Latest news with #Lloyds
Finextra
2 hours ago
- Business
- Finextra
Lloyds adds travel booking feature to app
UK bank Lloyds has teamed up with travel technology platform Hopper to let customers book flights and accommodation directly from its app. 0 Hopper's AI-driven platform lets Lloyds app users book their holiday and ensure they get a best price guarantee, recommendations on when to book flights for the best price, and price drop protection. Once booked, customers can keep track of their trips directly in the Lloyds app. Tamara van den Ban, MD, customer propositions, Lloyds, says: 'Working with Hopper, we're the first UK bank to offer our customers unparalleled convenience, value and peace of mind when planning their travels, all of which can be managed in the palm of their hand, through our mobile app.'
The Independent
14 hours ago
- Business
- The Independent
High street bank branches are ‘thriving', Nationwide says
Nationwide Building Society has said its bank branches are 'thriving' with more customers coming through the doors over the past year as rival banks slash their high street network. The building society has pledged to keep all of its nearly 700 branches open until at least the start of 2028. New data from the group revealed that nearly 200,000 more customers used its branches in the financial year to the end of March, compared with the prior year. It comes a day before Nationwide is set to unveil its full-year financial results. Muir Mathieson, Nationwide's chief financial officer, told the PA news agency: 'The branches are thriving. 'We're seeing the number of people going into branches going up, and we think part of that (increase) is that there are fewer branches on the high street now that our competitors have closed theirs.' Nationwide has the second-largest branch network in the UK, behind Lloyds Banking Group. But Lloyds has been making sweeping cuts to its network – with the most recently-announced closures to 136 branches taking place over the next year. Others have been drastically trimming their network, such as Santander announcing in March it would be closing more than a fifth of its high street branches, bringing it down to 349 across Britain. The banks say they are adapting to meet the behaviours of their customers, who increasingly want to do banking on their phones or online and are decreasingly using their high street sites. But Nationwide suggested that UK consumers have been switching their bank to Nationwide so that they can make use of in-person services. Customers want face-to-face contact particularly if they have concerns about fraud, or if they want reassurance about a specific process or account, Mr Mathieson said. 'Interestingly, we get larger Isa balances when people open them in a branch than when they do it online,' he told PA, indicating that people feel more comfortable handling bigger sums of money in a branch. About 40% of Isas were opened in branches last year, and more than 35% of new current accounts, according to data from the building society. About 5.7 million customers visited a branch at least once during the year. Nationwide's branch promise extended to Virgin Money after buying the rival bank for £2.8 billion last year in the biggest banking deal since the financial crisis. When it bought the lender, it paused Virgin's plans to close some of its branches and brought it into the group's branch promise. It has also been working to improve the bank's customer service systems since merging, after chief executive Debbie Crosbie said there were 'challenges' to overcome.
Yahoo
a day ago
- Business
- Yahoo
Lloyds faces questions on ‘no harm' claims amid mounting provisions
As the UK Supreme Court prepares to rule on whether car finance providers broke the law by failing to disclose commission arrangements to borrowers, a central question is coming into focus: how do lenders, such as Lloyds, justify claims of 'no harm' to customers while setting aside billions of pounds for potential redress? Lloyds Banking Group, the UK's largest motor finance lender, is at the centre of this debate. CEO Charlie Nunn told MPs on 20 May that Lloyds had seen 'no evidence of harm' in its car finance activities and argued that its motor finance arm, Black Horse, typically offered some of the lowest interest rates in the market. On that basis, he said, customers were unlikely to have found better deals elsewhere, even if dealer commissions were not disclosed. But the bank has also made two significant financial provisions. A £450 million charge was booked in late 2024 concerning the Financial Conduct Authority's (FCA) review of discretionary commission arrangements (DCAs). A second, £700 million provision followed earlier this year, after the Court of Appeal ruled that the non-disclosure of commissions could give rise to a claim in other consumer credit spaces beyond motor finance. This appears difficult to square with a claim of no customer detriment. Nunn, however, told the Treasury Select Committee that these charges should not be interpreted as admissions of harm but viewed as a result of unavoidable accounting principles. "That £450 million provision incorporates two things. One is the operational expenses of responding to claimant law firms. We have had a very large number of complaints that aren't even from our customers, so we know there are significant operational expenses in processing and trying to help customers. I don't know if they even had a policy with us, but there is a very high percentage of those. It is processing the operational complaints, supporting the customers and, if there is remediation linked to harm, paying out that remediation. "We haven't disclosed the split between those two things, but we obviously have experience. The operational expenses are very significant. We knew, based on actions that the FCA has announced, that we were going to incur significant costs. From an accounting perspective, we are legally obliged to do that. That is not linked to decisions that the FCA and Supreme Court will take on whether there was a breach of a law, whether there was harm, and if there was harm, whether appropriate remediation should be made. All those steps are independent of the accounting provision. I know that probably isn't helpful for the public, but that is the basis on which we make those decisions," he told the Committee. Even so, these provisions may also reflect the scale and complexity of proving no harm, rather than simply responding to complaints. Julian Rose, Director at Asset Finance Policy Limited, has pointed out that under the current FCA regime, the burden of proof lies with lenders. If the Supreme Court confirms that firms were required to disclose commissions, it will fall to the lenders to demonstrate that customers were not financially disadvantaged. 'In my view,' Rose writes, 'it will not be for consumers (or their representatives) to show evidence of harm. It will be for the car finance companies to show evidence of no harm. That means for each agreement, they will need evidenced that the rate provided was competitive with an industry benchmark rate.' That challenge will be especially difficult if firms no longer hold the necessary data. But will it prove more expensive for claimants or lenders? Most lenders follow standard data retention policies that delete customer records after six years. According to a recent Guardian report, claims firm Courmacs Legal says it holds around 465,000 customer complaints involving loans settled before 2018, many of which may now be missing documentation. If these consumers cannot be contacted or their agreements reviewed, they could lose out on up to £1.18 billion in compensation, Courmacs estimates. In January 2024, the FCA instructed firms not to delete car finance records while its investigation continued. But that came too late for many historical agreements. In a statement to the Guardian, the FCA said: 'If we decide to undertake a redress scheme, we will work with industry and other interested parties to ensure that it is as clear and straightforward as possible for customers to complain.' The Financing and Leasing Association (FLA), which represents major lenders including Lloyds, Santander UK and Close Brothers, has acknowledged the limitations of missing data. 'We have made clear to the FCA that consistent and fair outcomes cannot be delivered with patchy or absent data,' the FLA said. While the FCA has not yet confirmed whether a formal redress scheme will be introduced, a ruling in favour of borrowers by the Supreme Court would put pressure on the regulator to act. And if a scheme is mandated, firms will need robust documentation systems to avoid defaulting to redress. This may explain why Lloyds has already put aside more than £1.1 billion, regardless of its position that customers were not harmed. If the bank intends to prove that its loans were competitively priced, the ability to evidence that across thousands of legacy agreements will be critical — and expensive. As Rose argues, operational readiness will be key. 'There needs to be a standard table showing benchmark rates for similar loans and for similar customers,' he notes. 'Where the customer paid near the benchmark or below it, then it should be reasonable to assume there was no harm.' In the absence of such evidence, however, lenders will struggle to prove their case. Lloyds may not have admitted liability, but its financial provisions suggest it is preparing for a process where outcomes may hinge not on clear evidence of harm, but on the inability to demonstrate that harm did not occur. "Lloyds faces questions on 'no harm' claims amid mounting provisions" was originally created and published by Motor Finance Online, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Daily Mirror
2 days ago
- Business
- Daily Mirror
Five of UK's major banks and how they are slashing their interest rates in days
A slew of high-street banks including HSBC, Natwest, Lloyds, Halifax, and Santander have confirmed to the Mirror they will slash their interest rates on select savings product in the coming weeks Most high-street banks have warned they will be slashing interest rates on some savings accounts in the coming weeks. The decision follows the Bank of England's announcement on May 8 that it had cut the base rate (the interest rate it charges other banks and lenders to borrow money) from 4.5 per cent to 4.25 per cent. While the move may be a welcome relief to households with a tracker mortgage, who could see their monthly payments drop by around £29, it's bad news for Brits who have been stashing away their savings for a rainy day. This is because a reduced base rate usually results in lenders dropping their interest rates - meaning you'll get a smaller return on your savings. The Mirror has therefore contacted the UK's most popular banks, including HSBC, Lloyds, Halifax, and Santander, to see how the announcement will impact their customers. While all banks confirmed the reduction will hit savers, Brits still have time to shop around - as the interest rate cuts don't kick in until later this month, or in June. HSBC "We are firmly focused on supporting customers with their savings," a HSBC spokesperson told the Mirror. "While changes are being made to some of our savings rates, with rates from July 21 to include a regular savings account at 5.00% and 3.75% on our Online Bonus Saver, we also provide overall value on our savings accounts that goes beyond interest rates to provide flexibility, convenience, simplicity and organisational and financial stability for customers who want to save with a trusted high street brand. "There are several factors taken into account when setting savings rates. We have designed our savings accounts to make it easy for our customers to start and maintain a savings habit so they can save towards longer term goals. We also proactively remind customers of the need to review their savings, highlighting products that might also be suitable for them and where they could benefit from a higher rate." There are no changes to the Premier Savings easy access account for those with balances over £100,000 (2.00%). However, Balances up to £50,000 will fall from 1.50% to 1.35%, while balances between £50,000 and £100,000 will decrease from 1.60% to 1.45%. There is also no change to HSBC's Regular Savings Account, which remains at 5.00%. This account allows customers to stash away between £25 and £250 per month, up to a total of £3,000. HSBC's Fixed Rate Cash ISA (which requires at least £500) saw its interest rate drop from 4.10% AER to 4.00% AER on May 12, 2025. Lloyds A Lloyds spokesperson told the Mirror it already has written to existing savers to advise them of 'upcoming changes to their rates' that will come into effect on June 3. For new account openings, the rate change came into effect earlier this week (May 21). Easy Saver/ Cash ISA accounts with balances between £1 and £25,000 will see the interest rate decrease from 1.10% to 1.05%. Balances from £25,000 to £100,000 will decrease by 0.5%, dropping from 1.20% to 1.15% - while those with more than £100,000 will be hit with a 0.20 decrease (1.40% to 1.20%). Customers that have an Advantage Saver will be stung the hardest, as its current 3.50% interest rate will slump to 3.25%. Halifax Halifax's Everyday Saver and ISA Saver variable accounts will follow the same interest rate decrease as Lloyds' Easy Save and Cash ISA accounts - as both banks are owned by Lloyds Banking Group. However, its Bonus Saver account will fall from 3.40% to 3.05%. NatWest "Following the Bank of England base rate cut, we will be passing on the rate cut in full to our customers on a Standard Variable Rate (SVR) mortgage," a spokesperson for the bank said. "SVR will be reduced from 7.49% to 7.24%, effective from 1st June. SVR customers may also be able to save money by switching to one of our fixed rate mortgages. "Following the Bank of England base rate cut, we have made reductions to some of our variable rate savings accounts. We will communicate these changes to customers in due course, giving at least 14 days' notice of any changes." Until 29 May 2025 From 30 May 2025 Digital Regular Saver £1 - £5,000 over £5,000 6.17% / 6.00% 1.25% / 1.24% 5.50% / 5.37% 1.15% / 1.14% Flexible Saver £1 - £24,999 £25,000 - £99,999 £100,000 - £249,999 £250,000 - £999,999 £1,000,000+ 1.25% / 1.24% 1.85% / 1.83% 2.10% / 2.08% 2.70% / 2.67% 2.70% / 2.67% 1.15% / 1.14% 1.70% / 1.69% 1.95% / 1.93% 2.55% / 2.52% 2.55% / 2.52% Savings Builder £1 - £10,000 over £10,000 2.00% / 1.98% 1.25% / 1.24% 1.75% / 1.74% 1.15% / 1.14% Help to Buy ISA (Tax-free) £1+ 2.20% / 2.18% 2.05% / 2.03% Payment Accounts Until 14 July 2025 From 15 July 2025 First Saver £1+ 2.25% / 2.23% 2.05% / 2.03% Adapt Account £1+ 2.25% / 2.23% 2.05% / 2.03% First Reserve £1+ 1.25% / 1.24% 1.15% / 1.14% Primary Savings £1 - £24,999 £25,000 - £99,999 £100,000 - £249,999 £250,000 - £999,999 £1,000,000+ 1.25% / 1.24% 1.85% / 1.83% 2.10% / 2.08% 2.70% / 2.67% 2.70% / 2.67% 1.15% / 1.14% 1.70% / 1.69% 1.95% / 1.93% 2.55% / 2.52% 2.55% / 2.52% Santander Santander confirmed it will be reducing interest rates for savings products linked to the BoE base rate - starting from June 3, 2025. This includes Rate for Life and Good for Life savings accounts, as explained below: Good for Life ISA AER/tax free (variable) 1.00% for £1+ Article continues below 1.00% for £1+ 4.50% for £1,000+
South Wales Argus
3 days ago
- Business
- South Wales Argus
Mumbles named among most expensive seaside towns in Britain
Lloyds Bank has come up with a list of the most and least expensive seaside towns in Britain as part of its Coastal Homes Review. The review, which used data from the Land Registry and the Registers of Scotland, tracked house prices in 197 coastal locations. Despite the small dip, prices in coastal towns have increased nearly a fifth (18%) since 2019, Lloyds said. Most expensive UK cities to buy a house in Britain's most and least expensive seaside towns The most expensive seaside towns in the UK (along with the average house prices in 2024), according to Lloyds, are: Sandbanks, South West (£965,708) Salcombe, South West (£826,159) Padstow, South West (£715,974) Aldeburgh, East England (£619,693) Lymington, South East (£608,253) St Mawes, South West (£552,198) Lyme Regis, South West (£531,815) Budleigh Salterton, South West (£496,998) Dartmouth, South West (£495,643) Kingsbridge, South West (£484,986) The least expensive coastal locations in the UK were found to be: Campbeltown, Argyll and Bute, Scotland (£103,078) Rothesay, Argyll and Bute, Scotland (£111,764) Millport, North Ayrshire, Scotland (£114,008) Port Bannatyne, Argyll and Bute, Scotland (£115,42) Girvan, South Ayrshire, Scotland (£116,211) Greenock, Inverclyde, Scotland (£117,751) Ardrossan, North Ayrshire Scotland (£124,532) Wick, Highlands, Scotland (£126,708) Stranraer, Dumfries and Galloway, Scotland (£128,888) Saltcoats, North Ayrshire, Scotland (£129,194) Mumbles has been named among the most expensive seaside towns in Britain. (Image: Getty Images) While the most and least expensive seaside towns (by region) are: East Midlands Chapel St Leonards (£214,802) Skegness (£202,559) East of England Aldeburgh (£619,693) Lowestoft (£238,372) North East Whitley Bay (£310,918) Newbiggin-by-the-Sea (£132,863) North West Grange-over-Sands (£308,419) Fleetwood (£146,338) Scotland St Andrews, Fife (£458,381) Campbeltown, Argyll and Bute (£103,078) South East Lymington (£608,253) East Cowes (£239,605) South West Sandbanks (£965,708) Plymouth (£248,668) Wales The Mumbles (£417,043) Prestatyn (£192,331) Yorkshire and the Humber Whitby/Robin Hood's Bay (£299,161) Withernsea (£148,402) Head of mortgages at Lloyds, Amanda Bryden, said: 'Coastal living continues to hold a special appeal – whether it's the lure of sea views, sandy beaches, or a slower pace of life. 'Our latest research shows the most exclusive seaside spots – like Sandbanks – still command premium prices. 'In some of the UK's most desirable coastal towns, average prices have dipped slightly over the past year. "But, over the longer term, values remain significantly higher – especially in the South West, where demand from lifestyle movers continues to shape the market. RECOMMENDED READING: 'At the other end of the scale, there are still pockets of real affordability – particularly in Scotland, where buyers can find coastal homes for a fraction of the price. "For those willing to look beyond the traditional hotspots, there are some hidden gems offering great value and a strong sense of community. 'It's also important to recognise that not all coastal areas share the same fortunes. Some seaside towns face significant challenges, from seasonal economies to a lack of affordable housing for local people.'
