Money week; Bad news of the week; Quote of the week; Mortgage deal of

Sunday Herald, The, Feb 1, 2004

Scots are unwittingly contributing to the country's record levels of personal debt by paying out millions in bank charges and living in overdraft rather than using savings to pay for holidays or Christmas costs. According to the Clydesdale Bank, the average Scot has (pounds) 5500 in savings, yet 20% are in overdraft and pay millions of pounds in charges.

"Extortionate credit, high charges, bad lending practices and disreputable recovery actions are not the preserve of a fringe group of lenders. Lack of access to affordable credit, limited bargaining power and the marketing techniques of many lenders, suggest there is a need for greater consumer protection."

Kaliani Lyle, chief executive of Citizens' Advice Scotland, in its new consumer debt report On The Cards. The full report, to be released on Wednesday, will reveal an alarming rise in personal debt across the UK.

Standard Life Bank has launched a three and four-year stepped rate mortgage as part of its Freestyle range. The three-year stepped discount offers a 1.4% discount in year one, 0.5% in year two and 0.25% in the final year. The four-year deal offers a 1.5% discount in year one, 0.5% in year two, 0.25% in year three and 0.11% in the final year.

The Financial Services Authority slapped a (pounds) 750,000 fine on Deloitte & Touche Wealth Management, a branch of the international accounting business. The fine is the largest ever against a financial adviser and the first for the mis-selling of split capital investments. Deloitte & Touche Wealth Management was accused of inappropriately selling shares in split-capital investment trusts to 1177 clients.

A Surveyor Ombudsman Scheme has been launched in Scotland. All members of the Royal Institution of Chartered Surveyors are required to have a company-level complaints procedure. But if customers are still unhappy, the ombudsman can consider complaints of maladministration, poor service, negligence, incompetence and financial loss up to (pounds) 25,000. The service is free.

THE 2003 financial results from the Portman Building Society and the Skipton Building Society will be released on Monday. The Bank of England's Monetary Policy Committee meets on Wednesday and Thursday to consider a rate rise. The Penrose report into insurer Equitable Life may finally be released.