Car Insurers Debate Over Future Profits

UK car insurers have been running an unprofitable business for 14 years. Independent market analysts, Datamonitor, say 2009 looks to be a profitable year despite the doubts

March 13, 2008

Budget Report Expectations

Chancellor Darling's Budget Report is expected to raise taxes on alcohol, fuel emissions, flights and many other issues concerning the economy. Tax burdens expected to increase on poorer families

March 12, 2008

Card Fraud Rises Again

Card fraud has increased over past year. Whilst chip and PIN technology has been successful in the UK, criminal activity overseas has increased 77 per cent

March 12, 2008

Tax Cuts Needed To Restore Confidence

Appeals for corporate tax cuts are submitted to the Treasury as it prepares its Budget report this Wednesday. Business and banking sectors are worried about the direction of the UK economy

March 10, 2008

First Time Buyers Take Hit From Stamp Duty

Stamp duty tax has not kept up with the rate of increase in house price inflation over the past decade. Yet another hurdle first-time buyers must leap over to get on the property ladder

March 10, 2008

Read all Finance News

Bank Exodus Continues

Credit Suisse bank has estimated that the UK's banks earn £1.2bn a year from penalty charges on unauthorized overdrafts. This coincides with information from the banks, and consumer protests. However, many of the banks deny these figures.

At Lloyds TSB, the response was very similar. "We wouldn't disclose that number," the spokeswoman said.

"We wouldn't like to divulge those sorts of numbers," said a spokeswoman for Barclays, citing "commercial confidentiality".

The HSBC press office said: "We are not providing that data. It is a competition issue and is confidential."

Despite the secrecy, Stuart Bernau, an executive director of the Nationwide, said his building society received 5,000 complaints a week.

"It is now considerably more at the banks," said a well-informed industry observer. "It is also operationally a major headache," he added.

The Consumer Action Group (CAG) recovered £8.4m from their members' successful claims.
"We are getting a real upsurge in the use of the site," says Marc Gander of the CAG.

At first the banks showed no concern as the trickle of lost clients did not appear to be a major setback. However, the exodus opened up consumer confidence in other financial venues. Many consumers are exploring secondary financial services.

Online banking is stepping in to fill the gap. Consumers are more open to the idea of borrowing personal loans, managing mortgages, and checking their credit rating via the internet. Online loan applications are discrete and interpersonal. They let people apply for a loan or mortgage without feeling intimidated by the bank’s loan representative.

The secondary loan and mortgage industry has been quick to seize the opportunity. They are making it easier, and more secure, for consumers to use their products from the comfort of their own home.

Published on September 19, 2007

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