Tag: UK

Post Office Ltd and Bank of Ireland Group have announced that they have agreed the key commercial terms for a financial services joint venture. The new company will launch Post Office branded financial services products early in the New Year through the Post Office branch network, via the telephone and website.

The product range will include personal loans, savings accounts, credit cards, personal insurance and mortgages.

Post Office Ltd carried out extensive market research over the past 18 months among 20,000 customers. The research clearly indicated a market for financial services products offering a combination of trust, simplicity, reliability, convenience and security – characteristics all associated with the Post Office Ltd brand.

Royal Mail was fined £7.5m yesterday for missing targets on two of its business services, hours before a planned 24-hour strike by postal workers.

Postcomm, the industry’s regulator, said that the company’s performance on postage-paid services had failed its customers. The fine, one of the biggest handed out by a regulator, was described as “heavy” by the Royal Mail, which is losing £750,000 a day.

Royal Mail chief executive Adam Crozier has warned that this week’s 24 hour postal strike in London could cost the national carrier up to £10m.

Said Crozier: “Some of the London postcode areas are among the worst performing in the country. If Royal Mail is to hit its targets this current year then it’s vital that service in London improves. It is madness, therefore, for the union to inflict further financial damage through strike action.”

Royal Mail has introduced new compensation arrangements for customers.

The new compensation scheme gives customers 12 times the cost of First Class postage for First Class letters that arrive more than four working days after posting and for Second Class letters that arrive more than six working days after posting. Customers will be given £3.36 worth of postage in a book of First Class stamps. Business customers will get refunds on their postage bills if Royal Mail does not meet regulatory performance targets.