The Office of Fair Trading (OFT) is to investigate Payday lenders over concern that they may be encouraging people to take out loans without checking that they can afford to repay them. Payday lenders offer short-term loans at very high interest rates and while these can be affordable if they are paid back at the [...]
The government’s Financial Services Bill, which was presented to Parliament today, could see Payday loan companies facing much tighter regulation. Payday loans are designed to provide emergency funds for a short period of time. Amounts of between £50 and £1,000 are offered on weekly or monthly terms for a charge of around £30 for every [...]
Payday loan company Wonga has removed an article from its website which suggested that students should take out a payday loan rather than a Student Loan. The article suggested that student loans, which charge around 5 per cent, encouraged students to live beyond their means. With Wonga charging around 4,000 per cent for its loans, [...]
Financial Services Limited and Shopacheck, which are both part of the Cattles Group, are writing to 1.4 million customers, warning them that back-up storage tapes containing their personal details have been lost. The storage tapes contained the names, addresses and payment histories of 600,000 customers and the names and addresses of another 800,000. They also [...]
Marks & Spencer Money is offering borrowers a personal loan at a rate of just 6 per cent. This represents the lowest rate since 2008 when Moneyback Bank was offering 5.8 per cent, while just one year ago Tesco Bank offered the lowest loan rate, of 8.4 per cent. Marks & Spencer Money’s 6% deal [...]
The Student Loans Company is contacting customers who it believes may have had their personal details compromised as a result of a phishing attack. The email attack was designed to steal students’ personal details and the company is advising students that a genuine email from the company would never ask them to divulge personal or [...]
The Office of Fair Trading (OFT) has today published guidelines which should help to stamp out unfair practices by credit brokers and intermediaries. The guidance also clarifies the responsibilities of businesses who take referrals from credit brokers. Earlier this year Citizen’s Advice complained to the OFT that credit brokers were cold-calling consumers and offering loans [...]
The Office of Fair Trading (OFT) is warning people to steer clear of scam loan companies that take upfront fees but fail to provide credit, or offer unsuitable credit alternatives. The watchdog has seen a 50% year-on-year rise in complaints about loan scams, particularly credit applications that involve upfront fees sent through money transfer companies. [...]
Provisional figures released today have revealed that the UK’s five biggest banks are on track to meet their lending targets under the Project Merlin deal. Under the agreement, Project Merlin, Barclays, Royal Bank of Scotland, Lloyds, HSBC and Santander all committed to lend £190 billion to all businesses this year. Of this figure, around £76 [...]
A report has revealed that the majority of small and medium-sized enterprises (SMEs) are successful when applying for credit. According to the study, more than half (59%) of applicants were successful when applying for a loan, while 72% who applied for an overdraft were successful. The figures come from the latest SME Finance Monitor report [...]
Figures published by the Bank of England today have revealed that the “big five” banks loaned £16.8 billion to SMEs in the first quarter – around £2 billion short of the £19 billion target – agreed under the “Project Merlin”. Under the agreement, Project Merlin, Barclays, Royal Bank of Scotland, Lloyds, HSBC and Santander all [...]
A higher education funding review is likely to see a shake-up in the way interest is charged on student loans. The review, by Lord Browne, suggested a variable interest rate on student loans was a favoured option. Currently, students pay back their loans when they earn over £15,000 a year, at a low interest rate. [...]
The coalition Government has introduced a new scheme aimed at borrowers with a poor credit history or those on a low income. My Home Finance has been set up by the Government and the National Housing Federation (NHF), with 10 branches opening across the West Midlands by the end of next month. If successful, the [...]
The Bank of England’s Quarterly Bulletin has revealed that High Street banks have not been passing on base rate cuts in full. Interest rates have been held at the record low of 0.5% since March 2009 (when the country was in the midst of its worst recession in decades), but despite this, banks are not [...]
A survey by the EEF engineering group has discovered that British companies are still struggling to obtain credit. According to the manufacturers’ organisation, credit is more expensive today than two months ago. The claim comes despite calls from the Government and business leaders to increase lending to businesses. Commenting on its report, Lee Hopley, the [...]
According to research by watchdog Consumer Focus, the number of people taking out a payday loan has quadrupled in the last 4 years. The consumer group said 1.2 million people are now taking out a payday loan every year - borrowing more than £1 billion. Payday loans are becoming more popular and are seen as [...]
The Bangladeshi anti-poverty banker Muhammad Yunus is to feature in an episode of hit TV cartoon The Simpsons. Yunus, whose pioneering work on micro-finance earned him the Nobel Peace Prize in 2006, will appear in the TV show as a cartoon version of himself. The episode will focus on his micro-credit work in Bangladesh, which [...]
Banking giant Lloyds has confirmed it will no longer sell the controversial payment protection insurance (PPI). Lloyds Banking Group, which is 41% owned by the taxpayer, is the first bank to drop PPI sales and the decision will apply to customers of all its brands including the Halifax, Bank of Scotland and the Cheltenham & [...]
Mid-year figures from Charity Bank and Triodos Bank show both lenders are on track for a record year of lending. During the first six months of this year, Charity bank agreed £20.9 million of new loans. This is compared to a total of £22.9 million for the whole of 2009. Figures from Triodos show new [...]
The era of debt-fuelled consumer spending is over, a financial expert has claimed, pointing out Britain’s consumer debts of nearly £1.5 trillion. Tim Moss, head of loans at moneysupermarket.com, seemed to be talking himself out of a job by claiming consumers can no longer afford to fund purchases on borrowed money. Consumers must face up [...]
Bank of Ireland raises cost of mortgages
The Bank of Ireland has become the latest lender to increase the standard variable rate (SVR) on its mortgages. Around 100,000 UK customers will be affected when the bank increases the SVR from 2.99 per cent, to 3.99 per cent in June There will be a further increase in September, when the SVR will rise [...]
House prices down 1.1% in February
House prices fell 1.1 per cent in February according to The Halifax, contradicting earlier figures from Nationwide suggesting that property prices have increased. According to the Halifax’s three monthly index, house prices were 1.1 per cent lower in February than in the previous three months. The mortgage lender’s annual index showed that property prices fell [...]
Debit card transactions declined by Yorkshire and Clydesdale
Customers of Clydesdale and Yorkshire Bank have been experiencing problems with debit cards being declined due to computer changes. The problem initially occurred while the banks, which are both part of the National Australia Bank (NAB), were transferring their systems operations to an external contractor on Sunday morning. Problems with some Mastercard debit transactions persisted [...]
Banks write to customers over PPI mis-selling
Banks are writing to millions of customers advising them that they may have been mis-sold payment protection insurance (PPI), following the release of new guidelines by the Financial Services Authority (FSA). The FSA estimates that between four million and 12 million letters will be sent out, but not everyone who has been mis-sold PPI will [...]
Confidence in pensions plummets ahead of auto-enrolement
Public confidence in pensions has fallen to an all-time low just months before the Government starts automatically putting every worker into one, new research showed today (Weds). A survey for the National Association of Pension Funds (NAPF) found 54% of all employees are not confident in pensions compared to other ways of saving. 37% said [...]
The British Chambers of Commerce (BCC) expects the UK economy to grow more slowly than previously forecast and says it faces “serious challenges”. In its quarterly economic forecast the BCC forecast growth of 0.6 per cent in 2012, a slight decrease from its previous forecast of 0.8 per cent. It expects the government’s efforts to [...]
Pension annuities should be clearer under new code
A new code of conduct is being launched by the Association of British Insurers (ABI) which should ensure that the sale of annuities is fairer and more transparent. The new code is designed to make it easier for people to make decisions about their retirement income, including being more confident in using the so-called ‘open [...]
Saga sees financial green shoots for over-50s
Saga’s latest quarterly report is slightly more optimistic about the financial health of the over 50s than its report for the final quarter of 2011, but the organisation warns that the “green shoots” of recovery are very tentative at the moment. Compared with a year ago, the report suggests that the quality of life for [...]
Drivers switch to autopilot after 11 minutes
A study by car insurance provider, Esure, has found that drivers suffer from a lapse in concentration just 11 minutes into a long journey. Esure questioned more than 1,000 motorists in the UK about their driving habits and attention span. 22 per cent of those surveyed said they fell into ‘autopilot’ easily, while 34% said [...]
Metro Bank launches online ISA service
London-based Metro Bank is partnering with Australian online banking solutions provider Sandstone to create an online application platform for Individual Savings Accounts (ISAs). CallCredit will provide verification and credit checking data for the new service, which will be available in time for consumers to take advantage of the new Isa allowance, starting in April. This [...]
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