Direct Marketing Helps to Optimise Savings Offers within a World of Debt Culture

In these testing times, it can be difficult for marketers to put the finance into a targeted advertising campaign but direct marketing has been proven to actually save money and increase conversions by targeting the relevant people with money saving deals.

Carpet bombing the web with generic banner ads and hoping for the best, may be a tempting tactic to opt for if a business is pushed for time and finances.  However, advertisers choosing to utilise the internet’s direct marketing potential are benefitting from what is a surprisingly easy campaign to set up.

Any business that has a customer database or even a subscription requirement on their site already has a wealth of demographic data at their fingertips.   Choosing to use it is simply the next step into direct marketing.

Websites offering money saving deals are reaping the benefits of this marketing strategy because of the niche angle that comes with it.  The customer analysis they’ve gained from their collated data of previous sales gives them a heads-up on customer spending habits, interests and approximate budgets.

With those factors in mind, they can direct specific offers towards customers who are more likely to respond to such deals.  More impressively, they could use the data to target customers who can afford these types of offers – eliminating the amount of wasted ad space on the screens of uninterested customers, who typically don’t spend their money in that advertised area.

There’s a fine line between prejudging customers and using their demographic profile to offer them certain deals or not.  When used correctly, marketers can divide their audience into segments and select which service/product they have available should be advertised to which target group.

Conversion rates on targeted ads are much higher because of this and although it may seem unfair to ‘group’ people into categories, the offers from a business are still available to everybody and are often advertised more generically through other mediums (TV, Radio, etc).

By assigning ads to each demographic group, direct marketers are personalising the user’s internet experience and can even influence the ads on the side of their Facebook page.

The concept behind Facebook advertising is pretty much the same as all other forms of direct marketing, except the process is operated entirely within the Facebook world of tagging, likes and groups.

For example, if a Facebook account holder ‘likes’ a group titled ‘Yes! The football season is back’, digital TV services like SKY could advertise their sports channel packages in the right sidebar of that user’s News Feed page.  Similarly, leisure centres could advertise to that presumed ‘sporty’ user too.

It’s a remarkable method of building a customer analysis and by actively using these social networking sites, businesses also have the opportunity to interact with thousands of customers via live forum feeds, which could be seen as an even more direct approach to direct marketing.

The operation requires a little bit of human input but considering the data is probably already available to businesses because of the demographic data they have previously collected, half the battle is over before the campaign has even begun.

In a world of debt, recession and possible depression – direct marketing exclusively alerts people to money saving deals who appreciate them most.  At the same time, the technique has the potential to eradicate the annoying online adverts that have no relevancy to user’s individual interests.  Not to mention the spamming generation pending doom because of this smarter advertising method.

The internet is set to be a happier and more sophisticated place because of direct marketing and is such a gift to marketers in need of more accurate email lists to distribute their electronic ads.

The social networking side of the approach is an added bonus too and a wasted gem by web-ignorant companies.  In today’s world, deal making businesses need an online presence and direct marketing can deliver that, with little cost and minimum groundwork.

Tags: Business Finance, direct marketing potential, web-ignorant, targeted advertising, Facebook advertising, business, demographic

Lending figures expected to see mixed reactions

Over the past decade Britain has become addicted to borrowing, and up until the onset of the global credit crisis most people – including those with damaged credit – were able to get finance pretty easily with banks and financial institutions eager to loan money to anyone that wanted it. This has, of course, resulted in a huge personal debt mountain that has left many people struggling with their finances and unable to keep up with their debt repayments.

The Bank of England is set to release figures later this week relating to mortgage lending and consumer credit. It is widely thought that the figures will show that lending and consumer credit levels are very low. It is thought that whilst some people will find that the figures make for very bleak reading indeed there are many others that will see the subdued lending data as a positive sign.

Many city officials are likely to see the low lending levels as something that could dampen the economic recovery and reduce consumer confidence levels. However, some people will see them as a sign that Britain is not as addicted to debt as it once was and that consumers are now focussing on trying to clear their debts and live within their means rather than borrowing money at the drop of a hat to buy things that they cannot really afford.

Peter Dixon, strategist at Commerzbank, said: ‘Within the context of rebalancing the economy away from personal debt, these low figures may be no bad thing. Those who argue that borrowing should be stronger are missing the bigger picture.’

Ross Walker, economist at Royal Bank of Scotland, said: ‘The British household sector needs to de-leverage. This is happening, but at a snail’s pace. That said, a more rapid correction would probably be associated with recession in consumer and property markets.’

Tags: Britain, drop of a hat, mountain, city, business, week, decade britain, credit

Official tries to explain banks’ low business lending levels

It was announced recently by the Business Secretary, Vince Cable, that the big banks in the UK were failing to meet their agreed targets with regards to lending to small and medium sized businesses. Figures were released recently showing that based on quarterly results the banks had not met their targets, and were therefore not on target for meeting their annual business lending minimum figure.

The banks have argued consistently that the reason behind the low lending figures for small and medium sized businesses was that in the current climate many businesses did not want to take out loans. Banks claim that whilst they are making credit available for business customers the low demand for finance means that there is little they can do to increase their lending figures until demand increases.

This has now been backed up by an industry official, Anthony Thomson, chairman and co-founder of Metro Bank. He said that his bank is now targeting small businesses as its main customer but that demand for borrowing is low. He said that whilst many businesses had signed up to the bank the demand for finance was much lower than had been expected, which meant that the bank was unable to lend as much to business customers as it may have anticipated. He also said that businesses were failing to look for the best rates on loans.

He said: ‘I hate to sound like I am defending the big banks but our experience is that there is just not the demand for credit from small companies.’ He also said: ‘I always thought small firms would be very sensitive to interest rates, but they are even less concerned about the rates than consumers.’

Tags: borrowing, banks in the uk, Metro, industry official, business, industry, customer

Minimum savings will come from smart meters

There has been a lot of talk about how the rollout of smart meters for households and businesses in the UK will provide a win win situation, where consumers and businesses will save money on bills and energy firms won’t have to send out inspectors because the usage data will be sent to them automatically. It is claimed that these smart meters, which are digital meters, will put an end to the unreliable estimated bills that energy firms send out.

However, it has recently been revealed that consumers will not benefit from the smart meters because the cost of the rollout will be factored into their bills, which effectively means that they will be paying for them, yet the savings that they are set to make only comes to around £23 by 2020. The cost of the rollout is said to be around £11.3 billion and the Department for Energy and Climate Change has said that this is something that consumers will end up paying for.

The estimated saving is only 2 percent of the average household annual energy bill, and officials have said that it does not take into account any increases in energy costs over the coming years. Ofgem, the UK’s energy regulator, has estimated that bills could increase by between £168 and £700 a year by 2016 because energy firms need to invest in new power stations, which will result in costs being passed onto consumers.

Chris Huhne, the Climate Change and Energy Secretary said: “Smart meters are a key part of giving us more control over how we use energy at home and at work, helping us to cut out waste and save money. In combination with our plans to reform the electricity market and introduce the green deal for homes and businesses, the roll-out of smart meters will help us keep the lights on while reducing emissions and getting the best possible deal for the consumer.”

Tags: Department for Energy and Climate Change, annual energy, business, Minimum savings, households, Household, electricity market, win situation

Mixed feelings over store cards

When it comes to store cards there is a great deal of bad press, and these cards have earned a very bad reputation over the years, mainly because of the high rates of interest that they charge. Some store cards charge up to 30 percent APR, and this results in many people who make only the minimum repayment on their debt paying a fortune in interest and spending lengthy periods of time trying to clear their debt.

Many people are swayed into taking out a store card because retailers offer them incentives such as on the spot discounts for applying for and being accepted for a store card when they are shopping. This can tempt many people into taking out a card and getting into debt especially when the cards are promoted at times such as Christmas when people are looking for ways to fund their purchases.

However, some industry officials have said that although these cards do receive bad press and are slated for a number of reasons they can actually prove very useful for consumers. They can provide a convenient means of shopping, and like credit cards balanced can be paid off within interest free periods so that no interest is charged on the debt.

One consumer campaign group official said: ‘With APRs of around 30%, store cards are never good value for borrowing. Our investigation into the market found it was too easy to get hold of credit and that too many retailers were offering cards either without telling the customer that they’d be credit checked, or, worse still, without credit checking them at all. That’s not to mention the lack of privacy in reading out your personal details in a busy high street store.’

However, the Finance Leasing Association said: ‘There is no evidence of consumers being unable to manage their spending on cards. Customers are already able to change their mind about taking out a credit card. New EU regulation bought in February this year provides customers with an opportunity to change their mind within 14 days of taking out the card.’

Tags: business, percent, market, consumer campaign group official, campaign group, New, free periods

Rising unemployment sparks debt fears

Increases in unemployment levels seen in the final quarter of last year have sparked concerns about rising repossessions and spiralling debt problems according to recent reports. Personal debt levels in the UK have been causing concern for the past few years, with the recession, global credit crisis, and difficult financial climate highlighting the debt problems that many people were experiencing.                                                                     

It has been revealed recently that the level of unemployment in the UK soared in the last three months of last year, with the figure increasing by 44,000 taking the total number of unemployed to nearly 2.5 million. Many of those affected by unemployment are younger people. Concerns have now increased with regards to how the rising level of unemployment will affect people that have debts that they are already struggling with and those that have a mortgage to pay.

In addition to this the strong possibility of interest rate rises this year will also impact upon the ability of consumers to pay both their mortgages or rent and their other debts such as credit cards, loans, and other forms of finance. It is thought that the base interest rate, which has been at an all time low of just 0.5 percent for the past twenty two months, will soon have to increase in order to curb spiralling inflation, which is at twice the target level set by the government.

The government has acknowledged that the level of unemployment soared in the latter part of 2010 but claims that it has now started to improve again. Chris Grayling, the Employment Minister, stated: “We’ve got a long way to go and I want to see these figures start to come down, but certainly the evidence is over the past month things have settled down and we are not seeing the increases we saw earlier in the last quarter.”

Tags: concern, inflation, business, strong possibility, Minister, evidence, addition, interest

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: Association, business, home, coldest, coldest winter, leaks

Another decade for first time buyer mortgages to stabilise

It has been claimed in a recent report that it could take another decade before mortgages for first time buyers stabilise and reach the level that they were at prior to the global financial crisis. Before the credit crunch first time buyers were usually easily able to get a mortgage, and often did not have to even put down any deposit. However, this has all changed and these days those looking to get onto the property ladder feel that they are hanging on to an impossible dream.

Over the past couple of years things have become increasingly more difficult for first time buyers. Restrictions in the mortgage markets resulting from the financial crisis have resulted in more buyers being turned down by lenders when they apply for a mortgage. Those with damaged or poor credit history are also charged high rates of interest or turned down for a mortgage altogether.

Another huge hurdle that has faced first time buyers over the past couple of years is the matter of the deposit that lenders want in order to get a mortgage. In the past first time buyers were able to get a mortgage without even putting down any deposit, and could even borrow over and above the value of the property with a 125 percent mortgage.

However, these days lenders are demanding huge deposits from first time buyers such as 20 percent or more, which is leaving many people out in the cold when it comes to getting onto the property ladder.

One official from the homeless charity Shelter said: “The failure of successive governments to tackle Britain’s housing crisis has left an entire generation of young people with little hope of ever accessing a secure and affordable place to live. The impact both on them and on wider society is already becoming clear, with rising numbers of young people delaying having children, unable to move for job opportunities and spending longer and longer living with their parents because of the crippling cost of housing.”

Tags: little hope, mortgage, Subprime mortgage crisis, business, crisis, Financial crisis of 2007–2009, value, percent mortgage

Interest only loans do serve a purpose

An industry expert has stated recently that interest only loans do serve a purpose and can prove invaluable for some borrowers. Her comments came as lenders clamp down on interest only loans and the UK’s finance regulator, the Financial Services Authority sets up new proposals that could wipe out these interest only loans altogether.

The FSA is putting together proposals that would see interest only mortgage loans coming to an end, with lenders being told that they will have to continue asking for large deposits and other measures being proposed that could seriously affect the ability of many people to get a mortgage.

Paula John from Your Mortgage said that the FSA was right in trying to put together regulations to stop irresponsible lending and reduce the risk of consumers taking out loans that they could not afford to repay. However, she also said that it was important to take into consideration that interest only loans did serve a purpose and could prove invaluable for some people.

Her comments came after a statement was made by the Intermediary Mortgage Lenders Association, which said that if the FSA regulations were put into force interest only loans could be made obsolete.

Ms John added that whilst it was right of the FSA to express concern over borrowers taking on mortgages and loans that they could not repay it was also a valid point by the IMLA that it could be a mistake to get rid of interest only mortgages altogether because some people could really benefit from them.                               

She stated: “I think [the IMLA] is right in sounding a warning bell that we could throw the baby out with the bath water and see the end of interest-only mortgages altogether.”

Tags: mortgage, Financial Services Authority, Interest-only loan, FSA regulations, business

Virgin Money makes changes to repayment system

Many Virgin Money credit card customers have been pleased to hear a recent announcement from the financial giant with regards to the repayment allocation on its credit cards. Virgin has announced that as of the start of September any repayments made on the Virgin credit cards will be allocated to the more expensive debt first, which could potentially save credit card holders a fair amount in interest.

Under the current repayment system, as is the case with many credit card providers, anyone that repays their debt gradually on the Virgin credit cards will see the repayment being out towards the cheapest debt first, which is often interest free debt. This means that more expensive debts that have high interest rates can be left to faster and continue accruing interest, which means that customers often end up paying out more.

The move to make credit card providers allocate customers’ repayments in this way has been pushed by regulators and financial authorities in the UK following similar moves that were taken in the United States. However, whilst lenders who offer credit cards will have to adopt these measures eventually many have surprised customers by bringing in the moves earlier than was necessary.

Virgin Money has become one of a number of credit card providers to bring in the changes to the allocation of repayments earlier than they needed to, and collectively customers could save a huge amount on interest as a result of these changes being made early.

One customer said: “I think its great that Virgin have decided to take this action early, because it will allow customers to save a fortune on the interest that they would otherwise have to pay.”

Tags: current repayment system, way, business, finance, regulators, Credit card, Virgin Credit Card, credit

Fall in lending to businesses seen in May

According to recent reports the level of lending to UK businesses fell in May, despite efforts from industry groups and the government to try and boost lending by banks to businesses. Whilst the level of mortgage lending in May improved compared to the previous month the level of business lending took another hit.

The figures have been released by the British Banker’s Association. The level of lending to private, non-financial companies is said to have plunged by £1.3 billion in the month of May, which was slightly higher than the fall seen in April but slightly lower than the average decline seen over the past six months.

These businesses are said to form the backbone of Britain’s economy, and many have highlighted the importance of enabling these businesses to borrow the money that they need. However, banks are still being very cautious when it comes to lending, as many are still reeling from the financial meltdown.

In addition to this the falling demand for finance from these businesses is also affecting lending levels, and many businesses are loathe to take out costly loans and finance in the current climate. With fewer businesses wanting to take the financial risk of borrowing more money demand levels have fallen and subsequently so have lending levels.

Officials have also said that there has been an increase in retail sales, with the higher property sales levels now impacting upon the retail sector. Household goods and furniture retailers were said to have seen improvement, as did grocery retailers who may have benefitted from people stocking up for the World Cup.  Electrical retailers also benefitted as a result of people buying new television sets in preparation for the World Cup.

Tags: credit, loan, bank, business, finance

Improvement in mortgage lending continues

For the past couple of years many people have found it increasingly difficult to get a mortgage loan, with many unable to get the finance that they need from the lenders in the UK, who have been exercising more caution when it comes to lending money.

However, over recent months the end of the recession has marked an easing in the financial markets, and lenders have become more relaxed about handing out finance to consumers. This could help people to obtain mortgage loans more easily, and could enable those struggling to get onto the property ladder to finally get the loan that will enable them to live their dream.

The Council of Mortgage Lenders has recently confirmed that mortgage lending levels have already increased, with the level of mortgage lending having increased by around 7 percent last month. However, the CML has said that whilst the level of mortgage lending has increased it is still far lower than the level of lending that was seen last year.

The CML has said that mortgage lending is still subdued in the UK, and despite the fact that the recession is over and financial markets are meant to have improved the market remains difficult and challenging. In fact, the CML believes that the total level of lending for this year could fall short of the forecast total of £150 billion.

The CML also said that a number of factors would affect the housing and mortgage markets such as consumer confidence levels in the mortgage and financial markets, and also household finances. Credit conditions are still said to be tight when it comes to getting a mortgage loan, and it is thought that many consumers, especially first time buyers, will continue to experience difficulties.

Tags: forecast total, council of mortgage lenders, Mortgage loan, finance, business, interest rates, mortgage, Council

Norwich residents urged to ensure home insurance up to date

Residents in the Norwich area of the UK are being urged by officials to make sure that their home insurance is up to date and adequate. The warning comes after several break-ins in the area, which took place at the end of May and the beginning of June.

Whilst most people are well aware of the importance of having home insurance in place many forget to get their policies renewed or fail to ensure that the policy is amended to provide adequate coverage. This can cause big problems in the event of a break in, as the homeowner may find that he or she is unable to make a claim because of lack of coverage.

Residents in the area are being warned to check both their buildings and contents insurance to make sure that it is all up to date and provides adequate coverage. Officials are now stressing the importance of having home insurance policies in place for residents in Norwich, particularly given the spate of break ins that has been seen over recent weeks.

Police are still appealing for information with regards to the break ins, and in the meantime are warning residents in the area to be on their guard and do as much to protect themselves and their homes as they can.

Consumers that are looking for affordable home insurance coverage are able to choose from a range of options these days, and it is therefore possible to get a low cost policy that provides adequate protection. Police have confirmed that a number of high value gadgets and cash were taken in the recent break-ins, so consumers could save themselves a fortune in the cost of having to buy replacement simply by ensuring that they have insurance cover in place.

Tags: business, Insurance, insurance cover, claim, protection, norwich, police, home insurance

Water bills to soar over the next two decades

One of the UK’s biggest water suppliers, Severn Trent, has said that water bills are likely to soar over the next two decades. The water supplier predicts that over the next twenty years the cost of water bills will soar around 27 percent above inflation.

The supplier has put the increase down to rising operating costs and EU regulations, both of which it claims will cost the industry billions of pounds. The water industry was privatised in 1989, and since that time has made huge profits from increasing bills. However, despite the price increases water companies are said to have failed to carry out repairs and offered a poor level of customer service.

Severn Trent said that rules that have now been brought in by regulators will results in billions of pounds having to be spent over the coming years, and these operating costs are going to prove hard to handle by the water suppliers. The company said that the rising costs that would be incurred by the water industry would have to be passed on to customers, who would see their water bills rocket as a result.

An official from Severn Trent stated: ‘It is not clear such a continued high level of investment is sustainable in terms of whether it can be financed, whether customers are willing to pay for it and the detrimental impact on carbon emissions.’

The water regulator Ofwat has also ordered water suppliers to place a cap on bills over the next five year, with Severn Trent being told to cut its bills by 4 percent, which will also hit the supplier hard. The rising cost of borrowing, which is a problem for all businesses, is also going to play a part in the higher costs that customers will face.

Tags: costs, bills, year, Severn Trent, water bills, business, water

No code of conduct for comparison sites

Consumers that use price comparison sites will continue to be without protection following the collapse of a proposed code of conduct for price comparison sites. Read more

Tags: Price comparison services, Recreation and Sports, regulations consumers, site, comparison sites, Affiliate marketing, final attempt, business

Consumers more satisfied with discount retailers than major supermarkets

Over the past couple of years discount supermarkets have become increasingly popular amongst consumers, and this is due to the financial problems that many households have faced, which has forced them to seek out ways in which they can save money on their monthly outgoings such as their shopping bills.

Many have started to use discount supermarkets in addition to or instead of the major supermarket giants, and a recent poll has shown that customers seem to be more satisfied with these discount stores compared to the supermarket giants.

A recent report has shown that when it comes to the affections of customers, discount stores such as Lidl and Aldi have rated higher than the big name supermarkets such as Tesco, Sainsbury’s, and Asda. The measure of customer satisfaction showed that the discount retailers managed to score an impressive 61 percent in terms of customer satisfaction. The big name supermarkets, on the other hand, did not do as well.

Asda and Tesco both scored less than 50 percent in the customer satisfaction polls, and the most popular of the supermarket chains, Sainsbury’s, only scored 58 percent which was still less than the discount supermarkets.

Waitrose fared better than the discount stores, scoring an impressive 79 percent when it came to customer satisfaction levels. The study was carried out by consumer campaign group Which? and involved looking at areas such as staff attitudes, prices, and choice.

A spokesperson for Which? stated: ‘The success of some budget supermarkets in our survey proves that savvy shoppers can make the most of their money without compromising on quality. UK shoppers want the whole package – great value for money, a wide range of quality products and a pleasant shopping environment. It’s not rocket science, but those supermarkets that consistently get it wrong should beware – shoppers will vote with their feet and take their business elsewhere.’

Tags: Aldi, Asda, Wal-Mart, quality products, Waitrose, supermarket chains, discount supermarkets

FSA to monitor refunds from banks

It has been reported that the UK’s financial regulator, the Financial Services Authority, is to closely monitor refunds that are made by banks in instances where the consumer states that he or she has not authorised a transaction. Regulations that were brought in last November required banks to make immediate refunds to consumers for transactions that they claim that they had not made unless there was clear evidence that the consumer was involved in fraud or had been reckless. Read more

Tags: Economy of the United Kingdom, bank, ATM, hsbc, Financial Services Authority

Shoppers need to look around for best credit card deals

Consumers in the UK are being advised by industry experts to make sure that they shop around for the best credit card deals, as many credit card providers are now offering a range of perks and benefits that could see consumers getting far better value for money on their spending. Read more

Tags: industry experts, vouchers, credit card offers, credit card deals, Christmas period, personal finance, business, Credit Cards

Parents keen to take out health insurance for their kids

According to recent reports there has been a rush in the number of parents that are keen to take out health insurance cover for their children, and this follows an outbreak of illnesses that have caused grave concern to parents. Read more

Tags: cover, nhs, excellent care, kids health insurance, business, health insurance

Card fraud goes down whilst banking fraud increases

Recently released figures have shown that whilst credit card fraud in the UK has been going down, which will come as a relief to the many cardholders that have been fearful about becoming victims of this sort of crime, the level of online banking fraud has been increasing. Read more

Tags: banking fraud, losses, credit card fraud, level, Credit card, pin technology, business

Dixons tries new tactic to beat retail rivals

High Street retail giant Dixon’s has decided to try a new tactic when it comes to beating rival retailers in the run up to Christmas. The retail giant has realised that whilst consumers want to save money on the cost of their purchases in the current difficult financial climate they also don’t want to risk purchasing something that they know little or nothing about for the sake of saving a few pounds, as this could mean that they end up with a totally unsuitable product. Read more

Tags: Advertising Standards Authority, anything, Electronic commerce, business, High Street, online shopping, Dixon's, number

More first time buyers try and get mortgage advice

According to a recent report more first time buyers are now looking to get mortgage advice, as the market continues to throw hurdles in the way of the average first time buyer. Read more

Tags: business, first time buyers, latest figures, council of mortgage lenders, low, mortgage advice, Mortgages, whilst

Ministers want BOGOFs to be scrapped

Over recent years many of the UK’s leading supermarkets have been launching special BOGOF – Buy One Get One Free – offers on a range of their products, from households goods to everyday grocery items. Read more

Tags: wake up call, bargain, bogof, business, buy one get one free, grocery, wastage, supermarket offers

Citizen’s Advice reports on rising debt issues

Officials from Citizen’s Advice Scotland have recently commented on the rising issues relating to debt amongst consumers that are contacting the service. Read more

Tags: debt problems, day, biggest issue, consumer debt, business, Citizen Advice Bureau, relationship, credit

Banks take taxpayer’s money but won’t lend any back out!

Over the past year the UK government has spent billions of pounds bailing out the banking industry following the global credit crunch and the ongoing financial crisis. Banks have run into severe difficulties in terms of their finances, and at one point the banking industry in the UK was said to be on the verge of collapse. Read more

Tags: high interest rate, business, bail out, interest, move, mortgage applications, banks, Mortgages

Ways to earn and save money online

Many of us are experiencing financial problems at present due to the difficult financial climate and the recession, and most of us want to find ways to try and improve out situations by savings more money or earning a little more. Read more

Tags: Household, exchange, amount, earn money online, business, save money, price, money saving tips

Repossessions increase by 92 percent in a year

According to a recent report the number of homeowners that were losing their homes through repossession in the third quarter of last year rocketed by 92 percent. Read more

Tags: homeowners, repossession, business, Financial Services Authority, total mortgage debt, council of mortgage lenders

Save some cash on your holidays

At this time of year many of us usually start thinking about our holidays, with many planning an Easter break when the kids are off or a summer holiday to relax and unwind. Read more

Tags: open minded, price, cheap holidays, Travel Services, business, travel money

Darling to optimistic about end of recession

Earlier this month the Chancellor of the Exchequer, Alistair Darling, indicated that there was a chance that the recession in the UK could be over by halfway through this year. Read more

Tags: recession, majority, revival, prime, international co

Man claims his Abbey account was frozen in revenge

A man who gave a low rating to an employee at a call centre at Abbey bank said that he had his account frozen out of revenge. The customer of the Spanish owned bank said that he had found the customer services representative at the call centre to be ruse and arrogant, and when he had been asked to complete a survey on his experience he gave the lowest scores to the employee, which he felt was justified. However, he says that as a result his account was frozen in revenge. Read more

Tags: standing, bank account, massive inconvenience, abbey, business, money back

Fuel poverty could affect a quarter of households

According to a recent report fuel poverty could be affecting a quarter of households in the UK by the end of next year, with huge hikes in energy prices over the course of this year resulting in an increase in the number of households that are paying 10% or more of their total household income towards energy bills. Read more

Tags: fuel poverty, business enterprise, fuel, business, europe

Rise in savings deposits at building societies

According to a recent report there was a rise in the amount of money deposited into building society savings accounts in the first half of this year. The figures were recently released by the Building Societies’ Association, and indicated that the level of deposits being made into building society savings accounts had risen by almost two thirds in the first six months of this year. Read more

Tags: stock, business, rise, amount of money, market turbulence, six months, dependence

Campaigners do not think price comparison sites will necessarily mean the best credit card deal

According to some officials from a consumer campaign group sing a price comparison site to try and get the best deal on a credit card will not necessarily prove effective. More and more price  comparison sites have sprung up over the past couple of years, and many people use these to try and get the best deals on credit cards as well as on other products and services such as loans, mortgages, insurance, utilities, and more. However, officials have said that these sites will not necessarily mean that you are getting the best deal. Read more

Tags: Credit Cards, comparison, research, business, Business Finance, consumer campaign

Online banking ‘improves personal finance’

Eight out of ten consumers who regularly use online banking say it makes them better at managing their finances, according to research.

The survey from internet bank cahoot has found that 38 million Britons have used online banking.

People now spend more time conducting their financial affairs online than they spend on internet social networking sites, the study suggests.

Matthew Timms, cahoot’s managing director, said the credit crunch is making Britons take greater control of their finances.

He commented: “We’re flocking to internet banking, where we can instantly access and manage our finances at a time and location of our choice as well as pick up some of the best rates on the market.”

Last week, separate research suggested that one in five British men believes he is “careful” with his money.

In the survey, commissioned by Scottish Widows, more men said they identified with thrifty businessman Ian Beale from EastEnders than with any other soap character.

Tags: character, internet bank cahoot, investment, Grupo Santander, business

Can you benefit from being a credit card rate tart?

There are so many different types of credit cards in circulation in the UK these days it can be difficult to determine which one might best suit your needs and circumstances. However, for some people getting value for money on credit cards means chopping and changing cards regularly to make sure that they are always getting the best rates, deals, and rewards. As a rate tart you can not only enjoy the convenience, flexibility, and benefits of credit card use, but you can even make money and rewards from spending on your credit card. Read more

Tags: rate, personal finance, business, United Kingdom, rate tarts, Credit card, Credit Cards, free credit card

‘We need to be doing much more saving’, says expert

With the economic downturn increasingly putting a strain on people’s finances, the country needs to “be doing much more saving”, an expert has advised.

Jamie Elliott, coordinator at Transact, which is a UK-wide network for people committed to promoting financial inclusion, pointed out that Brits have one of the lowest saving ratios in the world.

“It’s a huge problem and we need to shift from a culture of borrowing and seeing borrowing as the solution to our problem[s], to living within our means.”

He added that people should also be saving for “difficult times” and the financial industry will be making efforts to encourage this, for example by allowing people on low incomes to open bank accounts with the government adding a maximum of about £250.

Recent research by Credit Action revealed that total secured lending on homes was £1,207 billion at the end of April this year, which represented an increase of 8.7 per cent over the last 12 months.

Tags: Transact, recession, business, GBP, problem, lending, secured lending, year

Expert highlights need to help those struggling with mortgages

Helping homeowners who are struggling with mortgage repayments is one of the key housing issues in Northern Ireland, according to an industry expert. Read more

Tags: expert, Mortgages, business, Department, council of mortgage lenders, position

People using credit to ‘patch holes in their budgets’

With financial conditions worsening under the current credit crunch, people are increasingly turning to credit to make up any shortfalls in their budgets, Fool.co.uk has said.

David Kuo, head of personal finance at Fool.co.uk, also said that credit fraud is likely to increase as people struggle to cover their living expenses.

People are increasingly seeing their personal finances being stretched as they face bigger outgoings due to rising household expenses. At the same time, salaries have not risen fast enough to cover the increased costs, Mr Kuo said.

Capital Economics recently reported that average earnings growth is set to remain at just under four per cent a year while food inflation is expected to stay at six per cent over the coming months.

“Initially it just starts with [people] saving a little less money…the next step is [people] start raiding [their] savings in order to try and cover [their] outgoings. The third step is [people] have to use credit in order to try and patch up any holes in [their] budget,” commented Mr Kuo.

Tags: business, Household, fool, food, order, economics, budget, Simple Dollar

UKSIF: People want different things from ethical investments

People are seeking ethical investments so they can influence business practices, the UK Social Investment Forum has said.

Chief executive Penny Shepherd said that consumers are choosing ethical investments not only to make good financial returns, but also to encourage businesses to act more responsibly or because they want to support the development of new solutions for a sustainable lifestyle.

“We are keen that funds are clear about what they do – we support the European transparency guidelines, which a number of the funds have signed up to,” commented Ms Shepherd.

She also advised consumers to approach a financial advisor if they are considering an ethical investment.

This comes just before the launch of the first National Ethical Investment Week (May 18th – 24th), aimed at encouraging people to consider green and ethical investment options.

Google faced questions over how ethical its business operations are at its annual general meeting last week.

Shareholders are concerned over the services the company offers in China, which comply with the Chinese government’s censorship laws, BBC News reported.

Tags: Business ethics, business, BBC News, business operations, sustainable lifestyle."We, censorship, executive, Ethical

Instant access savings charges can be high, says expert

Consumers who open an instant access account should be aware that although they can withdraw their money without notice, some banks will charge them for doing so, according to a financial analyst.

Michelle Slade of Moneyfacts, a personal finance website, has said that as many as one in four banks charge their customers hidden penalties for taking money out of an instant access and no-notice savings account.

Last month, Nationwide published research on savings accounts which showed that 84 per cent of consumers believe there should be no penalty for withdrawals and 54 per cent say it is very important or essential that there is a no-notice period.

Ms Slade says: “The term ‘instant access’ is not misleading, but some would say that they should not really be charging a penalty just for you taking your money out, especially as some of the charges really are quite high.”

According to the analyst, some accounts either reduce the interest or do not pay it for the month in which a withdrawal is made.

Tags: moneyfacts, expert, withdrawals, business, access, Business Finance, banks, penalty

First-time buyers turn to families for help

First-time buyers are increasingly being forced to ask family members for help in raising a deposit as the mortgage market tightens under the global credit crunch. Read more

Tags: ladder, first time buyers, mortgage lenders, family, housing ladder, business, income, First-time

Some areas are at risk of negative equity, claims expert

There are concerns that certain areas of the country may be prone to negative equity over the next two years, according to the UK property market information provider Mouseprice.

A survey published this month found that 23 per cent of 24 to 34-year-olds are worried about having negative equity and 13 per cent of respondents said they had decided to delay their plans to move until the situation in the housing market situation improves.

Jonathan Upton, business development director at Mouseprice, said: “The conditions that are required for negative equity are present in some areas,” adding that the situation will depend on the level of deposit that people took out, when they bought their house and the profile of the housing market where they live.

However, Mr Upton also commented that it is difficult to tell whether first-time buyers will be particularly hard hit.

In their favour, people who are not yet on the housing ladder may benefit from falling house prices, giving them a stronger hand in negotiations.

Tags: favour, business development, business, house, equity, survey, provider mouseprice.a survey, Business and Economy

People using same Pin are risking money

Around ten million people in the UK are putting their money at risk by using the same Pin number for their different credit and debit cards, according to new research.

The study conducted by Opinium Research found that almost a quarter of the 41 million adult cardholders in the UK choose one Pin number for their cards.

However, of those who had been more cautious, 11 million now only use one card because they cannot remember their different Pins.

Steve Willey, head of credit cards at price comparison site moneysupermarket.com, advised cardholders to be more careful, saying: “A little vigilance can go a long way. It certainly beats the trauma and trouble that can be caused by being far too lax with your cards.”

He also warned that people should be careful to keep sight of their cards when making a purchase, since criminals make billions of pounds each year from card cloning and skimming.

Younger cardholders in particular seem unaware of this, with 23 per cent of those aged 40 or under allowing their card to be taken where they cannot see it, compared to 13 per cent of older people.

Tags: billions, United Kingdom, Automated teller machine, business, research, younger

Credit crunch shouldn’t affect responsible credit card users, claims expert

Credit card users who have not had difficulty in managing their finances in the past can continue using their cards despite the current economic downturn

Financial information provider Moneyfacts said that so long as people have a sensible approach to their finances, they could continue to take out personal loans, however the company also warned that transferring debts to new credit cards is becoming more difficult to do as lenders tighten their criteria.

Samantha Owens, head of personal finance at Moneyfacts, commented: “We haven’t seen the rates rising on credit cards like we have across other products just because the margins on them are so big already,” but the company calculated that they nevertheless went up by 0.2 per cent over the past year.

A Nationwide report released this month found that consumer confidence was at its lowest level since records began and a survey by YouGov revealed that six per cent of people have taken time off work as a result of worrying about their debts.

Ms Owens advises consumers to consider various options for managing their finances, including taking out a structured personal loan.

Tags: report, company, responsible credit card, finance, difficulty, business, YouGov

Credit card users ‘want online services’

Most credit card users want the option of managing their account online, although it is not a key consideration when choosing a credit card.

Eighty per cent of respondents in a survey conducted by consumer research group Global Reviews said they would research cards online and 68 per cent said they would like to be able to manage their cards through the internet.

However only 40 per cent of those surveyed said being able to manage their cards online was an important consideration when choosing a card.

“As household budgets tighten across the UK, many credit card customers will start to notice the rates they have been paying on their credit cards and begin to look around for better deals,” Adam Goodvach, director of Global Reviews, told the Press Association.

Consumers using their credit or debit cards for online shopping were recently warned that their card details may not be as secure as expected. A test conducted by security consultancy SecureTest found that UK online businesses make “fundamental flaws” when handling their customers’ information.

Tags: group global reviews, online services, card, Eighty, Visa Debit, group

One million Brits cannot claim as they did not read the small print

Up to one million Brits have not been able to claim on a travel, home or car insurance policy in the last year because they weren’t covered, despite believing that they were shows new research.

According to findings from Tescocompare.com, neglecting to check the small print has cost UK consumers up to £736.

Of these, 82 per cent say it has altered the way they will go about dealing with this sort of purchase in the future.

Paul Baxter of Tescocompare.com, said insurance policies are complicated and “it is not surprising that so many people find themselves in a situation where they thought they were covered when in fact they weren’t”.

Meanwhile, when it comes to understanding what they are purchasing women are much more aware of what it is, claims a new study.

Further findings from Tescocompare.com shows that female consumers are much more likely to have read the description and detail of what it is they are buying, with the exception of traditional male items such as cars.

Tags: findings, business, Paul Baxter, description, com, Business and Economy, traditional male items, print

Drivers urged to tell the truth when applying for insurance

Despite car insurance being at highest recorded levels, drivers need to avoid the temptation to lie to acquire cheaper premiums, one financial expert has urged.

According to Gocompare.com, some drivers will look to cut insurance costs by withholding information to insurers which, if they get caught out, could increase costs later on.

Providing incorrect information is a “false economy” as it can invalidate a policy and mean it is more difficult to get insurance in the future.

Hayley Parsons, Gocompare’s managing director, said that insurance represents a large proportion of the money drivers spend on their vehicles so they are always on the lookout for savings.

“One of the best ways to save money on your insurance is not to just accept your renewal quote, the best company for you 12 months ago, may not be the best today,” she added.

Meanwhile, research from uSwitch revealed that UK motorists pay £333 million per year in fees to car insurers to make changes to amendments to their policy.

Tags: business, renewal, uswitch, finance, GBP, Vehicle insurance, research

Brits prefer cards to cash

vNearly a third of British consumers use their credit cards for everyday spending, according to new research.

Findings from Fool.co.uk showed that debit cards account for over a third (37 per cent) of spending while cash accounts for over a quarter (29 per cent).

David Kuo, head of personal finance with Fool.co.uk, said that using plastic is useful but relying on money that cannot be seen is indicative of the recent reliance on credit that is apparent in our culture.

“It is more important than ever to build a decent savings pot because one day when you need to pull a rabbit out of the hat, you could find that all you have is a dead duck in your pocket,” he said.

Further results of the study showed that fewer people carry cash, with nearly half of us withdrawing money once a week or less.

Meanwhile, last week, Chris Tapp from Credit Action said that anyone looking for a new credit card should shop around to make sure that they get the best possible deal they can.

Tags: debit, business, Brits, day, duck

Building societies still lending despite the credit crunch

Building societies are still in a good position to offer funds for mortgages despite some announcing they were restricting lending, one financial expert has claimed.

According to the Building Societies Association (BSA), action taken last week by certain building societies was not an indication that these providers were struggling in the wake of the credit crunch.

With certain larger lenders withdrawing from the marketplace, many smaller firms were inundated with applicants which required a re-adjustment of service levels to ensure customers were still dealt with, said the firm.

Neil Johnson, PR and policy manager for the BSA, said: “Building societies are largely funded by retail deposits rather than wholesale markets. So the problems in the wholesale markets haven’t affected them in the same way that they’ve affected banks.”

Earlier this month, the BBC reported that five building societies – the Bath, the Earl Shilton, the Newbury, Melton Mowbray and the Tipton & Coseley – had restricted or halted new mortgage lending due to an influx of new customers.

Tags: Social economy, economics, month, business, good position, bank of england

Latest energy hike provides ‘green light to switch’

With the last of the big energy suppliers announcing an increase in its premiums consumers now have the “green light to switch” providers, one financial expert has claimed.

Money advisers Which? stated that spenders ensure they have the best deal when it comes to their mobile phone tariff and this should be no different for their energy bills.

Scottish and Southern Energy announced last week that its prices for electricity customers will rise by 14.2 per cent on average.

Siobhan Parker of Which? said that this latest price increase is the “green light to switch”.

“Everyone’s feeling the post-budget pinch and making sure you’re getting the best deal for your home energy is a smart and easy way to take some of the pressure off,” she continued.

Which? said that customers should use their buying power to show they mean business, and switch to a cheaper supplier.

Meanwhile, Scottish and Southern Energy increases mean that prices for gas customers will increase by 15.8 per cent.

Home energy bills have now smashed the £1,000 per year mark for many households.

Tags: southern energy, pinch, business, Scottish, energy, Everyone, best deal

Up to 1.78m homeowners without insurance

Up to 1.78 million homeowners do not have buildings insurance while a further 656,000 consumers are not aware whether they possess it, one financial expert has claimed.

The research from Sainsbury’s Bank shows that female homeowners are more likely to be without cover than their male counterparts with 1.055 million women admitting to not having it in place.

A further eight per cent of homeowners aged 65 and over and another eight per cent of those aged between 25 and 34 said that they do not have buildings insurance.

Neil Laird, home insurance manager with Sainsbury’s said that thousands of homes could be at risk from storms this week, so it’s alarming to see so many without the insurance.

“The growing number of weather-related instances really highlights the importance of having adequate cover in this area and unlimited buildings cover ensures peace of mind that you won’t be left underinsured should the unthinkable happen,” he stated.

Meanwhile, the firm said that the earthquake from last week could result in 3,250 home insurance claims.

Tags: financial expert, neil laird, male counterparts, peace of mind, manager, business, home insurance claims

Consumers favour cards over cheques

The use of cheques by consumers is being increasingly shunned due to the popularity of debit and credit cards, one financial expert has claimed.

According to the Association of Payment Clearing Services (APACS), while cheques are still popular for use with certain payments, such as paying the window cleaner and as birthday presents, cards are the most popular with increasing numbers of consumers using them every year.

A spokesperson for APACS (female), said: “Part of it is a generational thing. Many of the older generation continue to use cheques and are very used to them.”

She added that “the younger generation, particularly those under 20, probably don’t even bother carrying a cheque book around with them”.

Meanwhile, findings from the APACS, there were over 4.4 million business and personal cheques issued each day in 2007, compared with 11 million in the peak year for cheque volumes, 1990.

The body predicts that by 2016 there will be only 2.3 million cheques per day.

Tags: business, older generation, debit and credit, personal cheques, book, payment

Rate cut could ‘ease financial pressure’

The cut in interest rates by the Bank of England (BoE) will help “ease financial pressure”, claims one financial expert.

According to the Fair Investment Company, the rate cut of 0.25 percentage points to 5.25 per cent by the Monetary Policy Committee (MPC) should help homeowners with mortgages of over £150,000 receive as much as £40 per month back.

James Caldwell, director of the company, said: “The MPC’s decision will come as a relief to many. A lot of people are facing higher living costs and business expenses, so the rate cut is an important step towards easing financial strain.”

However he added that home owners will only benefit if mortgage rates are cut in line with the BoE’s decision.

Mr Caldwell also said that savers will be worse off as a result of yesterday’s decision.

Those savers who hoped the base rate would remain the same for another month “will be disappointed”, he concluded.

However, according to the Newcastle Building Society, despite the effects of the interest rate cut, savers could benefit from the current climate of competition between banks and building societies to offer the best deal.

Tags: best deal, business, pressure, interest rates, england, Business Finance, Newcastle Building Society, Mortgages

More first time buyers purchasing homes together

Increasing numbers of first time buyers are opting to buy homes as a couple rather than individually, claim independent mortgage experts.

John Charcol said that in the past, lifestyle choice and affordability have meant that there are more single first time buyers, but this figure was reversed last year with joint buyers making up half the home purchases compared with 45 per cent the previous year.

Katie Tucker, technical manager for John Charcol, said: “Buying together is a very sensible choice in terms of affordability. Not only for splitting the mortgage and the bills, but more cuddling up should save you on the heating!”

She added that increases in property value and mortgage payments with incomes remaining the same are all factors which have contributed to the buying trends.

Ms Tucker also said that more women are buying property jointly with more men taking the decision to settle down with a partner for their first home.

Meanwhile, research from MoneyExpert.com showed that as many as 1.39 million homeowners have switched their mortgage provider in the past six months.

Tags: Moneyexpert, john charcol, manager, business, Ms Tucker, year, finance, six months

Bank loss in court case could bring debt to the consumer

If the Office of Fair Trading’s (OFT) court case into the overdraft charges of eight banks goes against the firms, then the long term banking climate could be affected for the worse for the consumer claims one financial expert.

FinanceDaily.co.uk said, that while the legality of the case needs clarification, if the banks lose they maybe required to make pay outs up to £1 billion in compensation.

Dale Lovell, editor of FinanceDaily.co.uk, said: “If the banks lose the case it will almost certainly be the end to ‘free’ banking in the UK because the banks will have to find alternative ways of earning money back from customers.”

He added that the interest paid by banks on current accounts could end while the introduction of monthly standing charges for current accounts is also a distinct possibility.

The application for the declaration is brought against Abbey National, Barclays, Clydesdale, HBOS, HSBC, Lloyds TSB, Nationwide Building Society and Royal Bank of Scotland.

According to industry commentators, the banks make an estimated £10 million per day in charges.

Tags: royal, Lloyds Banking Group, court case, financial expert, Fair Trading, United Kingdom, business, Economy of the United Kingdom

Financial websites increased awareness of need for life insurance

Financial websites have helped raise awareness of the need for consumers to take out life insurance, according to insurance experts.

The Association of British Insurers (ABI) said that websites are useful for those consumers who know what sort of life insurance policy they need.

Those that are not aware of the products available should speak to a financial advisor says the body.

However, Nick Kirwan, head of health and protection insurance for the ABI, said: “Anything that helps to spread the message among consumers and provide choice to people… has to have contributed in some way to helping raise awareness.”

The ABI estimated that one in three Britons have no life insurance – and a further one in three have not renewed their life insurance cover for five years, so may be underinsured.

Meanwhile, back in 2005 the Telegraph reported that Swiss Re, the world’s largest life and health reinsurer, estimated that there was a £2.3 trillion ‘protection gap’ between the expenses of UK families and what was actually covered by life insurance policies.

Tags: trillion, business, advisor, websites increased awareness, Association of British Insurers, abi, message, policy

Consumers “don’t take the time to read the small print”

When buying into financial products, such as critical illness cover and private medical insurance, “people tend to look at the top line and not the small print”, says financial experts.

Financial advisory firm Ashley Law said that those consumers who purchase products which are cheaper may find they have lesser benefits.

Jock Cassidy, director of Ashley Law, said: “If people don’t take the time to read the small print, and I doubt very much if they do because it’s not exactly the most interesting read, then they’ll go for the cheapest option.”

He added that when a person changes a provider of a financial product “it’s a guess on my part is that it’s [the decision] purely cost-driven”.

Meanwhile, David Elms, chief executive of Unbiased.co.uk, commented has said that record levels of business are being driven to independent financial advice through the company’s ‘Find an IFA’ service

As a result IFAs are converting the leads at a greater rate than before.

Tags: result, firm, personal finance, time, David Elms, business, line

Bankruptcy is a solution to debt

Despite the “stigma” attached to it, declaring yourself bankrupt is a “financial solution” to debt, according to financial experts.

The Consumer Credit Counselling Service (CCCS) said that most debtors are expected to opt for bankruptcy as an option to clearing debt over Individual Voluntary Arrangements (IVAs).

As the number of insolvencies is expected to rise in 2008, James Ketchell, spokesperson for the CCCS, said: “Bankruptcy seems to have a very bad stigma attached to it, and people for that reason do not go through with it.”

“However we view it as a solution, another way of sorting out one’s financial situation.”

Chartered accountancy firm Grant Thornton recently predicted that 10,000 individuals a month likely to become insolvent in 2008.

Due to Christmas debt 28,000 individuals are facing insolvency in the first quarter of 2008 alone.

In addition a Guardian ICM poll held at the end of December 2007 found that 55 per cent of consumers remained confident about their personal finances.

Tags: solution, firm grant thornton, financial solution, insolvency, consumer credit counselling

Wedding insurance “more commonplace”

It is becoming easier and “more commonplace” for couples to take out wedding insurance, according to a spokesman for Debenhams.

More people are now aware of the availability of wedding insurance products whereas previously it was difficult to find a provider.

However, although it is easier to find, some couples spend so much on the big day they get to a point where they will not spend anything else says Dan Tremain, product development manager for Debenhams.

“They’re spending tens of thousands of pounds but they won’t spend fifty quid to insure the £20,000 effectively,” he said.

Research by Debenhams also revealed that the number of wedding cancellations is on the rise.

Illness among close relatives is the most likely reason for calling off the big day while cancellations have increased by almost half over the past 12 months.

Debenhams are expected to launch wedding insurance with £30,000 cancellation cover as standard. A more exclusive option should also be available with cover worth £70,000.

Tags: standard, business, exclusive option, option, Department store, cancellation, wedding

Shopping around for credit card deals ‘vital’

Consumers are advised that carefully considering their options is extremely important when it comes to credit card deals.

With pressure being felt on the UK economy after the credit crisis, it is “more important than ever that people should shop around”, according to Cathy Neal, senior researcher for Which?

“Even if you’ve got the best credit card today, keep checking it every two months to make sure that it still is one of the best – and switch if your card has changed significantly since you took it out,” she advised.

Shoppers would be best using their credit cards on higher cost purchases as they will have better protection, although they must also take into consideration how they are going to repay their balance, she continued.

This Christmas, 76 per cent of Brits plan to spend around the same amount or more on their gift purchases than they did last year, with average spending at £397 per person in 2006.

Meanwhile, 29 per cent confess that their financial situation is tighter this year owing to the credit squeeze.

Tags: credit, protection, shopping, senior researcher for Which?, business, senior researcher, plan, Gift

Uncapped mortgage charges ’skyrocketing’

The number of mortgages with uncapped upfront fees has risen dramatically in the past 12 months, it has emerged.

Now at 506, the number is five times what it was a year ago, with application fees rising as high as 3.25 per cent of the loan value, according to MoneyExpert.

Sean Gardner, chief executive of the website, commented: “Borrowers need to look carefully at mortgage deals and not just focus on the interest rate. What might look like a good deal will soon become a bad deal once fees are taken into account.

“Mortgage application fees are nothing new but lenders often won’t publicise a change to their fee structures, meaning some homeowners could be unaware of this huge shift to uncapped charges.”

Capped upfront fees have also gone up in the past year by an astonishing 63 per cent, with the average fee growing to £834 from £509 in November last year.

Mr Gardner concluded that those confused about fees should work out how much they are able to afford and then seek advice about whether the fees can be added onto the loan.

Tags: business, United States, executive, fee, mortgage

Debt becomes ‘norm’ for Brits

Getting into debt is now accepted as normal and in many cases necessary, an industry expert has said.

Alastair Mathews, director of policy educational charity pfeg, explained that if people wish to go to university or buy a house, most will rely on loans to do so and will thus not be able to avoid getting into debt.

With credit easily available to those needing it over the past few years, it has been easier than ever to build up considerable debt.

“We have almost officially built debt in to the system now,” said Mr Mathews.

He continued: “We have a changing culture from the traditional British attitude of wanting something and saving for it – where maybe you waited for half a lifetime for it – to now, where the feeling is ‘if I want something, I’ll have it’.”

According to statistics from Credit Action published this month, total personal debt in Britain stands at £1,380 billion. This figure has gone up by an impressive £120 billion (10 per cent) in the past twelve months.

Tags: industry expert, attitude, figure, business, Britain, director, debt, cent

‘Viligence’ advised to avoid identity theft

Consumers are advised to exercise “vigilance” in face of identity theft risk, rather than rushing to buy insurance.

An industry expert has said that after news that the personal information relating to 25 million people in the UK has been stolen, consumers must think about the options available to them for protection.

Peter Gerraud, head of insurance research at moneysupermarket.com, explained that while there are products on offer that cater specifically for this type of cover, “many of these products are dubious value for money”.

“Most will cover losses if fraudulent transactions take place. However, if consumers are vigilant and report any unusual activity to their bank or card provider these losses will be covered by the provider as a matter of course anyway,” he continued.

He added that consumers should be sure to check statements on a regular basis to avoid the “time, stress and effort” involved in resolving the problems identity theft can cause.

Tags: business, identity theft, vigilance, provider, dubious value, type

Brits ‘bombarded’ with credit card cheques

British residents were sent 313 million undesired credit card cheques last year, it has emerged.

According to recent research, 96 per cent of all credit card cheques issued are unsolicited, with only one in 50 of the 22.5 million consumers sent the cheques actually asking for them.

Furthermore, it was found that many people are unaware of the charges they incur upon using the card, with 2.1 million credit card holders thinking no charges apply to the cheques.

In fact, using a credit card cheque costs consumers a total of £298 million more than a normal credit card purchase in interest and other related charges.

Mike Naylor, personal finance expert at uSwitch.com, the company carrying out the research, said: “During 2006, at the height of the media frenzy surrounding credit card cheques, some providers may have scaled down their promotional activities, but nowadays it would seem that it’s ‘business as usual’.

“The reality is that the credit card industry has far more to lose than consumers if people had to ‘opt-in’ to receive credit card cheques.”

Tags: Recent research, card, industry, 5 million, business

UK business confidence affected by credit crunch

A recent report has shown how business confidence levels across the UK have been affected by the effects of the credit crunch that was sparked in the sub-prime sector of the United States.

The credit crunch made its way across the Atlantic and took effect in the UK and in other countries around the world back in August, and since this time the levels of optimism and confidence amongst businesses in the UK have fallen significantly according to recent figures.

The figures were revealed in the quarterly Business Opinion Survey released by the Institute of Directors in the UK. According to the figures on the reports around a quarter of company bosses were optimistic and confidence about business prospects at the beginning of August before the effects of the credit crunch took hold in the UK. However, more recent figures indicate that this level has now dropped to just 4%, reflecting the adverse effect that the credit crunch has had in terms of UK business confidence.

Around 15% of company bosses stated that the credit crunch had affected sales and performance for their business. Back in August around 77% of company bosses said that their business was performing well rather than badly, but even this has dropped to around 73%. A spokesman from the Institute of Directors stated: “This is a pretty gloomy survey, with the decline in business confidence worrying.”

He also added: “Thankfully, actual business performance remains high. Across the whole economy there is a real divide between the actual impact of the financial crisis to date and expectations of what it might bring in the future. The key question now is whether optimism will bounce back because, if it doesn’t, business investment could be hammered.”

Tom Smith
19th November 2007

Tags: business, sales, economy, concern, confidence

Credit cards reward disloyal behaviour

Credit card companies’ struggle for new customers is encouraging disloyalty, a new report has claimed.

By reserving the best deals for new customers only, Defaqto argues in its report ‘Credit Cards in the UK’, credit card firms are making it sensible to keep switching.

While some cards now offer “anniversary” offers as a means of keeping customers, on the whole, these are not as good as introductory offers.

The average 0 per cent introductory deal available at present lasts 9.5 months for balance transfers, while for anniversary offers, the figure is between 5 and 6 months.

David Black, principal consultant of banking, explained: “There is a clear incentive for the creditworthy to review and change their credit card on a regular basis. The credit card industry is geared to routinely rewarding customer disloyalty for the creditworthy and there seems to be little evidence of this changing.”

At the other end of the scale, however, people with poor credit ratings are finding it ever harder to get approved for credit cards at all.

A recent report from Equifax found that high street lenders, mobile phone businesses and even catalogue companies are toughening up their credit checks.

Tags: clear incentive, business, best deals, companies struggle, disloyalty, Credit history, means, David Black

Possession insurance more common than life insurance

More Britons insure their possessions than their own life, according to recent research from Legal & General.

A full 66 per cent of those surveyed said they had house insurance, but just 41 per cent said that they had taken out life insurance, the survey found.

Additionally, while 22 per cent of respondents reported having insurance for their mobile phones, 17 per cent had critical illness cover.

Bonnie Burns, Legal & General’s protection product marketing director said: “The nation’s priorities seem misguided, with people more worried about losing their mobile than about how they would cope financially if they had a critical illness.

“We all know that it is difficult to face up to our own mortality, but when insuring possessions is prioritised above insuring lives, then something has to be done.”

In 2005-06, a total of 212 workers were killed in accidents, according to the Royal Society for the Prevention of Accidents.

Tags: business, percentage, critical illness, total, Possession insurance, legal, mobile phones, Financial services

Credit card companies make up for lost charges

Credit card companies are increasing charges, rates and fees in order to prop up their profits after a government watchdog forced them to cut penalties for exceeding credit limits.

In 2006, the Office of Fair Trading (OFT) ruled that companies could only recoup the costs they incurred by card holders going over credit limits or making late payments.

Previously, charges for such minor failings had been met with hefty fines of £25 or more, but the OFT ruling forced the industry to cut charges by around 50 per cent.

However, personal finance analyst Defaqto has claimed that the credit card companies are making up for this lost source of revenue by other means.

“Credit-card providers have lost a great deal of highly profitable revenue because of the charges cap and will inevitably seek ways to replace their lost income,” principal banking consultant David Black warned.

Amongst the new kinds of charge credit card firms are levying are charges for under-use of cards and for failure to notify them of a change of address. At the same time, familiar old fees have been boosted.

Tags: watchdog, credit card firms, card holders, UK default charges controversy, Amongst, consultant, cards, business

Investors getting greener

Many more people are concerned to ensure their investments are made in a firm that is socially and environmentally responsible, it has emerged.

Mark Robertson, a spokesperson for EIRIS, explains that people are increasingly considering their options when it comes to ethical finances.

“There has been a huge upsurge in interest on ethical issues from consumers generally; more people are buying organic food produce, more people are buying greener energy products, and the interest is now spilling over into finance now and issues, particularly like climate change are driving things,” he said.

There are many more options available than there once were when it comes to green finances, he explained.

This year, Citigroup committed $50 billion (£24 billion) to green projects, joining many other leading financial companies who are starting to address green issues.

In June this year, Which? found that 47 per cent of women would be prepared to accept a lower return on their investment if their bank operated ethically, compared with just 36 per cent of men.

Tags: green finances, cent, spilling, huge upsurge, energy products

Barclays Freedom credit card encourages frivolous spending

Barclay’s Bank has run into trouble once again, following accusations that it is encouraging consumers to spend more than they can afford, thus adding to the already mounting debt levels in the UK.

This is due to the the Freedom credit card which has been launched by the bank. The card offers consumers credit limits of up to £25,000, with an interest rate of 14.9% on the balance and an option to transfer the balance to a 6.6% loan if the customer wishes to do this.

On the advertisement for the Freedom credit card it stated: ‘If I see something I want, I need to be able to act quickly and not have to wait to arrange finance, or be stuck with a high rate of interest.’

However, concerned industry professionals and campaigners state that this card simply encourages frivolous spending, and increases the risk of consumers ending up in unmanageable levels of debt because of the high credit limits and the ability to switch to a loan. The loan can be paid between 3 months and 7 years with a fixed monthly repayment.

Barclays is trailing the card through a well known price comparison site, but has not confirmed how long the trial will last. However, experts have been quick to point out that the card could just be another way for the bank to make huge amounts of interest on super high balances from customers, or to increase its loan business through customers running up high balances and then transferring them to a loan with Barclays.

Credit cards are already known to be a major contributor to debt levels in the UK, and a card that offers such high credit limits could add ot the debt problems relating to credit cards significantly according to some experts.

Tags: industry professionals, consumers credit limits, card, way, ability, Credit card balance transfer, concerned industry professionals

Old people ’struggling’ to get insurance

Ageism is rife when it comes to f”>insurance, according to a spokesperson from Age Concern.

The spokesperson said that many people from the older generation who are still healthy are turned away by insurers.

She explained that one third of people have experiencing age discrimination from insurance companies, with 92 per cent of travel insurance policies imposing upper age limits.

“Someone’s age should not determine whether they are fit to travel. When older people themselves see no barriers to travelling and there are no relevant medical issues then companies should not restrict their activities,” she said.

Furthermore, she continued, insurance companies should be responsive to those who could negatively impact upon their business by looking elsewhere for cover.

Saga claims that the rise in the number of over-50s travelling is proven by the fact their long-haul business has doubled over the last 11 years.

Tags: fact, finance, business, saga, third, age discrimination, number, cover

Figures show drop in mortgage lending

There was less mortgage lending last month than in August, according research by the Council of Mortgage Lenders (CML).

Figures revealed a fall of almost 12 per cent in gross mortgage lending in September with the new figure at around £30 billion.

Although a decline is not uncommon for the August to September, this year’s fall is significantly greater than the average of five per cent for the same period.

Michael Coogan, director general at CML, commented: “We have been expecting a slowdown in monthly lending levels in line with interest rate rises.

“In the coming months, we expect to see monthly lending levels dip below their 2006 levels for the first time this year as rate effects are exacerbated by the recent liquidity problems in the mortgage market.”

Despite an annual increase in mortgage lending from September 2006, at 2.5 per cent it is the smallest percentage rise in two years.

The gross lending estimates obtained by CML were taken from its survey of a selection of lenders representative of over 70 per cent of the total mortgage market.

Tags: percentage, interest rate, Michael Coogan, cent, August, Council, business

Credit card companies ‘exploit customers’

Many credit card providers are using the order of repayment to make extra money out of the customer, new research has found.

When users are paying off debt in small repayments, card companies are directing the money to paying off the cheapest debt first meaning that they can continue to collect money on debts with high interest rates, according to MoneyExpert.com.

The website claims over three quarters of credit card companies employ this tactic which can significantly “sting” a customer who is generally unaware of the order of payments rules.

It found that 76 per cent of credit cards clear cash withdrawals debts last, and with average interest rates at 23.96 per cent on them, it can prove unnecessarily expensive for customers.

Chief executive of the company, Sean Gardner, advised: “As with all credit card deals you need to check that the card you’re using is suited to your requirements.

“If you do want to use your card for cash withdrawals or purchases there are some cards that’ll help you pay those off first to help you avoid prolonging the interest incurred. But those are few and far between.”

Further information about finding the right credit card provider can be found on market comparison sites such as nationsfinance.co.uk.

Tags: business, debts, Moneyexpert, Credit Cards, credit, credit card providers, comparison, company

Local financial firms more suitable than big banks

The standard of service and level of understanding offered by smaller building societies makes them more user-friendly than their larger counterparts, it has been suggested.

According to the Building Societies Association (BSA), the fact that regionalised companies will have a better knowledge of local markets is clearly to their advantage.

Commenting on the differences between the types, Adrian Coles, the director-general of the BSA said: “We’ve got a really good mixture in the building society sector, but if you’re locally based you really do understand the local market better than the branch manager of a national institution.”

He added: “What are the incentives? High levels of service, better levels of service than banks, understanding of local markets which they’re clearly good at, tailor-made products [and] knowing their customers.”

Recent BSA statistics reveal that 15 million adults have building society saving accounts with the 59 different institutions across the country.

Tags: sector, standard, Canoeing, Adrian Coles, director general

Popularity of Internet banking results in bank closures

The UK has seen a massive rise in the popularity of Internet banking over recent years. Although there have been concerns about security and the risk of banking fraud, the rise in the number of people using Internet banking these days has reflected consumer confidence in this type of service.

Consumers are able to conduct transactions from the comfort of their own home at any time of the day or night, and can do anything from transfer money or make a one off payment to set up direct debits or simply view statements.

However, although Internet banking is both convenient and simple, it is not all good news. It seems that the huge popularity of Internet banking is now taking its toll on high street banking, and as a result of this some high street branches are going to have to close due to lack of business. The C&G has recently announced that as a result of so many people using Internet banking it will have to close a number of its branches across the UK.

C&G officials have announced that thirty one branches across the UK will be closing, which will mean job losses in excess of 315. There are 195 C&G branches in the UK in total, and the company is a part of the Lloyds TSB group. One spokesman stated that there were fewer people using the branches that were to be closed, and much of this had been put down to the popularity of Internet banking.

He stated: “Closing branches is never a decision that we take lightly. But with more customers taking advantage of technology, the number of customers coming through the doors in these particular branches has fallen. By closing these branches where customer use has dropped, we can invest in the branches that customers do use.”

Tom Smith
21st September 2007

Tags: bank, close, grow, branches, high st, online, overheads, business

Hips introduced today

Home insurance packs (Hips) are introduced today across England and Wales.

The Office of Fair Trading (OFT) also warned estate agents yesterday that it would get tough on those who were found in breach of the new regulations.

The packs are now mandatory on the sale of all four-bedrooms or more homes, with all other houses to be covered as the policy is rolled out in future months.

A ban can now be imposed by the OFT on any estate agent found to be in breach of the new Hips regulations, after the issuing of a Warning Order first.

Head of consumer protection of the OFT Mike Haley said that “it is important that agents are aware of their obligations and the possible consequences if they fail to comply.

“If an agent fails to comply, this could trigger an investigation into an agent’s fitness to continue estate agency work.”

Originally drafted in June 2006, the legislation has suffered many setbacks, including facing a parliamentary vote to decide whether Hips be scrapped, and also being delayed from its original introduction date on 1st June this year.

Tags: england and wales, sale, protection, business, office of fair trading, consumer, vote

Mortgage fees soar

In an increasingly competitive industry, mortgage purchasers might be being tricked into paying massive fees by deceptive advertising, a financial service website reports today.

According to Moneyfacts.co.uk, lenders have increased their fees by over 600 per cent in the last two years, with no difference in the amount of work being done by them to sell the house.

A common technique by lenders to artificially enhance their position in mortgage ‘league tables’ is to switch their own charge to the arrangement fee, thereby making them appear to be able to highlight a lower general interest rate.

Therefore customers – who naturally tend to focus on the headline interest rate as a guide to their decision – pay more than the advertising suggests, a situation which a spokesperson for the website today termed “objectionable”.

Mortgage brokers advise prospective buyers to include the range of payments, including lender’s fees, rather than just focussing in on the interest rate.

Tags: interest rate mortgage, arrangement fee, business, headline, work, decision, technique, mortgage brokers

Co-op ethical policy ‘has turned away £700m’

The Co-operative Bank (Co-op) announced today that it had declined more than £700 million worth of loans for ‘ethical and ecological reasons’.

It also claimed that its ‘ethical positioning’ is a ‘positive driver for business’, with its loan book growing 250 per cent in the 15 years which it has held its ethical policy to total almost £2 billion today.

The bank first formally committed itself to ethical investment in 1992, with its statement that it would not invest in businesses involved in cosmetics testing on animals. It formulated its Ethical Policy statement, committing it to supporting Fair Trade, in 1995.
The Co-op’s chief executive David Anderson hailed the bank’s ethical standard as responsible for changing society: “We’ve witnessed the end of cosmetic testing on animals in the UK; the introduction of legislation to phase out the manufacture of the most harmful chemicals; and Fair Trade – something our customers have supported since 1995 – is now a mainstream brand.”
The figures released by the bank show that ecological reasons – making up almost half the total at £324 million – were by far the most costly factor behind the bank’s loan refusals. Animal welfare came next at almost £150 million, with the arms trade, global trade and human rights concerns all costing over £50 million each.

Mr Anderson remains optimistic for the brand’s future: “Of course, major challenges remain, and going forward we will continue to press for change on the issues our customers care about.”

Tags: business, Mr Anderson, ethical policy statement, The Co-operative Bank, United Kingdom, Co-operative, mainstream brand, human rights concerns

Rewards Credit Cards – Compare Credit Card Rewards Programs Online

Credit card users in the UK can enjoy a good choice of cards these days to suit all needs and circumstances.

One popular type of card is the reward credit card, and these cards are available from a wide range of card issuers offering a variety of rewards. With rewards credit cards you can earn points or rewards when you spend on the card, and these points can then be exchanged for goods, vouchers, or money off purchases depending on the type of card and reward that you choose.

As with other types of credit cards it is best to avoid making cash transactions on rewards credit cards, as card companies tend to charge hefty rates of interest and expensive charges on cash transactions. Also, no reward is received on cash transactions, and therefore you will not receive the full benefit of the card and may offset the benefits of the card through having to pay interest and charges on your cash transactions.

The interest rates, reward levels, and types of rewards offered on reward credit cards can vary from one credit card company to another, and this means that it is important to compare a range of cards in order to find the best one for you. Those that will benefit the most from these reward credit cards are those that repay their balance in full at the end of each month.

If you repay your balance in full each month rather than spreading the repayments you can earn the loyalty or rewards points on purchases that you make on the card but you won’t have to pay any interest, which enables you to really make the most of this type of card.

You can get all sorts of rewards credit cards, such as branded rewards credit cards and rewards based cards from supermarkets that enable you to earn store loyalty points.

The more you spend on your rewards credit card the more rewards points you can earn, and the better the rewards. For those looking to spread repayments on their credit cards a low interest or 0% interest on purchases credit card is probably more beneficial that a rewards card.

If you are looking to apply for a rewards credit card to earn points or rewards when you spend you should bear in mind that the terms and conditions as well as the rewards can vary. You can compare the range of rewards credit card easily and conveniently online, where you can also make your application.

Tags: wide range, Credit card users, Reward website, month, business, benefit

The cash machine turns 40

On June 27th 1967 personal banking changed for ever with the opening of the world’s first cash machine in Enfield, North London.

The Barclays branch opened the first ever ATM so that customers could access cash outside of the bank’s normal opening hours.

Actor Reg Varney, star of popular sitcom On the Buses, christened the cash point and will always be remembered as the first person ever to withdraw money from a hole in the wall.

In those days, customers needed to feed a special voucher into the machine and enter a unique four digit code in order to gain access to a £10 note.

Principally, ATMs have not changed too much over the last 40 years but their popularity has soared.

By the end of the 1960s the UK had 595 cash points, while the world contained 781. By the end of 2006 there were 60,642 in the UK and 1.64 million across the globe.

“The cash machine, more than any other banking innovation, has had a major impact on the way we all conduct our lives, not just our banking,” said John Warren, head of cash machines for Barclays.

“Forty years ago cash was only available from 9-3 pm Monday to Friday and Saturdays from 9 -12.30 pm and, as cash was king, queues outside branches on a Saturday morning to get weekend money were common. Now you can get money any time, anywhere.”

The cash machine was invented by John Shepherd-Barron who had the idea while taking a bath after he had been prevented from getting his weekend money because he was late to the bank.

Tags: bank, barclays, order, voucher, code, barron, time, business

Joint accounts driving wedge between couples

Almost a quarter of people who share a joint bank account with their partner suspect that their other half is using it to make selfish purchases.

Research by Abbey shows that 24 per cent of joint account holders are suspicious of their partner’s use of the account and they may have good reason to be.

The study also highlights that 20 per cent of joint account holders do use the money held in it to by things for themselves.

With all this suspicion and dishonesty, it is hardly surprising that 25 per cent of couples have argued over the use of their joint account and this may be down to an aversion to setting ground rules.

Abbey found that nine per cent of joint account holders have never set any ground rules for the use of the money, while ten per cent had only done so after having the account for between two to six months.

“Money has always been a common source of dispute between couples and joint accounts are proving to be no exception,” commented Steve Shore, head of banking at Abbey.

“It’s important that couples are open and honest with each other from the start and discuss exactly what the joint account rules are, to avoid arguments at a later date.”

The majority of couples (93 per cent) open a joint bank account to pay for household bills such as gas and mortgage payments, while 83 per cent use it for supermarket shopping.

Tags: dishonesty, common source, partner suspect, business, couples, finance

British savers are ‘fantasists’

Millions of Brits are failing to plan their banking properly and this could lead to problems in the future.

National Savings & Investments (NS&I) has slammed 33 per cent of Britons as financial fantasists.

Its research shows that many of us are expecting to see our wages increase or are hoping for an inheritance windfall to help us out.

The NS&I Quarterly Savings Survey showed that 24 per cent expect to see their wages increase, five per cent think they will be able to borrow whatever money they need and four per cent are hoping to receive some inheritance.

However, 55 per cent say that they do not have a financial plan in place and NS&I points out that it is folly to wait in hope for financial changes that may never arrive.

“It’s a real concern that such a high percentage of people haven’t made a financial plan for their future and even more worrying that a significant number are basing their financial security on their future earnings potential,” said Dax Harkins, senior savings strategist at NS&I.

“There’s never any guarantee that people will earn more as they get older so it’s really important that people start their financial planning and start saving as early as possible.”

Women are less likely than men to have a financial plan for the future in place.

Tags: plan, business, Banking, harkins, National Savings & Investments, britons, NS&I Quarterly Savings, NS&I points

Homebuyers told beware hidden costs

The average British household will spend an additional £23,800 in hidden costs when moving home.

Research by the Co-operative Bank shows that we fork out this amount during our lifetime while moving and few of us have a contingency plan in place to do so.

The figure is greater than the average salary in the UK and Co-op warns that those moving home should be prepared for the additional costs.

Only 56 per cent of those asked said that they had a fund in place to meet these costs, while 15 per cent sink further into debt by taking out a loan to cover the expenditure.

The hidden costs include solicitors’ fees, stamp duty, removal costs and estate agents fees and Co-op is concerned that many buyers are getting into financial trouble by not being properly prepared.

“As house prices have continued to increase it is important for people to look at the bigger picture in terms of costs,” said John Barker, head of mortgages at the bank.

“Hidden costs that are not budgeted for can soon mount up and by having a contingency fund in place it will enable people to be fully prepared for any eventuality.”

The study also found that Brits are happy to sacrifice a number of things in order to get onto the property ladder.

Around 28 per cent said that they do not go on holiday so that they can afford a house, 21 per cent give up eating out and 18 per cent do not buy new clothes.

Tags: Opportunity cost, Homebuyers, average salary, co operative bank, uk, research, business

Holiday card fraud on the rise

Travellers are being warned to be extremely vigilant when using their debit or credit cards abroad as card fraud continues to soar. Read more

Tags: 12 months, pin, Travellers, Payment systems, business, Perry Wilson, answer, fraud

Over one thousand jobs to go at Barclays

Over one thousand people employed by Barclays Bank will be losing their jobs in the next three years, as the bank prepares to move its Poole based processing and IT office.

Bank officials have announced that eleven hundred people will have to lose their jobs over a three year period, cutting the workforce at the office from nineteen hundred to just eight hundred. The bank plans to mover operations to a smaller building in the area.

One union official from Unite stated: ‘We are very concerned at today’s announcement which will mean a large reduction of jobs in Poole. Unite does however have robust agreements in place and the bank’s plans are spread over the next three years, so we will be working with the bank to ensure the maximum number of redeployments and voluntary redundancies. We do welcome the news that Barclays will have a new building in the area, albeit smaller, so ending speculation that they may pull out of the area altogether.’

A council official also commented, stating: ‘We are saddened to hear of the job losses at Barclays and will be working closely with them and local agencies to offer as much support as possible to those staff affected. Although the job losses will impact the town in some areas, we will be doing everything in our power to counter the effects. We are continuing to work with Barclays to find suitable sites in Poole that will meet their business requirements and are pleased that they are committed to staying in the local area.’

The Chief Executive of the local council added: ‘The job losses are very regrettable. We will be working with Barclays to set up a strong and helpful network amongst local business and employment organisations to support those affected through information, advice, job searches and retraining opportunities.’

Tom Smith
23rd May 2007

Tags: losses, business, barclays, employment, jobs, cuts, union, IT

Handbags a goldmine for fraudsters

British women may be more susceptible to credit card fraud because they carry too much information in their handbags.

That is according to credit reference agency Equifax which says that handbags are a potential goldmine for thieves.

As well as holding all of a person’s debit and credit cards, the average handbag often also contains payslips, cheque books and National Insurance numbers.

The firm has found that 22 per cent of British women hold their National Insurance number in their handbag, while 32 per cent also keep old receipts.

“Information is our greatest asset these days,” said Neil Munroe of Equifax.

“And, according to our survey, women are carrying around enough information for a fraudster to apply for loans, mortgages, credit cards and bank accounts in their name.

“As our survey revealed anything from payslips, driving licences and mobile phones can be found in a handbag and this is all it takes to commit ID fraud,” he added.

In addition to potential fraud, many women leave themselves open to other crimes, with four in five admitting to carrying their house keys alongside proof of address in their bags.

Tags: reference, potential goldmine, credit card fraud, national insurance number, credit, National Insurance, cheque, business

Keep claiming those bank charges

Customers should continue to trying to claim back unauthorised overdraft charges from their banks despite a recent court ruling.

Birmingham County Court found in favour of Lloyds TSB in a case against Kevin Berwick in which he was trying to claim back £2,545 in charges.

The case does not affect other rulings as County Courts cannot set precedents, however, the fear is that banks will become more confident in turning down people who seek compensation.

Despite this, Which? says that people should not be put off from claiming and should remain confident that they will get some money back.

“This news must not deter people from reclaiming their bank charges,” said Emma Bandey, personal finance campaigner at Which?

“People shouldn’t be scared or worried about continuing with their claim or indeed starting one. We have now had over 387,000 downloads of template letters from the Which? website.

“It’s such a simple process. Keep reclaiming those charges and if you experience any problems, go to the Financial Ombudsman Service,” she added.

Some industry figures have warned that we could be about to see the end of free banking as banks look to recover the money lost through charges.

Tags: Economy of the United Kingdom, business, Business Finance, Lloyds Banking Group, fear, Bank charge, court, Financial services

Another interest rate rise

Interest rates are the highest they have been since April 2001 after the bank of England announced yet another rise.

The 0.25 per cent increase is the fourth rise since last August and is bad news for borrowers up and down the country.

Many experts had been predicting the Monetary Policy Committee’s (MPC’s) decision and some had even forecast a bigger increase of 0.5 per cent.

The rate rise was brought in to keep inflation in check and recent figures show that inflation is currently at record levels.

People with a mortgage, credit card or loan will be disappointed with the decision and will need to keep an eye on their finances to ensure that they can keep up repayments.

Someone with an £80,000 mortgage can expect to see their monthly payments increase by around £12, while those with a £200,000 mortgage will see payments rise by £30.

Experts are also warning that this is unlikely to be the last interest rate rise, with economists predicting more to come in the months ahead.

Tags: loan, rate rise, mortgage, business, Credit card, Financial services, bank of england

BBA supports new dormant account legislation

The banking industry is supporting a government consultation paper on unclaimed assets which is issued today (March 20th).

Officials at the British Bankers’ Association (BBA) have thrown their support behind the proposed approach of dealing with unclaimed assets.

Essentially the proposed legislation will allow unclaimed monies to be invested into community causes while still being reclaimable by the owner after it has been used.

Money can only be used for other purposes once an account has lain dormant for 15 years and the original bank or building society will remain in control of any further customer relations regarding the account.

The purpose of this is to ensure that if the customer does try to claim his or her money back, it will be as easy a process as possible.

“All along our priority has been the protection of the right of customers to reclaim their monies at any time,” commented the BBA’s chief executive Angela Knight.

“A key element of the approach proposed within the consultation paper therefore is that even after the transfer of their ‘unclaimed assets’ individuals will retain the right to reclaim their monies via their bank or building society as at present.”

It may be worth checking to see if you have a dormant account which you have forgotten about and may contain a nice financial surprise.

Tags: british bankers association, unclaimed monies, consultation, owner, bank

Parents turn to kids for cash

It used to be the case that children went to the bank of mum and dad to help them out of sticky financial situations.

However, new research suggests that the trend is reversing, with mum and dad now beginning to turn to the bank of son and daughter in order to live comfortably during retirement.

Yorkshire Bank looked into the financial relationship between children and their parents and found that 27 per cent of people with children are hoping that their offspring will help them out when they retire if need be.

That would seem to be likely considering that 40 per cent of those asked said that they have no real savings for when they retire.

A total of 60 per cent of these people say that they know they should be saving but just cannot afford to as the cost of living continues to rise.

“By not saving for the future, parents appear to be aware they’re storing up hardship for themselves,” commented Gary Lumby, head of retail at Yorkshire Bank.

“Many are already presuming their children… might be the answer to all their financial problems. However, the easiest solution is to start saving now.”

Mr Lumby went on to say that people approaching their 30s should be thinking about putting ten per cent of their income into a pension so that they can live comfortably in retirement.

Tags: business, dad, retirement, percentage, answer, cash, financial situations, finance

Stub out the interest on your mortgage

People who smoke are prolonging how long it will take them to pay off their mortgage.

That is according to mortgage broker John Charcol which says many people could save themselves thousands of pounds by stubbing out.

With No Smoking Day (March 14th) fast approaching, the firm has highlighted the fact that someone who smokes could save £27,000 in interest by quitting.

The idea is that a former smoker uses the money he or she used to spend on tobacco and puts it towards paying their mortgage off early.

On a 25-year mortgage this will lead to savings of over £27,000 and will reduce the term of the loan by eight years.

“When smokers look at what quitting can do to their finances it may provide that added incentive to finally stub out the habit,” remarked Katie Tucker from John Charcol.

“A 20-a-day smoker can save around £1,825 a year by giving up which, in itself, is incentive enough. Yet when you look at what overpaying by this amount can do to a mortgage, it is even more of an enticement.

“Even someone with a relatively small mortgage of £100,000 will pay £27,417 less in interest,” she added.

John Charcol points out that heavier smokers have the potential to save more money, with someone on 40 cigarettes per day saving around £45,000 on a £100,000 mortgage and shaving 14 years off the loan term.

People who give up smoking not only protect their health but also see a wide range of financial benefits.

A recent report by Sainsbury’s Bank found that an ex-smoker can save up to 48 per cent on a life insurance policy.

Tags: business, mortgage, Katie Tucker, smoking day, report, smoking, small mortgage

Subsidence risk for 100,000 Londoners

Around 100,000 homes in London face an increased risk of subsidence due to the growing trend of turning front gardens into driveways.

That is according to esure home insurance, which carried out research including a report from the British Geological Society.

The report details how driveways cause rainfall to run off into drains rather than filtering down to the soil where tree roots lay waiting.

As the roots receive no water they move to seek some out, leading to changes in soil moisture beneath foundations.

“It is very appealing for homeowners in busy streets to create a bespoke parking space for their property,” said Nikki Sellers, head of home insurance at esure.

“Unfortunately, for houses with a street tree or large front garden tree nearby this can significantly increase the risk of subsidence.

“A dedicated space may increase the value of your home but subsidence damage will do quite the reverse,” she added.

Homeowners are being warned to do their research before installing a driveway or patio and are advised to take out adequate insurance if they are concerned about subsidence.

Tags: head, Esure, property, bespoke, report, soil moisture, business, Insurance

Stamp tax just got easier

An update to the Stamp Taxes Online website could considerably speed up the process of buying a house for many.

Those wishing to submit stamp duty land tax (SDLT) returns online will now be able to receive their certificates electronically, rather than waiting for the paperwork to arrive in the post.

It means that the time between getting a mortgage and moving into a new home will be dramatically reduced.

Stamp Taxes Online was launched in August 2005 and has proved remarkably popular, with over 370,000 of us submitting our SDLT returns in this way.

HM Revenue & Customs says that doing SDLT returns electronically, homebuyers cut down on administration time and are assured greater accuracy.

“We know that Stamp Taxes Online has been incredibly popular to date, and this enhancement will speed-up processes considerably,” said Jim Ferguson, Stamp Taxes’ business director.

“Being able to receive SDLT certificates within a few moments of submitting returns, will be of enormous benefit to busy practitioners working in today’s booming property market.”

If you are in the process of buying a new home and need to submit your SDLT returns it may be worth trying to file them online, potentially saving you time and guaranteeing the accuracy of the information provided.

Tags: post, date, SDLT certificates, business, Public economics, Taxes Online, Rationing, house

First-time buyers taking risks

First-time buyers are prepared to take bigger financial risks to get on the property ladder as house prices continue to rise.

As the third interest rate rise in five months looks set to have just a minor impact on the price of a house, Yorkshire Bank says many consumers feel forced into taking big chances with their future.

According to the bank, three out of five first-time buyers would consider taking out a home loan that was five times their income.

In addition, 80 per cent would also consider getting a mortgage which is paid back over more than 25 years in order to make the monthly payments more manageable.

“With the average house price nearing £200,000, this year may feel like the last chance saloon for first-time buyers already finding it hard to buy,” said Gary Lumby from the bank.

“Saddling themselves with such huge debts isn’t wise as they could still be paying off their mortgage well into their sixties or even seventies.

“They may also face breaking point should interest rates increase again. Unfortunately for some, they feel it is their only option,” he added.

Yorkshire Bank has also found that 28 per cent of first-time buyers are so keen to get onto the property ladder that they are willing to offer above the asking price straight away for a house which they want.

In response to the current housing climate, 15 per cent of parents have started a home fund to help their children buy a house when they are older.

Tags: chance, yorkshire bank, property, monthly payments, bank, Real estate, business, council of mortgage lenders

Average house price £100k+

House prices have continued to grow, with new research showing that every county in the UK has an average house price above £100,000.

The data, collated by Halifax, signals the first time ever that this has been the case and demonstrates a massive growth in average prices.

In 2001 there were 63 out of 101 counties with an average price below £100,000. In addition, only Surrey had an average price of £200,000 back then.

The latest survey shows that 19 counties had an average house price of at least £200,000.

Scotland and Wales saw the biggest growth in house prices, with the top ten fastest growing counties being in these regions.

“Wales, Scotland and, to a lesser extent, Northern Ireland, have dominated the UK county league table for house price growth over the past five years,” said Martin Ellis, chief economist at Halifax.

“Southern England, by contrast, has lagged behind. Much of the out performance by these parts of the UK has been part of a catch-up process with the greater availability of more affordable property stimulating demand and therefore allowing prices to rise more quickly.”

Tags: halifax, business, house price, Real estate economics, bank of england

Making a Car Insurance Claim

Having an accident and making a claim on your car insurance Read more

Tags: sense, Disaster Accident, car insurance claim, reality, party, business, stage, day

FSA launches payment insurance crackdown

The Financial Services Authority (FSA) is launching a crackdown on the payment protection insurance industry.

FSA officials have expressed concern that some consumers may not be getting the best deal and the group intends to investigate.

Mystery shoppers will put firms to the test, with those who fail being reprimanded.

“Improving sales standards in the payment protection insurance market remains a key priority for us and we see it as an indicator of whether firms are treating their customers fairly,” said FSA managing director Clive Briault.

“Customers should come away from the sale having been given the best possible chance of understanding that payment protection insurance is almost always optional, what the policy will and will not cover, and how much it costs.”

Around 200 firms will come under scrutiny as part of the crackdown, with a number of companies having already been put under the microscope.

In total, ten of those have been “referred to enforcement” and some have been hit with heavy fines.

Tags: business, priority, best possible chance, consumers, heavy fines, Managing director, protection insurance market, barclays

Credit card cloning warning

Credit card holders are being told to increase their vigilance and be on alert after a spate of card cloning incidents.

Police in Cheshire have sent a warning out to all card holders in the area after around £3,000 was taken from accounts over the new year period, reports the Chichetser Observer.

In total, officers say that ten people reported money missing from their accounts, all of whom had used the same cash point.

The investigation is now focussing on the HSBC machines located in a local supermarket.

A process known as skimming is believed to be what was used by criminals to obtain the account numbers, sort codes and pin numbers of unsuspecting victims.

This data is then transferred to another card and it can be used in exactly the same way.

Those who have already realised that money has gone from their account did so because they have checked their statements, however police fear the number of victims will escalate when others check their balance.

Tags: way, card cloning incidents.Police, year, area, business, card cloning warning, Automated teller machine, Observer

Detached property mortgages most popular

Detached properties remained the most popular among home buyers throughout 2006, according to new research.

Figures released by Norwich and Peterborough Building Society show that more people took out mortgages on detached homes than any other type of property.

The East Anglia-based firm recorded an increase in figures for 2006 compared to 2005, with a one per cent increase in the number of people buying a detached property.

In contrast, the number of buyers who applied for a mortgage on a semi-detached home fell by two per cent, meaning semi-detached mortgages accounted for 30.41 per cent of total loans (5.22 per cent less than detached).

“Customers do look on their home as ‘their castle’ and prefer the greater privacy that a detached property offers, along with the benefits of perhaps a bigger garden and fewer problems with noisy neighbours,” commented Martin Bell, head of residential lending at Norwich and Peterborough.

Terraced houses once again fared the worst in the figures, with only 25.52 per cent of mortgages taken out to buy one, signalling a fall of 0.51 per cent compared to 2005.

Tags: semi-detached home, privacy, fewer problems, bell head, bigger garden, business, building, finance

Credit Building Tactics

Your Credit Rating and you

There are two main credit rating agencies in the UK: Experian and Equifax.

When credit card companies receive an application for a card they will more than likely run the person’s details past one of these two agencies. It’s the job of these agencies and others like them, to keep on file all applications for credit, whether or not you were successful and details of how you conducted your dealings with debtors when you had that credit.

This information includes your mortgage payments, sometimes it includes utility bills and it can even take into account the area in which you live and whether you are on the electoral roll. The lender will compare the data it receives back from the rating agency with its selection criteria to build up a points profile of you as a potential risk. If you don’t score enough points you are considered to be a bad risk or have a low credit rating.

Don’t Panic

If you are turned down by a lender it’s possible to find out what your credit rating is by writing to the agency enclosing payment for £2.00 and asking to see a copy of your file. Or apply online at one of the numerous websites offering the service.

If you do have a low rating, don’t panic! You can improve it. Here’s how.

Start slowly

By initially getting a credit card designed of people with a poor credit rating you can start to make regular payments into it. These payments should be fairly large and the best thing is to pay them off in full each month.

If you can and you feel like playing the credit ratings agencies at the top of the game, then you can go one stage further. Sometimes loan companies will refuse you credit if it appears from your history that they won’t be able to make money out of you. So for the hell of it you might want to leave a bit in the card for them to nibble at with their interest charges. But whatever you do, don’t leave too much in there as the APR could be soon become crippling.

And remember, you don’t need to do this every month – clear the balance more often than you leave a little for them. What you are doing is demonstrating that you can look after your finances by working the credit card.

Careful does it

The above method should really be called the kamikaze school of credit improvement and it’s not guaranteed to make a difference with all lenders. It requires you to be very self disciplined and if you’re the sort of person that might get carried away with spending or be just too lazy to control your repayments you probably shouldn’t go near this approach.

The building blocks of credit

Instead you could start to build up your credit rating by co-signing with a family member or a good friend on a small loan or credit card. But be aware of

the potential pitfalls of signing up to a joint debt if you fall out with your

co-signee! This is a good building block for young people who are starting out on their journey into credit.

It’s all over

Once it’s all over and your credit rating improves you will quickly get another card. When it arrives, play the game the usual way and give the credit card companies as little as possible!

Whatever you do don’t forget to meet your monthly repayments on any bills you have or your rating will go sliding again. If you do find you’ve forgotten a repayment, contact the company, get them to make a note that you have contacted them and pay it as soon as possible.

If you move house, tell all financial institutions you are involved with and make sure you register on the electoral roll of the new area.

Applications

Every time you make an enquiry about credit it’s recorded on your rating file. So if you are turned down by a company it will be shown. For this reason it is a good idea to avoid making several applications to different companies if you are turned down by one. Given that it only costs around £2 to find out how your rating stands it would be better to get a copy of your rating from the agency before filling in more applications.

Alternatively simply phone the company before applying and ask them if you fit the credit profile they will want; are you the sort of person they will accept? A quick conversation could do you and your credit history a world of good.

Buying time

A little patience is needed before your credit rating gets going, but while you’re waiting for things to start moving you can help them along by getting a few scorecards, but always pay off the balance on a regular basis as these are usually the most expensive type of credit facilities out there. So don’t go grabbing scorecards for things that you don’t already buy, or you’ll end up in a financial nightmare of spiralling debt.

And finally…

Whatever you do, when you get the credit card that you really want, don’t go over your credit limit. You’ll be charged an outrageous sum for the privilege and you guessed it, it will go on your credit rating file.

Be safe, follow good practice and get rid of all those scorecards and close down your original credit account at least until you have got used to handling credit again or if it’s for the first time until you can recognise how you might respond to the temptation of the card!

More Information:

• Credit Card Advice – CreditCards121 advice section
• Credit Reports
  Every time a customer applies for a financial product such as a credit card, the credit company will consult that customer’s credit file. This file records all their financial activity in terms of credit applications and banking activity.
• CCCS – Free non profit association advice
• APACS information page

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