Loyalty Tax

In the world of finance, companies often employ a well-known strategy to lure in new customers with irresistible offers and promotions. These deals are designed to cement themselves in your mind as market leaders. However, companies gradually increase the costs of their services or products for existing clients. 

Increasing Costs

The hope behind this approach is that customers, once they’ve settled into the convenience of their current arrangement either still believe they have best value without looking or see as a hassle to swap.

The Know How

This trend is particularly evident in various sectors, such as insurance, telecommunications, and subscription-based services

Price Creep

This subtle and gradual increase in costs, known as “price creep” or “loyalty tax,” can lead to customers paying more than they should for the same level of service compared to new customers or those who have switched providers. It is essential for existing customers to remain vigilant and proactive in monitoring their financial commitments regularly.

Useful Information

Together , let’s build a future where your financial well being is secure and fraud-free
Action Fraud
https://www.actionfraud.police.uk/

This is the UK’s national reporting centre for fraud and cybercrime where you should report fraud if you have been scammed, defrauded or experienced cyber crime.
Financial Conduct Authority (FCA)
https://www.fca.org.uk/

The FCA is a financial regulatory body in the UK, but operates independently of the UK government, and is financed by charging fees to members of the financial services industry. They provide information on how to report scams and unauthorised firms.
National Fraud Intelligence Bureau (NFIB)
https://www.cityoflondon.police.uk/

The NFIB is a police unit in the UK responsible for gathering and analysing intelligence relating to fraud and financially motivated cyber crime. They work alongside Action Fraud.
Citizens Advice
https://www.citizensadvice.org.uk/

They provide free, confidential and independent advice to help people overcome their problems, including guidance on how to report financial fraud.
National Cyber Security Centre (NCSC)
https://www.ncsc.gov.uk

They provide advice and support for the public and private sector in how to avoid computer security threats. You can report phishing emails to them.

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Taxation

Income tax is a percentage of your earnings that you pay to the government, while VAT is a tax added to the price of goods and services you buy. Income Tax is worked differently for the self employed which can be an incentive to work for yourself if you can keep more of the money you earn.

Pensions

This is in addition to the state pension which starts at retirement age. Due to compounding interest, the younger you start paying into a pension the quicker it will grow.

People commonly have different pension pots due to working through different employers with different

Insurance

Insurance protects you from potential risks and losses by transferring the financial responsibility to an insurance company in exchange for regular premium payments.

Credit Score

Managing your finances well not only gives you the best chance of being offered the loans and credit when you need it but also result in you paying less money back when you borrow.

pensions & financial planning

This is in addition to the state pension which starts at retirement age. Due to compounding interest, the younger you start paying into a pension the quicker it will grow.

People commonly have different pension pots due to working through different employers with different