What does the latest ruling in the High Court test case into bank charges mean?

The presiding judge in the ongoing High Court test case in to banking overdraft charges has recently made an announcement that has pleased the banking industry at a time when many are relieved to finally have some good news. The battle over bank charges began several years ago, when the Office of Fair Trading branded the charges that banks charge when someone goes over their overdraft limit as being unfair and unlawful. Read more

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As pensions dwindle, ‘people to rely on savings’

With the amount being paid out by pension funds expected to drop the number of people having to dip in to their savings each month is likely to rise, the director of Churchouse Financial Planning has warned.

Keith Churchouse said that people who have taken the opportunity to build up savings are likely to “be reliant” on them once they retire.

“I do think that people are very unlikely to be reliant on pensions in retirement,” Mr Churchouse commented.

According to the Fidelity Retirement Index, a worker who retires now on the average UK income can expect less than £30 a day from their pension payout.

The organisation says that someone currently earning the national average salary of £22,900 who is about to retire will have an annual income of £9,618 from their pension, which is about £185 a week.

Mr Churchouse said he does not think “there’s any doubt” people will rely more on their savings in old age.

Tags: retirement index, annual income, Business Finance, Churchouse Financial Planning, employment, salary, someone, Labor

Younger people ‘nonchalant’ about their cards

Younger people seem to be less concerned about keeping their credit cards safe from fraudsters, a new report has suggested.

Two thirds of those aged under 50 said they had reported a credit card stolen compared to 78 per cent of people aged 50 years old or over, according to research by Saga.

Furthermore, a “massive” 88 per cent people aged between 18 and 34 years old said that they did not raise an eyebrow if someone took their credit card out of their sight when they were making a payment.

This is in contrast to 65 per cent of over 55 year olds saying they would not kick up a fuss in the same situation.

Andrew Goodsell, chief executive of Saga, commented: “Our study shows a worrying trend that men and younger people are generally less concerned about ID fraud than their older counterparts, and are not taking the steps to prevent fraudulent activity.”

This comes just after recent warnings from Apacs for people to make sure they keep their PINs safe.

Tags: cent, economics, Credit card, someone, pins, fraud

Homebuyers might be paying over the odds for Hips

The government’s beleaguered Home Insurance Packs (Hips), which will cover all UK homes by next year, have apparently hit yet another setback.

It emerged today that several of the biggest mortgage lenders do not see the new packs as sufficiently authoritative on issues such as determining whether the property faces any outstanding planning approvals or enforcement orders, and are telling home buyers to conduct their own checks.

As a result, people are being forced to pay for what is essentially the same service twice over, along with purchasing their mortgages.

A spokesperson for HSBC said: “If someone wants to buy a house from someone who has a Hip containing a personal local search, we would tell their solicitor we would not lend to them unless they commissioned their own search.”

The bank’s comments came after it emerged that Hips providers – which charge around £500 for their services – were using “personal” searches rather than more expensive “full” searches from local councils.

Hips were originally brought in by the government in an attempt to speed up and simplify the home buying process.

Tags: house, Insurance Packs, odds, process, personal searches, mortgages.A spokesperson, Insurance, someone

Pensioner hit by £100k debt

A disabled 93-year old Cornishman has been hit by interest on a loan of almost £100,000.

The astonishing sum comes from an original £17,000 loan taken out by Clifford Taylor, of Liskeard, nine years ago at high street lender Barclays.

Mr Taylor has fallen victim, like many other British OAPs, to a shared application mortgage – a type of loan offered by Barclays and other banks in the 1990s.

Designed to allow customers to borrow up to 25 per cent of their home’s value, customers were obliged to pay back the loan when their property was sold, along with a proportion of any increase for the remainder of the house’s price in the interim.

Recent soaring house prices have led to the astronomical rates of interest faced by Mr Taylor and others.

Mr Taylor had originally taken out the 25 per cent loan to pay for double glazing to be installed, along with new carpets. Deteriorating health led him to sell the property last year.

Barclays then took 75 per cent of the price difference as well as the original loan – a total of £116,000.

Mr Taylor’s daughter, Sandra McGee, told the Guardian last week that, while she accepts that the loan is legally binding, “it’s the moral aspect I’m thinking of.

“It’s just so unfair on someone who is disabled.”

According to latest financial reports released last week, Barclays’ profits hit £4.1 billion in the first six months of 2007.

Tags: someone, Financial services, original loan, Clifford Taylor, 93-year old cornishman, astronomical rates, latest financial reports, guardian

The dangers of cycling

The Tour de France is set to kick-off in London on July 7th and that means cyclists will be out in force across the UK.

A major event such as this is likely to attract thousands of bikers to the roads but Cornhill Direct warns that many may not have adequate insurance.

The firm says that a number of people are putting themselves and others in danger by failing to ride their bikes properly and within the confines of the law.

Almost half of cyclists admit that they regularly ride on the pavement, despite the fact that it is illegal, while 14 per cent do not indicate when turning and 20 per cent regularly jump red lights.

All of this makes for a dangerous ride and 69 per cent of riders have fallen off their bike at some point, with 14 per cent being knocked off by another vehicle.

“Cycling is hugely popular in the UK and riders would be wise to make sure they have the right insurance cover,” said Mark Bishop from Cornhill Direct.

“If a cyclist were to injure someone they could face a bill of tens of thousands of pounds and if they were injured and unable to work it could cause them and their family real financial problems.

“While cycling can be great fun and good for you, it also carries risks and there is no excuse for riding recklessly and many cyclists admit to doing just that,” he added.

Tags: Recreation, fact, Cornhill, adequate insurance, someone, cent

Are you smoking away your money?

Smokers are being urged to kick the habit as National No Smoking Day lights up the UK on March 14th.

Co-Operative Insurance is calling upon all smokers to give up so that they can improve their health and their financial standing.

The firm claims that a smoker who gets through 20 cigarettes a day could save themselves over £1,800 every year.

That figure doubles if a couple quit smoking together but the financial benefits do not stop there.

It is also possible to severely reduce the premiums on life insurance cover by stopping, as well as premiums on income protection and critical illness insurance.

“Giving up smoking can save people a significant amount as well as hopefully bringing a longer and better quality of life,” commented Fiona Jackson, head of protection at Co-Operative Insurance.

“Someone who is able to give up an addictive habit like smoking can certainly take charge of their own financial destiny and make adequate financial provisions for their future.”

Research shows that smoking is more common among men than women, although the gap is just three per cent.

Smoking is said to cause 30 per cent of all cancer deaths, 17 per cent of heart disease deaths and at least 80 per cent of deaths from bronchitis and emphysema.

Tags: someone, Social Issues, year.That figure, financial standing.The firm, financial benefits, heart disease, United Kingdom, March

Types of UK Car Insurance

If you think that the UK car insurance policy is stringent enough, then keep in mind that it is so to secure your own interest. The UK car insurance policy is generally targeted for the protection of any innocent victims of accidents. It is obligatory by law to carry the UK car insurance certificate for a user of the road. Read more

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Workers not insured for absence

A large number of Britons are losing big sums of money due to taking time off work for illness and injury.

Research from Standard Life shows that the average worker has lost £5,320 through being forced to take time off work.

In total, 34 per cent of Britons have missed more than a week of work as a result of injury or illness, with 58 per cent of those missing more than a month and 17 per cent more than a year.

Despite the large number of people taking long periods of time off work, research shows that only eight per cent of these people had insurance to cover the loss.

“Income protection is a key part of personal financial planning often overlooked by consumers,” said Mick James of Standard Life.

“The state will currently pay a maximum of £78.50 through incapacity benefit for every week someone is off on long-term sick leave, although other benefits may also be available like housing benefit or a reduction in council tax.

“People should understand the risks they face if they don’t have a way of replacing lost income during a period of enforced absence from work,” he added.

Standard Life’s research found that just one in 12 people had insurance, while the majority (23 per cent) said they had coped with the financial loss in the past by borrowing from friends and family.

Tags: Council Tax, work, tax, long-term sick leave, someone