Advert with Iggy Pop gets the chop

A controversial advertisement that starred the rock icon Iggy Pop has been banned following complaints from those that wanted to sign up to the service. The advertisement was for Swiftcover insurance, and the rock star appeared on the advertisement stating that he had been swiftcovered and suggesting that others do the same thing to save themselves time and money on their insurance cover. Read more

Banks shouldn’t be given such a hard time, says Mandelson

The Business Secretary, Lord Mandelson, has recently said to colleagues that the banking industry needs to be given a break, as banks are being given a hard time at the moment. He said that whilst banks had been given a ‘well deserved bloody nose’ but that people now needed to ease up on the banks because they needed them to succeed for the sake of the economy. Read more

Cut Down On Car Insurance by Stopping to Eat

Did you know that eating while driving can cause you to pay higher premiums for your car insurance? Drivers who are caught munching while driving can face increases of as much as £200 when their car insurance policy comes up for renewal. Read more

Consumers advised to pay credit card debt and not save

In the current economic and financial climate, with the recession threatening the jobs of many people, it is not surprising that many people decide to put every spare penny into savings in the event that they should find themselves short of cash or experience a drop in income. Read more

Drivers warned against munching at the wheel

Although many drivers would not think twice about eating a snack whilst driving or taking a drink of water or pop, a recent report has revealed that actions such as these could be construed as driving without due care and attention by insurance firms, and as such drivers that are caught doing this could face insurance premium increases of up to 40 percent. Read more

Update on the American Credit Card Bill of Rights

The Credit Card Bill of Rights was just recently passed in congress. Below are some new rules and my thoughts on them.

Credit Card issuers can only increase your interest rates if:

• When the increase is under a variable interest rate. – This is great news but will not help existing consumers who have got their rates jacked up recently. In fact many more face a similar situation before the bill kicks into effect
• At the end of the promised time period for a promotional rate. – This in my opinion, does not affect current practice. Most 0% balance transfer credit cards deals are for six months and they clearly state that the interest rate becomes a variable rate once the introductory period is over.
• If the required minimum payment is not received within 60 days after the due date – This will buy consumers some time if they are having some difficulty.

Future rate hikes – Card issuer can raise the rate on future purchases with 45 days notice after the first year. No notice is required for increases due to one of the reasons stated above.

Rules About Paying off on old terms
Credit Card issuers cannot change the terms for repaying a balance, unless they give the you either:

• Five years to pay off the outstanding balance at the old rate; or
• An increased minimum payment that has no more than twice the old minimum payment – this means they can increased your minimum payments but not more than twice of what you are currently paying at the moment

There have been more rules (and for the better in our opinion) with rewards to limits on fees and penalties

• If the interest rate increases because the minimum payment is not received within 60 days after the due date, the rate must go back to the original, lower rate if the consumer makes on-time minimum payments for six months – I think this is only fair because it gives consumers a chance and a reward for good paying habits
• No over-the-limit fees may be charged unless the consumer has asked for the account to be set up to allow transactions that will exceed the credit limit. – This is a great provision because credit card issuers have deliberately allowed charges to be made if it crossed their credit limit and then an over-the-limit fee is charged!
• An over-the-limit fee may be imposed only once per billing cycle if the balance is above the limit on the last day of the cycle – the fact that this law had to be passed just goes to show how abusive things have gotten
• No fees can be charged for making payments except for expedited payments arranged through a customer rep – again, the fact that this should even be in the bill is just ridiculous
• Penalty fees (late fee, over-the-limit fee, etc.) must be reasonable and proportional to the omission or violation. The Federal Reserve Board must issue rules to set standards to decide what fee levels are reasonable – This one is interesting because it remains to be seen what is deemed as “reasonable”.
• Two-cycle billing is prohibited – this one is long overdue

Credit Card issuers must also consider one’s ability to pay – How this one can be implemented is beyond me? Credit card issuers only ask you to fill in your income or household income upon the initial application. But how will they find out if you have had a raise or lost a job?

• Amounts in excess of the minimum payment must be applied to the highest interest rate, except in the last two months before a deferred interest balance is due – this one is long overdue

Rules on due dates, time to pay – This one is interesting in that it just goes to show the abuses that credit card companies have heaped upon consumers.

• Credit card issuers cannot set early deadlines for payments. Payments must be received by 5 p.m. at a location set by the issuer.
• Due dates will be on the same day each month – this may be a problem as I’d rather have them on the same date. What happens to autopay, which is always set up based on a date every month?
• Card issuers must deliver the bill at least 21 days before the due date

College Students – Perhaps the biggest impact will be those who are college students. It appears that it will be more difficult to get student credit cards

• Before issuing a card to a person under 21, the issuer must obtain an application which contains either the signature of a co-signer over 21 or information indicating an independent means of repaying any credit extended – looks reasonable but what happens if your parents do not have good credit?
• Card issuers may not raise the credit limit on accounts held by a person under 21 who has a co-signer without written permission from the co-signer – once again, this seems very sensible
• No prescreened card offers can be made to people under 21 unless they have consented to receive such offers – I really like this idea because I think the less offers one gets, the more unlikely he or she will get a credit card just because of an offer
• Card issuers cannot provide tangible gifts to students on campus in exchange for filling out a credit card application – no more booths sponsored by credit card issuers?
• Colleges must publicly disclose any marketing contracts made with a card issuer – colleges will not like this one at all. But with endowments under pressure???

Rules on Issuance fees – I think this rule has tremendous implications for the sub prime sector, particularly to issuers that issue credit cards for people with bad credit. These issues tend to issue cards from up front fees of as much $200. But worse of all, they tend to start someone off with a $300 credit limit. So even though you have a $300 credit limit, you end up with (in this example) just a $100 limit because of fee. From now onwards, issuers cannot finance fees and charges for opening a credit card where the fees and charges total more than 25 percent of the credit limit.

This is a guest post written by Mr Credit Card from www.askmrcreditcard.com. His site reviews credit cards and if you are looking for the best credit card offers, then you may want to head over their.

CML releases repossession figures

The Council of Mortgage Lenders released figures last week that showed the level of repossessions in the UK had increased by 50% in the first three months of this year compared to the first quarter of the previous year. The number of repossession is said to have soared to 12,800 in the first three months of the year, and this was up from 10,400 in the previous quarter and from 8,500 in the first three months of 2008. Read more

Comparison sites could help find the best credit card deals

Industry experts have recently said that in the current financial climate, with many credit card companies cutting back on deals and enforcing more stringent regulations, many consumers could find that they are better off using a comparison site to find the most suitable credit card deals for their needs. Read more

Prices of UK Homes Still Falling

With the increases in mortgage lending that occurred in the UK during the month of March, many homeowners felt that the recession was nearing an end and that they would soon start to see an increase in house prices. Read more

Huge depreciation in new cars in three years

Industry officials have recently said that the depreciation seen in new cars in the space of just three years could mean that for many consumers the £2000 car scrappage scheme introduced by the government may actually leave them worse off. Read more

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