the rate of inflation.

The five-year account, designed to offer some protection against rising prices will pay a gross interest which tracks the Retail Prices Index, currently 4.8 per cent, plus the 0.25 per cent interest on top.

The minimum deposit is 500 to open an account which can be operated by phone or by post. Additional deposits can only be made during the offer period and no withdrawals are permitted.

Interest is paid annually on the anniversary of the start date (28 March). The RPI inflation rate will be taken from the January prior to the annual interest payment in that year.