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

Which? Protects Consumers From Unnecessary Fees

Phil Jones, a campaigner at the consumer group Which? said the banks historically introduce new fees when a revenue stream dries up. He said Which? will remain vigilant and will strive to make public any the banks who plan to recoup their bad-debt losses by introducing new fees to their ‘customers in good standing.'

The banks have a history of using fees to cover losses. When the Financial Services Authority forced new regulation on mortgage exit fees, the banks attached extra charges on mortgages.

The FSA's attack on credit card fees brought an aggressive retaliation that didn't stop with interest rate hikes, and fee adjustments, but included fees for 'not' using a card within 90 days.

Those in the banking industry warn consumers to watch their mortgage and personal loan balances, because the banks will employ a cause-and-effect strategy to their bad loan losses.

Julian Skan, a senior executive from Accenture's retail banking practice, and author of a report on fair pricing in banking said "intensifying competition, regulatory scrutiny and consumer activism" is making it harder for banks to charge a fair price for their services.

"The OFT test case in January is key for banks and consumers."

"This risks increased charges for people who remain in credit and possibly the withdrawal of banking services from unprofitable poorer customers - exacerbating financial exclusion while seeing charges extended to many more people."

Next week, the Office of Fair Trading (OFT) will take on seven banks one building society, Barclays, HSBC, Lloyds TSB, the Royal Bank of Scotland, HBOS, Abbey, Clydesdale and Nationwide. The court case is set to determine the legality of penalty charges levied on unauthorised overdrafts, bounced cheques and direct debits.

Published on January 18, 2008

Darling's Budget Report Highlights

Chancellor Alistair Darling delivers his first Budget Report yesterday. Highlighted in this article are some of the main points... Read More
March 13, 2008

Lending Falls Again Says CML

The amounts borrowed by first-time buyers and home movers continue to drop as the credit crunch takes further grip on the UK mortgage market. Remortgage activity is on the increase as many switch from fixed-rate deals to tracker mortgages in anticipation of further base rate decreases from the Bank of England... Read More
March 12, 2008

10 Tips To Improve Your Credit

Now more than ever our credit rating affects our ability to borrow credit. Here are 10 tips to help you improve your credit score... Read More
March 7, 2008

Interest Rates Kept At 5.25%

Yesterday, 6th March, the MPC decided to keep the base rate at 5.25 per cent. This decision was to be expected as the Bank focuses on the pressures of rising inflation and a slowing economy. Analysts are predicting another cut to 5 per cent to happen in May unless economic conditions weaken substantially. Whilst some feel the MPC shouldn't wait too long before the next cut, many agree with yesterday's decision... Read More
March 7, 2008

20 Per Cent Of Homeowners Fear Repayments

The UK's financial watchdog, the FSA, published a survey of over 500 mortgage holders which revealed 1 in 5 are worried about being unable to keep up with their mortgage repayments. It is estimated that 1.4 million fixed-rate or discount deals will expire this year raising monthly repayment amounts. Twenty five per cent of those surveyed admitted they had no contingency plans to meet these costs... Read More
March 6, 2008