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Savers warned about online budgeting tools
May 19, 2010
By Mark Warner

Savers using online budgeting tools have been advised that they may not be covered in the event of fraud.

An increasing number of online banking customers are using such sites – known as aggregator services – which allow them to move their money around in order to benefit from low interest rates.

However, several banks have stated in their terms and conditions that customers using the tools would not be covered if their account was targeted by fraudsters.

A spokesman for Barclays bank said: "Since Barclays has no control of these sites we are unable to provide our online fraud guarantee to customers who use these services."

Lloyds TSB, meanwhile, does not consider the use of aggregator sites a breach of security, while First Direct has said it will consider incidents of fraud on a 'case-by-case' basis.

Consequently, the British Bankers Association (BBA) has advised savers to consult their bank before using such sites to ensure they are absolutely clear on its policy toward aggregation services.

"You need to check so that you don't find yourself out on a limb," a BBA spokesman warned.

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