OFT to look into credit card surcharges

Credit cards have undoubtedly made life easier for many people, enabling them to enjoy flexibility with their repayments, the security of not having to use cash, and the ability to make purchases with ease using the phone or the Internet. Many people use their credit and debit cards to make all sorts of purchases online these days, which means that they can enjoy the ease and convenience of browsing products and services from the comfort of their own homes, and making payments safely and securely on reputable websites.

However, one sting in the tail of using credit and debit cards to make payments online is that many retailers and companies charge administrative fees, and many of these are quite extortionate, pushing up the cost of the purchase enormously. Many cardholders have made a purchase only to realise at the last minute that they are going to be charged a hefty fee on top of the purchase price simply because they are using their credit or debit card.

An official from one travel site said: “Many travel providers are not only passing the bank charges to customers, they are actually increasing them to generate extra revenue. The fact that some holiday companies also charge for debit card payments is a worrying development.”

A super-complaint has been launched by the consumer campaign group Which? for the various surcharges and fees to be looked into. The Office of Fair Trading is now looking into these fees and could end up making companies reduce the fees that they charge by way of administration costs for credit and debit card use.

The UK Payment Association said: “The credit card costs are per transaction. If you are booking six tickets at once, or one ticket in one credit card booking, the processing costs would be the same. It’s hard to see how companies can charge per item.”

 

Tags: extortionate, purchase price, sting in the tail, administration costs, various surcharges, online, fee, consumer campaign group

MBNA credit card can be activated online

The Internet has had a huge impact on the lives of most consumers, and being able to access goods and services online has improved convenience and ease for many people that prefer this channel to alternatives such as using the phone or having to go out to access various services.

It has now been revealed that credit card giant MBNA has tapped into the enthusiasm of consumers to be able to access services online wherever possible, and has taken action that will enable cardholders to activate their cards online, which will make things faster, easier, and more convenient for many people that have internet access.

This will be the first time that customers in UK and Ireland will have a choice of options when it comes to activating their MBNA credit cards even if they are new. Previously the cards could be activated online but only if they were replacement cards. However, this channel will now also be available to those that have new MBNA credit cards.

An official from the firm said that the majority of new accountholders actually applied for their credit cards online, and therefore it was only natural that these people would prefer to activate their cards online, access their accounts online, and manage their credit cards online.

Ian Craig, customer service and channel fulfilment executive for Bank of America Europe Card Services, said: “Our customers tell us they want more online options to service their accounts so it makes sense to open up online activation to everyone. The majority of our new accounts are applied for online; so, for many, it is the right channel to offer more. We’ve expanded the scope to activate our cards as it’s quite right that we offer them the freedom to service their account via their channel of choice.”

Tags: Credit Cards, america, online activation, internet access, online, channel

Christmas shoppers may be too nervous to get bargains online

A recent report has highlighted how, whilst many of the best bargains for Christmas may be available via the Internet, many consumers may be too nervous to take advantage of these offers because they are too nervous to use their credit cards online for fear of becoming a victim of credit card fraud. Read more

Tags: shopping, Christmas shoppers, internet shopping, shopping online, online, online credit card fraud, vetting, credit card fraud

Online Banking fraud levels on the up

These days more and more people are using online banking facilities in order to carry out their banking transactions, and with an increasing number of banks offering these facilities online banking has become very popular amongst those with busy lifestyles and lots of commitments. Read more

Tags: bank fraud, credit card fraud, APACS officials, keylogging, fraudster, online, Credit card, apacs

Free internet for kids in Suffolk and Oldham

A declaration that internet access should be made available to every home in the UK was made back in September by Gordon Brown. As part of this new government scheme to connect everyone in the country the first two sites to benefit have now been announced. Free access to the internet and computers in their homes will be given to Oldham and Suffolk schoolchildren. Read more

Tags: web, internet access, school work, work, computers software, online

Don’t pay through the nose to claim back your bank charges

Experts have been urging bank customers to think carefully before allowing charge reclaim companies to deal with reclaiming bank and credit card charges, stating that often the customer ends up paying a huge chunk of the amount reclaimed in fees to the company. Experts state that some customers are being charged hundreds of pounds but all the company does is fill out some forms that the customer could very easily do themselves. Read more

Tags: work, bank charges, reclaim bank charge, online, agency, pay, company, sums of money

More women responsible for household finances than men

Women are more likely than men to be responsible for financial decisions in UK households, according to new research.

A study by Family Investments, a Child Trust Fund (CTF) provider, found that 59 per cent of women are in charge of decision-making regarding family money.

These findings corroborate research by Norwich & Peterborough Building Society released last month which showed that although 74 per cent of men are still the primary earners within a family, most financial decisions are either made together or by women.

In particular, women were found to take control of day-to-day spending on their children and homes.

“Indeed, this puts the myth of the father as the financial head of the family to rest,” commented Gary Lacey, group product manager at Norwich & Peterborough.

Two-thirds of women prefer to do their banking over the internet, even though only 20 per cent open their online bank account via the internet, according to the study.

Women also seemed more knowledgeable about children’s savings products than men, with over 60 per cent identifying that CTFs are a tax-efficient savings option.

Tags: month, head, manager, Financial services, household finances, online

Expats urged to consider offshore savings benefits

While internet banking is popular with expatriates, they are not using it to take advantage of offshore savings accounts, it has been suggested.

A poll by Alliance & Leicester International (A&L International) revealed that 92 per cent of Brits living abroad used online banking to manage their finances.

However less than a third had an offshore savings account which, the bank suggested, meant they were losing out on a range of advantages including good rates of return and the potential to hold or send funds in currencies other than sterling.

A&L International managing director Simon Hull said: “With internet access now so readily available, offshore consumers should take advantage of internet banking and saving.”

More than half of homes in the EU have internet access at home, the research found.

In addition, expats wanted online banking options when setting up an offshore savings account.

Based on the Isle of Man, A&L International claims to be one of the largest offshore deposit takers and has share capital and reserves of more than £150 million.

Tags: alliance & leicester, online banking, Offshore bank, online, share, cent, share capital, Managing director

Would you notice if money went missing from your account?

Although most people live within a certain budget each month a new report has suggested that an alarming number of consumers in the UK would fail to notice right away if up to £1000 went missing from their accounts, and this indicates that many consumers are extremely lax when it comes to managing their bank accounts, putting them at increased risk of falling victim to fraudulent activity.

According to recent research an alarming nine out of ten people would fail to notice straight away if up to £1000 was missing from their accounts, which is very worrying particularly in light of the mass data loss resulting from the missing disc from HM Revenues and Customs, which contained the banking details of around 25 million people. It is thought that one of the causes of this problem is a phobia of finances, where consumers are too worries to check their accounts in case the balance is lower than they expected. In this situation consumers tend to prefer to bury their heads in the sand until they are forced to look at their finances, which puts them at risk of not even noticing if money is taken from their bank account.

One industry official stated: ‘These findings suggest consumers need all the help they can get to keep tabs on their money. Poor money management and existence of “finance-phobia” in Britain is worrying considering the rising levels of debt problems Britons face.’ In addition to failing to notice missing money, those that fail to monitor their bank accounts are also at risk of being hit with a myriad of bank charges, which will keep taking them further into the red.

It is estimated that over £43 billion worth of unwatched money is sitting in accounts across the UK. Around half of the British public do check their account balances on a weekly basis, although this would still not immediately flag up any money being taken from the account unless it was taken on the day that the consumer checks the account. However, a further 25% only check their accounts on a monthly basis, and this puts them at an even higher risk of failing to notice missing money.

Experts have been warning consumers to keep a close eye on their bank accounts for a number of reasons. Banking fraud and identity theft are rife in the UK, and failure to monitor your finances could mean that you miss the chance to spot suspicious transactions that could later land you in hot water. For millions of people it has become even more important to check bank account details and balances recently, and this is because of the loss of bank details on the disc that was lost by HM Revenues and Customs.

Checking accounts and bank details should not prove too much of a problem for those with Internet access, as most banks now offer online banking facilities that allow accounts balances and statements to be checked at the click of a button, and this can really reduce the chances of falling victim to this sort of fraud for many. Those affected by the HMRC data loss are also advised to sign up to a credit reference agency and check their credit file on a regular basis so that any suspicious transactions can be quickly identified and dealt with.

Related articles:

• How Do Bank Accounts Work?
• Can I Have More Than One Bank Account?
• Opening and Closing Bank Accounts
• Internet Bank Accounts – The Benefits and Drawbacks
• How Safe Is Your Internet Bank Account?

Tags: bank, online, accounts, missing, internet, transactions, funds

Majority prefer printed bank statements

Managing your finances online may be a growing trend, but the vast majority of people still prefer to put their faith in the printed word and the postal service.

A new survey on consumer attitudes towards banking has found that almost nine out of ten people (88 per cent) still prefer to receive bank statements by mail, and that the post remains the favoured means of communicating about financial matters for 70 per cent.

Even amongst those who are keen on internet banking, 68 per cent still like to see a physical copy of their statements drop through the letterbox.

A similar proportion (67 per cent) find it easier to understand their bank statements in print than on screen.

The research has been carried out by the Henley Centre for Royal Mail.

Abi Wood, Head of Financial Marketing at Royal Mail commented on the findings, saying: “Internet banking has undeniably revolutionised modern financial services as more consumers want the accessibility it provides.

“However it is clear that traditional communication methods are still incredibly important to individuals of all age groups. Banks should continue to investigate the different and complementary roles that the different channels play for the modern consumer.”

Tags: trend, abi, Financial services, post, Banking, Marketing, online

Using the Internet to find affordable finance

There are many different types of finance available these days for those with good credit and those that own their own homes. Read more

Tags: online, finance, cards, internet, borrow, credit, good

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: grow, accounts, high st, internet, overheads, close, bank, branches, business, online

Consumer group warns on insurance for music downloads

A consumer group has issued a warning relating to insurance cover for music downloads. Downloading music has become a hugely popular way for younger generations in their teens, twenties, and thirties to enjoy listening to their favourite music.

However, Which? has carried out a survey into insurance cover for music downloads and is urging consumers to be aware of exclusions relating to these policies.

According to the result of the survey carried out by Which? music downloads will not be covered by insurance if they are lost as a result of a computer virus – these music collections are often worth hundreds of pounds in total, and therefore can cause considerable financial loss to consumers. Many insurance firms also did not cover music downloads if they were lost as a result of hard drive failure.

As part of the survey 46 insurance firms were reviewed by the consumer group, and out of these only 22 actually offered insurance cover for music and digital downloads. The cover is offered when the downloads are lost as the result of fire, weather conditions, or theft. However, out of the insurance companies surveyed none of the policies offered provided protection against loss of music through virus or computer failure.

One spokesperson from Which? stated: ‘Downloading music online is widely accepted now as being the easiest and most convenient way to buy music. Music lovers know it, the music companies know it – but it seems insurance companies are determined to stay behind the times.” Consumers that do take out this type of cover for their music and digital downloads should ensure that they know what is excluded from the policy, and therefore consider whether the cover is actually worth the cost.

Tom Smith
31st July 2007

Tags: sites, downloading, Insurance, failure, online, virus

Credit card thieves ‘give to charity’

Charitable donations are commonplace on stolen credit cards, the information security company Symantec said last week.

It’s quite unlikely that card thieves are suffering pangs of conscience, though – small online charitable donations are an excellent way for thieves to check that the card is still valid.

Attempting to use an invalid card is one of the best tipoffs for law enforcement officials that the card is stolen.

However, quite apart from validation issues, making a small donation to a charity on a stolen card is much less likely to be picked up by checkers than an extravagant initial purchase.

According to Javier Santoyo, a manager at Symantec, “even the bad guys want to verify the other bad guys”.

Spokeswoman for the Red Cross Carrie Martin said: “This happens all the time. We have people at the Red Cross who deal with this type of activity.” She added that the charity had dealt with 700 such transactions in the past month alone.

Sometimes credit card numbers rather than the cards themselves are stolen. Holders are advised by issuers to check their statements carefully for unsanctioned purchases, even if small, and to alert them immediately if suspicious activity is detected.

Tags: online charitable donations, best tipoffs, Attempting, time, conscience, online, Red Cross Carrie, bad guys

Direct Line launches campaign against price comparison services

One of the UK’s best known car insurance companies, Direct Line Insurance, has launched a campaign against price comparison websites that help consumers to find that they claim is the cheapest insurance for their needs.

Price comparison websites require consumers to input a number of details, and then use these details to find the cheapest deal on car insurance cover. However, this is only from their database of insurers and not from every major insurance company in the UK.

According to research carried out by Direct Line over 40 percent of consumers that had used price comparison services to find cheaper vehicle insurance had thought that all major insurance companies would be included in the search.

The research also goes on to indicate that over 90 percent of those that have bought their vehicle insurance cover through a price comparison site feel that there should be some sort of warning so that consumers know right away that not all insurance companies are part of the database.

The Royal Bank of Scotland owns Direct Line, as well as Churchill and Privilege, and will not provide any quotes for customers through price comparison websites. An advertising campaign has now been launched by Direct Line to make consumers aware that price comparison sites do not represent all leading insurance companies in the UK.

One Direct Line spokesperson stated: ‘Consumers are confused about price comparison websites and our research shows many believe they provide an independent, public service designed to ensure consumers get the best deal on their insurance. Unfortunately this is not the case, as these websites are really just on-line middlemen who make money out of commissions on insurance sales, just like a traditional high street broker.’

Tom Smith
1st July 2007

Tags: home, cheaper, car, market, search, sites, comparison, all, Insurance

Online banking is booming

Ten years ago the Nationwide Building Society started the huge phenomenon that has become online banking.

And as we reach a decade of banking via the Internet it seems that this method of dealing with finances and applying for banking services has become more popular than ever. There have been some concerns over the ease of banking fraud via the Internet, but with increasingly stringent safety measures in place and customers becoming savvier than ever when it comes to security, online banking continues to thrive.

One of the UK’s leading banks, HSBC, as reported an increase of fifty five percent in terms of its online business. According to recent figures around eighteen million people in the UK now use the Internet to deal with their finances and manage their bank accounts, and HSBC alone has received nearly two billion visits.

At a recent Annual General Meeting the chief executive of HSBC stated: “More and more of our personal and commercial customers are seeing the benefits of buying online. Our websites handled 1.8 billion visits last year and online sales increased by 55 per cent.”

He also stated that the bank was starting to move more towards interaction with customers through the Internet rather than through the branch.

A number of banks that are trying to encourage customers to deal with them online have offered various incentives and rewards such as increased interest rates on savings and bonuses – this is because it is easier, faster, and more time effective for banks to deal with customers in this way rather than through a branch.

When banking online customers can make bill payments, transfer cash, check balances, apply for services such as credit cards and loans, set up and cancel direct debits and standing order, and more.

Tom Smith
11th June 2007

Tags: accounts, bills, transfers, Banking, services

Over six billion in premium bond sales

With a number of juicy million pound jackpots up for grabs next month, there has been a massive boost of six billion pounds in premium bond sales.

Savers are ploughing in billions into Premium Bonds in the hope of becoming one of the lucky few that become a millionaire when the draw takes place in June. The million pound jackpots are part of the fiftieth birthday celebration for Premium Bonds. Five people will be drawn as million pound jackpot winners next month as part of the celebration.

Last October saw sales of over two billion pounds worth of premium bonds, which was the highest monthly total on record. Since the start of the celebrations, over six and a half billion has been invested in premium bonds by savers. Half a million new savers have also jumped on board during this period, which gives Premium Bonds a customer base of nearly twenty four million savers.

June’s draw will see a record number of bonds, and there is now over thirty six billion invested in Premium Bonds in all. One draw has already been completed in December, which was also part of the celebrations and also saw five bondholders become millionaires. And with the forthcoming draw record number of bondholders can look forward to the chance to become very wealthy.

A spokesman for Premium Bonds stated: ‘The past eight months have seen a huge surge of interest in Premium Bonds. Despite being launched 50 years ago, they continue to attract new customers. In just the last eight months, over half a million people have begun saving in Premium Bonds for the first time. The anniversary draws, combined with the ease of investing online have appealed to old and new customers alike.’

Tom Smith
7th June 2007

Tags: draw, government, savings, savers, popular, premium, interest, bonds, invest, online

Holidays put Brits in debt

Millions of Brits are happy to put themselves in debt in order to go on holiday.

New research shows that as many as 12 million people borrow money in order to take a break abroad and they end up paying for it well after returning.

CreditExpert.co.uk, an online credit monitoring service, carried out research which found that credit cards, loans and overdrafts are the most popular ways of getting together the money for a trip.

Shockingly, six per cent of respondents admitted to going into debt most or every time they go on holiday, with 18 per cent believing that an annual holiday is so important that they do not think about the money until they return.

Once on holiday things do not get any better, with 22 per cent revealing that they lose track of how much they are spending.

“It’s worrying that, as a nation, many of us have a ‘me now, debt later’ attitude to our finances. Most of us work hard and need a well-earned break, but it’s important that we plan ahead and ensure our bank balance can handle the large outgoings that holidays and other expenses entail,” said Jim Hodgkins, managing director at CreditExpert.co.uk.

“Keeping a budget for the cost of the vacation as well as day-to-day holiday expenses will help you avoid going into debt.

“Missed credit repayments are likely to have a negative impact on your credit report, which means lenders may not want to offer you credit in future,” he added.

People aged between 25 and 34 are most likely to lose track of their holiday spending and 37 per cent say that this is the cause of their debt.

Tags: order, vacation, bank, money, CreditExpert, CreditExpert.co.uk

Internet banking needs innovation

Internet banking recently turned ten but one of its pioneers says the current crop of sites lack innovation and direction.

Jim Spowart, chairman of peopleschampion.com, who created the UK’s first bespoke internet banking site, has criticised the current market.

He says that banks appear to be unsure of where to go next with their online banking websites and wants to see them doing more to offer customers something different.

“The banks have been concentrating on profitability. All they have done is use the technology to update their traditional banking methods,” commented Mr Spowart.

“There’s been very little thinking about how they can offer the customer something brand new. Internet banking is just an add-on convenience for many – but it hasn’t changed banking. That’s why the banks are having to hit the customers with extra hidden charges.

“In every way, the internet has changed the way we all look for products and services. The poor old traditional bankers are still scratching their heads looking for ways of gaining customers, yet the whole game has changed,” he added.

Internet banking in the UK celebrated its tenth anniversary on May 27th 2007, a decade after Nationwide launched the first site.

Tags: internet, old traditional bankers, online, thinking, site, way

Consumers having problems finding online savings accounts

For some time industry experts have been urging consumers in the UK to shop around when it comes to finding a suitable savings account and not to stick with a savings account that they may have held for years just out of loyalty or apathy.

According to experts many savings accounts are not following the interest rate and inflation rises, and therefore consumers that save their hard earned money in these accounts are getting a raw deal when it comes to earning interest.

However, according to recent date many consumers that are taking up this advice and trying to find new savings accounts online are hitting a brick wall, with a number of financial institutes refusing to let new customers open online accounts, and reserving them strictly for existing customers – making it more difficult for those with a poor existing savings account to switch to one that pays better interest or offers more benefits.

More information: The Process and Benefits Of Switching Bank Accounts

The review into online savings accounts was carried out by Global Review, and shows that many consumers are being left out in the cold when it comes to finding better interest rates on their savings. According to Moneyfacts there can be a huge difference in interest rate levels between the best savings accounts on the market and the lowest interest ones, but it seems that despite their efforts many consumers can do nothing about the fact that they are stuck with a low interest rate.

Amongst the banks and financial institutions refusing online savings accounts to anyone other than existing customers are Lloyds TSB, Nationwide, and Barclays. Many other banks, such as Halifax and NatWest, have also been accused of not providing adequate information to those wishing to open savings accounts with them.

Tom Smith
13th May 2007

More Information:

• Internet Bank Accounts – The Benefits and Drawbacks
• Can I Have More Than One Bank Account?
• Opening and Closing Bank Accounts
• Savings Accounts – Are They Worth It?

Tags: higher, accounts, rate, switch, online, inflation, Banking

Savers have changed attitude

The way we approach banking has changed in recent years, with new research showing that more of us are opening instant access savings accounts.

A study by Birmingham Midshires shows that 51 per cent of people who opened a savings account in the last three months opted for the instant access option.

This is in stark contrast to the number who chose to make their money slightly harder to get to, with only 16 per cent keeping it out of reach.

Birmingham Midshires says that this trend is all part of the ‘have-it-now’ culture of Britons in the early 21st century and the firm says that consumption of goods figures back this claim.

The Office of National Statistics recently published these statistics, showing that we consumed 73 per cent more goods in 2005 than we did in 1991.

Experts at Birmingham Midshires say that it appears to be the case that many Brits are saving in order to spend.

“Instant access accounts are an excellent way of saving for short term needs, however, we would encourage savers to also remember the long term and make adequate provisions,” said Jason Robinson, director of savings operations at the company.

“It is worth considering a number of savings pots for different purposes which can nowadays be very easily managed online.”

There is nothing wrong with saving money for a big purchase, however, it is also advisable to make sure that you have money put aside to help you through an unforeseen change in circumstances.

Tags: director, number, jason robinson, option, savers

Online banking fraud rises

More of us are falling victim to online banking fraud, with new figures showing a huge increase within the last 12 months.

Apacs, the UK payments association, says there was a 44 per cent rise in cases of online fraud between 2005 and 2006.

The organisation does reveal that credit card fraud has fallen by 47 per cent in the same period but is concerned that fraud over the net has grown from £23.2 million in 2005 to £33.5 million in 2006.

“Chip and pin has had a hugely positive effect on fraud losses over the counter in UK shops and stores, but we are seeing more fraud on transactions that do not use chip and pin, such as over the internet and phone, by mail order and abroad in countries that have not yet fully upgraded to chip and pin,” commented Sandra Quinn, director of communications at Apacs.

Card and banking fraudsters have developed to keep up with the new security initiatives that are being introduced.

Although chip and pin has had a huge impact on protecting card holders, fraudsters now use technology that copies information from the card’s magnetic strip and create a new card which can be used in countries that do not have chip and pin.

People are being warned to be extremely careful with their cards by ensuring that they do not use an ATM which they think may have been tampered with. The message is: “If in doubt, keep it out”.

Tags: falling victim, Lebanese loop, increase, new figures, Technology Internet, fraud, chip, online

More Brits banking online

Britain is becoming a nation of internet bankers, with new figures showing that we are becoming more comfortable with sorting out our finances online.

New research, carried out by Lloyds TSB, shows that over two thirds of us do the majority of our banking on the internet.

This is a huge leap when compared to 2005, when just 18 per cent of Britons said most of their banking was done online.

Despite the common perception that the internet is the plaything of the young and not well used by older people, Lloyds found that, when it comes to banking, the opposite is true.

A staggering 70 per cent of people over the age of 50 said that they prefer to do their banking online, while those aged between 18 and 25 are the least likely to manage their finances in this way.

“The growth of internet banking is phenomenal and this year is set to break records,” said Anita Hockin, head of internet at Lloyds.

“This popularity isn’t surprising given the convenience of banking online. It’s possible not only to check your balance, but also to pay bills, set up standing orders and direct debits and move money between accounts at the touch of a button.”

Lloyds’ research found that of the ten per cent of people that do not bank online, the main reason given was that they do not feel the need.

Tags: Technology Internet, head, Banking Services, growth, online, majority, Business Finance, research

Leave out the banks

Following a stinging attack on banks over penalty charges, consumers are being told that they can avoid contact with banks altogether if they wish.

Zopa, an online market place where people meet to lend and borrow money, says customers need to be made aware that they are no longer limited to simply switching between banks.

During a parliamentary debate on January 16th, many banks were accused of “ripping off” their own customers and penalty charges were labelled “illegal” by Liberal Democrat MP Matthew Taylor.

The people at Zopa say that by borrowing from other members of the public it is possible to get some of the lowest interest rates around.

“There is simply no need for people to continue to suffer at the hands of the big banks anymore,” said James Alexander from Zopa.

“They are no longer restricted to just switching to an apparently less greedy bank either.

“They can cut them all out by borrowing and lending between fellow individuals to get not just a better deal, but also the pleasure of no longer contributing to the banks’ truly staggering profits,” he added.

Tags: MP, place where people, MP Matthew Taylor, less greedy bank, online, Matthew Taylor.The people, money, bank

More UK people using online banking than phone banking

The power and popularity of the Internet has been reflected in the figures of a recent survey that show more people in the UK are now using online banking than telephone banking, despite the many concerns that keep being raised with regards to the security and safety of online banking. Most savvy consumers are now well aware of the various online banking scams in circulation, and are aware of what to look out for and what they should and shouldn’t be doing in order to keep their personal and financial data safe when it comes to online banking.

According to the latest figures around seventeen million adults in the UK now have online bank accounts, and two thirds of these online bank account holders tend to go online at least once each week in order to check financial data or make transactions. There were nearly one and a half million fewer people using telephone banking in 2006 than there were using online banking, and 2006 has been the first year where online banking has proven more popular than telephone banking, reflecting rising consumer confidence in this method of banking.

Data shows that the number of people using telephone banking over recent years has fallen, whereas those using online banking have rocketed, rising from seven and a half million four years ago to nearly seventeen million in 2006.

Sandra Quinn, director of communications at Apacs stated:  “Our research shows that increasingly, if you are under 35, you are more than likely to be turning to the internet rather than the phone to manage your finances.” The research that was conducted also showed that ninety percent of those using online banking also shopped online, again proving the rise in consumer confidence in terms of financial transactions over the Internet.

Tags: phone, consumers, personal, online, Banking, accounts

Find the right savings account for your holiday savings

As the festive period disappears and Spring approaches many people in the UK start thinking about saving towards their summer holidays. If you are looking to start putting some money aside to fund your annual holiday in 2007, it could really pay to shop around a little and find a savings account that will make your money work harder for you. There are many different savings accounts available these days, and the interest rates on offer can vary dramatically. Depending on how much you will be saving this could make a big difference to the amount that you earn in interest.

The type of saving account that you opt for will depend on a number of factors, such as the initial deposit that you can make, the amount that you intend to put in each month, and the level of access that you require to your savings. You will find a choice of savings accounts, some of which require a certain period of notice in order to make a withdrawal without penalty and others that offer instance access. Some require a minimum initial deposit of just one pound whereas others require more, and some want to see a regular minimum amount going in each month, whereas others will accept deposits as and when you can afford them.

Amongst one of the highest savings account interest rates on offer is the Alliance & Leicester savings account, which offers twelve percent AER on its regular savings account. Choosing the right savings account for regular savings can make a big difference to the amount you make on your deposits, and consumers can quickly and easily compare the different savings accounts available, along with their interest rates and terms by going online. This is the easiest and most convenient way to see at a glance which of the UK’s savings accounts will best suit your needs and give you the best return on your deposits.

Tags: aer, earn, interest, online, deposits, savings, return, accounts, bank, bonus

8000% Rise In Internet Banking Fraud

Many banks have started to offer online banking facilities in the UK, and some banks even operate exclusively online.  Although consumers seem to be growing increasingly confidence with regards to conducting their banking online, the alarming figures indicate that perhaps further information needs to be made available to consumers with regards to Internet banking fraud and how it works.

It seems that the main culprit in the rise of Internet banking fraud is a process known as phishing, and this is where fraudster set up fake website or send out fake emails in a bid to obtain the account details of consumers. Many consumers that are used to banking online don’t think twice about providing their details, but banks have already stated that they do not send out emails to account holders asking them to enter their account details.

Colin Whittaker, Head of Security for APACS, stated: “The rate of growth in phishing is down to a number of factors not least that they have been able to industrialize the process by which they are launching attacks. It seems people are falling victim to phishing attacks less often, which is one of the reasons there has been an increase in the volume of phishing emails.”

According to officials and watchdogs in the UK, millions of pounds have been swindled from unsuspecting consumers, who assume that any emails that they receive with the name of their bank on it must in fact be from the bank. However, consumers that receive such emails should never provide their account details, and should instead report the incident to their bank. 

Tags: phishing, online, increase, abuse, rate

Even more convenience for A&L customers

Following in the footsteps of HSBC and First Direct, the Alliance & Leicester has revealed plans to introduce a new method of banking that will offer consumers even more in the way of convenience and flexibility – mobile banking. Consumers in the UK that have accounts with major banks and building societies can already enjoy the convenience and ease of Internet banking in addition to using the facilities and amenities available at the local branch. It seems that mobile banking could be the next big step for many banking companies.

Through the use of the mobile banking service on offer from the Alliance and Leicester, consumers will be able to quickly and easily check on recent transactions that have been made, will be able to check their balances, and will even be able to top up their mobile phone credit directly from their bank accounts. In the future, according to officials from the Alliance & Leicester, consumers will also be able to make money transfers and pay bills from the account.

For those that want to take advantage of this mobile banking service, registration will be made easy and simple, and can be done via the Internet or via the mobile phone. One spokesperson from the bank stated: ‘There has not been much technical integration and all we need to do is verify the customer and their bank account details, so it has been straightforward.’

One research analyst says that over time consumers will become used to this updated method of banking, as it means that they will have one more valuable facility to help with the smooth-running of their finances and accounts. However, he added: ‘It is taking consumers a while to use their mobile phones for more than voice calls, and it is difficult for a bank to teach people to use them in another way.’

Tags: account, online, cost, payments, interest, transfers, bank, charge

Online Share Dealing Increases In Popularity

Now that some sort of stability has returned to the UK stock markets, and with the London FTSE 100 back over 6100, more and more individual investors are returning to the stock market in the hope of getting their share of the profits to be made.  Unlike previously, however, increasing numbers of individual stock market investors in the UK are electing to cut out the middle-man broker and invest themselves online.

In a report recently published by Saga Share Direct, 73% of all individual respondents declared that they now preferred to manage their own stock portfolio online rather than use the services of a UK stock broker.  This represents an 8% increase on the number of reported individuals using online stock dealing services in January of 2006.

Rather amazingly, however, 57% of all individual stock market investors in the UK felt they were now getting better returns on their investments from having taken control of these investment than they were previously getting using the services of UK brokers.  A trend on which Andrew Goodsell, chief executive of Saga, commented: “With more people returning to the market, demand for a well priced and competitive online share-trading service is high.”

Profit margins alone, however, do not appear to be the ultimate driving factor behind so many Brits moving into online share trading.  Saga’s report also shows that 56% of respondents felt that “maintaining personal control” over their share portfolio was sounded enough reason to prefer online stock trading over using the services of a UK stock broker.

With UK private individual investors having pumped in a £2.6 billion investment in UK stock market equity investments during August and September, the growing trend of Brits electing to invest in the stock market online only looks set to go from strength-to-strength.  Nevertheless, Brits looking to go it alone and make stock trades online should ensure they stay clear of the usual pitfalls associated with online stock market trading.  All of the usual research and analysts will need to be done, and much of this will now be down to the individual themselves as many UK online stock trading services will not offer investment research services without having to pay hefty membership fees.  Moreover, individual UK stock investors will also need to make sure the computer software they have is capable of transacting secure online trades, as well as keeping up-to-date tabs on where the UK stock market is going. 

That said, there are clearly profits to be made from stock dealing in the UK and cutting out the broker middleman’s fees is one sure way to ensure that you maximise those profits – provided, of course, that you know what you are doing and pick the right stock.

Tags: buy, stocks, shares, sell, prfofit, online, dealing, cost. charges