ABI wants to increase safety for young drivers

The Association of British Insurers has recently revealed a number of key priorities relating to car insurance, which is aimed at making a number of improvements including improving safety for young drivers. The organization said that it wanted to take steps to reduce young driver accidents and more importantly deaths as a matter of urgency.

Otto Thoresen, ABI’s director general, was speaking at the ABI Motor Conference recently and spoke about how all insurance companies were keen to be able to provide customers with competitive prices for their insurance cover. He said that one of the ways that would enable insurance firms to do this was to improve the safety of younger drivers .

Thoreson said that every day around eighteen young people were killed or seriously injured on the roads of Britain. He said that the ABI had called for measures to be taken some years ago to try and reduce these serious injuries and deaths and since then many young lives had been taken on the roads. The ABI wants the government to take steps to help tackle this issue, which will save lives and help to bring insurance costs down.

He said: ‘As a nation of car users with some of the busiest roads in the world, insurers are committed to providing the best possible deal for motorists. One of the key ways to achieve this has to be improving the safety of our young drivers, who continue to make up a disproportionate number of road casualties. Five years ago we called for measures, such as a minimum learning period, to tackle this tragic waste of life, yet every day 18 young people die or are seriously injured on our roads. Insurers are actively helping young drivers through the increasing use of telematic ‘black box’ systems that reward safer driving. But we cannot do this alone. So I reiterate our call to the Government to work with us to tackle this issue. The time has come to seriously consider tougher measures such as a zero tolerance drink-drive limit for drivers under 25, graduated licencing, and restrictions on driving at night and in the early hours.’

Tags: period, ABI Motor Conference, reiterate, Association, car users, reward

Demand continues to outstrip rental supply for most lettings agents

In the past, many people who went into private rental accommodation did so as a stop gap before getting a mortgage and buying their own home. However, over recent years things have changed radically and many of those in private rented homes are having to be in it for the long haul because they are unable to get the finance that they need to get onto the property ladder for themselves of are too concerned about matters such as the economy and their job security.

Demand for rental accommodation has soared over the past couple of years, rising to unprecedented heights and resulting in demand by far outstripping supply in many areas. According to the Association of Residential Letting Agents the situation is now becoming difficult because the private rental sector has come under increased strain. The association said that a rising number of its members are now reporting far greater demand than supply.

Around three quarters of ARLA members are said to have seen demand outstripping supply in the private rental sector, with more and more people struggling with mortgages and opting for private rental homes instead. ARLA also said that tenants were now staying in their rented homes for record periods, having reached a record high of nineteen months. London and the South East have seen particularly high levels of demand according to figures.

Tim Hyatt, president of ARLA, said: “The UK cannot rely on the rental sector to support the housing market in perpetuity. The reality is that there is a finite amount of rental property and unless both housing supply and mortgage availability improves then renters will find that their options in the market are reduced.”

Tags: arla, private rental sector, high, record, Association, home, president

Shapps wants more help for first time buyers

Since the onset of the global financial crisis banks have become increasingly cautious over their lending levels, and many people hoping to purchase a home have suffered as a result, particularly first time buyers who are being told they have to pay huge deposits to even stand a chance of getting a mortgage. Ministers are now concerned that the High Street banking giants are failing to offer loans to first time buyers even if they have excellent credit ratings and history.

In fact, concerns have become so bad that a meeting is being arranged for next month, where senior officials from major lenders will have to answer to ministers with regards to why lending levels are so high. Recent figures released by the British Banker’s Association have shown that mortgage approvals for 2010 fell to their second lowest level in eleven years, with the lowest number of approvals being seen in 2008.

It has been revealed that the Housing Minister, Grant Shapps, will be demanding answers from lenders with regards to why their lending levels are so low, and why they are no lending to first time buyers even if they have perfect credentials. There are concerns that this failure to lend to first time buyers, who are needed to keep the property market buoyant, could have a serious negative impact on the property market in the UK.

Shapps said: “We have to avoid pulling up the housing ladder and cutting off a whole generation of young people who want to buy their own home. We want to do more to help aspiring first-time buyers – the average age of the first-time buyer with no support from their family is now 37, and there are 1.4m households who aspire to own a home but are simply unable to do so because of house prices and mortgage availability. So I’m calling together key figures from across industry to discuss how we can tackle this problem. “This cannot be achieved simply by top-down diktats from Government – there will need to be a unified effort and creative solutions from across the board to make sure we do not lock young people out of the housing market.”

Tags: level, history, first time buyers, Recent figures, Loans, uk, chance

Cold weather could result in huge insurance claims

It has been claimed in a recent report that the cold weather that has swept across Britain could result in a billion pounds worth of insurance claims this year. The claims has been made by the Association of British Insurers, which believes that the cold weather is going to cost insurance firms dearly, with claims being made for all sorts of weather related damage.

Just over one billion is said to have been paid out to homeowners by insurance companies last year following what turned out to be the coldest winter in thirty years, according to the ABI. The association warned that damage such as leaks and burst pipes could cost insurance firms a massive £11 million per day this year.

The Insurance Information Institute reported that last year winter storms and weather cost insurance firms in the United States around $770 million, and this was said to be the lowest total in eight years.

The freezing weather and sub-zero temperatures in the UK have resulted in many schools being closed and chaos on the roads of Britain. With temperatures continuing to plunge many people will find themselves having to cope with problems in the home, for which they may end up having to claim from their insurance firms.

Consumers are urged to make sure that they have winter insurance cover in place, and make sure that it is adequate and covers their needs in order to ensure that they are able to make a claim should any problems arise. Homeowners should also make sure that their heating is serviced so that it does not break down and to reduce the risk of pipes freezing and bursting.

Tags: huge insurance claims, leaks, coldest, home, coldest winter, Association, worth, business

Figures show fall in credit card fraud

Recent figures have shown that the level of credit card fraud seen in the UK during the first half of this year fell. In fact, according to recently released figures the level of fraud fell to its lowest level in ten years. Officials believe that a number of factors have contributed to the drop in credit card fraud levels.

During the first six months of this year the value of losses caused by credit card fraud came to around £186.8 million. Compared to the first six months of last year this reflected an impressive drop of 20 percent. According to the UK Cards Association the drop in credit card fraud is down to a number of security initiatives.

Amongst the security initiatives that were highlighted by the UK Cards Association as being partly responsible for the drop in credit card fraud was the increased rollout of updated chip cards across the UK as well as raising awareness amongst retailers over how they could increase protection against fraud on their chip and pin machines.

Cardholders and retailers are also said to be signing up more for security measures such as Verified by Visa and MasterCard SecureCode, which helps to protect cardholders from fraudulent activity.

Further good news was that the level of online fraud had fallen, with more people now aware of things such as phishing scams and protecting accounts more effectively in terms of passwords. Online banking fraud losses are said to have enjoyed an impressive 36 percent fall in the first six months of this year compared to the first six months of last year.

Melanie Johnson, Chair of The UK Cards Association, said: “These figures are testament to the importance that the UK’s card companies place on driving down card fraud losses and reducing any inconvenience to customers.”

Tags: security measures, Association, credit card fraud, UK Cards Association, Credit Cards, fraud, banking fraud, Visa

New regulations from FSA spark comments from Cable

Spokesperson for the Liberal Democrats, Vince Cable, has recently commented on the changes that have been introduced by the Financial Service Authority with regards to mortgage lending. Read more

Tags: FSA mortgage lending, Mortgages, economy, mortgage, building societies association, something, fsa, Association

Banks make agreement following pressure from OFT

Following continued pressure from the Office of Fair Trading the banking industry in the UK has agreed that it will not only make current account charges clearer for customers but will also make it easier for customers to switch to another provider should they wish to do so. Read more

Tags: Banking, banks compensate customers, fault, damaging reports, bank agreement, Association, office of fair trading, office

Weaker bargaining power for tenants reported

It has been reported that tenants in the UK now have weaker bargaining power when it comes to renting a property, and this is the result of fewer homes coming into the market for rent, according to industry officials. Read more

Tags: Association, RICS, tenants, fewer homes, Renting, sector, difficult market conditions

Holidaymakers boycott Europe due to value of euro

As most people are aware the value of the pound against the euro has plummeted over the past couple of months, and for holidaymakers that normally head to place such as France or Spain for their holidays this has come as bad news. Recent reports have shown that holidaymakers from the UK are not prepared to be stung by the tumbling pound against the euro, and many have decided instead to head to pastures new rather than be left with little in the way of spending money by having to take out euros. Read more

Tags: Association, non-Eurozone countries, pound value, holidays, Impact, industry official, mexico cuba

Could energy price cuts be on the way?

A consumer campaign group, Consumer Focus, has indicated that there could be energy price cuts on the way as a result of a fall in the cost of wholesale energy. This comes as a result of one of the major energy suppliers in the UK, Scottish and Southern, stating that it could see prices falling by early 2009 as a result of falling wholesale energy prices. With energy prices having rocketed twice this year any fall in prices will be welcomed by businesses and consumers, many of whom are struggling to keep up with bills. Read more

Tags: Business Finance, energy companies, energy prices, energy suppliers, Wholesale, Association, trend

UK economy in worse shape than imagined

According to the largest manufacturer’s association in the UK, the CBI, the state of the economy in the UK is in worse shape than most actually thought. The CBI has said that the economy is deteriorating far faster than was originally thought, with the association’s director stating that there was “no doubt that the mood has darkened in the last two or three months.” He gave the stark warning to members in a letter. Read more

Tags: credit crunch, economy, director stating, Lambert, Additions, inflation, Association, Mervyn King

More people opt for private healthcare

A recent report has shown that an increasing number of people are now opting for private healthcare cover rather than relying in the National Heath Service, reflecting the concerns that many have when it comes to NHS care. The survey showed that many of the people switching to private healthcare cover have stated that their reason for switching was fear of super bugs such as MRSA. Read more

Tags: Healthcare reform, sophisticated consumers, momentum, Association, time, healthcare, decline, Private healthcare

Brits ‘failing to save for old age’

Britons are not making adequate savings for their retirement, an expert has warned.

Donna Bradshaw, a financial planning strategist with IFG Financial Services, a firm of independent financial advisers, stated that people in Britain are simply not saving enough money.

This could be partly down to house prices, she continued.

Britons have developed a “national obsession” with property which has skewed people’s focus from saving for their retirement, Ms Bradshaw asserted.

“Over the years we’ve made pensions unattractive with maybe too much legislation but we need to focus people through an education process,” she added.

However, Britons are making some savings; figures released by the Building Societies Association show that during April, such financial institutions received record savings inflow of £1.8 billion.

Adrian Coles, director-general of the body, remarked that savers are increasingly aware that building societies offer good accounts for savers during such “uncertain economic times”.

Tags: financial planning strategist, GBP, Association, enough money, education, billion.adrian coles, money, Brits

It’s ‘always worth’ comparing mortgages, says expert

Independent website Your Mortgage has told consumers not to be content with their current mortgages deals because it is “always worth” comparing mortgages from different lenders to try to get a better one. Read more

Tags: Super jumbo mortgage, Mortgage loan, compare mortgages, Mortgages, council of mortgage lenders, finance, Association, different lenders

Apacs: Never reveal Pin

Apacs, the UK payments association, has emphasised the importance of credit card security and advised consumers to keep their Pin private.

A spokesperson for the association said people should make their Pins as complex as possible to avoid would-be fraudsters getting their hands on their cash.

However, she added that this can lead to confusion, adding that people can avoid this by selecting a familiar pattern.

“It is better not to use the same Pin number and, if you can, familiarise a sequence of codes; a number of a house that you know in combination with a good friend’s birthday.”

Finally, she emphasised the importance of never disclosing information regarding Pins or writing them down and storing them with the cards in question.

Recent research by Which? highlighted that one in three Brits have been a victim of credit card fraud in the past.

A previous CPP poll found that Londoners were the most likely to have their plastic stolen or fraudulently used, with 20 per cent and 28 per cent of the capital’s residents being a victim of such crimes respectively.

Tags: combination, pins, credit card fraud, pin number, uk, credit card security, capital, Association

NAPF: Pensions still seen as most important benefit

Workplace pension schemes are considered the most important benefit an employer can offer and it is expected that their up-take will increase in the future, the National Association of Pension Funds (NAPF) has said.

The Personal Accounts system is expected to be launched in 2012 and the changes in workplace pensions that it will bring about are expected to make them even more popular, according to the organisation.

Mark Brooks, a spokesperson for the NAPF, said: “There is a growing realisation that to enjoy a good standard of living on retirement, there is a need to have an additional pension…it is no surprise [workplace pensions] are still seen as the most important benefit.”

He said that tax advantages and employer contributions are two factors that make work pensions attractive to employees.

A recent survey by NAPF found that almost 49 per cent of respondents said they would feel greater loyalty to their company if a workplace pension was offered.

Tags: important benefit."He, investment, Association, organisation, employment, respondents, Pension, employer contributions

DIY holidays are ‘a false economy’

Holidaymakers wishing to save money by purchasing their flights, accommodation and car hire themselves may find that they are not covered by travel insurance, the Association of Independent Tour Operators (Aito) has said.

Booking the different parts of a trip separately could be “a false economy”, since people may be putting themselves at financial risk in the event of something going wrong, according to the organisation.

As many as 20 million consumers on ‘do-it-yourself’ holidays could be risking their money this summer and could even be stranded abroad if a company goes out of business, the Civil Aviation Authority reported.

Consumers are advised to book with one operator because if something goes wrong, such as a plane being cancelled, this could also affect car hire and accommodation arrangements.

A spokesperson for the Aito commented: “Always book with a tour operator because you’re spending quite a considerable amount of money and rather than saving one or two hundred pounds, why risk it if something goes wrong.”

Tags: accommodation arrangements, company, Civil Aviation Authority, Association, operator, independent, Human behavior, car hire

Having mortgage protection insurance puts homeowners in an “ideal situation”

Homeowners should subscribe to mortgage protection insurance, particularly if they have a family to look after, according to Legal & General.

Mortgage protection insurance is often not a priority, with the insurance provider estimating that more people have mobile phone insurance.

In 2006, around 20 per cent of households had Mortgage Payment Protection Insurance (MPPI), according to research by the Association of British Insurers.

However, PR manager for protection at Legal & General Joe Wiggins advised that anyone with a mortgage should consider MPPI, which provides a monthly payment if people are unable to work due to an accident, unemployment or illness.

“Most people don’t fully appreciate that sick pay from an employer does not last that long,” Mr Wiggins said, adding that people could soon find themselves struggling to meet mortgage payments in the event of illness or unemployment.

Last week moneysupermarket.com advised homeowners to protect themselves against the effects of the credit crunch by taking out mortgage insurance.

Tags: moneysupermarket, family, Association, MPPI, Joe

Insurance industry improved customer experience, says survey

Up to 85 per cent of consumers claim that their insurance provider ‘treats customers fairly’, according to a new survey.

Findings from a customer impact survey from the Association of British Insurers (ABI) shows that 53 per cent of respondents agreed that the insurance industry has an excellent reputation, a figure up from 48 per cent last year.

Maggie Craig, the ABI’s director of Life and Savings, said that the results show that the insurance industry is making improvements in its treatment of customers, despite the overall dip in customer confidence due to recent economic uncertainty.

“The industry recognises that the customer impact scheme is a long-term undertaking and that it will take time for the full effect of the industry’s work to be seen,” she added.

However, she also stated that the survey showed that there is still room for improvement, particularly in the handling of complaints.

Only three per cent of respondents had reason to complain to their provider, but 57 per cent felt their complaints had been handled poorly.

Meanwhile, the ABI has warned that tougher planning controls need to be in place for new homes.

Tags: Association, respondents, scheme, director, undertaking, tougher planning controls, uncertainty, industry recognises

Home insurance ’second most important insurance you can buy’

Homeowners are being urged to take out insurance for their homes if they have not already, as it is the “second most important insurance you can buy”, one expert claims.

The British Insurance Brokers’ Association (BIBA) said only car insurance, which is a legal requirement, is more important than home insurance.

According to the organisation, insurance premiums for buildings and contents insurance are still low as they have “hardly changed” in the past ten years.

Graeme Trudgill, technical and corporate affairs executive of BIBA, said: “Look at the flooding that we have had – 75 per cent of people have contents insurance which means 25 per cent don’t.”

“This means that if something happens, they have lost everything,” he added.

According to BIBA, a mortgage holder could also be breaking part of a contract between themselves and a mortgage lender if home insurance is not in place.

Meanwhile, figures from the Association of British Insurers (ABI) have shown that the UK insurance industry paid out £9.0 million to householders in 2006 for property damage or the loss of possessions.

Tags: British Insurance Brokers Association, buildings and contents insurance, buildings and contents, Financial services, British Insurance Brokers, Graeme Trudgill, Association, BIBA

Young drivers need to ’shop around’ for insurance

Young drivers have been advised to ’shop around’ for insurance after some providers have withdrawn cover for them, according to an insurance body.

The Association of British Insurers (ABI) said that there are some companies who do not offer young drivers cover as they fear they are more likely to have an accident.

Malcolm Tarling, spokesperson for the ABI, said: “They are more likely to claim and the claims cost a lot – I have never seen anything more expensive.”

He added that as a result young drivers should shop around to find the best deal for their insurance, as some companies are more competitive than others.

“Look into the pass plus; some companies now offer incentives for young drivers who have this,” he concluded.

According to reports in the Daily Telegraph, Axa, More Than, Swiftcover, Saga and HBOS brands such as Esure, Sheila’s Wheels and Halifax are among the growing number of insurance providers that automatically reject all applications from 17-year-old drivers.

Tags: Association, Disaster Accident, best deal, Pass Plus, result, Association of British Insurers

Insurance can play ‘important role’ in protecting finances

Insurance can play an important role in helping consumer meet their financial commitments, one expert has claimed.

The Association of British Insurers (ABI) has said that taking out insurance can significantly improve a situation when household experiences financial difficulties due to unemployment, illness or loss of life.

Nick Starling, the ABI’s Director of General Insurance and Health said: “It is important when people are taking out a loan or a mortgage that they think about how they would meet repayments should they fall ill or become unemployed.”

Statistics show that 23 per cent of people will be jobless at one stage in their lives while more than one in three could be out of work for more than a year.

The most vulnerable groups who have no insurance or coping strategies in place include single income families, single parent families, larger families and single women aged between 18 and 35.

Meanwhile, earlier in the month the ABI has made a commitment to ensure claims are assessed fairly and paid “without fuss”.

Tags: place, commitment, director, single income families, Association, Single-parent, financial difficulties, Insurance

BIBA calls for investigation into price comparison websites

The British Insurance Brokers’ Association (BIBA) has called for an investigation into price comparison sites by the Financial Services Authority (FSA), saying the body’s regulations were not written with these websites in mind.

Findings from the research revealed that over half of insurance buyers do not understand the difference between each insurance policy offered by comparison websites.

A further 84 per cent admitted to being confused by insurance policy details offered while only six per cent believed the details offered were true.

Eric Galbraith, BIBA chief executive, said: “The current FSA rules were written prior to the growth in aggregator sites.”

“I believe the regulator should now look again at developing more appropriate regulations, to ensure that consumers are being afforded suitable protections,” he added.

The research also found that many comparison websites base their calculations on assumptions meaning some consumers could purchase insurance policies which are not suitable for them.

However, Hayley Parsons, managing director of insurance comparison website Gocompare.com, said a review would be unnecessary as brokers and agents are already regulated by the FSA.

Tags: British Insurance Brokers Association, appropriate regulations, British Insurance Brokers, insurance comparison website, authority, Association, insurance comparison

UK’s south east is credit card central

The south east of Britain has been found to have the greatest number of credit card holders per capita than any other region.

A recent survey by the UK payments association, APACS, has revealed the payment habits of people and how they vary from region to region.

Results revealed that 75 per cent of adults in the south east have credit cards compared with the national total of 67 per cent.

Furthermore, it found, people in the north east are less likely to regularly use cheques than anywhere else while in the North West, people make more regular visits to cash machines, withdrawing £5,355 more than anywhere else in the UK.

Sandra Quinn, director of communications at APACS, said: “Different parts of Britain have long been associated with certain payment stereotypes – whether those are about being overly careful with spending or flash with the cash – and these guides – drawn from the UK’s ongoing largest study of payments behaviour – offer a revealing and interesting look behind the statistics.”

She added that although the majority of people are happy with the payment methods available, managing finances can be made easier and more convenient by “taking advantage” of the various options.

The regional comparisons were based on a survey of 4046 adults representing the most comprehensive ongoing survey of its kind.

Tags: Association, director, payment, Standing order, managing finances, finances, UK payments association, region

Bank highlights major UK protection deficit

There is a £2.3 trillion protection gap in Britain, Sainsbury’s Bank said yesterday.

According to the high street bank, many people do not take out life cover with their mortgages and this is largely contributing to the deficit.

Clare Moyles, a spokesperson for the bank, said: “Anybody aged 18 plus with a family really needs to be thinking about protecting their family and protecting their mortgage.”

She added that it was not a priority on many people’s “agenda”.

The Association of British Insurers recently found that one in every three Brits is without life insurance and the same figure are uninsured through not renewing life cover for five years.

Furthermore, it revealed that between 2005 and 2006 people paid £41,168 million on life insurance premiums and £45,469 million on life insurance benefits.

Sainsbury’s Bank recently advised young people to shop around beyond their mortgage lender for a better deal on life insurance to avoid losing out on significant savings.

Tags: Sainsbury, lender, Bank highlights, Association, Sainsbury's Bank, mortgage lender, Types of insurance, Insurance

BIBA: Students should take out contents insurance

Students are advised that they should get their valuables covered while living away from home.

The British Insurance Brokers’ Association (BIBA) said that many students are not covered by their parents’ household insurance.

It warned that this leaves their valuables at risk, and while most students do not prioritise getting insurance, it is a sensible thing to do.

Graeme Trudgill, technical services manager for BIBA, said that a quarter of all parents do not have home contents cover at all, meaning that many students could find themselves spending a lot on replacing lost items.

He added: “A lot of students these days have laptops, iPods, digital cameras, DVDs, mobiles, stereos… and that can add up to a lot of money.”

Recent Home Office figures show that people under the age of 24 are more likely to be burgled and that as many as one in three students becomes a victim of crime.

Furthermore, the London Student Housing Guide found that the average cost of a burglary to a student is £900.

Tags: housing, Household, household insurance, BIBA, Fashion, GBP, Association, laptops

First-time buyers not alone in mortgage woes

The recent credit crunch will hit first time buyers and other mortgage buyers equally hard, the Council of Mortgage Lenders (CML) has warned.

The trade association for the mortgage lending industry said that the tightened lending criteria being employed by most providers in the wake of the recent credit squeeze would not hit first time buyers any harder than the rest of the mortgage market.

Bernard Clarke, a spokesman for the CML, said: “First-time buyers have had affordability problems for a considerable period of time. Those have been driven by the rise of property prices relative to incomes, and that’s much more significant for affordability.

“I have no reason to suspect that the range available for them will be affected any more than it will for other buyers, but we have already acknowledged there may be some restrictions in the range of products available and some effect on the supply of mortgages in the market place.”

The current credit squeeze has already seen Northern Rock left in hot water, while many other providers have been quick to up their rates as well as tightening their lending criteria.

Most recently, provider Alliance & Leicester upped the rates on all of its two year tracker mortgages by between 0.1 per cent and 0.2 per cent.

Tags: alliance & leicester, Association, recent credit squeeze, mortgage, mortgage market, Mortgage loan, hot water, Bernard Clarke

Quarter of Brits ‘hide insurance info’

More than one fifth of British motorists admit they have intentionally kept quiet about motoring convictions and license points to their car insurance provider, to avoid premium hikes following policy renewals.

Confused.com has found that although 96 per cent of motorists are aware that lying to the insurance company could result in invalidated claims, 21 per cent of drivers would be happy to take the risk and hope that they don’t get caught.

Debra Williams, managing director of the comparison site, warned drivers: “Insurers take a dim view of people who don’t update them immediately should their circumstances change.

“Changes in job title or annual mileage may seem insignificant to most drives, but this can significantly affect your premiums. If you are caught lying about your details, your insurer can reduce your pay out and may even refuse to pay at all.”

A report commissioned by the Association of British Insurers earlier this year revealed that fraudulent claims on car insurance, something one in ten (five million) drivers admitted to, push up average premiums by £40 a year.

Tags: car insurance, mileage, Insurance, GBP, something, Association, circumstances change."Changes, car insurance provider

Online banking offers greater flexibility, according to BBA

A top banking association has hailed the advance of internet banking as providing greater flexibility and convenience for customers.

According to the British Bankers’ Association (BBA), which represents around 200 banks across the UK, the service is especially liked by holidaymakers, who can access their accounts just by going online without needing to be near a branch of the bank.

According to communications director at the BBA Lesley McLeod, “you can do it from an internet cafe when you’re sitting in Rome so people like that flexibility.

“People who travel a lot like [online banking] as it gives them access without having to bother whether they can get to their branch and people quite like that aspect of it.”

Ms McLeod said that the company detected an overall bias towards the under-50s to the online service, although it was by no means exclusively used by the young.

Figures from Apacs payment association testify to the popularity of internet banking, showing that 24 million adults used the service in 2006. It predicts that two in three adults will use remote banking by 2014.

Tags: bank, Association, director, BBA Lesley McLeod, banking association, british, access, 50s

Plastic card spending grows

The amount of money we spend on debit and credit cards has increased three-fold in the last ten years, reaching record levels.

Figures from the UK payments association Apacs show that we spent a combined total of £321 billion on plastic cards in 2006.

That compares to the £87 billion that was spent in the same way back in 1996 and debit cards have seen the biggest rise.

Debit cards accounted for 61 per cent of all plastic card spend, totalling £195 billion – five times the amount spent in this way in 1996.

Credit cards accounted for 39 per cent of plastic card spend, with £126 billion being spent in this way – twice the amount of 1996.

“The last ten years have seen a rapid rise in the popularity of plastic, with debit cards showing particularly strong growth,” said Sandra Quinn, Apacs’ director of communications.

“Consumers enjoy the ease and convenience plastic cards bring and today most retailers and supermarkets take plastic, as do an increasing number of professional service providers.

“Over the next ten years it is expected that spending on plastic cards will continue to dominate the payments arena, accounting for 89 per cent of growth in UK payment volumes by 2016,” she added.

Spending in the retail sector saw the gap between cash and card payments widen between 2005 and 2006.

Tags: UK payment volumes, professional service providers, Association, apacs, debit and credit, card payments, card, payment

Mortgage lending ’strong’ in May

The traditional desire of Britons to purchase property in the summer months continued in May, the British Bankers’ Association’s (BBA’s) latest figures show.

Financial providers lent some £19.7 billion during the month, some eight per cent more than the same period in 2006.

The BBA cited strong re-mortgaging activity as well as the usual pattern of strong lending as a cause for the year-on-year growth.

Some 204,800 mortgages were also approved during May, some two per cent more than May 2006.

Credit card borrowing fell by £0.4 billion during the period, while personal loans and overdraft borrowing also declined by £0.1 billion.

David Dooks, BBA director of statistics, said: “Contrary to the recent stable trend, the banks‘ gross and net mortgage lending strengthened in May, reflecting an improved competitive position, rather than a general rise in mortgage demand across the market.”

He added: “And, because of strong approvals in May, the banks’ higher market share is likely to continue over the next couple of months.

Tags: traditional desire, 800 mortgages, lent, David Dooks, mortgage lending, Association, figures show.Financial providers, cause

Hips to benefit new buyers

The controversial introduction of Home Information Packs (Hips) to the home-selling process is just days away and the row over them continues.

Hips are due to be introduced on June 1st but they face a last-ditch attempt at derailment in the House of Lords tomorrow (May 23rd).

In light of this, the Association of Home Information Pack Providers (Ahipp) has been singing their praises, particularly the help they will offer first-time buyers.

Ahipp points to the current process which sees first-time buyers forking out for surveys and other extras once a price has been agreed.

This can cost thousands of pounds and often highlights problems which force the buyers to withdraw their offer, essentially wasting much-needed cash.

Added to this, another buyer might come in for the same property afterwards and go through exactly the sae process.

Ahipp argues that with the introduction of Hips, this process will be eliminated, saving money for buyers and ensuring that there is a steady supply of first-time buyers.

“A fluid influx of first time buyers underpins the house buying market and brings vital buoyancy to the wider UK economy,” said Paul Broadhead from Ahipp.

“The introduction of the Hip will greatly benefit this vulnerable group of soon to be home owners.

“As the vendor will be responsible for acquiring the Hip, duplicated costs will be eliminated, buyers will be able to make a more informed decision on the purchase from the offset and they will avoid the initial costs of commissioning searches,” he added.

Although Hips have been a hot topic for those with or considering getting a mortgage, it seems they mean nothing to some.

Property firm fish4homes recently carried out a survey which found that one in ten UK adults believe Hips is a sexually transmitted disease.

Tags: wasting, tomorrow, cash, influx, survey, Association

Hips hang in the balance

The future of Home Information Packs (Hips) hangs in the balance today (May 16th).

A vote is due to take place in the House of Commons to decide whether the packs should become a mandatory part of the home-selling process from June 1st.

The Conservative party is against their introduction and many industry figures have voiced their concerns of the effect they will have on the market.

The National Association of Estate Agents, the Royal Institution of Chartered Surveyors and the Law Society all oppose Hips in their current form.

Paul Smith, chief executive of estate agents Spicerhaart Group, has raised concerns that Hips could lead to a monumental housing market crash.

“The current legislation is in a mess and will prevent immediate marketing of homes affecting buyers and sellers alike,” he said. “The mandatory requirement to have a full EPC (Energy Performance Certificate) in place prior to marketing will delay the process by weeks, as there are simply not enough trained energy assessors.

“We are calling for the government to allow interim energy assessments to be used for all properties.”

However, the argument has been countered by the Association of Home Information Pack Providers (Ahipp) which says a delay in the introduction of Hips will have a negative effect on the UK’s climate.

“This week’s vote is a result of political game playing and could significantly impact the UK’s climate change over the next few years,” said Paul Broadhead from Ahipp.

“[The vote] will not just impact the future of Hips but the future of the EPC and our environment – the climate change agenda cannot wait, or be made to suffer as a result of political game playing.”

The introduction of Hips in just over two week’s time will be debated by MPs today.

Tags: Environmental Issue, UK's climate."This week, group, week, Association, Home Information Pack, market.the national association, Conservative Party

Credit card customers urged to check statements

UK payments association Apacs has urged credit card customers to check their statements carefully, as many people are currently guilty of not doing so.

According to research by the group, nearly half of all credit card users do not check their product statements thoroughly.

A surprising four per cent of respondents to the survey said that they never look at their credit card statements.

To help people make sense of communications from their provider, Apacs has created an advice guide explaining everything about the features and terms included in statements and giving hints on how to understand various details and terminology.

Sandra Quinn, director of communications at Apacs, said: “Although people are getting better at checking their statements, our research suggests that there is still a lot of work to be done.

“Armed with this advice guide we believe consumers will be better equipped to get the most from their credit card statement.”

The association’s study reveals that Yorkshire and Humberside is the worst region for ignoring credit card updates, with nine per cent of people admitting to never checking their statements.

Tags: worst region, credit card statement, economics, credit, apacs, Banking, Association

Banks extend credit card cash advance charges

Customers are being urged to be as savvy as possible when using their credit card, with many providers believed to have extended the remit of cash advances.

Such an action could be tough on consumers, with the interest rate on purchases such as gift vouchers and online betting often being double that of usual cash transactions.

Nick White, director of financial services at price comparison site uSwitch, has described the way in which cardholders are being “bamboozled” by the banks’ tactics.

“They don’t know whether they will be charged at the much higher cash withdrawal rates on a whole raft of credit card transactions unless they scour the small print in their terms and conditions,” he told This is Money.

The measures are believed to have been implemented by many financial providers to recoup finances as a result of an Office of Fair Trading decision last year, which compelled banks to cap penalty fees at £12.

According to the Association for Payment Clearing Services, cash withdrawals on credit cards in the UK totalled £8.22 billion last year.

Tags: advance, Credit card, Clearing, Financial services, penalty, action, Association, uswitch

Homeowners urged to combat subsidence

With subsidence claims having risen by 50 per cent since 2002, according to the Association of British Insurers, homeowners are being urged to take measures to reduce the risk of subsidence in their property.

“People don’t knowingly cause subsidence, but there are ways homeowners can help to reduce the risk of such damage to their home to avoid the costs, inconvenience and inevitable worry that subsidence damage brings,” said Neil Curling, senior structural claims manager for Halifax Home Insurance.

Halifax recommends that to avoid or combat subsidence homeowners should check for historical activity of mining in the area, get a survey of the property’s drainage, trim back or remove large trees near a property and get the local water authority to check the incoming mains supply for faults.

And they should definitely double check the small print in their home insurance documents, or shop around for a cheap deal if they don’t have any.

The improving weather conditions make the risk ever greater as vegetation takes up more moisture as it grows just as the heat makes moisture scarce.

This can cause some types of ground, such as clay subsoil, to shrink as it dries out, which can undermine property foundations and crack walls – one of the first signs of subsidence.

Tags: authority, Financial services, check, Association, measures, water authority, weather conditions, home

2006 credit card borrowing down

Credit card borrowing fell in December 2006, according to updated figures released by the British Bankers’ Association (BBA).

Following the release of figures from the Major British Banking Groups earlier this month, BBA has gathered more information,

This new data shows that credit card borrowing fell by £0.3 billion in December, with the overall annual figure rising by just two per cent.

“The annual growth in consumer credit, at only two per cent, is low by historical comparison and, although strong Christmas sales have been reported, our December figures suggest that spending was not fuelled by more borrowing on credit cards,” said David Dooks from BBA.

Mortgage lending in December fell in comparison to November, but even this figure was a seven per cent increase on the same month in 2005.

In total, mortgage lending reached £18.1 billion, with 123,518 mortgages being approved.

The average amount lent for the purpose of buying a home soared in comparison to December 2005, with the average amount being £146,400, nine per cent more than the year before.

“The final quarter of last year, despite seasonally lower activity in December, showed the mortgage market to be stronger than at the same time a year earlier and lending still growing significantly at a time of rising interest rates,” added Mr Dooks.

Tags: Association, quarter, activity, british bankers association, information, consumer credit, increase, interest