50 word Moneyfesto - 2011 Small changes for a big difference

David Cameron
The PM said:

Nick Clegg
The Deputy PM said:

Ed Miliband MP
Labour’s Leader of the Opposition, said:

Issue: Right to know rate you'll get before application goes on credit file

What's happened? As a direct result of the 50 words campaign, the Treasury Select Committee of MPs launched an investigation, at which Martin Lewis was the first to give evidence.

On the issue in question the Committee called for "an end to situations in which the user may not know what interest rate is to be applied to a card until after it has been issued".

After the report was produced it has been considered by OFT who have put a guideline in their Irresponsible Lending Guidance for Creditors that states that creditors should facilitate 'quotation searches' as distinct from 'application searches' when it's appropriate to do so.

Issue: Restaurants must display what happens to your tips

What's happened? In October 2009 restaurants were barred from using tips to make up their staffs pay to the minimum wage.

The Department for Business, Innovation and Skills (BIS) has taken on this cause of "Who gets the Tip?". Since it began investigating they have released research, which has shown that 61% of adults who tip do not realise where it goes with an enormous 95% believing it goes to staff.

It has also launched the campaign to encourage consumers to ask "Who Gets the Tip?" (BIS has also developed a Code of Best Practice which encourages transparency of tipping policies by businesses).

The Code states that information on tipping policy should be predominantly displayed BEFORE a customer leaves a tip that shows how they are distributed along with any deductions that will be made. It also makes it clear that staff should be aware of and understand the tips policy and know where to direct customers for more information.

However, the code is still voluntary but there is a planned review towards the end of 2010 so should be upcoming soon.

Issue: Speed up tax-free cash ISA transfers

Although ISA transfers are not as simple as a standard bank transfer they do happen at an extremely slow pace. This can leave money in limbo for months and not collecting any interest at all. Closely linked to this was Martin's suggestion that all savings statements must list the current interest rate either online or on a printed statement.

What's happened? Based directly on the 50 words suggestion, Consumer Focus launched its first super complaint on the subject of cash ISAs highlighting the issues mentioned above.

A super-complaint is a powerful tool that allows the government and regulator to look at the issues in question and ultimately act on them. The complaint was investigated by the Office of Fair Trading who issued a response.

It was concluded that the transfer process was too lengthy and that from the 31st December 2010 the time a transfer takes should be reduced from 23 to 15 days.

On clearly displaying an accounts interest rate the OFT has got industry agreement that from early 2012 all cash ISA statements would show the current interest rate for the account. See Cash ISA transfers for details of how to transfer most efficiently now.

Issue: Banks must offer current accounts (unless you have no ID)

In a the UK there is estimated to be 2million people who cannot get an account because they have only resided here for a short period or have a bad credit history. See the Best Bank Accounts guide. If you are rejected you should really have been offered basic account by the bank but many are failing to do so.

What's happened? This looked promising... in the 2010 Budget moved towards more financial inclusion.

In April 2010 Alistair Darling, the then Chancellor, announced in his budget that everyone in the UK will be guaranteed a bank account. This was to include more than a million people that had previously been victim of financial exclusion. The plan was to introduce a "universal service obligation" although the exact details will be subject to consultation.

However since the change of government this hasn't yet taken up - though the coalition has said it's committed to improving access to banking for consumers. For now if you're struggling to get a bank account see the best basic bank accounts guide.

Issue: Utility firms must put contract end dates & tariff details on statements

It wouldn't be difficult for energy providers to make our bills transparent and understandable so that we know exactly what our bill represents. Yet, if you look at any of your energy bills from before July 2010 you'd probably be filled with confusion.

What's happened? Ofgem changed its rules in July 2010 to deal with this issue.

In July 2010 Ofgem (the Energy Regulator) passed new rules that will mean companies will have to put tariff details on all statements and a new annual statement will tell consumers, amongst other info, their contract end date and estimated cost for the year ahead; although the latter won't say what happens if a promotional rate ends in the next year, so watch out for this if it applies to you.

The energy statement will also contain advice on how to switch provider and should be written in clearer language.

It is not a difficult thing to state when your contract is up or what exactly your costs are. No doubt these details were deliberately hidden to encourage you to spend more with that firm. See the MSE guide to annual energy statements

Issue: Tighter controls on door-to-door sales people

The hard line high pressure sales tactics in this sort of sales is extremely detrimental to the elderly and needs to be stopped. Research has shown that just under half of people who switch because of direct sales approach actually end up on a worse deal.

What's happened? Consumer Focus carried out a lengthy campaign alongside the Trading Standards Institute to have the big six energy companies respect those who live in no cold calling zones or have signage up saying no to cold callers.

The changes have been implemented through the 2010 EnergySure Code update and are a much welcomed change in the energy industry. You can find our cold caller sign here.

If you find that energy suppliers are ignoring such signage you should complain to the energy firm in question.

Issue: No retrospective energy price rises

As long as gas & electricity providers informed you within roughly 90 days of a price rise, they were within the rules.

What's happened? The Liberal Democrats raised the issue in January 2010 and Ofgem looked into it and carried out a consultation on the issue.

They have decided that customers should be told in advance about energy price increases rather than informed after the event. They have put forward proposals that would make companies have to give customers 30 calendar days warning before raising prices.

This timescale is intended to allow customers to shop around for better deals and if the proposals are accepted the changes could be in place by the start of 2011.

There is also a little known about Ofgem rule that has recently come to light that allows you to reject a price rise (even retrospectively) as long as you switch provider. More information on this can be found in the MSE news story.

Issue: Lenders shouldn't be allowed to automatically take money from a savings account to pay off debts

This allows banks to take money from a savings account, without warning or permission, to pay off the same person's (or a joint or sometimes even a related child's) account. It effectively penalises those who bank and save with the same institution.

What's happened since? The FSA opened their consultation in July 2010 and is consulting on measures to crackdown on lenders who dip into your current account or savings to pay off your debt. The proposals are to make sure you are warned in advance of such action and being left with enough cash to cover essential living costs.

The plan is to also stop setting off where the debt is held by an individual but the savings are in joint names. As the consultation closed in September a report with their recommendations should be released soon.

Hopefully, this will lead to some reform in this area.

Issue: Ban private wheel clamping (and the associated 'legal extortion')

The rules on this are lax, there is no automatic right of appeal, it's like giving permission for legal extortion. We need to ban private clamping and completely overhaul the entire private parking ticket rules.

What's happened since? The Freedom Bill is to be introduced early next year which is set to include a ban on wheel clampers from operating on private land in England and Wales.

More than 2,000 clamping licences will be revoked as a result with towing also set to be outlawed. Only the police and council will be able to clamp a vehicle for exceptional reasons.

Strong penalties will be in place for firms that continue to clamp in the form of large fines and even the possibility of a jail sentence.

Unfortunately, private ticketing is still allowed and will no doubt increase a result of the inability to clamp.

Issue: Legal right to fair energy direct debits

Many consumers often end up being in credit on their utilities at the end of the year when paying their bills by direct debit. This means that they are essentially giving utility firms an interest free loan. This is something many people can't afford.

What's happened since? Energy regulator Ofgem has taken note of this problem and implemented new rules which came into force on 18th January 2010.

These rules mean that customers will get a 'clear, plain and intelligible language' explanation of how payments are calculated and if the direct debit is increased why this has happened.

Payments must also be calculated using 'the best and most current information available'. If credit does accumulate on your account it should be refunded unless there is a 'fair and reasonable' reason not to do so. If this is the case the reason should be explained to you. See the fair energy direct debits guide.