Wonga Fraud Claims Grow
The BBC Watchdog programme is reporting increasing fraud based around Wonga. Here’s the introduction.
There’s been a growing number of complaints from victims about bank fraud, according to the BBC’s Watchdog programme.
It says it has heard from more than 350 people who claim their accounts have been raided for loans they didn’t take out.
They include 16-year-old student Simon Oliver from East Sussex.
“I was at Gatwick airport on a school trip and went to pay for some food and my card didn’t work,” he said.
It strikes me, that Wonga aren’t doing their checks correctly, as obviously, the sixteen year old, who was defrauded shouldn’t have been able to take out a long.
One point is that, the money has been loaned to a different bank account to the one where the payments are taken.
Surely, Wonga, do check bank accounts thoroughly! It looks like they don’t!
I just checked with a guy I know, who’s run finance companies and only in very rare circumstances, would you send the loan to one account and get the repayments for another. Usually, it was a commercial loan, where Director’s guarantees were involved.
I’ve not heard of this fraud being perpetrated on a reputable loan company.
The Cleanest Cash Point In The World?
I saw this cash point at the branch of Barclays in Rose Green on my trip to Bognor.
The Cleanest Cash Point In The World?
I’ve never seen one so clean. it was also very welcome, as I needed to get some money.
Spanish Banking Practices
This story in the Guardian about Santander and their Chief Executive; Alfredo Sáenz, shows why the only thing you should ever do with this overblown Spanish bank, is to use their cash machine, if it is the only one available.
I did that once and got charged for the money, but didn’t get any. They did find the mistake, so 48 hours later, the money was put back in my account.
But as I’ve often said here, a great friend of mine who retired from a high position in a major clearing bank, always told me to bank with a bank, which is head-quartered in the UK and preferably England, if you live there.
There is also this story on the BBC, about Lloyds divesting themselves of their Spanish Operations at a hefty loss. One of the consequences is that Lloyds now have a small 1.8% stake in a Spanish bank. To quote my old mate, Brian, it looks like they’ve been screwed, glued and tattooed on that deal.
But then it’s only money! Except that a lot of it is our’s!
Winston Churchill To Be On A Fiver
It is being reported that the new five pound note will feature Winston Churchill.
I always thought that to be on a British banknote, you needed to have a lot of unruly hair, so that the note was more difficult to forge.
Whatever he was known for, it wasn’t for being particularly hirsute!
Santander Make A Mistake
Paul Lewis, the BBC’s respected personal finance expert, has just flagged up this story on BBC Breakfast. Although, it’s not a big financial failure like PPI, it could have been inconvenient for some former Abbey customers. This is the first three paragraphs of the story.
Santander, the country’s second biggest mortgage provider, says 30,000 of its customers may be due compensation, after errors made in 2008.
All were former Abbey customers, who were put on standard variable rate (SVR) mortgages after coming off fixed-rate deals.
But they were not told clearly enough that they could have transferred their accounts elsewhere.
He also flagged up that there is no central way to notify customers that there might be a problem with their bank or insurance company’s systems and said there was a business opportunity.
He’s right on that last point!
What is needed is a site, where you register with just e-mail address and short post code, like N14 or IP4. You then enter your bank, insurance company, supermarket, broadband and energy suppliers, phone and mobile companies and perhaps your make of car.
Then when anything turns up like this Santander problem or the Virgin broadband failure, the site would send you an automatic e-mail.
All warnings would of course be available for any registered member to view.
Unlike the price comparison sites, the site would never sell or give your details to any third party.
Paul Lewis said it was a business opportunity! It certainly is!
The Co-Op Gives Up On The Lloyds Branches
Buying bank branches, is a bit like going down Covent Garden Market at the close of business and buying all the fruit and vegetables that has not been sold.
So in some ways the news this morning as reported on the BBC, that the Co-Op Bank isn’t buying the branches Lloyds must divest itself of, is no surprise to me.
Let’s face it branch banking is dead and those that still need a branch, use one that is convenient to them and won’t like being transferred. So perhaps, many have already put their business elsewhere and the Co-op would be buying a few worthless empty shells.
The Co-op’s Chief Executive has said this.
After detailed and thorough consideration of all aspects of the Verde transaction, we have decided, at this time, that it is not in the best interests of our members to proceed with the transaction.
Against the backdrop of the current economic environment, the worsened outlook for economic growth and the increasing regulatory requirements on the financial services sector in general, the Verde transaction would not currently deliver a suitable return for our members within a reasonable timeframe and with an acceptable level of risk.
So although he’s saying it’s not for the Co-op and giving reasoned views, it would be interesting to see the figures underneath it all.
I also wonder with all the publicity that this proposed deal has generated, if it has sent a message to many bank customers, that the Co-op Bank is a serious alternative and people have moved their accounts accordingly.
So has the deal got the Co-op what it wanted, without any risk whatsoever?
Let’s hope the fallout from this deal, gives us a few new iconic bars and restaurants in those redundant prime locations!
So What Is M-Pesa?
In the post on the Scottish currency, I mentioned M-Pesa. So what is it? I started by reading the Wikipedia entry. Here’s the initial paragraph.
In April 2007, following a student software development project from Kenya, Safaricom launched a new mobile phone based payment and money transfer service, known as M-Pesa. The service allows users to deposit money into an account stored on their cell phones, to send balances using SMS technology to other users (including sellers of goods and services), and to redeem deposits for regular money. Users are charged a small fee for sending and withdrawing money using the service. M-Pesa has spread quickly, and has become the most successful mobile phone based financial service in the developing world. By 2012, a stock of about 17 million M-Pesa accounts had been registered in Kenya.
The initial work of developing the product was given to a product and technology development company known as Sagentia. Development and second line support responsibilities were transferred to IBM in September of 2009, to where most of the original Sagentia team transferred.
It sounds a lot more sophisticated than anything we’ve got here! Especially, as it works on the humblest of Nokia mobile phones!
It’s developments like this, that will empower individuals and kill off the unnecessary wunch, that some still call bankers.
The Scottish Currency Question
If I could have ten pence for every politician, who’s put forward his view on the question of what currency Scotland has if they vote for independence, i wouldn’t be just a rich man, but a very rich man.
Surely, the amount of energy expended by politicians, would power a reasonably-sized city like Glasgow.
All of these politicians are flying in the face of the new reality, which is starting to sweep the world. Just read this article on the web site; SmallBusiness.co.uk about the future of banking. Here’s the first paragraph.
I was recently invited onto Evan Davis’ BBC radio and TV show ‘The Bottom Line’ for a discussion on alternative finance. Alongside me was Zopa founder Giles Andrews, the founder of Zopa – a UK peer-to-peer lending platform, and Michael Joseph, the former CEO of Safaricom, which set up M-Pesa, a mobile payment system, in Kenya.
It is the last bit that is the most significant. It also says this about banking and particularly M-Pesa.
The day-to-day of banking is changing world-wide and banks are not the ones driving the innovation. For instance, by some measures, Starbucks is among the 200 largest banks by deposits in the US, having $3 billion on their in-store card in 2012. Both Google and Amazon are also talking about providing finance to users of their marketplaces. At the other end of the economic spectrum, 31 per cent of Kenyan GDP now flows through M-Pesa, which is so simple it can be operated on a very modest Nokia phone and has no physical bank branch presence.
So does it matter about whether an individual or a company has their bank account in pounds, dollars, euros, thistles or beans? It only matters to the individual concerned. As someone living in and spending most of his money in the UK, I would probably keep my account in pounds! Although switching to euros, should be just a choice on the account.
Unfortunately, this transparent and convenient system would be unacceptable to the banks, as they make so much money on currency conversion.
I do wonder, if my new-found liking for cash, may be a personal reaction to the greed of the banks. If I pay by cash in Carluccio’s, I can leave a tip easily. It also seems to get good service, as the staff in many restaurants know me and have the gluten-free menu ready immediately I walk in. It’s also faster to settle up and there is nothing worse than waiting to get away, whilst a dim waitress struggles with a credit card terminal.
So to me, in a few years time, the Scottish currency question will be irrelevant to most people and companies in Scotland. They will pay their taxes in whatever currency the Scottish government uses or is forced to use and keep their bank account in whatever is convenient for their lifestyle or business.
So let’s get going on research to capture all that hot air being spoken to generate lots of electricity.
Bitcoin
A Leader in today’s Times has alerted me to Bitcoin. this is a sort of mission statement from their web site.
Bitcoin uses peer to peer technology to operate with no central authority; managing transactions and issuing Bitcoins are carried out collectively by the network. Through many of its unique properties, Bitcoin allows exciting uses that could not be covered by any previous payment systems.
As a software man, I think it could be a good idea.
But according to The Times, it has been a preferred method of payment for drug-related transactions.
They also think is could be another bubble, as does the Telegraph.
But the thought of a peer-to-peer transaction network, unencumbered by credit cards and bank charges has a certain appeal.
I shall be watching, but I don’t think I’ll be using it yet!
In the meantime, ideas like this, are just another reason to get rid of your bank shares.
The HBOS Three Should Be Banned
This story on the BBC’s web site, says that the Banking Standards Committee has recommended that three at the top of HBOS, should be banned from working in the City, after the failure of the bank in 2008.
I agree, as not only did they ruin HBOS, but they ruined Lloyds as well and not forgetting all of the small shareholders and businesses they damaged.
As with RBS, HBOS should have been allowed to go bust.
We’d all be in a much better state, if they had!
The Anonymous Widower 