Bank Charges Ruling
In February the Court of Appeal ruled that the unarranged overdraft charging terms for personal current accounts can be assessed for fairness. The ruling is the latest decision in the long-running test case brought by the Office of Fair Trading (OFT) against the banks over unauthorised charges. The Court found that these terms are not part of the core or essential bargain between a consumer and their bank, and therefore consumers do have protection under the Unfair Terms in Consumer Contract Regulations (UTCCRs) for these terms. UTCCRs protect consumers against unfair standard terms in contracts they make with traders. The OFT, together with certain other bodies, can take legal action to prevent the use of such terms. Welcoming the judgement the OFT said: “This judgment confirms the OFT‘s long-held interpretation of this important aspect of consumer law, and is one that consumers themselves would identify with. It is also relevant to businesses across the whole economy. “We are now analysing the implications of the judgment for our ongoing investigation. The OFT has already written to the banks with its provisional view on the fairness of the terms, setting out its concerns that they may be unfair. We expect to reach a final decision on fairness later this year.” Chris Warner, of the consumers’ association Which?, said: “It is great to see the Court of Appeal being so unequivocal in their guidance to the banks that this is the end of the road. “They should now let the OFT do its job. The banks have the right to appeal to the House of Lords but the Court of Appeal could not have been clearer that that is not the appropriate way to go forward,” he added. Since the case started in July 2007, tens of thousands of claims for the return of overdraft charges have been frozen in the English and Scottish legal systems, waiting for a final decision on whether bank overdraft charges are fair or not. If the OFT ultimately wins the case, several billion pounds could potentially be refunded to millions of bank customers.
Actuarial Tables on Intestacy Undated
The actuarial tables for calculating the capitalisation of a surviving spouse/civil partner’s life interest on intestacy were updated on 1 February 2009 meaning that spouses and civil partners of people who die intestate (without leaving a Will) now receive more generous payments if there are sufficient assets in the deceased’s estate. From 1 February 2009 the levels of statutory legacy increased from £125,000 to £250,000 where the deceased leaves children and from £200,000 to £450,000 if there are no offspring. As before, if there are children the surviving partner will also receive a life interest in half the rest of the estate, with the right to elect that the capital value of this life interest be paid to them (provided that this election is made within 12 months from the date of grant of representation). Unless you make a Will, you cannot guarantee that your belongings will be distributed as you want when you die. It is surprising the number of individuals who do not have a Will and who die without making sure that those whom they wish to benefit from their estate after their death do so. As a result, many unnecessary complications arise, adding to the grief of the bereaved and the expense of winding up the deceased person’s estate.
Renting a Room
One way to earn some extra cash in the worsening economic situation is to rent out a room in your home. The Government’s Rent a Room scheme allows you to receive £4,250 a year (about £350 a month) tax-free from renting furnished accommodation in your only or main home to a lodger. (Your only or family home is the one where you/your family live for most of the time. A lodger is someone who pays to live in your home, sometimes with meals provided, and who often shares the family rooms.) A lodger can occupy a single room or an entire floor of your home. However, the scheme does not apply if your home is converted into separate flats that you rent out. Nor does the scheme apply if you let unfurnished accommodation in your home. With a Rent a Room Agreement you have much more control over the tenancy than you do with full tenants who sign a Tenancy Agreement. Unlike tenants, lodgers do not have security of tenure and have no right to stay on if you give them notice to leave. It’s also much simpler to remove unsuitable lodgers than it is tenants. Although not essential, it is a good idea to get the lodger to sign a Rent a Room Agreement.
Home Information Packs - England
A property information questionnaire is to be added to the list of documents to be included in the home information pack in England and Wales. The requirement was introduced in the Home Information Pack (Amendment) (No 4) Regulations 2008 and comes into force on 6th April 2009.