Debt management firms warned by government

Officials from the government have been warning debt management firms to stop misleading consumers with regards to getting their debts written off. Read more

Tags: information, vulnerable consumers, debt, prosecution, final decisions, justice minister, credit card debt

Have you been seeking advice on child benefit?

For many people the subject of child benefit can be quite complicated, and as parents we don’t want to miss out on valuable benefit for our children, especially in the current financial climate. Whilst there is plenty of advice and information available relating to child benefit some consumers may have decided to use a helpline that was set up to answer queries about this benefit. The helpline is called Child Benefit Information, and is run by a twenty four year old businessman. Read more

Tags: Website, child benefit, credibility officials, official, thing, information, regulator, benefit

Graduates urged to prioritise costly debt

Graduates may have to put up with student loans but credit card debt should be paid off as quickly as possible, an expert has urged.

Richard Brown, chief executive officer of financial information website Moneynet.co.uk, remarked that university leavers have a considerable period in which to repay their student loan and should prioritise the repayment of more expensive debt first.

He explained that student debt is “a fact of life unfortunately, whereas carrying big wads of debt on a high interest credit card isn’t”.

Mr Brown made his comments after his organisation published advice to students, urging them to stop “fretting” over the amount they owe through normal student debt and to concentrate first on paying off their most expensive borrowing.

Recently published figures compiled by Credit Action showed that at the end of April, total levels of personal debt in the UK stood at £1,436 billion, an increase of £110 billion compared to 12 months previously.

Tags: advice, expensive debt first.He, information, consumer debt, expert, credit

Clever consumers check their credit reports, says Experian

With attractive loan deals becoming increasingly difficult to come by, Experian has offered consumers advice on how to make sure that their applications stand the best chance of being accepted.

According to James Jones, the consumer education manager at Experian, people should take a look at their credit reports before making a loan application to ensure that all the information on them is correct.

“Lenders are using credit histories not only to decide whether to say yes or no to people but also to decide what rates to charge.

“So, clever consumers are checking their credit reports,” Mr Jones concluded.

Research from CreditExpert.co.uk has revealed that many people do not feel confident that they will be successful when making a loan application.

The company’s study found that 23 per cent of those polled believe they will be refused a loan of £1,000 and 42 per cent think they would not be able to secure a loan of £10,000.

Tags: TransUnion, CreditExpert, loan deals, Credit bureau, equifax

Smokers face double the life insurance premium

Smokers may be faced with life insurance premiums that are twice as high as those for non-smokers, says an expert.

In particular, older people who smoke can expect a large reduction in the price of their life insurance if they quit, according to Life Direct.

Kieran Platt, director of the insurance information provider, said: “If you smoke it can double your premium quite easily. Smoking massively affects life cover premiums and that affects our lifestyle.”

A survey by Norwich Union from March 2008 found that 37 per cent of people without life insurance said that they either had not considered it or were intending to buy it eventually.

Ten per cent of respondents said they had no dependents and therefore felt no need for insurance, while as many as 44 per cent decided to buy cover after they bought their first home.

Mr Platt also said that taking part in clinical trials may impact the cost of life insurance, particularly if they are for an untested drug as companies are unlikely to be willing to pay insurance in that situation.

Tags: home.mr platt, lifestyle."A survey, information, life, cost, Insurance, director, insurance information provider

More consumers concerned about safety of personal details

More consumers are concerned about the safety and security of their personal details than ever before, an information body has claimed.

The Information Commissioner’s Office (ICO) said this fear of identity theft is driven by various factors including the recent data losses, particularly by the government, as well as the rise in the number of incidences of identity theft being recorded.

David Smith, deputy commissioner at the ICO, said: “As we all give more and more information out to all sorts of organisations, they build up bigger and bigger databases with pictures of our lives and the risks get greater all the time.”

He added that consumers should not panic, but should question organisations as to why they may need personal information.

Research carried out by consumer advisers CPP found that London is the top worst location for credit and debt card fraud theft, with 20 per cent of Londoners say that they have had their cards stolen before.

Tags: body, location, identity theft, debt card, information, number, deputy commissioner, london

Up to 70% of credit card holders did not shop around, says report

A new report has revealed that up to 70 per cent of credit card holders did not shop around before selecting their current card.

The findings from the Office of Fair Trading (OFT) indicate that this could put these spenders at a financial disadvantage.

Research for the report looked at issues surrounding the comparative costs of using various cards for purchases, cash advances, introductory offers and payment allocation.

John Fingleton, OFT chief executive, said: “No-one wants to throw money away, but consumers who don’t shop around for credit cards are doing just that.”

He added that it is essential that consumers are now given the right tools to make comparisons between credit cards more easily.

The report recommended that an independent comparison tool for credit cards needs to be introduced by the Financial Services Authority as well as improvements in how card providers show how information to consumers.

Meanwhile, Reuters has reported that the OFT is considering launching an enquiry into internet bank, Egg.

The news comes following the company writing to 161,000 customers to cancel their credit cards.

Tags: John Fingleton, internet, information, Fair Trading, finance

‘Advice needed’ on equity release options

Homeowners interested in equity release should get more information from a regulated consultant, an expert says.

Bob Mottershead of Newcastle Building Society’s (NBS) Equity Release Service said he was concerned that the results of an NBS survey showed people did not understand equity release.

Almost a quarter (24 per cent) of respondents to the poll said they did not know where to get advice despite almost half (45 per cent) considering it as an option.

NBS included holidays, home improvements and paying off debts among the top reasons for freeing equity from a property.

However, 14 per cent of respondents were reluctant to reduce their children’s inheritance by considering equity release.

Mr Mottershead said: “It’s quite concerning to see from the research that so many people don’t know where to go for guidance.

“Equity release isn’t right for everyone so our advice is to speak to a regulated consultant.”

Tags: regulated consultant, Equity Release Service, Informa, property, NBS

Pensioners increasingly in debt

Despite the credit crunch, borrowing levels have continued to rise and debt levels are increasing with the over-55s being the worst offenders, according to financial experts.

Research from Callcredit reveals that the elderly are the most uncertain about their future with 16 per cent of respondents over-55 financially unaware and unable to define their debt levels.

As a result the pensions gap is continuing to increase, claim the organisation.

Mark Ward, consumer debt expert at Callcredit, said: “It is essential that people start to borrow more carefully in order to avoid having to owe more than we are able to pay back.”

Over 1.5 million of those aged 55 and over claim they can’t afford to retire at state retirement age due to a lack of pension savings.

Another 1.1 million retired homeowners in the UK have outstanding mortgage on their home, with an average debt of £38,000.

Callcredit is a consumer credit reference agency and forms part of the Skipton Information group.

Tags: lack, information, reference, United Kingdom, Banking, finance, Labor, 1 million

HIPs rolled out to all homes from December

The controversial Home Information Packs that are currently required for homes of three bedrooms or more that are being marketed for sale in England and Wales will not be rolled out to all other properties, according to reports.

When Home Information Packs or HIPs were brought in earlier this year they were applied to homes of four bedrooms or more. This was then switched to homes of three bedrooms or more several months ago. And now, according to the report, the government has announced that HIPs will be required for all properties being marketed for sale in England and Wales.

The HIPs will come into force for all properties going up for sale from December 14th, which means that any residential property in England or Wales that goes up for sale from this date will need to have a Home Information Pack. However, various statistics have revealed that HIPs may not be having the impact that the government had hoped, and for the first time since they were introduced the government has admitted that these packs may have adversely affected the housing market.

According to a report released by the Housing Minister Yvette Cooper HIPs had impacted on people putting their properties up for sale, causing delays in people deciding to sell their homes. Another report from Europe Economics showed that HIPs had not sped up home purchase transactions by providing more required information to buyers, which is something that ministers had claimed that HIPs would do.

A statement following this study read: ‘Hips may have had an additional modest-but-material effect on listings activity but no discernable impact on transactions, mortgages or prices.’ Surveyors now state that the introduction of HIPs for all properties may results in a drop in the number of starter homes coming onto the market for sale.

Tom Smith
30th November 2007

Tags: sell, home, december, uk, packs, information, property

Government postpones EPC on new builds

In another change to the roll out of the controversial Home Information Packs, the government has announced a delay in the need for new build properties and conversions to require an EPC or Energy Performance Certificate, which forms part of the HIPs.

This requirement was due to start in January, but has now been postponed until 6th April next year, at which time the home builder will be responsible for the provision of an EPC.

The government has experienced a number of delays in the roll out of HIPs, which at present are only required for properties of three bedrooms or more but are meant to be rolled out to all properties.

An official from Easier2move stated: “We are disappointed the government has chosen to delay the introduction of EPCs on all new build homes until April 6 2008 – putting the launch three months behind schedule.”

She added: “Not only does this disadvantage purchasers of new build properties, who will be missing out on EPCs, but will also be a blow for energy assessors who are already struggling to find work due to the delayed HIP launch and consequent phased roll-out – this further delay will therefore be a great disappointment to them.”

She also said: “We hope the government realises the strain that this delay will be putting on energy assessors and will continue with its stated agenda going forward. In addition, to ensure confidence in the market is maintained, we urge the government to introduce the phased roll-out of HIPs on one and two bed properties as a matter of urgency.”

Tom Smith
14th November 2007

Tags: information, epc, packs, home, certificate, energy, performance

Estate agents claim HIPs affecting the market

According to many estate agents the controversial Home Information Packs, of HIPs, are having an adverse effect on the housing market, with fewer homeowners with larger properties now putting their homes up for sale.

According to the National Association of Estate Agents there are fewer larger properties on the market now than is normally expected at this time of the year. Many estate agents put this down to consumer reluctance to deal with Home Information Packs, which have been at the centre of controversy since they were introduced.

HIPs are now required for all homes being sold that have three or more bedrooms. Eventually HIPs will be rolled out to all sizes of properties that are being sold, and there are concerns that this could affect the market further. According the government officials the Home Information Packs are of benefit to consumers. However, many industry professionals disagree and state that the packs are harming the housing market and putting many homeowners off selling.

The Chief Executive of the National Association of Estate Agents stated: “Clearly everyone accepts that there are a number of financial and economic factors that have caused the market to take a breather after seven hectic years. However, these figures show that there is an anomaly between instructions on properties where a Hip is required and where one is not.”

He also said: “With sales slowing and normally a traditional autumn bulge in instructions, it would be normal to expect stock levels to be significantly higher. This once again appears to show the adverse effect Hips are having on the market, the lives of consumers and indeed the overall economy.”

Alan Wright
13th November 2007

Tags: home, houses, real, information, homeowners

Data loss puts thousands at risk

Thousands of Standard Life customers could be at risk of identity theft after their personal details were lost.

The details of around fifteen thousand Standard Life customers were being sent on CD from HM Revenue and Customs to the Standard Life headquarters in Edinburgh. This is a routine process carried out by HMRC. However, the courier lost the CD on this occasion, and it never arrived at the company’s headquarters.

Officials from Standard Life and HMRC are now warning customers to be vigilant. The data related to pensions customers, and amongst the information about each consumers was their National Insurance number, their names, their dates of birth, and their pension plan numbers. The CD was sent and lost around a month ago state officials. Reports also claim that a second CD with consumer information has gone missing, but it is not yet known which company this second CD was meant to go to.

The customers at risk have now been sent letters from Standard Life and HMRC. However, this is almost five weeks following the loss of the data, which has resulted in criticism.

One customer expressed her concern over the delay in notifying customers of the breach of security, stating: “This happened at the end of September and it is a month before notification. They are saying that addresses were not on there, but if someone has your surname and date of birth it is not that difficult to track you down.”

An official from Standard Life stated: “We have no evidence that the disc has fallen into third party hands and we have also been closely monitoring all the accounts and have seen no indications of any suspicious activity.”

Mark Wright
8th November 2007

Tags: standard, life, data, security, personal, disc, stolen, lost, information

Banks must keep customer more informed states BBA

The British Banker’s Association has recently stated that UK banks need to do more to keep their customers informed on all levels when it comes to the services and product that they offer, as well as when it comes to any changes.

A senior official from the British Bankers’ Association stated that banks need to buck up their ideas in terms of keeping customers informed. This comes at a time when reports indicate that consumer confidence in the banking and financial sectors has plummeted.

 According to the Chief Executive of the British Bankers’ Association, Angela Knight, banks in the UK need to keep their customers far more informed in terms of banking issues. Ms Knight stated that the increasing complexity of the banking industry as a whole meant that banks needed to be far more informative with their customers. She said that banks needed to be more open and informative in terms of their procedures, and that better explanations and increased security was required from banks.

Although one recent report is said to have shown that many consumers are satisfied with their bank, another study has shown that the confidence of consumers in banks and building societies, as well as other areas of the finance sector, has taken a real hit as the result of chaos and turmoil in the money markets and the recent problems seen at Northern Rock, where many savers were in fear of losing their money resulting in the mass withdrawal of over £2 billion.

Another issue that has affected consumer confidence and satisfaction when it comes to banks is the recent controversy over bank charges, which is due to come to a head early next year when the Office of Fair Trading takes the banks to court in a test case to determine what can be construed as a fair fee.

Tom Smith
4th November 2007

Tags: consumers, information, Banking, building, bank, societies, funds

Three bed homes to be covered by HIPs

The controversial Home Information Packs, also known simply as HIPs, have so far been used on properties that are being sold and have four or more bedrooms.

These HIPs were designed to cover all homes being sold, but lack of training of relevant assessors meant that there were not enough resources to cover this, and as a result only houses with four or more bedrooms were covered when the scheme was finally launched earlier this year. However, the government promised that as further staff members were trained the scheme would be rolled out to cover all properties.

It seems as though the government is quickly ensuring that it keeps its word, after an earlier announcement this week that HIPs would now also cover three bedroom homes. The plan is to continue rolling out the scheme to smaller properties as time goes on a more staff are trained, until eventually all homes will be covered with the Home Information Packs. These packs will provide a range of details such as energy information, property deeds, and more.

The HIPs have been at the centre of controversy for some months, with many experts stating that they will have a negative impact on the housing market, and that they will prove too costly for sellers. Although these packs provide information for the buyer of a property, and can save them time and money, they will cost the seller, and could prove troublesome for sellers according to some professionals.

According to the Communities Minister Baroness Andrews: ‘We are now ready to start rolling out Hips and EPCs to the next part of the market as promised, and improve the home buying and selling process which currently is not working for consumers or the environment.’

Tom Smith
1st October 2007

Tags: packs, home, information, property, government, hips

HIPs In Place For Three Bedrooms

Estate agents are warning that the new Home Information Packs (HIPs) are going to cause a shortage of larger properties on the market. One agency reported that the number of large homes on offer for sale is down by 40% over the last 12 months, and experts in the industry are blaming the packs for the problems. Each pack costs around £500, and they have been compulsory for homes with four bedrooms and more since 1 August.

The Government says that the packs will shorten the time of the buying process, but agents claim that they are actually putting off sellers and pushing up prices as they try to cover costs. Each pack must include an energy performance certificate and standard searches.

Estate agency Chancellors said that it had seen a fall of 42% in the number of large homes being brought to market since 1 August when compared directly with the same period in 2006.

Many sellers are unhappy with the process. Some say that it verges on interrogation, with questions on construction dates, central heating, loft insulation and the use of low-energy light bulbs, and multiple photographs throughout the property. Some people have seen the process through to sale, but many more have not. The Royal Institution of Chartered Surveyors (RICS) said that 53% of its members reported a drop in the number of four bedroom homes put on the market since 1 August, compared with the same period last year – worse even than the Chancellors figure. This fall has not been in line with expectations, despite rising interest rates, stock market turmoil and the credit squeeze, and HIPs are being blamed.

Now, since Monday 10 September, HIPs are required for homes with three bedrooms, despite warnings from those within the housing market.

Jeremy Leaf, housing spokesman for RICS, is unhappy with the way the government has handled the implementation. He said: “I have never known legislation so badly introduced. Homeowners clearly have no faith in the packs or the policy, which have only brought more bureaucracy and mass uncertainty to an already paralysed market. Before they are heaped on the rest of homeowners, we need to see some evidence-based justification that this policy benefits consumers. At the moment it doesn’t exist.”

Nick Salmon, an estate agent and founder of the campaign group Splinta (Seller’s Pack Law is not the Answer), said: “I cannot think of any [benefits consumers have seen from HIPs]. There is a great deal of anger among homeowners who do not see the point of these packs and consider them another stealth tax. HIPs have simply heaped more expense at the wrong end of the transaction, and sellers have nothing but contempt for the new law.” The Government stands to boost its coffers by the VAT applied to the Packs.

There are still loopholes in the law. Sellers can avoid a HIP by 1) converting a bedroom to a study, 2) cancelling a pack after it has been ordered, as it only need to be ordered, not actually purchased, 3) pay the £200 fine for not having a HIP – much cheaper than the £500 a HIP costs. In fact, getting caught is unlikely as trading standards officials admit they don’t have the resources to enforce the packs.

Mr Salmon believes the government is running the risk of drying up the housing market by introducing HIPs for three bedroom properties. Gordon Brown, he claimed, may rue the day he passed up the chance to kill of HIPs.

Tom Smith
29th September 2007

Tags: house, packs, home, hips, surveyors, fine, information, bedroom, government

Hips may be universal by October

The Association of Home Information Pack Providers (Ahipp) is calling on the government to extend the introduction of Home Information Packs (Hips).

Officials at the organisation say that Hips could be applied to homes with three bedrooms or more from September and the rest of the market could follow just one month later.

The government was forced to announce that Hips would only be introduced to the home-selling process for properties with four bedrooms or more from August 1st after concerns about there being too few accredited energy assessors available.

However, Ahipp says that there are plenty of accredited energy assessors available now and even more on their way.

“According to our own research, in addition to the 1,340 accredited assessors, there are a further 1,200 assessors who have applied for accreditation and will be fully accredited by the end of July,” said Paul Broadhead, deputy director general at Ahipp.

“With this in mind, government will easily meet the 2,000 target that it suggests is needed to provide Hips for homes with three bedrooms or more.

“As a result, I see no reason why, in line with its implementation plan, government could not introduce mandatory Hips for three bedroom properties from September, with the rest of the housing stock soon to follow, perhaps as soon as October,” he added.

Mr Broadhead went on to say that he fully expected Hips to be mandatory in the home-selling process for all properties before the end of the year.

Tags: target, September, energy, month later.The government, information, August, market, information packs

TK hacked to the max

Millions of customers who shop at TK Maxx may potentially have been the victim of credit card fraud.

The store’s owner, US firm TJX, has revealed that a total of 45.7 million customers’ bank details have been stolen.

Information was taken from the computer systems in Watford, Hertfordshire and Massachusetts and the scam is being labelled the biggest case of card fraud ever.

A statement released by TJX said: “We suspect that customer data for payment card transactions at TK Maxx stores in the UK and Ireland has been stolen.”

“We suspect that these files contained payment card transaction data, some or all of which could have been unencrypted and unmasked.”

TJX has come in for criticism over the way it has handled the situation which it discovered in January.

At the time, the firm said the security breach had affected “substantially less than millions” of customers but today (March 30th) the true scale of the problem has been revealed.

Customers in the UK and Ireland are being told to look closely at bank and card statements to ensure that have not been targeted.

Tags: information, card statements, max, ireland, US, store's owner, store, TK Maxx

Landlords rely on mortgage advisers

Landlords in the UK rely heavily on mortgage advisers when it comes to investing in a property.

That is according to the latest research from Alliance & Leicester which found that 74 per cent of landlords seek advice.

In total, 28 per cent admitted to relying on an adviser “a great deal”, while 46 per cent use them “a fair amount”.

The buy-to-let market is seemingly dominated by landlords who use an adviser, with 55 per cent admitting to relying on one to make them aware of new deals and arranging the actual mortgage.

“From our research, it is clear that advice plays an important part for buy-to-let investors,” said Mehrdad Yousefi, head of intermediary mortgages at Alliance & Leicester.

“Landlords need their advisers to obtain information that they can’t easily get hold of themselves as well as helping them get the best mortgage product for their needs.

“The fact that half of landlords taking advice (49 per cent) remain loyal to one adviser shows just how much they really do value this relationship,” he added.

The research also found that over a third (40 per cent) of landlords meet with their mortgage broker every month, while nine per cent meet with them on a weekly basis.

Tags: landlord, use, landlords taking advice, weekly basis, mortgage advisers, deal, information

2006 credit card borrowing down

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

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

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

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

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

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

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

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

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

Chip and pin scare

Fears are growing that criminals may soon be able to collect customer information from doctored chip and pin machines.

Credit card holders could be targeted if thieves get their hands on the information which was discovered by a specialist research team at Cambridge University.

The team claims to have achieved its goal of reconfiguring a machine, allowing it to copy personal account and pin numbers.

This information can then be used to create fake cards, leaving consumers vulnerable to theft from their account.

It took just one month and £1,000 for the researchers to crack the system, with team members saying that all of the information and equipment is available over the internet from computer manufacturers.

The researchers specialise in testing the security of electronic hardware and the payments association Apacs says it is unlikely that the scam will be carried out on the high street.

An Apacs statement said: “People could, in theory, use this to steal account details from cards. Our experts are in discussion with the manufacturers of terminals to see what can be done.”

Tags: information, street, GBP, thieves, economics, security, scare, pin scare

What Are Offshore Bank Accounts?

When someone mentions offshore banking or investments often people immediately think of shady dealings from James Bond films where the rich billionaire baddy stashes his cash overseas to avoid paying UK tax. Are offshore accounts really like that? Read more

Tags: Channel Islands, information, monthly account charge, course, offshore bank accounts, tax haven, Withholding tax, account