10/05/2014 Your Money


10/05/2014

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Hello and welcome to Your Money, your weekly guide to making the most

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of your cash. Here every weekend on BBC News television and available

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all week on the BBC iPlayer. Getting more from our savings. Banks

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are told to make it easier to switch to a better account. We will find

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out how we do it ` and if it is worth the effort.

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A new car for the price of a second`hand one. We will show you

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how it is done. And the long harm of the law. More

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complaints about solicitors and the mistakes they make when we are

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buying a home. We will find out how to avoid the worst blunders.

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?4.3 billion ` that is how much extra the consumer group Which?

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Thinks we could earn every year if our savings were released from bad

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bank accounts. We have talked a lot in the past about switching our

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current accounts. Which wants the banks to make it easier to switch

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our savings accounts, too. Just 16% of those asked said they

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had switched their main savings account in the last 12 months.

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Why not more? Here is one possible reason. Just over 35% of those asked

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said they had not switched to a better account because they thought

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they were all as bad as each other. A whopping 75% said they did not

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think banks do enough to help savers get a good deal.

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James Daley is from the campaigning group Fairer Finance and David

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Braithwaite is a financial adviser, from Citrus Financial Management.

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What could the banks do? I think they could make the whole system

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simpler is a good starting point. At the moment, you open an account,

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it's got a great game and then 12 months later, even though it was

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called an instant Saver, they have offered a similar account with a

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different name, which is offering better interest. In many cases, the

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big banks simply do not tell you what the rates of interest are for

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all the accounts. How could it make us more aware of that? Should they

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be writing to their customers every year, for example? They could do, in

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these days, a lot of people do not open mail, why not text people?

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Banks simply have not moved into the 21st century, with relation to

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communication. Many people put the money the and forget about it. Could

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we have a system where the bank were transferred automatically another

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account? It sends a much simpler way of doing it. At least people would

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know, this is exactly where your money will be in 12 months' time. If

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they get in touch with you until you this, then you do nothing, the

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responsibility would lie with you. You tend to do a lot of shopping

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around and homework. It is very real that people will think, it is a year

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that has passed and then having a look at it, marking it on a calendar

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as you would a birthday. It does not highlight how to use the interest

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rates actually are. People could be making better use of their money,

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but the problem is, they are left to do it, when the banks should be

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doing more. People are so used to not taking money out of for example

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ISAs. People need to be aware that you can do that. Yes, part of the

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problem is also that the transfer takes so long. The banking system

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needs to move to a system where this can be transferred overnight. It all

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sounds like a pipe dream. In terms of moving to a different ISA, how

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would you best do that? You have to do your research. You need to simply

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get in touch and see I have this with this bank, ISA the, can you

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transferred it to this bank account? Unfortunately, it does take a few

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weeks to go through. It could be simpler. Everything is simpler, we

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all do Internet banking, like on the banks not deliver that speed to the

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consumer. Now, regarding interest rates, who actually are the best, in

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terms of offering best interest rates? The more you are prepared to

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do, such as running it yourself on the Internet, the interest rates can

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claim. You can get a three`year fixed rate of 2.7%. You can get a

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better rate if you are doing it yourself, you just need to make the

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effort. What about alternative to put your money, such as the

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accounts? Yes, some of their rates and these are 5`6%, but a lot of

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people are looking in the longer term to retain both the savings

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account and the current account. Thank you very much. David, you stay

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with us, because we will be talking to you slightly later on. , how

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could you lose track of that money? But thousands do, The government's

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got a Pension Tracing Service, to help people track down lost pensions

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and 145,000 have used it. Anyway, pensions expert Tom McPhail at

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Hargreaves Lansdown has come up with some tips to stop you losing track

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of your pension in the first place. If you change jobs, see if it is

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worth bringing your old and new pensions together in one pot. That

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is called consolidation. You might lose out, so do the maths first.

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If you move home, make sure you write to all your pension, savings

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and investment companies to give them your new address. Do not forget

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to tell your boss, as well. Keep the majority of your pensions

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and investments on one platform, this will cut down on paperwork and

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reduce the risk of money being lost. Make sure your husband, wife,

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partner, children, local cats home ` whoever is going to get your money `

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make sure they know where to find the relevant information. You can

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write down a list of assets, and have it stored with your will.

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Buying a car. To make the most of your money, is it is it better to

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buy new or nearly new? Theo Leggett goes all Clarkson on us. Car sales

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in Great Britain are booming. Sales increased by 8% in April and May

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have been increasing for the past two years. Researchers showed new

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one quarter of drivers want to get a new car with in the next five years.

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The car is the biggest purchase people will make after buying the

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house. A lot of the options are therefore important. As the car

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going to be great for you, going to do the job for you, how much is

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going to cost and to insure? You have to also budget as to how you

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will pay for it and long you are going to keep the car, essentially.

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Buying a car can be a very stressful process. You then need to go for the

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make and model and then, do you go for a used car or a brand`new one?

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Most of us would like a new canopy could get one. It is lovely and keep

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clean and has that lovely new smell about it. But the moment we drive a

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new car of the forecourt it loses an awful lot of its value. For the cost

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conscious motorists, that is a big problem. Newcastle lose up to 40% in

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value on the first year. According to research, it could work out

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cheaper to buy a new one than a used car. You know about these things, is

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it possible to get a new car for the same place or cheaper than a

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second`hand car. It is possible if you know that a dealership. You can

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also change the payment system. What if I do not want to pay in cash. Our

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best customers are those who buy second or nearly new vehicles. This

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has only six males on the clock is only two months old and has a saving

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of nearly ?9,000. It is a new car, as long as you do not mean being the

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second owner of the vehicle. There is a catch. And nearly new car will

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have a second name on the document, which could mean it would depreciate

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when you want to sell it on. But if you are looking at good value and

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not too fussed about the number of previous owners, you can get some

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fantastic deals. The most important thing is to do your research. If you

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want to buy something brand`new or second`hand, you may find yourself

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driving away with an absolute bargain.

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His other car is a Morris Marina. When you bought your house or flat,

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by the end of the process, were you still on speaking terms with your

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solicitor? Still good mates? Mmm? The Legal Ombudsman ` unlike other

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watchdogs, this one is not called Off`something. How delightful it

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would be if it was called Off`brief or Off`Lightly, but it is not. The

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legal ombudsman says the most complained about area of law is

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residential conveyancing ` the law about buying and selling a property.

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Tracy Kellet, aproperty expert at BDI homefinders is here, as is David

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again. How do you pick the right legal

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brain to take the pressure off you recommendation is first port of call

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` communication is everything DAVID: the first thing you should not do is

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skimp on your solicitor. You need to get yourself a good proper

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solicitor. The first thing you need to do is get a recommendation from

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somebody, somebody who knows about the subject, who has just bought or

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sold a house. Taught talk to them about the individual be used. Pick

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up the phone. Can you actually talk to them? The very important aspect

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of this is communication and the solicitor you cannot talk to is a

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hopeless situation. That is a very important point. It is about the

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Pearson, not about the solicitor 's office itself. David, looking at the

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figures, complaints of 215,000 last year. Is this telling is that

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solicitors are lazy or under more pressure? I think there are maybe

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more under pressure because house`buying has come up a lot. We

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have property lawyers who will speed things through at a discount price,

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but it does mean that some things get missed. But you are talking a

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lot of money when you're buying a house, so if you are saving a couple

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of hundred pounds, is it really worth it when you resell your house

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and the person who is buying it has a solicitor who is going to have a

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proper look at it? So, getting the discount is something of a false

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economy? Absolutely. The requirements that the mortgage

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companies need, legally wise, is much more strict and the require

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much more paper than needed years ago. You often come up against this

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wall of what you can do. You need this piece of paper which does not

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exist from 25 years ago and that is where you need a good problem

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solving solicitor. It is all about them being imaginative and

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innovative in the approach, rather than simply ticking off a check

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list? Yes, you need someone who will find ways around the inevitable

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problems which will end up in your way and that will relieve you of an

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enormous amount of stress and also protect you. You do need somebody

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who does not miss any of the important little details.

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Absolutely, and I bought a flat once and my lawyer found there was a

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square metre of driveway that was not owned by anybody. What if I was

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buying that flat and then somebody picks it up afterwards? It is all

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very well know in a buoyant market. What you need to think about is, in

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a slack market, you need to make sure what you have is as easily

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sellable as you wanted to be when you need to get rid of that asset

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and move on to a new home. There is a particular issue that the

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ombudsman picks up on, it is people who think they have bought the house

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or flat, they've got the keys, moved in, then it turns out they don't

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actually own it, because the solicitor has not handed over the

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stamp duty. There is a lot of this in the press, it is terribly scary.

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It is an obvious failing, and it is actually fraud. It is not as

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widespread as people believe, most of the things we're hearing are

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about incompetence. Is there any way of checking the stamp duty has been

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paid? What you need to look carefully at is the completion

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certificate you get, which is a statement of accounts. Can you do it

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without a solicitor? You can, it is not something I would recommend. We

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had a client do that once and it caused no end of pain. If you buy a

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property, and using a property lawyer, you're paying for somebody

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qualified to do that job. You would not do your own brain surgery, so

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why would you skimp on that? It is nice to have somebody to blame. If

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you are employing somebody for that, you have redress, you can talk to

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them about the solutions. I would never do something like that on my

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own. How do you protect yourself? You told us how to find the right

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solicitor, but mistakes are made. You have the legal ombudsman. They

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seem to be pretty busy. They seem to have your back as well. Get a good

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solicitor and you should not have any problems. Thank you, that is all

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from us this week. You can keep up`to`date all week long with what

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ever is making the news about money, pensions, savings, that takes your

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fancy. The address... You can get updates by following our

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feed on social media. Thanks for watching this week. I hope you will

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join us next week.

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Weekly round-up of news about mortgages, savings, credit cards, bank accounts and pensions. Helpful tips and advice on how to get the best deals, consumer rights and making your money work harder for you. With Declan Curry.


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