Planet Funds

The European Union has told mobile phone companies they should reduce the fees they charge for routing calls that originate on networks other than their own.

Officials want firms to reduce these rates, known as ‘termination’ fees, by 70 per cent to 2011.

Commissioners told the industry call termination markets in the EU need a ‘regulatory plumber’.

Operators reacted by defending the reasons behind the charges and warning customers would be hit elsewhere as firms try to recoup lost revenue.

Telecommunication commissioner Viviane Reding said: "`Call termination markets in the EU need a regulatory plumber.

"Over the next three years, I expect greater consistency and coordination to bring the costs for mobile-phone calls down by around 70 percent.”

According to analyst ING, mobile companies operating in the EU get about 15 per cent of their income from termination charges.

Richard Feasey, Vodafone’s director of public policy, said reducing these charges could see some customers paying to receive calls – a practice already used in the US but not present in Europe.

According to the Commission, mobile termination rates are nine times more than the fee for completing a call on a fixed network.

This has been allowed in the past so mobile firms could get extra cash while building up their networks.

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Mobile phone operators are facing a challenge from Eurpean Union officials over the prices they charge for routing calls that don’t originate on their networks.

Regulators are proposing that  Vodafone Group, Deutsche Telekom AG and others slash such ‘termination’ fees by 70 per cent over the next three years.

Providers reacted by saying this could lead to a US-style system, with customers paying for received calls as companies recover lost revenue.

European telecommunication commissioner Viviane Reding said: "Call termination markets in the EU need a regulatory plumber. Over the next three years, I expect greater consistency and coordination to bring the costs for mobile-phone calls down by around 70 percent.”

The EU executive arm, the European Commission, also said differences in the rates between countries should be reduced.

The European Telecommunications Network Operators’ Association reacted by saying: "A radical change of cost methodology for mobile termination rates moreover risks having a detrimental effect on a highly competitive and innovative sector."

The GSM Association, which represents more than 700 operators, echoed this sentiment, saying a Europe-wide approach to setting rates was simply not needed.

It said costs vary across the continent because of differences in population density, licence fees and labour costs.

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Pessimism surrounding the UK’s economy and the tightening of household budgets is causing consumers to avoid buying payment protection insurance in order to cover their outgoings.

An increase in the cost of living has led to 70 per cent of Brits to say they are not willing to take out payment protection insurance (PPI) in order to pay their mortgage, insurance premiums and other outgoings, according to research from the Association of British Insurers.

More than 90 per cent of Brits believe the UK’s economy is in a worse position than the same time last year, with a further 80 per cent expecting economic conditions to worsen in the coming year.  The public’s pessimism is reflected by companies, who are cutting costs, resulting in a rise in unemployment.

Despite this pessimism, and the acceptance by two thirds of people that they would not do well if made redundant, Brits refuse to seek financial support through purchase protection insurance.

Nick Kirwan, the ABI’s assistant director of health and protection insurance said:

“It is worrying that so many people are not prepared to look at taking out protection insurance, even insurance which covers redundancy given the uncertain economic outlook. It’s clear that we need to work harder to get the message across about the peace of mind and value that having the right protection insurance gives individuals and families. We recently published a consumer factsheet on protection insurance products. We hope this will encourage more people to consider protecting their most important financial assets - their income and their home.”

50 per cent of survey respondents had life insurance, while 39 per cent has no life insurance, payment protection insurance nor mortgage payment protection insurance (MPPI).

Rebecca Driver, the ABI’s director of research and chief economist said that “Given the economic outlook and the risk of rising unemployment, people need to develop strategies to protect themselves better.”

According to City Analyst Capital Economics thousands of the employed middles classes are taking on second jobs to deal with the rising cost of living. These workers include lawyers, police officers, business analysts, and IT workers taking on freelance work, selling things on eBay or working as chauffeurs. Compared to previous periods where the cost of mortgage insurance and living as a whole has risen there has been a five per cent rise in the number of people working second jobs bringing the current total to 1.15million.

We all grumble when we receive a letter from the bank informing us that we are X amount overdrawn, we failed to make our monthly payment or our payment to X failed due to lack of funds.

We grumble at ourselves for not controlling our money better, we grumble at our employer for messing up the automated wage payments and we grumble knowing that our bank will be adding anywhere between £15 and £50 to our debt for the privilege of being told via a letter.

Well there is some good news.

In April 2006, the OFT (Office of Fair Trading) concluded that any default charge levied by a bank or building society over £12 would automatically be presumed unfair with relation to the Unfair Terms in Consumer Contract Regulations.

BBC2s ‘The Money Programme’ estimated with the aid of several ex bankers that the real cost to the banks for sending a letter or administering a bounced cheque is somewhere between £2.50 and £4.50 meaning that a huge amount of the charges levied are in fact profit.

These excess bank charges can be claimed back from as far back as 6 years.

Currently the OFT and banks are fighting a legal case in the courts which will decide whether current and future registered claims will be paid out and at what level. On 24th April 2008 the OFT won the first preliminary part of the ongoing legal test case which is a very positive step in favour of the consumer. At this present time and for the foreseeable future claims are still on hold.

So, should you put in a claim for your excessive bank charges?

The answer is yes as the claim will be for the 6 years (5 in Scotland) prior to the claim being received. Delaying could cost you money.

How can I claim my bank charges back?

Well there are 2 ways. You can either handle the claim yourself which involves collating your bank statements for the last 6 years, constructing your claim and contacting your bank (template letters are available from sites such as MoneySavingExpert), or you can use a law firm / claim handling company to process the claim for you.

What are the pros and cons of DIY bank charge claims?

Well the obvious pro is it’s free bar the cost of acquiring lost bank statements (the maximum charge for this is around £10) and the time to process the claim.

The con is the time you have to invest in the subject to ensure your claim is in the best possible shape. If you are legally inclined and have spare time on your hands this may be the option for you.

What are the pros and cons of using a claim handler for bank charge claims?

Well here the obvious negative is the cost. A claims handler will typically charge between 25% and 40% of the eventual settlement with nothing to pay up front or should your claim fail.

The pro is that your claims handler should know all the legal background and will be up to date will the current state of affairs. Their experience should result in a more thorough claim. Also using a claim handler is more fire and forget than the hands on approach. Once you have passed on your details most of the work should be done for you, leaving you the time to enjoy the finer things in life like washing up, changing nappies and trying to get some sleep (maybe that’s just me then).

Claims handlers might also make you aware of other things you can claim for such as an accident or the lesser known PPI Claims.

How much can I expect back if my bank charges claim is successful?

Well I’m afraid it’s a bit of a how long is a piece of string question. If you have been penalised with more charges then you should receive more back. I have read about people who have received £200 and I have read about people who have received £4000. This was of course from before the bank took the issue to court and all claims were put on hold. Personally with grocery bills growing every week and the feeling that somebody has just stolen from me every time I fill up my car with diesel, I welcome any cash back.

Trying to save money wherever you can is important to us all. Car insurance should be no different. Do not assume that your agent knows everything about you and your vehicle.

Drivers should take advantage of all discounts that many providers offer, that can significantly reduce the cost of car insurance. Understanding discounts and how they can affect auto insurance premiums can help smart shoppers make better decisions about their coverage and possibly save themselves some money in the process.

Read below to identify possible discounts that could help you save on auto insurance this year. Other than discounts, there may be some other ways for you to save on your insurance premiums. We will go over several discounts that can help with your current situation.

First, there are discounts for Auto Safety features. Certain states will give you discounts for anti-lock breaks. Make sure you know if it is two or four wheel anti-lock break vehicle. Automatic seatbelts and airbags are frequently discounted on your insurance premiums. In most states, a defensive driver class discount may apply. If the principal driver usually 55 years old or older has completed an approved defensive driving class a discount could apply. Keep in mind that most states will only approve this class if it is voluntary meaning that it was not the result of a violation or infraction.

Some insurers will give you a discount for having multiple vehicles. In some cases, this will only apply if you have two or more drivers. If you have a clean driving record, meaning you do not have any tickets, accidents or suspensions in the last three years (some companies require five years) then you could be eligible for a safe driver’s discount.

Many companies will reward you with staying with the same insurance company for many years without any accidents reported. They will offer you a renewal discount. It makes sense, you have carried insurance with a company for several years, and have not had an accident, your insurance company likes you and wants to reward and keep your business. Some companies honor you with a discount if you had prior limits on your previous policy. They discount you because they understand you are a better risk.

Conversely, if you do decided to change insurers a proof of prior insurance discount may apply. Most insurers request at least 6 months of consecutive insurance from the previous insurer. If you are a full-time student who meets certain grade requirements and are unmarried and usually under 25 years of age (some states the age is 21) you could be eligible for a good student discount. If you own a home, including condominium, town home, or mobile home, which is used as a principal residence, a discount could apply. Military personnel either currently active or retired from any branch of the US military a discount could apply. If your vehicle is equipped with an anti-theft device, a discount could apply.

You could lower the cost of your insurance in other ways.
For people who own older cars, it may not be necessary or cost-effective to protect them with collision and comprehensive coverage. By comparing the book value of your vehicle and the premium that the insurer has offered, you may find that it cost as much for the insurance as it does for the vehicle. If the car is worth less than $2,000, you will probably spend more insuring it than it is worth. The whole idea of driving an older car is to save money, so why not get what is coming to you.

In addition, keep in mind that the type of vehicle you buy could greatly affect your premium. A flashy red sports car is usually going to cost more to insure than a mid sized sedan. This is also true of vehicles that are on the list of most stolen. There are many ways that policyholders can save on their insurance. Knowing more about auto policies and premiums can help consumers take advantage of less obvious discounts while ensuring that they have the appropriate protection for their vehicles. The last way to save is to assume more risk. If you chose higher deductible on your Personal Injury Protection or Comprehensive and collision coverage will lower your premium as well. The deductible is the amount of money you have to pay before your insurance company begins paying the rest.

Understanding how discounts affect your insurance rates is important to save you money.