Foreign Perspectives

Archive for the ‘Society’ Category

When we moved to France we drove our car there with the intention of officially importing it at some stage.

However, we were rather busy in the first few months in France setting things up, then spent the rest of that first year trying to catch up on various bits of administration that we’d put off in the early part of the year. Thus it was quite late on that we started looking into importing the car.

By then we’d become rather wary of the circular path that administration often takes in France and so it was no great surprise to find that it was going to be almost impossible to import our car. Compounding the difficulties was that it was a grey (ie personal) import to the UK so it didn’t have the European type approval. That added another circle of administration to be worked through.

Fortunately in some ways the car developed a couple of what seemed like major problems if the garages were to be believed (which we later found out were relatively trivial things) at around the time when we needed to do something concrete in terms of importing the car. So we ended up just leaving it in the car park for the next six years. It’s not that we intended to do nothing about it, just that one thing or another always had a higher priority and besides the more we looked at the administration required to import it officially, the more we tended to look away.

Anyway, it’s obviously not worth a whole lot now and it’s become one of the French annoyances that need to be cleared up so we thought we’d either sell it or at least get it towed away.

It turns out that thanks to the French love of administration that we can do neither until we can come up with some ownership papers that they will recognise. The ancient log book was never going to be a runner in their eyes even if we could find it so we figured that we’d get the new V5 certificate which is a European style document that they should recognise. Now, those that have read the small print of their own V5 certificate will note that it specifically says that it’s not proof of ownership but seemingly is accepted as such in France as it is here.

So, after finally getting the VIN without which the DVLA said they wouldn’t issue a new one, we set off to Coleraine this morning. We’d a couple of queries so couldn’t use the local offices hence the trip to Coleraine. Nope, can’t issue you that. There’s a note on the record that says the car was exported back in 2005. Well, would you expect anything to do with European administration to be easy?

After some debate, it turns out that they can issue the export certificate which they should have issued back in 2005 though. This contains the same information as the V5 and moreover is free. All being well, the French will accept it.

Prepaid cards seem to be breeding like rabbits around the world and every single one is different from the others in terms of charges, features and general usability.

Rather than trawl through all the cards that would pay me to recommend them to you as the majority of card comparison sites do, I’m just going to go through those that are “best” here and tell you why that they’re the best so that you’ll be able to choose which is best for your circumstances.

At the moment there are basically three types of card available:

1. Maestro cards;
2. Visa Electron cards; and
3. Mastercard debit cards.

All of the Maestro cards seem to charge you for the card and a number of them charge you an annual fee too for a card which is very limited in functionality. Therefore, it isn’t worth considering these any further.

At the moment there seem to be only two Visa Electron cards available aimed at the holiday market which is a shame as it’s a very useable card. The Post Office card is free to get, £5 to renew and costs £1.50 per UK withdrawal, £2 overseas; if you get the Euro or Dollar cards their “0% commission” works out at around 3.5% otherwise it’s 2.75% when you use, say, the dollar card in Europe. There’s a 1.5% charge to add money to the sterling card. The LloydsTSB costs £7.50, £5 to renew and costs £1.50 per withdrawal with a 2.75% currency exchange fee when used abroad; on the Euro or Dollar cards their “0% commission” should work out at a similar charge to the Post Office card (they don’t offer a sterling card). That £7.50 initial charge (waived if you have a LloydsTSB Silver account) and much wider availability means that the Post Office card will be best for most people.

The range of Mastercard debit cards is vast. The majority of these cards have a monthly or annual fee which makes those ones very expensive which is a shame as this is the most useful of the three types of prepaid card currently available. However, the FairFX card is free if you load £500 or more onto either their Euro or dollar cards or alternately via this link for £10 upwards (it’s £9.95 for a three year card otherwise) and costs £1/€1.50/$2 to withdraw cash (there’s no transaction charge for purchases). The card is renewed free if you top it up at least twice over the three year validity of the card, otherwise it’s £6/€9/$12. The ICE card is free to issue from £100/€100/$100, £1.75/€3/$3 to withdraw cash and charges 4% for all currency conversions. It’s renewed free if your balance on the card is at least £50 when renewal time comes up otherwise it’s £3/€5/$5. They charge £1.75 per purchase transaction when you use the sterling card in the UK but the euro/dollar cards are free to use for purchases everywhere and the sterling card is free to use everywhere except the UK for purchases. Purely on the published charges this makes the FairFX card the one to go for but it’s even better than that as they only charge about 1% for currency exchange.

So, which of all of these cards should you get?

1. The very clear winner is the FairFX card which is free to issue via this link, £1 per cash withdrawal and about 1% to convert the money to euros/dollars. If you load your card at least twice every three years (the topup when you get the card to begin with counts), renewals are free otherwise they’ll charge you £6. Topups are via debit card or bank transfer; in theory you can topup via credit card but FairFX charge you 1.5% to do this and you could get hit by cash advance fees from your bank too if you do this.
2. In second place comes the ICE card which is free to issue and renewed free if you have at least £50 on the card at renewal time, £1.75 per cash withdrawal and 4% to convert the money to euros/dollars. You can top-up online by credit/debit card or in their branches with cash, cheque or credit/debit card.
3. In third place comes the Post Office card because it’s free to issue, £5 every two years free to renew, £2 per cash withdrawal and about 3.5% to convert the money to euros/dollars. You can top-up the card with cash or credit/debit card in a Post Office branch or by phone or online with a credit/debit card. The big plus point of this one is that you can get it immediately from a Post Office branch so if you’re looking for a last minute card before you head off on holiday, this is the one to go for although do bear in mind that the card needs to be activated before use ie you can’t get one in the Post Office in the aiport, get on the plane and use it immediately in the resort.

What would I get myself? The FairFX card in that the charges are so low. This is a truly excellent card and if you remember to top-up twice every three years it’ll not cost you anything to operate. I’d also consider the Post Office card in that it’s useful to have both Visa and Mastercards as not everywhere takes both and you could come unstuck if you only took one.

For true emergency use the Post Office card comes into its own as you could get someone to get one for you in the Post Office and post/courrier it to you whilst you were on holiday.

You should consider these cards only as backup to your normal credit/debit cards. For use abroad, the best bet remains the Nationwide Building Society‘s Flexaccount (Visa debit or Cirrus) which has no charges at all for withdrawing cash or converting from sterling to any currency [sadly as of November 2010 it’s no longer free]. Alternatives to this are Abbey’s Zero Card (Visa or Mastercard) which appears to be even better than the Nationwide offer. Other credit cards with no foreign exchange fee include Thomas Cook (Mastercard), the Post Office (Mastercard) which charge nothing where-ever you are and Saga which charges nothing in Europe and 1% outside. Finally there’s the Egg Money card (Mastercard) which charges 2.75% for currency conversion but has no transaction charges for cash withdrawals and pays a quite respectable rate of interest when the account is in credit; it’s an excellent choice if you like to budget your holiday spending as you can use it like a savings account [sadly now one of the very worst cards to have after Citibank “improved” it].

In theory the answer is simple: when the exchange rate is the best. The only problem with that is that nobody knows when the “best” rate will be reached.

Fortunately there is another approach which works well no matter what the exchange rates get up to and that’s using what’s technically called pound cost averaging. Sounds complicated but what it involves is you buying your foreign currency regularly throughout the time from now ’til your holiday arrives. That way you avoid the ups and downs of exchange rates.

Those ups and downs can be quite substantial too. Over the past year the euro has swung up and down around 12% whilst the pound seems on a steady rise against the dollar (up around 14% over the last 12 months). You might think that it would be better to leave off buying dollars ’til you get an even better rate but we might be at the peak already and just not know it yet.

So how do you go about it? The simplest and cheapest way is to use something like the FairFX card which is free via that link and offers the best rates around. Minimum top-up is only a tenner and you can top-up via standing order which cuts out a lot of hassle. Alternatives are from CaxtonFX (minimum top-up £100) and the Post Office (minimum top-up £50, charge around 3.5%).

Quite a nice way of saving for that next holiday and it should save you money too.

Although you might expect America to be just like a version of England it turns out that it’s very different in a number of areas, notably in terms of financial sophistication.

One very important point to note from the outset is that foreign exchange is not something that American banks generally deal with. Whilst in England you can change foreign currency in any bank, you can only do that in the largest of branches in America. Also worth noting is that ATMs aren’t as common in America as they are in the UK and you won’t be able to use a cash-back facility so it’s worth carrying, say, $100 in cash.

That lack of foreign exchange facilities means that you must take cash in American dollars. These come in $1, $5, $10, $20, $50 and $100 notes (“bills”) with each one being the same shape, size and colour so you need to look at the amount printed on them. You do get used to that lack of difference quite quickly. The dollar is divided into 100 cents and these come in 25c (“quarter”), 10c (“dime”), 5c (“nickel”) and 1c pieces. There are $1 coins but these are very unpopular and hence rare. It’s handy to take about $100 in cash (preferably in a mix of 10s and 20s); this is available commission (but not charge) free at the Post Office. The downside of cash is that if it’s stolen, it’s gone as holiday insurance rarely covers cash to any significant amount so if you are taking it, limit the amount to $100 or so. If you buy foreign currency on a card, it counts as a cash advance with all the charges that implies.

Travellers cheques (or, in America, “travelers checks”) are much better than cash in that they can be replaced fairly easily if stolen (keep a note of the numbers, date bought and where you bought them). However, they are equally expensive to purchase and there is often a charge to cash them too. In America you can use dollar cheques as though they were cash in shops (even where they say “no checks accepted”). If you have any left over after your holiday, keep them rather than cash them in your bank as you can use them later (there is no expiry date) and this will save you paying the commission again. If you buy travellers cheques on a card, it counts as a cash advance with all the charges that implies. Make sure that your travellers cheques come with the Visa or Mastercard or American Express brands as others may not be accepted.

Credit/Charge cards are used nearly everywhere these days. If you don’t have a card already, you should get one (Visa or Mastercard) even if you only plan to use it for emergencies. Bear in mind that not everywhere accepts them though and also that not all places take both Visa and Mastercard. If pushed, you can get cash on these cards either in an ATM or over the counter in a bank but save this for emergencies only as you’ll get charged a cash advance fee, currency conversion fee and interest. The exchange rate used is much better than you’ll get for either cash or travellers cheques. You will need a credit or charge card to hire a car and to reserve hotel rooms.

Debit cards are almost always branded Visa/Electron/Plus or Mastercard/Maestro/Cirrus and work in the corresponding systems however sometimes you may be issued with a card which can only be used in your own country: check that one of the Visa/Electron/Plus or Mastercard/Maestro/Cirrus symbols are on your card as if they aren’t you probably can’t use the card internationally. Charges are as per credit cards except that you don’t get charged interest on cash advances.

Cash cards are often limited to the country in which they are issued but if they have a Plus or Cirrus symbol on them, you can use them abroad too. Charges are usually the same as for debit cards in ATMs. The principle advantage of having a cash card is that they are a lot less attractive for thieves as they can’t be used without the PIN.

Prepaid cards are becoming increasingly popular with CaxtonFX and FairFX offering excellent value. Both offer cards denominated in dollars, euros and sterling. For travel to America take either the dollar or the sterling cards. Charges on both are broadly similar with Caxton taking a £10 charge (refunded) upfront and having a minimum top-up of £100 whilst FairFX charges a non-refundable £9.95 (but free by clicking on the link here) and have a minimum top-up of £10.

As well as the above options you also have a choice of providers of the various methods of payment. Travellers cheques may be offered “commission free” by your bank (and the UK Post Office), although note that this is not the same as “free”.

If you use one of the banks within the Global Alliance banks (BNPParibas, Bank of Nova Scotia, Bank of America, Barclays, Deutsche Bank and Westpac) you can use machines from one of the other Global Alliance banks without transaction charges (currency conversion fees still apply).

This article is part of our series on holiday planning which covers things like how to book your holiday, how to take your holiday money, what to pack, etc.

After a bit of arm twisting I managed to persuade Wendy to take up both an English and a maths class at school.

Although the primary school has organised them basically so that the parents attending can in turn help their children with the homework over the coming years, they’re at a much higher level than the kids will reach in that school with the highest level currently on offer going to GCSE equivalent. The Essential Skills classes that they’re doing come in two levels with the first starting at a very low level and it’s only the second level that gets to GCSE.

English was the most popular class going by those signing up for it last week and Wendy reckoned that there was a fairly full turnout this morning. She also reckons that there’ll be quite a dropout over the next few weeks as, by the sound of it, a fair number of those attending weren’t expecting to actually have to do much thinking. Having said that, high drop out rates are par for the course for open-entry courses with 40% being quite typical. That might seem like quite a high rate but there are all kinds of reasons for it and more than most apply to this course: there was little information in advance about course content, it’s open-entry and there was a lot of peer pressure to sign up.

The little information about the course meant that people could easily have expectations about the course which were wildly out of line from what it actually covers. For the English course, that probably means that a number of people will be expecting to read novels for the course but it’s a course about the language rather than the literature so they’ll not be reading novels at all. Being open-entry means that people who’ve had little or no effective schooling will be there along with those who’ve had quite a lot of effective schooling and that’s already causing problems with a small group who never learned that they need to keep quiet in class and particularly so when the teacher is interacting with another student. Finally, the peer pressure means that some people are there who don’t really want to be which will be causing problems too.

Worst of all though she’s got homework so that’s three lots of homework that I’ll need to check now?!?!?!