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MBNA payback to customers will take three months

written by Siobhan_Norton
15.12.09 Posted in Finance 0 0

There's few red faces we reckon in MBNA today. Nearly 500,000 MBNA card holders will have their cards credited with an average of €38 after MBNA itself discovered it overcharged its customers by €18m. It came out with its hands up to the financial regulator. Anyway the refund is due to a drafting error in the credit card firm’s terms and conditions.

Anyone with a MBNA card may be due a refundAnyone with a MBNA card may be due a refund

Credit cards

According to the report in the Irish Times, the firm applied interest according to its own marketing material, the drafting error meant doing so broke its own terms and conditions in some circumstances. It's worth remembering that any credit card that carries the name MBNA on the back could be affected by the overcharging. The company’s cards are affiliated to the EBS building society, Ryanair, Postbank and Axa. Customers should receive the refund, plus related interest, by March 2010.


Insurance

FBD is feeling the pressure of the recent floods. Its share price tumbled almost 4pc yesterday after the insurance group said its claims costs for 2009 would rise by up to €9m due to recent severe flooding, the Times reports. In an update to its interim management statement released on November 19, the firm predicted yesterday that the cost to the insurance industry of the “unprecedented” flooding in the south and west of Ireland would exceed that of any previous weather-related event. It said FBD’s net incurred claims costs for 2009 would increase by between €8m and €9m. Sigh, guess a hike in insurance costs is as about as predictable as yearly floods.

Meanwhile, the Irish Independent warns that insurers must be told if premises normally rented out are unoccupied for long periods of time. In the event of a claim, non-disclosure of a property by a landlord could be grounds for non-payment by the insurance company. If you have vacant properties (as in it is unlived in by the insured, a relative or anyone else with permission), you should contact your broker or insurance firm directly for advice. And in these times, there's bound to be one or two of those lying around, just waiting for something to go wrong. More insurance headaches all around then. Oh, 2009 sucks. Let's fast forward to 2011 shall we?

 

Mortgages

A complete ban or long delays on repossessions is going to be difficult for the banks who use their mortgages as collateral for their own borrowing, reports Jon Ihle in the Sunday Tribune. Last Wednesday, just in time for the budget, Moody's issued a press release highlighting further deterioration in the quality of securities backed by Irish residential mortgages. Delinquent loans – those overdue by three months or more – reached 2.9pc of total loans in October, the agency said, double the amount from the year before. Borrowers more than a year behind on payments hit 0.7pc, an increase of 300pc over last October, ouch.
So how many real stories are behind these figures? Well eight repossession orders were granted in the High Court this week. There are some businesses that are not prepared to wait. Stepstone Mortgage Funding hit the headlines in the Irish Examiner after a couple with a special needs son had their home repossessed despite offering to repay €800 a month. The lender refused in the High Court to accept the offer.
The couple both lost their jobs but still faced mortgage repayments of €1900 a month. Bad news all around then. Scrooge is alive and well and living in Waterford it seems.

Travel

Oh hell hath no fury like an union scorned. Former Aer Lingus chief Willie Walsh has a battle on his hands at British Airways. The airline has started legal proceedings against the Unite union over a 12-day Christmas strike by cabin crew, as the airline prepares to block a crippling walkout in the courts, the Guardian reports. BA is seeking an injunction to prevent the strike going ahead between December 22 and January 2 due to alleged irregularities in the ballot. Walsh, BA head honcho, said: "We are absolutely determined to do whatever we can to protect our customers from this appalling, unjustified decision from Unite. We do not want to see a million Christmases ruined." That's a lot of pissed off customers - who you can bet are now looking around frantically for alternative flights elsewhere. Irish Ferries here we come or will Michael O'Leary and Ryanair step in to fill the gap?

Utilities

Chorus ntl has a new 12 month partnership with DID Electrical to offer its services throughout its stores nationwide. This is the third such partnership in the space of five months, with other retail outlets including Carphone Warehouse, Fones 4 U & Woodies DIY/Atlantic Homecare.

To mark the DID Electrical deal the company is running a unique promotion in stores for consumers to avail of a free Samsung 22” High Definition TV set or a voucher for €250 to spend in any store when they sign up to the Diamond Deal.  The offer is due to run until January 15, 2010.

 

There are still a couple of days meanwhile to enter the Homevision competition, the broadband, phone and Digital TV providers tells us. The closing date is this Friday - December 18. Prizes included a 32 inch TV, X-Box, 8 gb i-pod, Digital Camcorder or FREE HomeVision Broadband for a year. You need to log onto the Homevision site to enter www.homevision.ie

T&Cs apply.
 

 

 

 

 





Siobhan_Norton

Siobhan Norton is a culchie-turned-Dubliner and works as a page designer and freelance journalist. She likes to travel and buy ridiculous shoes when funds allow, and - more usually - when they don't, she enjoys reading, cinema and running.

Siobhan_Norton
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