Banking ’smart’ could make a big difference to your love life
October 4, 2007 by admin
Filed under News, News-Banking
The right choice as to where to do your banking and in which accounts could even affect your love life, according to research from Abbey.
In a survey conducted among its current account holders it was revealed that arguments over how much money is spent on gifts had actually caused three quarters of a million of them to split up with their partners.
Some 5.9 million savers complained their partners did not spend enough on them and Abbey argues that banking with an account paying more interest could keep couples together, as it would enable them to buy each other more gifts.
Steve Shore, head of banking at Abbey, said: “Love doesn’t come cheap … we estimate it costs over £1,500 a year to be in a relationship.”
Its data shows average amount spent on presents for a partner is £95 on birthdays, £133 at Christmas and £97 on other gifts through the year.
Day to day expenses such as drinking and eating (£1,044) both in and outside the house and entertainment such as going to the cinema (£224) also eat into savings, according to the report.
Debt considered acceptable because of student loans
June 17, 2007 by admin
Filed under News, News-Loans
According to a recent report the popularity of student loans has made debt in the UK seem even more acceptable.
According to the financial education charity Credit Action student loans have become such a norm that being in debt has become something of a fact of life. And according to officials from Credit Action these student loans have nothing to do with a need for money, but more to do with the easy access to student loans.
One official from Credit Action described student loans as ‘government endorsed debt on a massive scale’. Of course, students can find themselves in need of financial aid at some point during their education, but the easy access to student loans has resulted in many students just taking out loans for the sake of it rather than through real need, placing them on a downward debt spiral that could lead to problems later in life.
According to Chris Tapp from Credit Action there is not enough caution exercised with student loans, and the easy access to this type of finance has made debt appear to be acceptable even for the younger generation. With consumers levels in the UK at sky high levels this has raised concern amongst some charities and campaign groups, as those in their late teens and early twenties begin a debt ridden life before they have even completed their education.
According to Mr Tapp student loans enable students to live lifestyles that are beyond their means – something that they then become used to, and something that many have to continue funding through further finance, as their initial jobs after leaving college or university is unlikely to be a high paying one.
Tom Smith
17th June 2007
Apology from Lloyds over call centre problems
April 25, 2007 by admin
Filed under News, News-Banking
Lloyds TSB has made an apology over problem with their call centre number, where customers calling the 0845 number were left hanging on the line to listen to a recorded message for up to ten minutes whilst being informed by an automated message that their enquiry would be dealt with as soon as possible.
The calls cost consumers three pence per minute, and around half of the cost of the call goes to the bank, which means that Lloyds was raking in a tidy profit from all the people that were left hanging on the telephone.
Lloyds recently announced that it was looking into systems that would ensure that customers of the bank received a more efficient and faster service, which made this situation all the more embarrassing for the bank. Its Bombay call centre was closed last month, after the bank claimed that the automated system could handle most enquiries. The 0845 number would also enable customer to get the telephone number of their local branch according to Lloyds, which previously customers could not do.
However, according to staff agencies the bank has failed to ensure that there are adequate staffing levels to deal with the new system, and Lloyds TSB has been accused of misleading employees, media, and customer with its claims about the automated service. Angry customers have been left holding on and paying a small fortune each time they call, the bank – which made over three billion in profits last year – has been raking in a fortune from the calls, and staff have been left to deal with the changes with no additional resources.
Over two hundred staff members lost their jobs when the Bombay centre was closed, and Lloyds have claimed that the efficiency of the automated system meant that staff members could be reduced.
Tom Smith
25th April 2007
Fierce Competition Likely to Push Car Insurance Premiums Down
November 2, 2006 by admin
Filed under News, News-Insurance
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Despite the recent announcement by Norwich Union that it is to increase premiums on its UK motor insurance policies by up to 16 per cent. in the coming year, recent research undertaken by Defaqto indicates that fierce competition among UK car insurance providers is likely going to result in car insurance premiums falling in the coming months.
According to the findings in Defaqto’s recently released report, “Motor Insurance in the UK – Adapting to Survive”, many of the UK’ leading car insurance providers are either electing to keep their car insurance premiums frozen this year or are looking to reduce premium burdens on their customers. With UK car insurance premiums constituting £7.4 billion in sector revenues for 2006, many of the UK’s leading car insurance policy providers now acknowledge that intense market competition is stopping them from following Norwich Union’s lead and increasing premiums.
To a large extent, most of the competitive pressure on car insurance premiums in the UK is coming from savvy motorist who have now learnt that looking online for discounted car insurance is the easiest and quickest way of finding cheap UK car insurance. Brian Brown, Defaqto’s head of general insurance research commented that “With the Internet, it is now easy for customers to shop around and so many insurers are still giving introductory discounts, cash-back or guarantees to beat other quotes, that there is little, if any, need for customers to stick with their existing insurer when faced with premium increases”.
The question of whether or not UK motorist can look forward to reduced car insurance premiums is still, however, subject to whether or not large UK motor insurance providers, such as the Royal Bank of Scotland, decide on price freezes. If RBS were to decide that now is not the right time to push through a price hike, then joint competition from RBS and alternative discount UK car insurance available on the Internet will almost certainly result in premium freezes or reductions in the coming year.
Nonetheless, UK motorist still need to be careful they read their UK motor insurance policy carefully as over 60 per cent. of motor insurance providers in the UK now recoup lost revenue from premium reductions in the form of policy adjustment charges. Here, Defaqto’s report found that the fee to cancel a UK car insurance policy can cost the policyholder as much as £75. However, Defaqto are also quick to point out that following the Office of Fair Trading move to reduce late payment fees on UK credit cards, it is likely that these high additional fees will not be round for long – with or without the OFT’s intervention.
