Banks raking in millions through sneaky overdraft tactics

According to a recent report banks in the UK have been raking in a fortune recently by sneakily increasing the interest rates on agreed overdrafts on customers’ bank accounts. Banks have lost millions of pounds over the past couple of years due to overdraft charge claims, and it is thought that this move is designed to try and claw back some of revenue that has been lost through reimbursing these charges to customers. Read more

Tags: bank accounts, demand, ripped off, bank of england, Non-sufficient funds, matter, suit customers, Treasury spokesman

Banks need to reduce their mortgage arrangement fees

At a time when borrowing has become increasingly expensive, and when household finances have become tighter and tighter due to the global credit crunch, higher bills, increasing living costs, and higher petrol prices, the UK’s mortgage lenders have decided to deal borrowers another blow by hiking up mortgage arrangement fees, making it even more difficult for the average struggling consumers to take out a mortgage or remortgage. In fact, in the current climate some poor consumers could find themselves facing fees of thousands of pounds to remortgage or take out a mortgage, making the whole process impossible for some who simply cannot cope with that sort of fee. Read more

Tags: extortionate, UK's financial regulator, matter, issue, current climate, council of mortgage lenders, fsa, Mortgages

Church to offer financial advice

The Church of England (CoE) has announced it is to launch a ‘Matter of Life and Debt’ campaign in the face of spiraling levels of personal debt in the UK.

With the UK owing a total of £1,400 billion in loans, credit cards, and overdrafts, advice is to come from both the pulpit and community groups.

The campaign incorporates a ten point checklist, to be viewed as a set of warning signs that show consumers maybe spending more than they could afford.

John Preston of the CoE, said: “If a household can say ‘yes’ to any of the statements on the checklist, it may be on the verge of encountering serious debt issues.”

He added that if a household can say ‘yes’ to three or more of the warning signs, “it would be well advised to talk to a debt counseling service.”

Research from Grant Thornton has predicted that 120,000 consumers are expected to be declared insolvent during the course of 2008.

Tags: debt issues, debt counseling service."Research, Warning sign, debt issues."He, personal finance, matter, life and debt, Loans

‘No turning back’ for entrepreneurs

A large proportion of people in the UK who have struck out on their own would not want to return to doing a 9 to 5 job, according to a new study.

Research carried out by Abbey found that 77 per cent of entrepreneurs in Britain would never want to work for someone else again.

Those working in the East Midlands were the most satisfied with being their own boss, as 91 per cent wouldn’t go back to their former employer. More than half of those in Wales, however, would return to their old job.

“Running your own business can be tough but rewarding,” said Ian Wilson from Abbey.

“The benefits of running your own business obviously outweigh the negatives. Once people have taken the plunge they are unlikely to want to return to their old lifestyle no matter what problems they may encounter.”

As well as potentially challenging financial circumstances, entrepreneurs could face hurdles from a social point of view as well.

A spokesperson from the National Federation of Enterprise Agencies warned: “Running a small business can be a lonely occupation, especially to someone who has become accustomed to the world of employment and big organisations.”

Tags: employment, well.A spokesperson, National, matter, Enterprise, old job."Running, point, social point

Millions suffer from Crashback

Having a car crash may have more of an effect on us than we think it will.

New research has highlighted a condition which has been labelled ‘Crashback’ and sees 85,000 people failing to get back behind the wheel six months after the accident.

More Than highlights that many drivers suffer from nightmares, panic attacks and flashbacks following a crash and this affects their future driving.

It could have a negative impact on insurance claims as well, as sufferers tend to lose confidence, become nervous motorists and are more prone to driving erratically – increasing the chances of having another accident.

The effects of Crashback can be felt for some time, with More Than discovering that almost 170,000 British motorists take more than six months to drive again.

An additional 85,000 people say they have not returned to their car since crashing and over three million admitted that they still thin about their accident every time they drive.

Marcia Chambers, from accident councillors FirstAssist Services, said help is at hand.

“Crashback is a very common condition amongst drivers who have been involved in an accident,” she commented. “Any car crash, no matter how small, can be traumatic, and there’s nothing unusual in feeling upset or anxious after a crash.

“An important part of the recovery process is talking about how you feel. Partners, family and friends are often willing to help, but there is also the option of speaking to a professional counselling service.”

Keeping an accident to yourself can prolong the recovery period, yet 1.5 million of those asked said that they have never told anyone about their crash.

Tags: matter, panic, crash, feeling, counselling service, recovery period, Subaru, Than