Many Brits too scared to spend

It has been revealed in a recent report that many people in Britain are too scared to spend money, with a third of Brits having scared themselves into spending less. Read more

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Bank manager not seen by Brits in over ten years

Over half of Brits have confessed they have not seen their bank manager in more than a decade, according to new research from Lloyds TSB.

The survey showed that one in ten respondents were too embarrassed to discuss money matters.

Another one in ten did not think their financial aspirations would be taken seriously while a third were put off discussing their money concerns by a fear of financial jargon.

Liz Hogbin, director of savings and investments at Lloyds TSB, said: “We service our cars, have regular hair cuts and visit the doctor if we have any health concerns but many of us admit that we don’t take such good care of our finances.”

She added that a regular financial health check could put minds at rest and ensure consumers made the most of their money.

Just over a third of respondents had paid a visit to their bank manager in the last two years despite over half of them recognising that their financial situations had changed in that time.

Research was conducted by Ciao among 1,024 consumers between 16th and 24th November 2007.

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Blocked spending on credit cards problematic

Young travellers who take a parent’s credit card with them on their travels are finding it blocked for appearing fraudulent, gapyear.com has said.

Backpackers are often found to be spending abroad while their parents are simultaneously carrying out transactions on a copy of the same card at home which can lead to the provider stopping the card.

Tom Griffiths, founder of the travel website, said: “Because they visit a few countries in a limited amount of time, it looks like fraudulent behaviour.

“And, if they’re away from home, the credit card company tries to contact them but obviously they’re inaccessible, so their cards are being blocked. That’s a big problem at the moment [for] backpackers.”

He added that many parents give their children a credit card for cases of emergency as their “biggest fear” is them finding themselves without “access to cash” while away from home.

Furthermore, he said, there is now a specialised card coming in for backpackers and gap year travellers that is prepaid and allows transactions with no risk of blocking. It also removes the common problem building up “uncontrollable debt”.

According to gapyear.com 230,000 people take a gap year between the ages of 18 and 24, spending an average of £3-4,000.

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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, Financial services, fear, Lloyds Banking Group, Bank charge

House prices still rising

House prices have continued to accelerate, with the latest figures showing a rise for the 18th consecutive month.

The Royal Institute of Chartered Surveyors (Rics) has published housing market survey and it makes for bad reading for first-time buyers.

Statistics shows that new buyer enquiries fell for the fifth consecutive month in April and the decline is taking place at a faster rate.

Rics says that this is down to the latest round of interest rate rises which helped to make more homes unaffordable.

“Last week’s interest rate hike may not be the last as the housing market has not slowed as quickly as expected given the initial round of rate rises,” commented Ian Perry from Rics.

“With prices buoyant and conditions still tight, another rate rise later in the summer looks likely.”

Things look set to get worst for first-time buyers as the introduction of Home Information Packs (Hips) in June may force some sellers to take their properties of the market.

Currently, the housing market is benefiting from increased supply as people try to avoid having to fork out for a Hip and prices still continue to rise.

“The fear of paying the upfront buying costs of Hips has pushed more property onto the market,” said Mr Perry. “This will continue throughout May but conditions should tighten if Hips goes ahead on June 1st as sellers withdraw from the market.”

Tags: price, Home Information Packs, summer, fear, Royal Institution of Chartered Surveyors, faster rate.Rics, round, house