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By Mark Lewin
Staff Writer
14 August 2009
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Money News Roundup
If you only do one thing with your money this week...
Make Sure You're Protected
Under section 75 you can claim back the money spent on large purchases when there's been a breech of contract, including in the event of the company going bust. Find out more about how you can stay protected including what's covered and how you can claim with Claire Stevenson's section 75 guide.
Previous Money News Roundups
See our other recent Money News Roundups and other related news stories:
Money News Roundup (07 Aug 09)
A glance back at this week's personal finance news with how to get out of debt, £21 billion compensation for savers and why the 'bright young things' are deserting the city.
Money News Roundup (31 July 09)
A glance back at this week's personal finance news with misleading energy bills, disloyal savings providers and consumers chopping up their credit cards.
Money News Roundup (24 July 09)
A glance back at this week's personal finance news including the battle against credit card fraud, pricey wine, rising card transaction costs for holiday-makers and an interesting survey of car drivers..
Money News Roundup (17 July 09)
A glance back at this week's personal finance news featuring: when bills cost £1million, the proposed 90% tax on city bonuses and how babies can help you to keep your wallet.
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PAYMENT protection for debit cards, 20% VAT, HSBC/Barclays impose new charges and why travel insurance is more important now than any other time of year in this week's money news roundup.
Debit Card Users Need More Protection
DEBIT card holders should be as well-protected under law as those with credit cards, says the government-funded watchdog Consumer Focus.
As it stands, consumers using a credit card for transactions between £100 and £30,000 in value can claim from their card issuer under section 75 if the company they are buying from goes out of business.
While some debit card companies such as Visa offer voluntary protection schemes, most debit card holders are completely unprotected in the same situation.
With nearly 5,000 companies going bankrupt in England and Wales in the year preceeding March 2009 this has the potential to be a huge problem for debit card holders.
Failing to Buy Travel Insurance Could Be a Disaster
IF you planned to stay at home this summer but are now thinking of snatching up a last minute holiday bargain, then be warned. September is the peak time for travel operators to go bust, says the Association of British Travel Agents (ABTA).
There were 25 failures in 2008 and in a bad year, like 2009, there could be twice as many, warn the ABTA.
Airlines are at risk too. Last year, 17 international airlines went out of business and although only one has gone to the wall this year - the Lithuanian FlyLal - there could be more to come.
The key thing is to make sure you are adequately insured and to check that you have cover for personal items too: while the average amount of worth of a British traveler's suitcase and contents is £1,133, they are typically insured for far less.
Tories Plan VAT Hike to 20%
THE Tories are said to be considering a plan to raise the VAT rate to 20%, if they win the next election.
The plan - which would add £5 per week to the average family's outgoings - would bring in £10 billion extra per year and is thought to be under serious deliberation by Tory leader David Cameron and Shadow Chancellor George Osborne.
Margaret Thatcher adopted a similar strategy during the recession of 1981 when she raised the VAT rate to 15%.
Barclays and HSBC Up Their Charges
DESPITE announcing profits of nearly £6 billion this week, HSBC and Barclays have changed the terms of their banking and credit card accounts to squeeze even more money out of their customers.
A new European directive insisting that finance companies make the meaning of their small print more transparent to consumers meant that the banking giants had to rewrite their terms and conditions.
Yet the companies appeared more interested in using the opportunity to make small increases in charges.
For instance, HSBC has raised its credit card cash withdrawal fee from 2.5% to 2.99%. A small increase perhaps, taken at face value, but one with a huge potential profit for the multi-national.
Barclays used to waive charges when businesses went overdrawn for the first time in a three month period but is abolishing this waiver on 7th September.
These extra charges have been levied despite the government's insistence that banks should be helping consumers and small businesses during these difficult times.
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