Loan & Finance News from Loans4.co.uk Finance News from Loans4.co.uk http://www.loans4.co.uk/finance_loan_industry_news.php 2012-02-04T02:34:59+01:00 loans4.co.uk logo http://www.loans4.co.uk http://www.loans4.co.uk.net/images/Loans4Small.jpg text/html 2012-02-03T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Research reveals UK's top burglary insurance claim hotspots http://www.loans4.co.uk/loan_news/news.php?item=1321-Research_reveals_UK's_top_burglary_insurance_claim_hotspots Whilst most of us pray that we will never actually have to use it, most of us have some form of insurance in place to protect us financially in the event that we get burgled and lose possession of monetary or sentimental value. However, with crime rates being much higher in some areas than others, there are some people who are far more likely to make a claim on their home insurance policy simply because of the area that they live in. A recent study has highlighted the top twenty hotspots in the UK where burglaries and subsequent home insurance claims are most likely to have been made. The research showed that those living in Stoke Newington in North London are most likely to make a claim for burglary, as for every one thousand residents in the area nearly thirty four have had to make an insurance claim relating to theft. The data that was released has been based on millions of home insurance quotes that have been provided to consumers nationwide. Two of the burglary hotspots that were highlighted in the data were London and Yorkshire. Streatham is said to have the highest proportion of burglary claims with Mill Hill and Wood Green also taking spots near to the top of the hotspot list. Also featuring on the list were a number of areas in Yorkshire, including Doncaster, Bradford, Leeds and Sheffield. In Apperley Bridge, Bradford, there were nearly thirty two claims per one thousand residents, which matched the figure for West Bromwich in the West Midlands. The report also showed areas there people were least likely to have made a claim, which means that they are often be able to get far better deals on their home insurance. This included Peterlee in County Durham, Bodelwyddan in Denbighshire, Wales, Helston in Cornwall and Elgin in Moray, Scotland. The number of claims per one thousand people recorded in these areas came in at less than one. For those who live in the hotspot areas the cost of taking out home insurance could end up being considerably higher than for those in the lower crime areas simple due to the increased risk of a payout for the insurance firm. text/html 2012-02-02T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Official figures reveal drop in house prices http://www.loans4.co.uk/loan_news/news.php?item=1320-Official_figures_reveal_drop_in_house_prices Official figures have been released by the Land Registry recently, with the data showing that there has been a drop in the average price of houses. Average house prices are said to have fallen by around 1.3% last month compared to the same time a year earlier. However, there was no change in house prices recorded compared to the previous month. This brings the average house price for last month to £160,384. The data also showed that the number of completions for the month of October, which was the last reporting period available, slipped by 6% following two months of increases. The number of million-pound properties that were sold in that period also fell, experiencing a significant 10% drop. This has sparked further concerns over how the state of the economy and the stringent lending policies still in place with banks are adversely affecting the property market. The only part of the UK that managed to escape the year on year decline in property prices was London, where prices have been bolstered by strong demand from overseas buyers. London actually saw property prices increase by 2.8%, rising to an average £345,298. The greatest decline has been seen in the North East, where average prices fell by a massive 7.1% taking the average house price to £99,464. Wales, the North West and the West Midlands also experienced significant falls according to the figures. The South East fared better, with a slight fall in property prices of just 0.2%. A survey of agents and surveyors has also shown that property prices have remained flat in January and around 10.5% fewer people registered with agents compared to December. The number of properties listed is said to have fallen by 5.4% and the number of agreed sales has dropped by 14.3%. Howard Archer, chief economist at IHS Global Insight, said that he expected prices to drop by around 5% over the course of this year, with price falls fuelled by frozen pay, unemployment levels and ongoing concerns about the state of the economy. text/html 2012-02-01T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Claimants paying large chunk of PPI to no-win no-fee firms http://www.loans4.co.uk/loan_news/news.php?item=1319-Claimants_paying_large_chunk_of_PPI_to_no-win_no-fee_firms Over recent months a rising number of people have been making claims over the controversial Payment Protection Insurance, which many claims to have been mis-sold over the past few years. Following a court battle last year, which was lost by the banking industry, many people who had already filed claims over their PPI insurance have received payouts from the banks. Many others have continued to send in claims for PPI compensation since the court battle came to an end. However, there are also many people who believe that they are entitled to compensation over mis-sold PPI but who, rather than putting in a claim themselves for compensation, are going through one of the myriad of no-win no-fee companies that are offering their services. For those who are successful with their claim a large chunk of the compensation is being paid out to the companies that are doing something that the claimant could have easily done for themselves. A recent report has highlighted how those who decide to use one of these firms in order to file a claim for PPI compensation could end up losing an average of 25% of any compensation that they are paid. The figures were released by the Financial Services Compensation Scheme and were compiled over a three year period. The data shows just how high the fees can be with no-win no-fee firms. The number of claims that were submitted directly to the Financial Services Compensation Scheme between 2010 and 2011 is said to have doubled. However, despite this, the number of claims from these claims management firms for both of these years game in even higher, outnumbering direct claims by more than three to one. There is very little difference in terms of the success rate, with claims made by individuals showing a success rate of 83% and for claims made by these companies, 87%. FSCS chief executive Mark Neale said that claims management firms were unlikely to have any greater success in making a claim than the individuals themselves yet were taking a large chunk of the compensation by way of a payout if compensation was paid out. He said that consumers needed to be aware that claiming compensation from the FSCS was free and that the process was pretty simple. text/html 2012-01-31T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Credit texts could lead to hefty fines http://www.loans4.co.uk/loan_news/news.php?item=1318-Credit_texts_could_lead_to_hefty_fines Over recent years, with the age of the mobile phone, more and more of us have become used to receiving unsolicited texts from a variety of companies, which we tend to simply go in and delete. However, some people have found themselves receiving more and more of these messages, often from companies offering loans and credit or offering to help consumers to claim compensation. It has now been revealed that firms that send these unsolicited text messages to consumers’ mobile phones could now face fines of up to £5,000 as authorities take a firm stance to try and crack down on this practise. The issue is being dealt with as a ‘high priority’ by the Information Commissioner's Office (ICO), which is determined to tackle the issue. The messages that consumers receive from these companies tend to relate to a number of different things, from offers of arranging loans and other forms of finance to offering to write off debts or assist with compensation claims – sometimes for accidents that never even took place. Concern has now been expressed that in some cases the products being sold by these firms can actually leave people worse off financially. A number of cases are already being investigated by the ICO at the moment, and a selection of companies have been identified for targeting by the commissioner’s office. A campaign has also been launched by the Consumer Credit Counselling Service (CCCS) in order to try and put a stop to these unsolicited text messages. The CCCS believed that it is usually the more vulnerable people that are targeted by companies that send these texts. Some consumers have reported that they have been bombarded with text message from these firms after making a simple online loan application online, even if in the end they decided not to go ahead with the loan. The CCCS is now making use of the social networking site Twitter in order to raise awareness of the issue and to encourage people to tweet each time they receive these spam texts. text/html 2012-01-30T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Bank decision proves a disappointment for charities http://www.loans4.co.uk/loan_news/news.php?item=1317-Bank_decision_proves_a_disappointment_for_charities A number of well known charities have received disappointing news recently when a major banking group announced its decision to put an end to its charity based credit cards. For many years, charity credit cards have provided a number of charitable organizations with a steady flow of donations, helping them to continue with their good work. At the same time, these cards have provided millions of people with the ability to do their bit for charity without having to take any other action apart from using their credit cards in the usual way. However, Lloyds Banking Group has now dropped a bombshell on the charities that it works alongside, after making the decision that it was no longer cost effective to manage the card schemes in order for donations to be made to the charities. Amongst the charities that will be affected are Cancer Research UK, the NSPCC and the Scottish SPCA. The charities have expressed their disappointment at the decision but have said that they hope to look at other options and opportunities with the banking giant. Lloyds Banking Group has been managing these charity based credit cards for close to a quarter of a century and in that time the cards have helped to raised nearly £15 million for Cancer UK alone. With this source of donations soon set to disappear, Baroness Finlay, vice chair of the all-party parliamentary group on cancer, has called on Lloyds Banking Group to look at other ways in which it could help the charities that will be losing out. She expressed her dissatisfaction at the timing of the decision, which she said was insensitive given 'all the furore around bonuses'. She added that a bank that a bank that was able to produce such a large amount of additional cash to give out huge bonuses needed to think very hard about 'whether it should be giving back to the society on which it depends for its business'. As things stand at the moment, the charity credit cards from Lloyds Banking Group are set to be withdrawn from the end of February, taking away a huge financial lifeline from the charities concerned. text/html 2012-01-27T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Bank of Mum and Dad getting tougher http://www.loans4.co.uk/loan_news/news.php?item=1316-Bank_of_Mum_and_Dad_getting_tougher Whilst there have always been first time buyers who have been reliant on money from their parents in order to help them onto the properly ladder, this is something that has become increasingly prevalent over recent years, with more and more young first time buyers having to turn to their parents in order to help get the money together to get them onto the property ladder. Higher deposit demands coupled with frozen income and higher living costs has meant that many younger people, even if they are working, have been unable to put enough money aside to get them onto the first rung of the ladder. The Bank of Mum and Dad has therefore been raided by many of those who were determined to get their own place, even if they were unable to save up the money themselves. However, data indicates that in this difficult financial climate even the Bank of Mum and Dad has started to run dry – which has resulted in many younger people now turning to their grandparents for financial assistance in getting a home. A recent report showed that increasing numbers of younger people were now turning to their grandparents for help with raising a deposit for a home, as a rising number of parents were struggling with finances themselves and therefore did not have the capacity to help their children to raise a deposit. Over one thousand younger people were polled as part of the study, which was carried out by the house builder Taylor Wimpey. It was found that 10% of them had turned to their grandparents in order to get help with raising a deposit. The study also showed that a rising number of grown up children were being forced to continue living with their parents for longer in order to try and save money towards a deposit. In fact, some grown up children now fear that they could be living with their parents until they are in their late 40’s or even in their 50’s because of their financial situations – and many said that this had caused their relationship with their parents to suffer. text/html 2012-01-26T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Increase in mortgage fees over the past year http://www.loans4.co.uk/loan_news/news.php?item=1315-Increase_in_mortgage_fees_over_the_past_year Mortgage fees are one of a number of fees and charges that many borrowers have to take into consideration when taking out a mortgage loan. However, recently released figures have suggested that these fees have increased significantly over the past year, with those that are likely to be worst hit being borrowers who have larger deposits. Data from financial site Moneyfacts has indicated that the typical mortgage fee has shot up by around £600 over the past year, with the steepest increases hitting borrowers who have got the largest deposits. It is unusual for those with larger deposits to be worse hit than those with smaller deposits, but in this case the increases have been smaller for the loans that first time buyers with small deposits tend to look for. The figures show that the typical mortgage arrangement fee has increased from £889 just one year ago to £1498. However, the variation between the increase in the mortgage arrangement fee for those with a larger deposit and the increase for those with a smaller deposit is significant. The data showed that the increase for those taking out a 60% Loan to Value mortgage stands at 42% whilst for those seeking a 90% or 95% Loan to Value mortgage the increase comes in at just 11%. For borrowers with a deposit of 25% the increase is even sharper, with the increase coming in at a massive 65%, taking the cost of the typical fee to £1599. The hike in fees has been imposed despite the continued record low Bank of England base rate, which has resulted in lenders offering some of the lowest mortgage rates ever. One industry expert said that all too often those who were caught up in the excitement of taking out a mortgage and buying a new home forgot about checking the finer details such as the cost of associated fees and charges. However, she added that this was an important factor in calculating the most cost effective mortgage deal and was something that more borrowers needed to take into consideration when comparing mortgage loans. text/html 2012-01-25T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Shopping around becomes more difficult as car insurance quotes rise by £50 http://www.loans4.co.uk/loan_news/news.php?item=1314-Shopping_around_becomes_more_difficult_as_car_insurance_quotes_rise_by_£50 Whilst many people already spend a lot of time shopping around before purchasing their vehicle insurance cover, this is a process that has become all the more important based on recent figures released by motor industry group, the AA. The figures reveal a significant increase in car insurance quotes over a period of just three months, which has prompted MPs to call for changes and cuts in the cost of vehicle insurance cover. According to the British Insurance Premium Index from the AA, the typical quote for comprehensive car insurance cover even for consumers that shop around has increased by £50, with more and more cheaper deals disappearing from sight. The typical cost of annual cover for those that shopped around for comprehensive cover came in at £971.40. This reflects an increase of 5.4% compared to just three months ago and a significant 15.3% compared to a year earlier. When it came to third party, fire and theft cover the typical increase since last October stood at £35, which represents a 2.4% increase, leaving the current typical premium standing at £1,495. The cheapest area of the UK for car insurance continued to be Scotland, with the shop around premium for comprehensive cover coming in at £587. The most significant shop around percentage increase has, as many expected, affected younger drivers, with those aged between seventy and twenty two being hardest hit. For those in this age group the typical cost of cover has increased by 6.6% since October last year, taking the cost to £2,497. A spokesperson for the AA said that the price difference between now and just three months ago showed that more and more of the most competitive vehicle insurance deals were disappearing, leaving drivers with only an array of costly cover to choose from. He added that younger drivers appeared to have lost out the most, with a higher than average increase. The AA also said that younger drivers were clearly continuing to be viewed as a much higher risk to insurance providers and some would now no longer consider providing insurance cover to those that were aged under 21. text/html 2012-01-24T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Many adults planning to cut back on spending http://www.loans4.co.uk/loan_news/news.php?item=1313-Many_adults_planning_to_cut_back_on_spending The results of a recent survey have suggested that as a result of the ongoing difficult financial climate in the UK many adults are planning to try and cut back on their spending over the course of this year. It is thought that around one third of adults have made up their minds to reduce their spending in 2012, which reflects a sharp increase from just three months ago, when the figure stood at 19%. The study was undertaken by the Resolution Foundation think tank and around one quarter of all those polled as part of the study said that they believed their financial situations would get worse over the course of this year. However, on a brighter note around the same proportion of people out of those that were polled said that they were expecting to receive a pay rise at work this year, which would help to combat the effects of inflation on the household budget. The Resolution Foundation also revealed that in addition to making plans to reduce their spending levels, a rising number of people were now trying to save money with 30% now putting aside money into savings compared to 22% just three months ago. Many are doing this to ensure that they have some money put aside in the event of emergencies and because they believe that they have a tough year ahead of them financially. Amongst the luxuries that will be sacrificed by struggling households are holidays, with 20% of consumers stating that they could not afford to go on holiday this year. Nearly two thousand consumers were polled as part of the survey, and Gavin Kelly, the think tank's chief executive, said that the survey results indicated that the current trend was a worry because the less people spent the longer it would take for the economy to recover. Consumer confidence levels for the month of December are said to have fallen. However, retail sales for the month did increase by 0.6% as a result of the deep discounts that retailers were offering as Christmas approached. text/html 2012-01-23T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Further surge seen in PPI complaints http://www.loans4.co.uk/loan_news/news.php?item=1312-Further_surge_seen_in_PPI_complaints The FOS has reported that the number of complaints being made in connection to the controversial Payment Protection Insurance has seen a fresh surge, resulting in an increase in the number of cases that are ending up with the Financial Ombudsman Service. This is reflected in the number of complaints that were being received by the FOS in the final quarter of last year compared to the previous one. Figures show that in the last three months of last year the FOS received 55,907 complaints, which was an increase of 10% compared to the previous three months. This was fuelled by a surge in PPI complaints during the same period, with the number of complaints jumping from 19,259 to 30,301. Data has also revealed that new complaints relating to PPI are significantly higher than others types of complaints that are being dealt with by the ombudsman. Fresh PPI complaints are said to account for around 54% of the current workload of the FOS. In the final quarter of 2011 only 18% of the FOS workload was down to complaints about credit cards, mortgages and current accounts. It is clear from the rising number of complaints relating to PPI that the banks still have a lot of work to do before the controversy relating to PPI is finally brought to an end. Whilst banks have been paying out huge sums in compensation to successful claimants after losing their court battle against the Financial Services Authority, there is still a very long way to go. In the final quarter of last year the FOS ruled in favour of the customer in 68% of PPI cases that it looked at. This reflected a drop from the figure of 92% in the third quarter of the year but was higher than the figure for the whole of the 201-2011 financial year, which stood at 66%. Around £6 billion has been put aside collectively by the banking giants in order to be able to settle PPI claims. However, many of the complaints that are being rejected by banks are ending up on the desk of the financial ombudsman. text/html 2012-01-21T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited China investing in UK’s biggest water and sewerage firm http://www.loans4.co.uk/loan_news/news.php?item=1311-China_investing_in_UK’s_biggest_water_and_sewerage_firm The Chinese state-run Investment Corporation (CIC) has made an investment of 8.7% in the holding company that owns Thames Water. This follows a visit by Chancellor George Osborne to Beijing to forge closer ties between the two countries. It is thought to be the sovereign wealth fund’s first investment in the UK and is expected to be the first of many as China’s huge economy grows and looks for external investments. CIC chairman Lou Jiwei has recently that his company was interested in investing in European and US infrastructure. Speaking about the deal, the Chancellor said: “This is a significant step by China. It is a vote of confidence in Britain as a place to invest and do business." China has a pressing need to find ways to invest in foreign countries, and the UK has an urgent need to stimulate growth and update an outdated infrastructure, it seems like a match made in heaven. City analysts say the move could be the first of an influx of Chinese investments in the country as Far Eastern investors see the UK as a safe haven compared to the many other troubled European countries. It is believed the planned High Speed rail link from London to Birmingham (HS2) is among the projects of interest to China and also large industrial developments, such as the Atlantic Gateway in the North-west of England, as well as other projects including updating Britain’s energy infrastructure, broadband investment and road schemes. The chancellor is determined to invest and attract outside investment in the UK economy, stimulating growth, and making the UK a substantial player in the world, and to show he has a vision that is more that justdeficit reduction. The Thames Water investment is the latest by foreign companies in the UK’s infrastructure in recent decades following their privatisation. In the last ten years, Germany’s RWE has acquired utilities supplier Npower, the Australian bank Macquarie has bought carparks owned by NCP, and Ferrovial of Spain has bought BAA, the operator of Heathrow and Stansted Airports. text/html 2012-01-20T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Second consecutive fall in rental costs http://www.loans4.co.uk/loan_news/news.php?item=1310-Second_consecutive_fall_in_rental_costs After a series of increases that led to the cost of renting reaching unprecedented highs, rental costs have now fallen for the second consecutive month. Figures released by LSL Property Services have shown that in December the cost of renting a property fell by an average 0.8%, taking the average rental cost to £711 per month. Despite this drop in rental prices, however, the figures also showed that the cost of renting was still 4% higher in December 2011 compared to December 2010. LSL also pointed out that as a result of the flurry of spending over the Christmas period a rising number of tenants have fallen behind with their rental payments. At the end of December 10.7% of all rent was shown to be either late or unpaid, which reflected an increase from the figure of 9.3% in November. According to the Association of Residential Lettings landlords are also experiencing difficulties as a result of this, prompting one member of the group to highlight the importance of conducting research and getting references before a tenancy agreement was signed. He said that seeking advice from a licences lettings agent was the best way to ensure that both tenants and landlords were protected. Prior to November, rental costs had increased for ten straight months. LSL said that although rents had fallen over the past couple of months due to seasonal factors, the fall was not as great as it had been in previous years, partly due to the ongoing demand for rental homes, which has been helping to fuel rental increases over the past year. The LSL figures show that the rental falls in December were experienced in all regions apart from the West Midlands, Yorkshire and the Humber, and the East Midlands. In London rents fell for the first time in the space of a year. However, annually rents increased in all regions apart from the south west of England and the north east of England. One property industry expert said that despite the rental price drops in would be premature to assume that the rental market had reached its peak and would start to experience continued falls. text/html 2012-01-19T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited December sees drop in UK inflation http://www.loans4.co.uk/loan_news/news.php?item=1309-December_sees_drop_in_UK_inflation Figures released have shown that there was a sharp drop in CPI (Consumer Prices Index) inflation for the month of December, with the drop drive by lower prices on clothing and fuel. The rate of inflation, which has spiralled way above the government’s target rate of 2%, fell from 4.8% in November to 4.2% for December, reflecting a significant fall. The data was released by the Office for National Statistics. The figures also showed that RPI (Retail Prices Index) inflation, which includes mortgage interest payments, also fell dropping from 5.2% in November to 4.8% for the month of December. The Bank of England has predicted that inflation will fall back to its target level of 2% by the end of this year and so far the figures suggest that this prediction could be correct. The drop in CPI inflation has taken the rate to its lowest since June of last year and the drop in the level of inflation that was seen in December is the biggest monthly fall since April 2009. Clothing and footwear prices experienced a drop of 2.8% in the run up to Christmas, as retailers were cutting costs in a bid to try and bring more customers through the door. Fuel prices also fell by a small amount, dropping by 0.6% on the month. The recent rounds of gas and electricity price cuts have not been taken into account with the figures. The price cuts on these products was, however, counteracted in part by an increase in food prices, which occurred despite stiff competition between the leading supermarket giants such as Tesco, Asda and Sainsbury’s. Figures show that food prices increased by 1.4%. One analyst said that it was likely that there would be further falls over the coming months, which in turn could equate to a vital boost to the UK’s economy and growth over 2012. He added that the data helped to support the predictions made by the Bank of England that inflation would fall below its target rate of 2% by the end of the year. text/html 2012-01-18T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Consumers should consider switching even with energy price cuts http://www.loans4.co.uk/loan_news/news.php?item=1308-Consumers_should_consider_switching_even_with_energy_price_cuts Millions of consumers around the UK will have been relieved recently after the big name energy giants announced price cuts on gas and electricity usage. After seeing the cost of energy soar, many have been struggling to keep on top of their bills, with the high cost of usage adding to already strained household budgets. With the cost of wholesale energy having now fallen, energy giants have applied a small reduction to the cost of energy usage, which has been welcomed by millions of energy customers. However, it has been pointed out that whilst the price cuts are good news they are only a fraction of the amount by which energy prices have been increased over the past couple of years – and the difference that the latest round of cuts will make to annual bills works out to an average of just £2 to £3 per month. Whilst some energy consumers may have been considering switching their energy provider to get a better deal, the price reductions may have stopped them in their tracks, leading them to believe that now their provider has cut the cost of electricity of gas there is no point going to the effort of switching. However, experts have said that energy users should not become distracted by these small price reductions and should still take the time to shop around and see if they are able to get a better deal elsewhere. Many experts have also expressed concern that whilst wholesale gas prices have fallen quite dramatically – around 27% since the summer according to reports – the benefit to consumers in the form of price cuts from energy firms has been minimal. In fact, British Gas has come under fire as it has only announced price cuts for its electricity and not its gas. One industry expert said that the move by British Gas to cut its electricity prices but leave gas prices untouched would confuse customers, who would be left wondering why whilst some energy companies had cut the price of gas usage British Gas had failed to do so. text/html 2012-01-17T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Boost to economy to come from PPI payouts http://www.loans4.co.uk/loan_news/news.php?item=1307-Boost_to_economy_to_come_from_PPI_payouts Experts have claimed that the economy is set to enjoy a boost this coming year, as consumers continue to receive compensation payouts from banks as a result of being mis-sold payment protection insurance cover in the past and then use some or all of their compensation to splash out on purchases. The payouts are expected to result in a massive £5 billion boost to the economy as millions of bank customers receive their payouts from the banking industry. Any compensation that may have been due to consumers claiming to have been mis-sold the controversial payment protection insurance cover had been placed on hold until the middle of last year, as the banking industry was locked in a legal battle with the Financial Services Authority with regards to the mis-selling of the cover. The banks lost the legal battle and banks spent much of the latter part of last year dealing with claims that had been frozen and starting to make payouts on new claims that came flooding in. Figures show that two of the High Street banking giants, Lloyds and Royal Bank of Scotland, are sending out around 50,000 compensation cheques each week, with Lloyds having a team of around two thousand working on PPI compensation. The bank has stated that it is dealing with around thirty times more complaints that it was at this time last year. Based on various reports, the compensation payouts for the millions of PPI policies that were mis-sold could come to anywhere between £7.5 billion and nearly £10 billion. Much of this – between £3 billion and £6 billion – is expected to be paid out to consumers over the course of this year, which will equate to a huge boost in consumer spending and a knock on boost for the economy. Simon Ward, economist at fund group Henderson, said that inflation was likely to fall over the course of this year and real incomes would most likely stabilise. He said that the boost for the economy that will comes from the compensation payouts would not be 'a game changer' but would definitely help. text/html 2012-01-16T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Drivers in North pay more for their vehicle insurance http://www.loans4.co.uk/loan_news/news.php?item=1306-Drivers_in_North_pay_more_for_their_vehicle_insurance Over recent years, we have all become used to having to pay more for our car insurance, with the cost of this cover having risen quite dramatically across the board. Like other motoring costs, the price of car insurance has put further strain on drivers who are struggling with their finances, with the fuel increases being driven by a combination of increasing inflation and high levels of insurance fraud. While most drivers are having to cope with high vehicle insurance costs, it has been claimed that drivers who live in the north of England are really paying through the nose, with the cost of cover for drivers in the area said to have increased by more than three times the rate of inflation. The fastest rising vehicle insurance prices for 2011 were seen by drivers in Bradford, with their annual insurance costs increasing by 17.1%. This was more than 13% higher than the national average. Drivers in Oldham saw their costs rise by 14.8% whilst drivers in Manchester saw them increase by 14.4%. The data comes from the latest Confused.com/Towers Watson Car Insurance Price Index. The figures showed that across all age groups the average annual premium now being paid for car insurance was £844, which reflected an increase of 4.9% in 2011. For third party, fire and theft customers the increase was much higher, coming in at 10.2%. Younger drivers were found to be paying a small fortune for their cover last year, with those aged between seventeen and twenty years paying an average £2,590 per year. The average cost of cover for those aged sixty six and over was a much lower £451 per year. For drivers with five door estate vehicles, the cost of cover also increased quite dramatically last year, rising by more than 13%. One insurance expert said that drivers would see car insurance prices being affected by a number of things over the next twelve months, including the introduction of new EU legislation on gender, which would stop premiums on cover being based on the gender of the driver. text/html 2012-01-16T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Cash Converters Loans Company targets more than 40 new stores to open in the UK for 2012 http://www.loans4.co.uk/loan_news/news.php?item=1305-Cash_Converters_Loans_Company_targets_more_than_40_new_stores_to_open_in_the_UK_for_2012 Payday loan firms and pawnbrokers are one of the few parts of the global financial sector to have grown during the credit crisis, as mainstream banks have increasingly refused loans to low-income customers. Cash Converters, whose headquarters are in Australia, reported profits of $27.6 million (17.8 million pounds) for 2011, despite the global downturn in the economy. In the UK, its personal loan book grew by 746 percent to £5.0 million at 30 June 2011 and there were 100,988 cash advances made during the period, totalling 10.5 million pounds. Due to the growth in the short-term lending market, Cash Converters plan to have 250 stores in the UK by the end of 2012, up from 206 stores currently, and the new stores will create a further 300 new jobs. American loans firm EZCORP owns a 33 percent stake in the group. Cash Converters stores allow customers can sell second-hand goods to get money in return. The company also has pawn broking and gold-selling services, in addition to handing out short-term loans to tide people over until their next payday. Money lent ranges from £10 to £600, and usually over a period between 2weeks and 8weeks The sector has been criticised by some politicians for often charging exorbitant interest rates that can exceed 1,000% on loans. 34 MPs had visited his company's stores over the last 14 months as part of steps to regulate and monitor the sector. In response to this Cash Converters say loans could work out cheaper than taking an overdraft at a mainstream bank and added Loans usually cost between £10 and £30 for £100 pounds borrowed per month, so a £200 loan over a 30-day period could end up costing £260, however it could cost £350 pounds via an unauthorised overdraft facility. Cash Converters' research said this showed that while the annual percentage rate (APR) on its £200 pound loan stood at 1,413%, on a high street bank’s overdraft this could cost £350, meaning an APR of 90,888%, and banks do not have to show APR rates on their overdrafts and as such customer comparison is clouded. text/html 2012-01-13T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Energy consumers to see their bills fall http://www.loans4.co.uk/loan_news/news.php?item=1304-Energy_consumers_to_see_their_bills_fall At long last there is some good news in the pipeline for energy consumers in the UK after a number of major energy providers announced that they were cutting their gas or electricity prices. With many people having to fork out record amounts of cash for their energy usage, leaving them struggling financially, this news is set to be widely welcomed by the millions of people hoping to reduce their outgoings. British Gas has recently announced that it is cutting the cost of its energy prices by 5% with immediate effects, enabling its electricity and dual fuel customers to save some money on their bills. EDF Energy recently announced that it would be reducing its gas prices by 5% in February and SSE, which was formerly Scottish and Southern Energy, has also announced a gas price cut, with prices set to fall by around 4.5% from March. It has been pointed out, however, that despite the immediate price cuts on energy usage, the dual fuel tariffs from British Gas will still be more expensive than the tariffs of its rival providers that have also announced price cuts. British Gas currently supplies energy to around ten million customers, which equates to about 50% of the UK market but despite its huge customer base has decided that it will not be reducing the cost of gas, even though wholesale prices have fallen. The energy giant did say that around 5.3 million people would benefit from the cut in its electricity prices, saving around £24 per year on average or £2 per month. However, this will do little to reassure confused customers who are spending a fortune on their gas bills and have no idea why energy firms are not implementing price cuts across the board given that wholesale energy prices have come down. A spokesperson for British Gas said that the firm wanted to keep prices as low as possible due to household budgets and finances being stretched. However, he said that wholesale energy had to be purchased in advance to ensure that customers were no subjected to sudden and large spikes in prices. text/html 2012-01-12T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Bank of England holds base rate at record low http://www.loans4.co.uk/loan_news/news.php?item=1303-Bank_of_England_holds_base_rate_at_record_low The Bank of England has held the UK's base interest rate at its record low for yet another month, with the announcement coming after today's Monetary Policy Committee meeting. The base rate has stood at its all time low of just 0.5% since March 2009 making it close to three years where the rate has been at this level. In October last year, the central bank also announced that it was pumping a further £75 billion into the economy as part of the quantitative easing program but has not announced any further extension of the scheme since that time. This month was no different, with no announcement from the Bank of England with regards to any plans to further extend QE. The decision to keep the base rate on hold and not to further expand QE was widely expected by industry experts. A number of factors are thought to have contributed to the decision including the strength of the economy, weak consumer spending and the eurozone crisis amongst other things. The European Central Bank has also left its rates unchanged, keeping them static at 1%. It is thought that analysts and economists will be eager to see the minutes of this latest meeting when they are released in order to see whether there are any clues with regards to future plans for quantitative easing. The £75 billion that was announced in October last year is unlikely to be administered until next month. However, many experts believe that once the current QE programme is complete a further £50 billion is likely to be released. David Kern, chief economist at the British Chamber of Commerce, said that given the challenging economic environment, and the fact that these challenges were set to increase over the first quarter of this year, the BCC and other industry groups would welcome a further boost to quantitative easing in the form of a further £50 billion expansion. However, he added that in order to QE to be effective additional measures needed to be put into place to improve the flow of credit to viable businesses. text/html 2012-01-11T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited 2011 saw fraud levels increase http://www.loans4.co.uk/loan_news/news.php?item=1302-2011_saw_fraud_levels_increase According to the accountancy group BDO, the level of fraud activity taking place in the UK increased last year, with total reported fraud breaking the £2 billion barrier. However, the group said that this was nothing compared to the amount of fraud that goes unreported. The BDO figures showed that last year saw fraud increase by 50 percent compared to the previous year, rising to £2.09 billion. More than a third of this was said to have been attributed to tax related fraud. However, despite the high levels of reported crime, a spokesperson from the group said that at least ten times as much fraud had gone unreported. He stated that it was important for firms to take a more proactive approach when it came to dealing with fraud, particularly given the fragile economic climate. He added that it was bad news that fraud had increased by such a huge amount but it was not surprising. He said that the economic climate meant that there was increased focus on addressing costs and because of this more and more fraudulent activity was being weeded out. However, he also said that firms needed to take further measures to try and reduce fraud levels as many firms were putting too much focus on external fraud or were not considering the huge financial implications of this sort of activity. A big jump in fraudulent activity was seen in the retail sector last year according to the breakdown of figures from BDO. Fraud activity in this sector increased from 2% in 2010 to 12% in 2011. Around 36% of all fraud was attributed to tax fraud based on the breakdown of figures. Surprisingly, the insurance and finance sector saw its lowest level of fraudulent activity in five years. However, BDO did express concern that the finance sector appeared to be focussing too much of its attention on addressing fraudulent activity relating to credit cards and phishing scams and were over-looking fraud related to mortgages and commercial lending, which could be very risky for the sector. text/html 2012-01-10T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Surge in buy-to-let investors results from squeeze on mortgages http://www.loans4.co.uk/loan_news/news.php?item=1301-Surge_in_buy-to-let_investors_results_from_squeeze_on_mortgages As most potential property purchasers are only too well aware, the task of trying to get a mortgage these days has become a very challenging one, with the continued squeeze on mortgages by the banks resulting in many people being able to afford the deposit on a mortgage or even getting a mortgage at all. This is a situation that that has stemmed from the financial crisis of several years ago and is still having a big impact on the ability of groups such as first time buyers and low income households to get a mortgage. As a result of this many have been forced into a renting a property as they are unable to buy their own home, which in turn has led to a surge in rental property prices fuelled by the unprecedented demand for private rental homes. This has meant that one of the main groups to benefit from this mortgage misery is buy-to-let investors, who are not only experiencing very high demand for their properties but also seeing the rental income that they earn from their properties increase. It has now been reported that the continued squeeze on mortgages has resulted in a surge in buy to let investors, with many who are in a position to invest in rental homes realising what a lucrative move this could be in the current climate. According to figures from the estate agency Savills, the proportion of residential housing stock that is now owned by private landlords has jumped by a massive 40% since the onset of the financial crisis, with private landlords now making up around a fifth of the total. It is thought that the figures showing the surge in buy to let investors could put further pressure on the government to take action in order to help first time buyers to get onto the property ladder. There are also reports that a similar situation has now arisen in the US, with many non-homeowners now being forced to rent a home rather than consider purchasing a property. text/html 2012-01-09T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Personal and financial data of customers lost by lenders http://www.loans4.co.uk/loan_news/news.php?item=1300-Personal_and_financial_data_of_customers_lost_by_lenders Borrowers of two lenders have been informed that their personal and financial details have been lost by the lenders, which could result in their information being misused. In the current climate, where identity theft and fraud are rife, this is news that is likely to be of great concern to the 1.4 million people who are said to have been affected. The two lenders involved in the loss of sensitive data are Welcome Financial Services and Shopacheck, which are both under the umbrella of their parent company Cattles Group. In total the loss of data has affected around 600,000 customers with Welcome Financial Services and a further 800,000 who are customers of Shopacheck. The Cattles Company has apologised for the incident, which is said to have occurred as a result of two storage tapes being lost. The tapes are said to have contained a range of data about the affected customers, including their names, addresses and payment histories. An investigation has now been launched by the Information Commissioner's Office with regards to how the loss of the tapes occurred. The customers whose details have been affected are people that signed up with the finance companies between October 2005 and October 2010. In the letter that was sent out to customers the lenders said that there was no evidence that the information had fallen into the wrong hands. However, the lenders also admitted that there was no way that they could guarantee that the day has not been or will not be used for criminal purposes and have therefore urged affected customers to remain vigilant. The backup storage tapes are said to have gone missing from the West Yorkshire office, with the loss first being discovered in November of last year. The letters that were sent out to customers who have been affected were dated December, with the lenders admitting that it had taken several weeks to start contacting customers following the discovery of the loss. However, the firms claim that an investigation was started into the missing storage tapes right away. text/html 2012-01-06T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Getting a mortgage could become increasingly difficult http://www.loans4.co.uk/loan_news/news.php?item=1299-Getting_a_mortgage_could_become_increasingly_difficult It has been claimed in a recent Bank of England report that getting a mortgage could actually become more difficult over the coming months for those hoping to buy a property. The data in the central bank's quarterly survey of lending indicated that rationing was set to increase and mortgage availability set to get worse, with more and more potential home buyers struggling to get mortgage finance for their property purchase. It is thought that lenders could become even more stringent about who they will and will not lend to, with many expecting a tightening up of credit scoring criteria in relation to the granting of secured loans for property purchasers. With the economy still very fragile and continued volatility when it comes to property prices, lenders are having to exercise caution when it comes to lending money. The Bank of England reported that there were a number of different factors that were set to have an impact on the cost and availability of mortgage finance, including the cost and availability of funds, expectations in relation to house prices, and the general economic climate. The central bank also said that lenders were expecting the number of mortgage approvals to fall over the coming quarter, with some lenders revising down expectations with regards to household incomes and affordability. The banking industry has said that it recognises that this increased stringency has put some people off from applying for mortgage finance and added that over the coming months any increase in lending would be targeted towards those that were able to put down a larger deposit. With mortgage rationing having been in force since 2007 when the global credit crunch swept the UK, it seems that the uncertainty and frustration amongst those looking for mortgage finance is set to continue. On a more positive note, lenders have reported that over recent months there has been improvement in the rate at which mortgage borrowers have been defaulting on their loans and this is something that is set to continue showing improvement in the near future. text/html 2012-01-06T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Insurance cost increases to stem from bad weather http://www.loans4.co.uk/loan_news/news.php?item=1298-Insurance_cost_increases_to_stem_from_bad_weather The New Year in the UK has got off to a bad start in terms of the weather, with gale force winds across the country that have caused huge amounts of damage over the first few days of 2012. The storms and winds have affected not only homes across the country but also motor vehicles and experts are now warning both homeowners and drivers to brace themselves for an increase in premiums. With insurance premiums, particularly on vehicle insurance, already very high, this will come as bad news for drivers and homeowners. However, insurance firms are expecting a huge number of claims over the coming weeks from people whose homes or vehicles have been battered by the stormy weather, causing thousands of pounds worth of damage in some cases. Some motor insurance firms have already reported a huge hike in claims, with cars having sustained damage from everything from flying tiles to falling trees during the stormy weather, which is still ongoing across many parts of the country. In the meantime, AA Home Emergency Response has said that there has been a twelve-fold increase in the number of roofing claims it is dealing with, as many homes have seen roof tiles torn off in the wind. An AA spokesperson said that such bad weather was going to do nothing to help insurance costs to come down. The company's data shows that in the final quarter of last year, motor insurance costs remained pretty flat whilst home insurance costs increased by around 3%. The AA said that it is not expecting to see an extremely sharp increase in premiums but added that the cost of cover, such as building insurance cover, would continue to rise over the course of the year as insurance firms were expecting more frequent bad weather conditions and will need to ensure that they have the funding and reserves to deal with the claims that stem from these bouts of severe weather. This latest weather is part of a long line of severe weather conditions that have resulted in a rise in insurance claims over recent years, with last winter having seen one of the most severe winters in decades. text/html 2012-01-05T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Consumers continued to spend in run up to Christmas http://www.loans4.co.uk/loan_news/news.php?item=1297-Consumers_continued_to_spend_in_run_up_to_Christmas Whilst many people may have thought that retail sales levels would be low in the run up to Christmas this year given the financial strains that many people are facing, one retailer has reported a dramatic increase in sales in the run up to Christmas. The figures from John Lewis suggest that consumers embarked on a spending frenzy in the run up to Christmas, which is expected at that particular time of year but also unexpected given the financial climate. The data from John Lewis showed that like for like sales were up by 6.2% compared to a year ago, with household goods and fashion seeing very strong sales in the final five weeks of last year. The retailer also saw its total market share in electronics increase and its total sales for the period increase by 9.3%, which was an increase that was partly fuelled by the opening of several new stores last year. Andy Street, John Lewis managing director, said that sales levels in the month leading up the Christmas Eve were 'outstanding' and during that time the retail giant had broken its record for the biggest sales week ever. For the week ending December 17th the company took in £133.1 million. Whilst pre-Christmas sales were very impressive for John Lewis the sales levels have not been so strong in the post Christmas sales. The first week of the sales saw performance drop by 4.8% compared to the same period a year earlier. Executives from John Lewis have said that this was partly down to people rushing out in the final week of 2010 to snap up bargains before the VAT increase kicked in. Rival retail giant Next has also recently reported on its pre-Christmas sales figures, reporting a drop of 2.7% in autumn and pre-Christmas sales. However, this drop was seen at its High Street bricks and mortar stores and was offset by a large increase in sales online. Retail experts are predicting that the year ahead will be a challenging one in the world of retail due to economic volatility. text/html 2012-01-05T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Decline in Brits saving for retirement http://www.loans4.co.uk/loan_news/news.php?item=1296-Decline_in_Brits_saving_for_retirement Official government figures have revealed a worrying decline in the number of Brits that are saving for their retirement, with fewer than one in four Brits now paying into a private pension, which is the lowest figure for over a decade. Ministers have expressed concern over the new figures and have stated that millions of people in Britain face a bleak retirement in terms of their finances. The figures were released by the Department for Work and Pensions, with the data revealing that the number of working people in Britain had fallen from 46% in 2000 to 38% last year. The most significant drop in numbers was amongst working peopled aged under forty. The figures also showed that men were less likely to save towards their retirement than women. With millions more people saving for their retirement ten years ago compared to now, concerns have been raised over the financial struggles that many will now face when it comes to their retirement. The Pensions Minister, Steve Webb, said that the average number of years in retirement was now twenty three, which was a long time for people to try and cope on an inadequate financial pot. He added that the figures showed why the government's pension reforms were essential. Starting from next year, companies will have to automatically enrol their employees into workplace pension schemes, which will mean that millions of people get access to a pension for the first time. Webb said that it was essential that workers were encouraged to start saving for their future and their retirement and that automatic pension enrolment would bring the country one step closer to doing this. The highest pension provision in the UK is said to be in the South East, where 43% of workers were saving into a private pension pot. Scotland came in a close second with 42% saving into a private pension fund. The lowest provision was found in London, Northern Ireland and the West Midlands, where only a third or so of workers were saving for their retirement. text/html 2012-01-04T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Sorting out finances a top resolution for this year http://www.loans4.co.uk/loan_news/news.php?item=1295-Sorting_out_finances_a_top_resolution_for_this_year It will come as no surprise to many to learn that the top resolution for 2012 amongst consumers is to get their finances sorted out. After a tough few years many people are feeling the strain financially and are determined to try and address their financial issues so that they can ease the financial pressure over the coming year. Nearly 50% of consumers have decided that this will be the year that they will be reducing their spending and will manage their finances more efficiently and effectively to reduce their outgoings. More than 26 millions Brits were set to make New Year’s resolutions in the run up to New Year’s Day and with almost half of them resolving to sort out their money issues there will be a lot of people that will be working on their finances as the New Year kicks off. Most industry experts are not surprised by the fact that so many people have decided to opt for improving their finances as their New Year’s resolution given the difficulties that many have been experiencing over the past year. Whilst in years gone by, getting fit and losing weight have been at the top of the list of resolutions, sorting out finances has now taken the top spot. This year has seen around 46% of people deciding that they are going to get fit, 45% promising that they are going to lose weight and around one third planning to eat more healthily as part of their New Year’s plans for 2012. However, all of these resolutions have been pipped to the post with 49% promising to sort out their finances. It is thought that the people most likely to start this year with the goal of improving their finances are women and people in their thirties. Many have decided that they are going to ease the financial strain by cutting out unnecessary spending whilst others have resolved to save more money this year. Experts believe that starting the year off on a positive note in relation to finances means that many consumers will be able to take greater control of their money. text/html 2012-01-03T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Stagnant house prices expected in 2012 http://www.loans4.co.uk/loan_news/news.php?item=1294-Stagnant_house_prices_expected_in_2012 Whilst there has been a lot of turbulence in the property market over the past few years, 2011 saw property prices remain relatively stable with little in the way of change. High Street banking giant Nationwide has now stated that this is a trend that is expected to continue over the course of 2012, with stagnant house prices expected for the year. In 2011 the average house price increased by 1% according to the data although the average price fell by 0.2% in December compared to the previous month. The situation is expected to remain the same for this coming year as a result of the economic climate. The figures also showed the geographical differences that had been seen in house price movement – or lack of it – in the different parts of the UK. For example, in 2011 house prices in Northern Ireland fell dramatically whilst in London property prices increased. A spokesperson for Nationwide said that whilst the overall 1% increase in house prices over the past year was not a strong performance, property prices had been pretty resilient given the lack of economic growth and the situation in the employment sector. However, he said that 2012 was unlikely to be much better than 2011 for the economy and the housing market. The average house price in the UK now stands at £163,822 and over the past three months annual price changes in different parts of the UK have ranged from a 2% increase to a 2% drop. London has seen an increase of 5.5% over the course of the year according to the figures but Northern Ireland suffered a drop of 8.7% in property prices over the course of the year. Based on house price figures for England and Wales, the Land Registry released data showing that in the year to the end of November property prices had declined by 1.9%. This varied on a regional level from between a 5.4% drop in the North East of England to a 1.4% increase in prices in London. text/html 2012-01-03T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Concerns over debt arising from sales http://www.loans4.co.uk/loan_news/news.php?item=1293-Concerns_over_debt_arising_from_sales As the post-Christmas sales start with many people hitting the High Street or getting online with the hope of being able to get their hands on some low cost goods from the range of retailers that wasted no time in getting their sales going as soon as Christmas Day was over. Eager consumers were hitting the shops in their droves in the early hours of Boxing Day as a range of big name retailers opened their doors with a variety of cut price goods on offer. Many of those who shop in the sales will be feeling very pleased with themselves in the knowledge that they are saving a lot of money on the regular cost of the items that they are purchasing. However, some experts have pointed out that not all shoppers will be saving money in the true sense, as some of them may be purchasing items that they do not particularly need or want simply because they have been slashed in price. Further concerns have been raised about the way in which shoppers will be paying for these items, with some experts pointing out a rise in high interest credit card use over the festive season. Many people will already have spent a lot of cash on their credit cards in the run up to Christmas but with the added financial burden of the money they spend in the sales, their finances could end up looking very bleak as the New Year kicks off. Whilst some people are sensible when shopping in the sales and only make purchases that they were planning to make at some point in the near future anyway, others will simply snap up all sorts of items just because the cost of the items has been reduced. There are concerns that the amount some people have spent on Christmas and in the sales will only sink in when they receive their January card statements, at which point some are certain to realize that they have overspent hugely. text/html 2012-01-03T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Rail commuters facing hefty fare increases http://www.loans4.co.uk/loan_news/news.php?item=1292-Rail_commuters_facing_hefty_fare_increases Many people across the UK who get to work by train could be facing a difficult start to the year as a result of hefty fare increases, which will leave many out of pocket. According to watchdog, Passenger Focus, fares are increasing by up to 11%, which means a hefty rise on the cost of a ticket and commuters having to cough up more money in order to get to work and earn a living. Passenger Focus chief executive Anthony Smith said that this was a "fractured, inefficient industry" and that consumers should not be expected to keep paying for it. The average cost of regulated fares, such as season tickets, will increase by around 6% as a result of the annual rise. However, the Association of Train Operating Companies has said that the money that is raised from increased fares will help to pay for improved services. The average increase that has been seen across all fares, which includes business tickets, advance purchases and other unregulated fares, is said to be 5.9%. Some areas have seen prices increase on a higher than average level compared with January of last year, such as Chester and Crewe, which jumped by 10.6% and Northampton and London, which jumped by 6.9%. There has also been an increase of more than 9% on some off peak fares between London and a variety of cities such as Cardiff, Plymouth and Exeter. Whilst Passenger Focus has expressed concern about the level by which many fares have increased at the start of this year, it has welcomed the fact that unregulated fares had not been as hard hit this year as they have been in previous years. However, Smith said that the rise in fares overall would make for a 'frosty return to work' for many commuters following the Christmas and New Year break. He said that the rail industry cost a lot to run but that these costs were being 'dumped' on passengers year after year, which is something that had to be stopped. He also praised some train companies that were offering direct debit schemes for season ticket purchasers so that the cost of travel could be spread. text/html 2011-12-31T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Charity calls for action over 'rent to own' lenders http://www.loans4.co.uk/loan_news/news.php?item=1291-Charity_calls_for_action_over_'rent_to_own'_lenders In the current economic and financial climate many lower income families are being forced to look at alternative ways to get the items that they want or need for their home, and one of the ways in which many have been doing this is by going through rent to own lenders, where they make weekly payments on the items that they want for a specified period of time before they finally own them. This includes everything from DVD players and televisions to beds, settees and kitchen appliances. However, one charity has pointed out that whilst it is the most financially vulnerable that end up opting for these deals, these are the people that are ending up paying way more than they should for the items simply because they are forced to go through rent to own lenders rather than being able to buy outright from High Street retailers. According to Barnado's, action needs to be taken by the Office of Fair Trading to address what it described as a 'morally bankrupt' society. The charity used the example of a three year rental deal with a weekly payment store for a fridge freezer, which would result in the consumer being charged a total of £1,074 for the appliance rather than the £430 that the same appliance cost on the High Street. The charity claims that some consumers are paying up to 150% more for the items that they rent to own and that vulnerable consumers are being preyed on by such companies. Whilst the Office of Fair Trading has said that it does not have the authority to make changes to the rent to own market, Barnado's has said that consumers continue to be lured into a debt trap in an already difficult financial climate, leaving them increasingly worse off when it comes to their household finances. The charity said that the OFT needed to protect vulnerable families from being "unwittingly pushed further into poverty by compelling these unscrupulous lenders to make clear their extortionate rates". text/html 2011-12-30T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited More than £1 billion in PPI payouts in 2011 http://www.loans4.co.uk/loan_news/news.php?item=1290-More_than_£1_billion_in_PPI_payouts_in_2011 The Financial Services Authority has recently confirmed that more than £1 billion has been paid out over the course of this year in Payment Protection Insurance compensation. Following the loss of the court battle over PPI compensation, banks and financial institutions have had to deal with former claims that were left pending as well as new claims from those who believe that they were sold this controversial cover unfairly. The FSA figures show that more than £1 billion was paid out in the first ten months of 2011by sixteen firms, which accounted for 92% of PPI complaints in the first half of the year. In October alone the amount of PPI related compensation that was paid out came to £268 million, which was the highest monthly total in the first ten months of 2011. PPI was designed to protect borrowers in the event that they were unable to earn their income and make repayments on their debt due to redundancy, sickness or injury. However, investigations discovered that the cover was mis-sold to many people in a number of ways such as being sold to those that could never make a claim on it or being added to finance without the knowledge or express wishes of the borrower. The banking industry lost its High Court case over PPI compensation in April and then had to deal with around 200,000 complaints that had been put on hold until the court case had been concluded. The banks were given until the end of August to deal with the complaints by either offering compensation or by rejecting the complaints. Since then, complaints over PPI mis-selling have continued to come in from borrowers who had taken out finance over recent years and claimed to have been mis-sold this cover in some way, thus demanding compensation. Some of the big name High Street banks have had to pay out a fortune to those that have made claims – and the tax office has also taken its lion's share, earning millions of pounds from the interest paid on the compensation payouts. text/html 2011-12-29T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited More money withdrawn from cash points in the run up to Christmas http://www.loans4.co.uk/loan_news/news.php?item=1289-More_money_withdrawn_from_cash_points_in_the_run_up_to_Christmas In the run up to Christmas this year data showed that people were withdrawing more money from cash points than in the run up to Christmas last year, indicating that despite the difficult financial climate many people were still determine to have a fun time over the festive season and continue spending money on making purchases for the festivities. The data was released by the ATM cash point network Link, which monitored the amount being withdrawn from its cash point machines over the month of December. Between the start of December and just before Christmas the amount that had been withdrawn by customers from the Link network cash point machines stood at £7.6 billion, which reflected an increase of 7% compared to the same period in December 2010. With Christmas shoppers appearing to withdraw more money from cash points this year in the run up to Christmas it appears that many were determined not to let the turbulent financial climate spoil their festive fun, although part of the reason for increased withdrawals may have been down to the increased prices of purchases for Christmas. The head of the Link network, John Howells, said that the level of withdrawals from its cash point machines last year may have been affected by a number of different factors, which included the extreme cold weather and snow that we had in the run up to Christmas 2010. This impacted heavily on the ability of people to go out and shop for goods in the run up to the big day, thus also impacting on cash withdrawal levels. He said that this year had been mild in terms of the weather, resulting in some ‘big daily swings’ when it came to cash withdrawals. He added that this December there were some days where the level of cash withdrawals was lower than the same days in 2010 but other days where the amount of cash being withdrawn via its network was much higher than the same days last year. Link network machines make up around 70% of cash point machines. text/html 2011-12-29T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Consumers can make money from unwanted gifts http://www.loans4.co.uk/loan_news/news.php?item=1288-Consumers_can_make_money_from_unwanted_gifts This year, like most other years, many people will be surrounded by a variety of Christmas gifts from loved ones. Some of these gifts will be ones that the recipient was hoping for and is delighted with but there may be others that the recipient will probably never use. For those that have found themselves with a lot of unwanted gifts this Christmas there are a number of options available to save the home from being cluttered with unwanted items – and some of these could help consumers to make a little extra cash or to save money. One of the things that can help those with unwanted to gifts to make some money is to sell their unwanted gift using one of a range of platforms. Selling them at a garage or car boot sale will help to make a little cash but if the gifts are new and in good condition there is probably more money to be made by selling them online. Many people decide to do this after Christmas because it not only enables them to make a little extra cash but it also helps to avoid having rooms or cupboards full of items that are new but will never get used, which is a waste of space and money. By selling these items consumers can get rid of this clutter and make a little cash into the bargain. Another option for recipients of unwanted gifts is to re-gift them, which is basically to rewrap them and give them to someone else as a gift. This means that the cost of having to purchase another gift is avoided and the home still does not get cluttered with unwanted items. Some people re-gift these items to friends or family that they are seeing between Christmas and New Year whereas others will save them and then hand them out at birthdays or even next Christmas. For those that want their unwanted gifts to really benefit someone, there is also the option of giving the gifts to charity. For charities this can mean an influx of new items coming in to sell in their shops or online in order to raise money for the cause. text/html 2011-12-28T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Controversial card charges to be banned next year http://www.loans4.co.uk/loan_news/news.php?item=1287-Controversial_card_charges_to_be_banned_next_year According to government plans, controversial surcharges that are applied on credit and debit cards when making a range of purchases are set to be banned in the UK by the end of next year. These charges are applied when purchasing a range of products, such as airfare or cinema tickets, and the surcharges can in some cases end up being quite hefty, bumping up the cost of the purchase for the cardholder. These surcharges have caused a lot of controversy over recent years, with many consumers and consumer campaign groups demanding to know why some retailers are charging these fees. Even councils have been accused of charging excessive fees on card transactions and this, along with the myriad of other firms that do the same, has led to a number of complaints being made. Companies are able to charge a payment processing fee to consumers and this will be allowed to continue after next year. However, firms will only be able to levy a small charge for this fee – at present many are concerned that the amount that is being charged to consumers is excessive and far higher than the payment processing cost that is incurred by the various companies. Amongst the companies that have come under fire and investigation over their surcharges are airlines, particularly no frills airlines such as Ryanair, which has become well known for adding one charge after another after enticing in customers with low headline prices. For customers who are paying for their flights online or by phone there is no other choice but to use a plastic card for payment, which means that the surcharges are unavoidable unless using specified Ryanair payment cards. Some shoppers have found that they have gone through and completed up to eight pages of a booking or purchase via a website and only then have the costly surcharges been added, resulting in them having to simply accept the charges to go ahead or admit defeat and end up having wasted a lot of time by not completing the transaction after spending so much time on it. text/html 2011-12-24T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Annual high for property sales in November http://www.loans4.co.uk/loan_news/news.php?item=1286-Annual_high_for_property_sales_in_November HM Revenue and Customs has reported that November saw the highest monthly level for property sales so far this year, with 85,000 properties being sold during the course of the month compared to 79,000 for the previous month, reflecting an increase of 6,000 month on month. Whilst the relatively significant increase in property sales between October and November has been seen as encouraging, HMRC did point out that for the first eleven months of the year properly sales on a monthly basis had been lower than monthly sales seen in 2010, as the market continued to struggle. Continued restrictions on mortgages coupled with high deposit demands and economic uncertainty have held the housing and property sales market back for the past few years, since the onset of the financial crisis back in 2007. This was further aided by those selling their homes refusing to drop the asking price despite the fact that their property values had fallen. The property sales figures for November of this year have, however, brought a ray of light to the property market, with figures showing that the sales figures were not only up by 6,000 compared to October of this year but that they were also up by 9,000 compared to November of last year. In fact, the monthly total for November 2011 was the highest since July 2010 according to the data. In the first eleven months of this year there were a total of 787,000 sales according to the HMRC figures, and this compared to 810,000 sales for the same period last year. The November sales figures will provide a much needed boost to the annual sales figures for the property market. Stifled sales have been largely down to the difficulties that many have had in terms of getting an affordable mortgage over the past year or two, although many believe that the situation is becoming a little easier now. For first time buyers in particular, who have always kept the property market buoyant, being able to get a mortgage without a hefty deposit has become increasingly difficult, forcing many into renting rather than buying. text/html 2011-12-23T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Christmas celebrations to cost more this year http://www.loans4.co.uk/loan_news/news.php?item=1285-Christmas_celebrations_to_cost_more_this_year With Christmas almost upon us, many people will already have purchased all of their Christmas gifts, outfits to wear out to parties and events, food and drink for entertaining, and of course the all important Christmas dinner ingredients. In the excitement of the festive season, most of us won't have had time to really sit down and work out how much the celebrations are costing us but there is evidence that the cost of the Christmas celebrations this year will be slightly higher than last year. Data that was recently released by the Office for National Statistics has shown that the cost of a typical festive feast this Christmas has increased in cost by around 7.5% compared to Christmas of last year. A range of food items have increased in price over the past year and amongst the things that are pushing up the cost of the festive dinner are red wine and cake. A few items that are usually found on traditional Christmas menus have also gone down in price, which has helped to bring down the level by which the average Christmas dinner has increased in terms of price. This includes items such as carrots, double cream and potatoes. However, these were the only items to have come down in price out of the twenty two traditional Christmas feast items that were checked. The cost of a range of vegetables traditionally used at Christmas such as broccoli, peas and cauliflower, have all increases since last year as has the cost of bacon and sausages, traditionally used to make festive pigs in blankets. The cost of both red and white wine as well as champagne has increased, resulting in rising expenses for the many people who enjoy a tipple or two over the holidays. For those who enjoy cheese and crackers as part of their festive dinner the cost has also increased, with crackers for cheese found to have gone up by more than 50% since last year. Many customers have helped to keep the cost of their Christmas food shopping down by shopping around and comparing costs to get the best deals from a range of different supermarkets and retailers. text/html 2011-12-22T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited First time buyers stuck when it comes to affordability http://www.loans4.co.uk/loan_news/news.php?item=1284-First_time_buyers_stuck_when_it_comes_to_affordability Many would be first time buyers are stuck when it comes to finding an affordable place to live, with a report recently highlighting the fact that in the majority of towns and cities in Britain paying a mortgage is actually cheaper than renting but mortgage availability – or rather lack of it – means that many are unable to benefit from having a mortgage rather than paying rent. Data shows that renting is cheaper than buying in only three of the biggest town and cities across Britain, with Swansea, Plymouth and Bournemouth being the three areas in which renting actually working out cheaper than buying and paying a mortgage. In all other major towns and cities people are actually financially better off when they buy a home and make mortgage repayments than when renting a home and making rental payments. The London the difference in affordability and cost between renting and buying is significant, with renting coming in at around 31% more expensive than buying a home. Property rents have been soaring as a result of high demand that has stemmed from would be buyers being unable to get a mortgage for one reason or another, and this has resulted in the cost of renting overtaking the cost of paying a mortgage. The situation means that those who are unable to get a mortgage due to strict criteria or high deposit demands end up suffering in a number of different ways. Not only do they end up having to live in a property that actually belongs to someone else and spending thousands of pound a year on paying off someone else’s mortgage but they now also end up paying more than those who have secured their own property with a mortgage. With the cost of buying lower than the cost of renting in 47 out of 50 major towns and cities in the UK, it is obviously preferable for non-homeowners to be able to get a mortgage and buy their own home rather than renting and wasting what many consider as ‘dead money’. However, with mortgage lending till very restricted compared to pre-credit crunch days, this is something that is easier said than done for many people. text/html 2011-12-21T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Multimillion pound fine for insurance firm http://www.loans4.co.uk/loan_news/news.php?item=1283-Multimillion_pound_fine_for_insurance_firm The city watchdog has fined an insurance firm close to £3 million due to a number of issues and problems that have been highlighted. The fine has been imposed against the Combined Insurance Company of America (CICA) by the UK’s financial regulator, the Financial Services Authority. The regulator said that customers of the insurance firm were at risk of being treated unfairly by the company, which has sold accident and sickness insurance cover to thousands of consumers. The FSA has stated that there were not enough controls in place to make sure that the sales agents for the insurance firm, who are self employed, were suitable to be selling the cover to consumers. The insurance firm has now agreed that it will carry out a review of its treatment of customers and if deemed necessary will pay out compensation to those believed to be entitled to it. Data shows that between April 2008 and October 2010, CICA had 542,133 policyholders. Many of these were owners of small businesses, manual workers and self employed people. Having sold 238,993 new policies the company received £47m in premiums over this period. The regulator has outlined a number of failings that it has identified with the insurance firm. This includes failing to check the references of agents and lack of qualifications amongst agents, failure to check the suitability and level of skills and knowledge amongst agents, paying sales agents on commission only hence operating on a high risk basis, and failing to take effective or consistent measures following complaints from consumers or when agents breached company policies. Tracey McDermott, of the FSA, said that the insurance firm did not appear to recognise the need to treat customers fairly and had created a real risk that could see customers failing to get a fair deal. She said that all firms needed to ensure that the customer was at the heart of their business in every aspect and that the interests of these customers had to be protected. text/html 2011-12-20T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Accident numbers fall but premiums increase http://www.loans4.co.uk/loan_news/news.php?item=1282-Accident_numbers_fall_but_premiums_increase The cost of insurance for drivers has been rising for some time, making it difficult for many to keep their vehicles on the road, particularly given the high cost of fuel. Younger drivers in particular have suffered as a result of the cost of cover, which is extremely high for drivers of a younger age. However, it has been revealed recently that the number of car accidents has been falling but despite this the cost of insurance premiums for younger drivers is continuing to increase. In the past, insurance firms have argued that the reason behind their sky high rates for younger drivers is because statistically they are more likely to be involved in or cause a road traffic accident, which means that the insurance firm could be in line for a claim. However, data shows that the number of accidents has actually been falling yet younger drivers are still being hit with higher costs. Figures have been released by the Department for Transport showing that the percentage of fatalities stemming from road accidents involving younger drivers in 2010 stood at 24 percent. Whilst this may seem high the figures showed that this was a drop of 23% compared to 2009. Insurance industry experts have recently met at Westminster to discuss ways in which the risk to younger drivers can be reduced through public policy changes. At the Westminster meetings Paul O'Sullivan, head of road user safety at the Department of Transport, questioned why the cost of insurance cover for younger drivers was going up when the number of accidents involving younger drivers was coming down. Robert Gifford, executive director at the Parliamentary Advisory Council for Transport Safety (PACTS), said that although accident numbers involving younger drivers had dropped the consequences per accident were much higher. The data shows that the average cost of insuring a vehicle for a younger driver has now increased to a staggering £3,688 per year, with some younger drivers looking at monthly payments of close to £550 per month if they wish to pay in instalments for their cover. text/html 2011-12-19T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited First fall in ten months for rental costs http://www.loans4.co.uk/loan_news/news.php?item=1281-First_fall_in_ten_months_for_rental_costs For some time now, the cost of renting a property has been soaring, with many people who have been forced into renting due to lack of mortgage loan availability having to pay a fortune to rent a property. The financial situation has seen rental costs reach unprecedented levels and the soaring demand for rental homes has further fuelled the rising cost of renting. However, the results of a recent survey have shown that for the first time in ten months the cost of renting a property in England and Wales has fallen slightly. November saw the cost of renting a property fall by 0.4% compared to October, dropping to an average £717 per month. This is according to LSL Property Services. However, despite the slight drop in property rental costs, tenants are still paying around 3.5% or £25 more per month than they were at the same time last year. The changes in rental costs for November of this year varied by region, with Yorkshire and the Humber having seen the sharpest rises in prices. The East Midlands saw the biggest drop in rental costs, with rents falling by 2.2% for the month. LSL Property Services said that this time of year did tend to see a fall in prices, giving some respite to renters and those planning to rent a home. LSL director David Newnes said that the increases in rental costs had been rising relentlessly for months but had now 'taken a pause for breath'. He said that landlords were keen to avoid leaving their properties empty over the Christmas period and with tenant activity showing a seasonal slowdown were being more accommodating with their prices. Some regions, however, continued to see prices increase for the month of November, and this included London, Yorkshire and the Humber, Wales and the West Midlands. Newnes said that he was expecting rental costs across the board to continue increasing from the start of next year, indicating that the respite in rental costs in some regions was indeed very short term. text/html 2011-12-14T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Many skiers fail to take out adequate insurance cover http://www.loans4.co.uk/loan_news/news.php?item=1280-Many_skiers_fail_to_take_out_adequate_insurance_cover Skiing has become an increasingly popular hobby and each year many people from across the UK head to pastures new in order to enjoy some winter sports and skiing fun. However, recent findings have shown that the majority of people heading off on this sort of holiday do not actually have adequate insurance protection in place. The data shows that claims for ski related injuries have actually soared by 40 percent, indicating that ski injuries are on the rise. However, despite this alarming statistic three out of five skiers still do not have any insurance in place for their winter sports holiday, which means that they are putting themselves at risk of having to shell out for costly medical bills. For the last ski season the average medical bill for ski related injuries is said to have been around £1,490 according to the insurance specialist group Aviva. This was nearly £400 more expensive than the average cost of a ski holiday itself. For the sake of saving a few pounds by not taking out adequate insurance cover skiing enthusiasts are putting themselves at risk of having to fork out more for their medical treatment than for their whole holiday in the event of an accident or injury. Aviva said that the cost of adding winter sports cover to an existing travel insurance policy can be as little as £5, which means that travellers will hardly notice the difference in price, whereas without insurance they will be left hugely out of pocket if they are involved in an accident or sustain an injury. Some of those heading off on winter vacations and winter sports holidays may assume that they are already covered under a current plan but this is not always the case and travellers are urged to ensure that they check their policies or ask their insurance provider before travelling. Jerry Finch from Aviva said that travellers needed to be aware that specialist cover was needed for winter sports holidays because of the increased risk of injury, accident, or theft of costly equipment. text/html 2011-12-13T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited One third of Brits set to go into Christmas debt http://www.loans4.co.uk/loan_news/news.php?item=1279-One_third_of_Brits_set_to_go_into_Christmas_debt It is claimed that almost one third of people in the UK are set to end up in debt over the up and coming festive season. This is based on a survey that was carried out by YouGov and involved polling over two thousand adults. The results have suggested that many Brits will end up getting into some form of debt to fund their Christmas purchases whilst many others will end up losing track of their spending altogether. A large proportion of consumers will be relying on their credit cards in order to fund their Christmas spending whilst others will be looking at alternatives such as overdrafts to finance their spending. The survey results showed that around 11% of people were likely to lose track of the amount that they were spending and 31% would be getting into some form of debt to cover their Christmas spending. Out of these, around 58% are likely to be relying on their credit cards quite heavily whilst the others were planning on turning to their overdraft facilities. The survey was commissioned by software company Intelligent Environments. Those found to be struggling the most when it came to money were Brits aged between 25 and 34 years of age. Around 64% of these are facing arrears or debt of one type or another. The data also showed that over a quarter of people are now dipping into their overdraft facility on a monthly basis. The survey was carried out in November of this year and was carried out amongst adults aged 18 and over. The results will not come as any great surprise to many people and industry groups, who are well aware that a large number of consumers will have to get into debt in order to fund their Christmas spending this year. Consumers are being urged to keep tabs on their spending over the festive season and avoid being frivolous in a bid to help them avoid the high levels of debt associated with Christmas. text/html 2011-12-12T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Longer working hours for most Brits compared to other European workers http://www.loans4.co.uk/loan_news/news.php?item=1278-Longer_working_hours_for_most_Brits_compared_to_other_European_workers For many Brits the mundane task of having to go to work each day is something that they have to do in order to earn a living, put a roof over their heads, pay the bills, etc. However, recent data has revealed that Brits tend to work longer hours than other people in Europe, with the average working hours in the UK coming in at 42.7 hours compared to 41.6 hours across Europe. The data comes from the Office for National Statistics, with figures showing that only Greek and Australian employees worked longer hours than workers in the UK, averaging around 43.7 hours. Denmark had the lowest average working hours per week, coming in at 39.1. The average hours per week worked in the UK may be longer than many other European countries, but according to the ONS it has still come down a little compared to 1992. This has been attributed to factors such as economic structural changes and greater flexibility in the workplace, which has enabled workers to enjoy more flexible working hours to fit in with their lifestyle and other commitments. The data showed that the UK also has the highest percentage of part time workers, with the figure coming in at 27% compared to 20% across Europe as a whole. This reflects an increase compared of 3% compared to 1992, when the figure stood at 24%. The ONS went on to state that managers tended to work an average 46.2 hours per week, but around 7.6 hours of this went unpaid. Factory workers tended to work around 44 hours per week and lower skilled workers were found to work around 41 hours per week. In both cases there was little in the way of unpaid overtime. The data came from the ONS Annual Survey of Hours and Earnings and showed that the longest working hours were likely to be seen amongst crane drivers, who worked an average 52.8 hours a week. HGV drivers were also found to have long working weeks, with hours averaging around 48.4 hours per week. text/html 2011-12-12T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Shop price inflation reduces for November due to supermarket discounts http://www.loans4.co.uk/loan_news/news.php?item=1277-Shop_price_inflation_reduces_for_November_due_to_supermarket_discounts Shop price inflation has seen a slight fall to 2% year-on-year from 2.1% in October, its lowest level since November 2010 and well below it’s peak of 2.9% reached in June. The British Retail Consortium (BRC) have said food inflation has also fallen to 4% from 4.2%, and although only a fraction of a percent, it is a positive sign for people struggling to cope with lack of wage growth, increasing utility bills, and the general economic situation. Director General of the BRC Stephen Robertson said the supermarket price war has helped reduce food inflation. The Bank of England, which held a base rate setting meeting last Thursday, forecasts that inflation, which is currently running at more than double its 2% target at 4%, will fall back sharply next year towards the 2% mark. The BRC said it expected retail inflation to continue to ease because many commodity prices are lower and the government had postponed a fuel tax rise planned for January, taking some of the pressure off consumers. It is also thought that shops discounts are still in a way being offset by a continued fall in consumer’s spending power as other household bills increase, and theoretically without these utility bill increases inflation would be far lower and nearer to the governments target figure. Many retailers have reduced prices further in recent weeks to help increase footfall and spending in store. The BRC survey showed that the biggest price falls compared to a year ago are electrical goods, clothing, and footwear, with the highest levels of retail price inflation being in the health and beauty, and home improvements category's. text/html 2011-12-10T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Bank rate kept on hold http://www.loans4.co.uk/loan_news/news.php?item=1276-Bank_rate_kept_on_hold_ Following the December Monetary Policy Committee meeting, the Bank of England has announced that the base interest rate is to be kept on hold for another month, remaining at its record low of just 0.5%. It is thought that concerns over the continued fragility of the economy have played a major part of the decision made by MPC members and most experts have not been surprised about the decision. Since March 2009 the base rate has been at its all time low of 0.5 percent and with the economy still in a fragile state there is uncertainty as to when the MPC will increase the rate. There has been no further injection of money into the economy through the quantitative easing scheme this month, which has also not come as a huge surprise to industry experts. The last time that any money was put into the economy through the QE scheme was back in October, when the Bank of England announced that it would be ploughing around £75 billion into the economy through QE. Ian McCafferty, chief economic adviser of the CBI employers' organisation, said that that bank’s decision to keep the rate on hold was ‘in line’ with their expectations, particularly with everything that was going on with the Eurozone. A senior analyst from Global Insight said that the MPC would have more time to determine whether inflationary pressures are set to increase by holding off on more quantitative easing until at least early next year. Growth is said to have slowed in the three months to November, slowing to 0.3%, which is likely to have impacted on the decision of MPC members with regards to base interest rate movement. The decision will once again come as a relief to many homeowners and borrowers who are relying on the base rate to stay low in order to keep their mortgage repayments down, particularly in the current financial climate. There are concerns that when the base rate does increase many people will be plunged into debt as their mortgage repayments soar. text/html 2011-12-07T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited How much will Christmas cost you this year? http://www.loans4.co.uk/loan_news/news.php?item=1275-How_much_will_Christmas_cost_you_this_year? With Christmas now looming up just a couple of weeks away, many people will be getting excited about the festivities, presents, spending time with loves ones and the general thrill of the festive season. However, there will also be many people who are dreading the financial impact that the festive season will have on them, with the cost of food, drink, entertainment, gifts and other festive purchases often adding up to a tidy sum. A charity report has shown how much the cost of Christmas will vary amongst different household groups. According to Family Action, poorer low income families will spend only a third or so of the average amount spent on Christmas. Most families in the UK are expected to spend an average of between £530 and £680 in total for everything that they need to buy for Christmas. Poorer families, however, are expected to spend around £182 – this is what the charity estimates the minimum cost would be for an acceptable Christmas for a family with two children. The data comes from a report that was released by the charity, called Breaking the Bank: A Cut-Price Christmas. The information was gathered through focus groups and interviews with families that use the charity's services and most said that they would be spending less than £200 on Christmas in total. Many did state, however, that they felt under pressure to buy their children expensive gifts that they simply could not afford. Many blamed this partly on retailers and media, with one parents stating that kids these days wanted costly items like laptops and mobile phones, which many households could not afford. A lot of the parents that were interviewed as part of the study said that despite their kids wanting these costly gifts they would actually be receiving practical gifts such as clothing. The authors of the report said that it highlighted how challenging Christmas could be for low income families and how parents had to try and face up to the reality of being on a strict budget whilst trying not to spoil the fun factor for the kids. text/html 2011-12-06T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Report highlights pitfalls of payday loans http://www.loans4.co.uk/loan_news/news.php?item=1274-Report_highlights_pitfalls_of_payday_loans With Christmas just around the corner a rising number of people are likely to be looking for ways to fund their purchases and for those that do not have savings and cannot get traditional credit such as cards and personal loans, the options will be very limited. Many of these people will end up opting for payday loans to tide them over but some will have no strategy in place with regards to repaying the payday loan within the four week loan period, choosing to worry about that once the festivities are over. With this in mind, a recent report has been released highlighting the pitfalls of taking out a payday loan. With more and more online payday loan providers springing up online, getting one of these loans has never been easier, as there are usually no credit checks involved, applications can be made online, and the money goes into the applicant’s account in a very short period of time. However, it is precisely this ease of application and high success rates for applicants that have led to people taking out payday loans not for emergencies but simply to fund spending such as going out, buying Christmas gifts, and other non-essential purchases. One borrower explained how he had borrowed money from a payday loan company just to go out. However, when it came to repaying it he found that he ran out of money even more quickly, as he had repaid the loan plus the fee on top. He said that at first glance it all looked like a good deal but before he knew it he was having to borrow again and eventually got to a point where he was borrowing from other lenders simply to pay back what he owed to the payday loan company. After initially borrowing just £100 from the payday loan company he ended up owing £7,500 because of the spiralling debt he got himself into. His story serves as a stark warning to those planning to take out a payday loan for Christmas with no definite plans with regards to how they are going to pay it back when they get paid. However, with lending from mainstream banks still restricted and with many people having no savings to turn to this festive season, many will still end up turning to payday lenders despite the warnings. text/html 2011-12-05T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Groupon investigation launched by OFT http://www.loans4.co.uk/loan_news/news.php?item=1273-Groupon_investigation_launched_by_OFT Over the past year or so a rising number of people have joined up to a site called Groupon, which sends through daily offers and deals for a wide range of products and services. The company offers deals in the local areas of those who join up and enables them to enjoy massive savings on the cost of services and goods that they may be thinking of buying. The way in which Groupon works is by striking deals with companies to allow them to advertise cut price deals on the companies' behalves, which is states will then bring in more custom, some of which could translate into more regular custom. This provides the benefit of bringing in a mass influx of customers initially and potentially converting some into regular customers. The benefit for the customer is, of course, the chance to save big money on various goods and services. However, the Office of Fair Trading has launched an investigation after it was found that Groupon had broken UK advertising regulations a staggering forty eight times in the space of just eleven months. The company was referred to the OFT by the Advertising Standards Authority. The OFT has now admitted that whilst it is now officially launching the investigation following the referral from the ASA, it has secretly been investigating the company since July. The OFT investigation was launched to see if Groupon was "complying with consumer protection legislation, including in relation to certain of its advertising practices". A number of formal code breaches have already been made against Groupon and there are many others where judgements have been made but details have yet to be released. Whilst some companies may have benefitted from the deals that Groupon, one small business owner described her decision to advertise through Groupon as one of the worst she had ever made. The owner of the cake shop said that she almost went bust after offering a 75% discount on cupcakes through Groupon and then being unable to meet the huge rise in demand. text/html 2011-12-02T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Complicated tariff information deters consumers from switching energy providers http://www.loans4.co.uk/loan_news/news.php?item=1272-Complicated_tariff_information_deters_consumers_from_switching_energy_providers There are many households who are struggling to keep up with the increases in energy bills, particularly in the current climate when other living costs have also increase and put additional strain on household finances. However, a report from the UK's energy regulator, Ofgem, has indicated that many households are put off from switching their energy supplier to get a better deal simply because tariff information is so difficult to understand. For many of those that could potentially benefit from switching their provider, the tariffs are so complicated that they tend not to bother, as they cannot see any clear benefit due to lack of clarity of the information. Figures show that two thirds of households could be missing out on thousands of pounds in savings each year simply because they do not feel that it is worth the effort to switch their energy provider. Ofgem has recently announced proposals to ensure the simplification of household bills, including simplifying tariff information to make it easier for consumers to digest and understand. The regulator wants energy firms to have just one standard energy tariff for each type of payment. According to Ofgem a simplified system would enable more than 80% of consumers to identify the cheapest tariff in less than half a minute. Despite the proposals of Ofgem, the consumer campaign group Which? has said that energy firms will still be able to confuse their customers through the use of non-standard deals, which would involve complicated pricing structures and discounts that are difficult for consumers to get their heads around. With this in mind, the group is calling for all tariffs to be simplified and not just the standard tariffs, as per Ofgem's current proposal. A spokesperson for Which? said that the current proposals alone would not be able to turn the tables with regards to the increased lack of trust that consumers felt with regards to energy firms. He said that a 'much bigger shake up' was needed to ensure both fairness and affordability when it came to the cost of energy usage. text/html 2011-12-01T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Stamp duty concession for first time buyers to end http://www.loans4.co.uk/loan_news/news.php?item=1271-Stamp_duty_concession_for_first_time_buyers_to_end In the recent Autumn Statement, the government has announced that the stamp duty concession that was launched to help first time buyers is going to be brought to a close in March of next year. The government has said that the concession has proven ineffective with George Osborne, the chancellor, claiming that the scheme did not help to get more people onto the property ladder. Under the scheme, which was always introduced as a temporary measure, first time buyers were able to increase affordability a little when it came to purchasing a home by being able to avoid the 1 percent stamp duty on homes costing less than £250,000. Despite the fact that Mr Osborne claimed that the tax relief had failed to achieve its aim, the Council of Mortgage Lenders has expressed disappointment at the decision. The CML believes that the property purchases made by first time buyers could be bunched up in the first quarter of next year prior to the scheme coming to an end towards the end of March 2012. The Office for Budget Responsibility (OBR) has said that it is expecting the property market to remain relatively stagnant. In the Autumn Statement the government said that analysis would be published showing that the stamp duty relief scheme had proven ineffective in terms of getting more first time buyers onto the property market. It said that for this reason the scheme would come to an end on 24th March 2012 and the government would instead look at prioritising more effective measures. Earlier this month the government announced its housing strategy, which looked at a number of options including a mortgage guarantee scheme that would encourage lenders to offer first time buyers 95% of the property value for their purchase. In the meantime the CML has said that although the stamp duty relief scheme may not have boosted the number of first time buyers entering the market, it did help those that did enter the property market to do so more easily. text/html 2011-11-30T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Nearly a third of people relying on the lottery to improve their financial situations http://www.loans4.co.uk/loan_news/news.php?item=1270-Nearly_a_third_of_people_relying_on_the_lottery_to_improve_their_financial_situations Most of us at some point or another dream about coming into big money with a huge lottery win. For the lucky few this dream becomes a reality but for the vast majority of us it has to remain firmly in the realms of our dreams. However, it seems that despite the minute chances of a big lottery win coming to the rescue an alarming number of Brits are banking on winning the big one in order to improve their financial situations. A recent survey was carried out by YouGov for Financial Planning Week and the results revealed that nearly one third of consumers pinned their hopes on the lottery, stating that this was the most likely way that they would be able to improve their financial situations. In total, 29% of respondents said that a lottery win was their only hope of improving their finances and getting their bank balance back on track. Financial Planning Week took place last week and was run by the Institute of Financial Planning. In the current climate in particular, financial planning is of the utmost importance to most of us but the survey results showed that a huge number of people are going about this planning in the wrong way, relying on something that will probably never happen rather than taking proper steps and measures to get their finances sorted out. Nick Cann, the head of the IFP, said that it was vital that people did not leave their financial futures to chance and instead got to grips with their finances and took steps to make improvements. He said that Financial Planning Week was all about helping consumers to improve their 'financial fitness' and get their finances on track for a more successful and manageable 2012. The increased reliance of the British on a lottery win was also evident in a survey that was carried out by British Insurance recently. This showed that only one in seven workers had any income protection insurance despite six in ten being worried about losing their jobs. Again, some said that they were hoping that a lottery win would sort them out. text/html 2011-11-29T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited British Gas says energy bills to continue rising http://www.loans4.co.uk/loan_news/news.php?item=1269-British_Gas_says_energy_bills_to_continue_rising Over the past year many households have seen their outgoings soar, with the cost of everything from petrol and food to rent and energy bills rising. The boss of energy giant British Gas, Phil Bentley, has now said that it is likely that energy bills for customers will continue to increase even though the company is trying to win back over its ten million customers following what has been described as ‘a crisis of trust’. Seven million British Gas customers who are not on fixed price tariffs have been contacted by the energy giant and told that the tariff structure will be simplified. The company also said that it would be providing a full breakdown of costs when customers were billed so that its customers could see that the company is not making a profit from rising energy prices. Rocketing gas and electricity prices across the UK have resulted in public anger, leading to British Gas launching its charm offensive with its customers. However, despite the efforts of the energy giant it seems that customers will still be unable to escape even further increases in energy costs. Bentley said that the fact that prices were set to increase again were beyond the company’s control and that there was nothing British gas could do about it despite Bentley stating that it was ‘time for change’. Bentley said that over the coming five years the energy industry faced a range of things that were out of his or the company’s control, such as increased cost of distribution, increased commodity costs, and increasing green levies. All households will have to pay green taxes over the next decade, and recently Chris Huhne, the energy secretary, said that this could add around £280 a year to the average household energy bill. In the meantime, British Gas has been praised by consumer groups because of its efforts to be more open with customers with regards to charges, cost increases and billing, and letters that are sent out to customers will now even have Mr Bentley’s personal email address on them. text/html 2011-11-28T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Action taken over upfront fee charging brokers http://www.loans4.co.uk/loan_news/news.php?item=1268-Action_taken_over_upfront_fee_charging_brokers Over the past couple of years complaints relating to credit brokers who charge upfront fees have been rising, with thousands of complaints sent into the authorities over the course of last year and this year. Regulators have now stepped in and said that creditor brokers will have to ensure that consumers are aware of the extent of their duties and are clear about any upfront charges that are made. Many consumers have sent in complaints relating to brokers who have taken upfront fees off them yet failed to arrange a loan for them. The Office of Fair Trading has now outlined a number of standards and guidelines that it expects brokers and intermediaries to follow when it comes to providing consumer finance. As part of the new guidelines brokers will have to ensure that customers understand their rights to a refund as well as ensuring that they are made aware of the responsibilities of the broker and about any upfront fees that are being charged as part of the agreement. Official figures have shown that over the course of 2010 around 3374 complaints were received by Consumer Direct and by September of this year a further 2240 had been received in relation to this matter. In the last financial year the financial ombudsman became involved in nearly seven hundred cases and since April has receive around 359 more. Many of the complaints relate to the fact that consumers paid an upfront fee on the understanding that not only would a loan be arranged for them but that they would get finance at a certain rate of interest. However, according to the nature of the complaints some consumers did not even get a loan at all let alone at a particular rate of interest. A super complaint was launched about this issue by the Citizen's Advice Bureau, with the charity stating that there were a number of unscrupulous firms out there that were contacting customers on an unsolicited basis and offering to find them finance in exchange for a hefty fee – something that many have fallen for in the difficult financial climate. text/html 2011-11-25T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Tenants getting ripped off by some lettings agents http://www.loans4.co.uk/loan_news/news.php?item=1267-Tenants_getting_ripped_off_by_some_lettings_agents In the current climate the number of people renting homes through lettings agencies has soared, rising to unprecedented levels and pushing up the cost of renting to sky-high levels. Many of those that are renting homes are unable to currently afford or be approved for a mortgage whilst others prefer not to commit to a mortgage in the current financial climate. However, at a time when renting homes is at an all time high there are reports claiming that some tenants are being ripped off by unscrupulous lettings agents. The claim comes after an undercover investigation was launched by the homeless charity Shelter Scotland, which found that alarmingly 90% of lettings agents that it probed as part of the investigation were demanding high upfront fees from tenant, which were in addition to the deposit and first month's rent, making it extremely costly for would be tenants to rent a home at a time when many have little choice. One lettings agency in Glasgow is said to have charged £180 in administration fees on top of the first month's rent and deposit for the property. According to Shelter consumers should not have to pay any extra fees and charges but because they are not aware of this the path is clear for lettings agents to add a range of fees to the initial payment thus exercising unfair treatment that the consumer should not have to put up with. Shelter added that it was not just Scotland that was affected by this problem, as many lettings agencies in England were also charging fees that tenants should not have to pay. These charges are not only imposed when tenants are first signing up for the property but, with some lettings agents, when they renew their tenancies as well. The charity is now calling for lettings agents to be more strictly regulated so that they have to be more upfront and transparent with regards to any fees and charges that they impose, and they have clear justification for making these charges. It further claimed that many of the charges that are imposed on tenants are actually fees that, if justifiable, should actually be charged to the landlord. text/html 2011-11-24T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Police shut down fake shopping websites http://www.loans4.co.uk/loan_news/news.php?item=1266-Police_shut_down_fake_shopping_websites Over recent years, more and more people have taken to shopping for all sorts of goods online. This has become a popular method of making purchases for a wide range of reasons, such as being able to avoid the crowds at busy periods such as Christmas, being able to enjoy the convenience of shopping at any time of the day or night from the comfort of home, enjoying convenient home delivery, and getting great choice and value for money. However, there are a lot of fraudsters and scam artists operating online, which means that consumers need to be careful and vigilant when making their purchases online, ensuring that they are buying from secure and reputable sites. Some people fall victim to purchasing from fake websites set up by fraudsters to obtain credit card details from consumers, with many being tempted by the low prices that are offered on these sites. According to recent reports a large number of sites that have been selling counterfeit versions of popular branded products, or have been selling non-existent goods where the buyer never gets the items ordered, have been shut down by police. The Metropolitan Police E-Crime Unit said that some of the brands that the sites had been claiming to sell included Ugg, GHD, Nike and Tiffany. Police said that consumers had been drawn in by the low prices of the goods but that the goods were either fakes that were of low quality or did not exist at all, which meant that after payment was made nothing was despatched to the buyer. Many of the fake sites had been set up simply to enable the fraudsters to obtain credit card details from consumers. With Christmas just around the corner many people will now be thinking about making purchases online. Police are urging online shoppers to make sure that they buy from legitimate and secure sites. They also urged consumers to be cautious about linking to any shopping sites via email promotions, as these could links to a fake site – a practice that is known as phishing scams. text/html 2011-11-23T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Asking price reduction reaches highest level in two years http://www.loans4.co.uk/loan_news/news.php?item=1265-Asking_price_reduction_reaches_highest_level_in_two_years Over recent years over-zealous property owners hoping to sell their properties have had to come to terms with the harsh reality that their homes are no longer worth the same amount as they were prior to the global financial crisis in 2007. For many homeowners, this has been a bitter pill to swallow and many have tried to bury their heads in the sand by refusing to reduce their asking prices to a reasonable level when selling their property. However, this has simply resulted in over-priced properties remaining on the market for long periods of time and eventually being withdrawn from sale or rented out. With so many people still struggling to get a mortgage and with potential buyers unprepared to pay over the odds in the current financial climate, homeowners who are serious about selling their homes have had no choice but to accept the fact that they have to reduce their asking prices to a more reasonable level. New figures have shown that around two out of every five people who are selling their properties are now being forced to reduce their asking price. In fact, with the realization of the need to be realistic with house prices finally hitting home with sellers, asking price reductions have reached the highest level in two years. Data shows that a year ago the average reduction on properties that had seen their asking price reduced was around 6.1%. However, this has now risen to reductions of 7.4%. This equates to discounts of close to £3 billion collectively across the country, which is something that could make the prospect of purchasing a home a little more enticing for non-homeowners who are on the fence with regards to whether to buy or not. One property expert said that it was little wonder that sellers were now having to reduce their asking prices given the financial uncertainty and difficult climate that potential buyers were facing. He said that sellers had to reduce their asking prices and be more realistic in order to encourage sales otherwise both the buyer and the seller would end up losing out. text/html 2011-11-22T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Further rise in cost of renting http://www.loans4.co.uk/loan_news/news.php?item=1264-Further_rise_in_cost_of_renting Official figures have shown that there has been a further rise in the cost of renting a home in England and Wales. Private rents have been soaring for months now, as demand for these properties has rocketed due to people being unable or unwilling to get a mortgage and buy their own home. The latest increase marks the ninth monthly increase in the cost of renting a home according to the figures, although the data does show that the rate of the increase has slowed down. The data has been released by LSL Property Services, with its data showing that rents have now climbed to an average £720 per month for October. This reflected an increase of 0.2% compared to the previous month, which was the smallest increase since February. Rental costs are continuing to increase as non-homeowners flock to rent their own home because they are unable to get a mortgage or do not want to burden themselves with such a huge financial commitment in an uncertain climate. The south east of England is said to have seen the steepest increases in rental costs, with increases of 1.5% in October compared to September. There was also a sharp rise of 0.8% in the east of England. London is said to have seen rents increase faster than any other region over the past year. There were also some areas where rents on private rented homes fell, including the north east and south west of England, where rents fell by 1.4% and Wales, where rents fell by 0.8%. David Newnes from LSL said that Christmas was a traditionally slow period for the property and rental markets, which indicated that rent increases would continue to level out in the run up to the festive season. He added, however, that despite the slowdown in the increase the cost of renting was still increasing on an annual basis at twice the speed of the average salary. He said that the high rent levels were also starting to take their toll on tenants, with more than 10% of rent in October being paid late or not being paid at all. text/html 2011-11-21T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Mobile phone firms must to more to help consumers to avoid bill shock http://www.loans4.co.uk/loan_news/news.php?item=1263-Mobile_phone_firms_must_to_more_to_help_consumers_to_avoid_bill_shock The UK's communications ombudsman has spoken out about how mobile phone operators need to ensure they do more to help their customers to avoid bill shock. According to the ombudsman bill shock resulting from data downloads is becoming an increasingly serious problem amongst owners of smart phones who have the ability to download content wherever they are but are not clear about the charges that will result from their downloads. Lewis Shand Smith, the Chief Ombudsman, said that with the growing number of people that now have smart phones, more and more people are now using their phones for downloading big files such as videos. However, many people are not aware of their charges and how they work, with many assuming that all downloads fall within their allocated inclusive data allowance. Many of those who get confused over data download charges are those on unlimited data plans who are led to believe that they can download as much as they like as part of their plan. However, many do not realise that there is in fact a data cap in place even with so called unlimited plans in the form of fair usage policies. When users go over that fair usage limit they can start getting charged, leading to hefty bills. The ombudsman said that under current regulations mobile phone operators are actually doing nothing wrong when it comes to selling unlimited mobile plans. However, he added that there was probably more that these mobile companies could do in order to earn people about the fair usage policies and to increase awareness amongst customers about the dangers of going over a certain data usage limit. He has now called on mobile firms to take a number of steps to help improve the situation. The first is to ensure that they are very clear with regards to what the term 'unlimited' means when they advertise their plans. The second thing is to provide customers with advice so that they know when they are close to reaching their data limit. Thirdly, he wants the companies to offer advice on the amount of data that is being downloaded in order to keep customers informed. text/html 2011-11-18T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Virgin Money buys Northern Rock http://www.loans4.co.uk/loan_news/news.php?item=1262-Virgin_Money_buys_Northern_Rock The High Street bank that became known as one of the first major victims of the financial crisis in the UK, Northern Rock, is being sold to corporate giant Virgin and will be rebranded under the Virgin Money name. The bank is being sold for £747 million after being nationalised in 2008 after it became the first victim of a run on a UK bank in nearly a century and a half. The good news is that Virgin Money has promised that after the takeover there will be no compulsory job cuts for at least three years, which is something that will offer peace of mind to workers at Northern Rock. However, business experts have said that as a result of the sale taxpayers will end up with a 'paper loss' of between £400 and £650 million. When the bank was first nationalised it employed around 5500 people. However, over the past three years this has been slashed to just 2500. Insiders at Northern Rock said that after the details of the sale had been announced to staff there were cheers and celebrations. Customers will not be affected at all according to Northern Rock, as accounts and services will remain the same. So far, taxpayers have bailed out Northern Rock to the tune of £1.4 billion. This deal will see the government claw back £747 million from the immediate sale of the bank to Virgin but it could also receive another £280 million or so over the next few years. The chancellor, George Osborne, said that this measure was an important first step towards getting taxpayers out of the situation where they owned or part owned banks as a result of their money being used to keep the banks afloat. He said that the deal represented value for money, would help to safeguard jobs, and would give consumers more choice on the High Street. It has been estimated that the deal between the government and Virgin Money will be completed as early as the start of 2012, which means that it should all go through within a matter of just weeks. text/html 2011-11-17T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Mortgage borrowers set to be compensated by High Street bank http://www.loans4.co.uk/loan_news/news.php?item=1261-Mortgage_borrowers_set_to_be_compensated_by_High_Street_bank It has been revealed that following a mix up with mortgage rates more borrowers with the High street banking giant Halifax are in line to receive compensation. Compensation of up to £4,500 each may have to be paid to tens of thousands of customers by the Halifax as a result of more people being mis-informed about its mortgage rate changes than it had initially thought. This comes after the lender wrote to around 600,000 people to inform them that they might be eligible for compensation if they had not been informed about a chance in the way in which their mortgage rate had been worked out. The bank has now said that there could be another 250,000 people who may have been affected and therefore may be eligible for compensation. Out of the original group that was identified around half received compensation, which equated to either 1 percent of their mortgage balance for each year that they were affected or came in the form of a flat compensation payment. According to Halifax a similar proportion of people from the newly identified group are likely to get compensation. Based on calculations the compensation payout could see those with a mortgage of £150,000 who had been affected by the problem for three years, getting £4,500 in compensation. The compensation stems from a problem when the standard variable rate cap was increased from 2 percentage points above the base interest rate to 3 percentage points above. This had the potential to increase annual bills for homeowners by hundreds of pounds. However, the financial regulator, the Financial Service Authority, raised concerns that some consumers may have been misled by the wording of their offer document into believing that they would be told about any such changes. A Halifax spokesperson said that the bank had reached an agreement with the FSA to make compensation payments to those that had been misled in this way, with many customers having now received their compensation. However, the process will now have to be restarted since more potential eligible customers have been identified. text/html 2011-11-16T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited National Audit Office releases report into online tax returns http://www.loans4.co.uk/loan_news/news.php?item=1260-National_Audit_Office_releases_report_into_online_tax_returns These days, those who have to carry out self assessment for taxation purposes are able to enjoy greater ease and convenience than in years gone by. In the past, self assessment meant filling out lengthy forms that were sent from the tax office via regular post and then had to be posted back to the tax office along with any relevant paperwork. However, a huge number of people these days have done away with the need to use regular post to file tax returns or to sit and fill out lengthy forms by hand. The online tax return system is designed to make things easier for those who have to carry out self assessment, enabling them to quickly, easily and conveniently complete their tax return on the computer and submit it online. A recent report from the National Audit Office has looked at online tax return filing, stating that it has been a great achievement to get people to file their returns online rather than the tax office being knee deep in paperwork. However, whilst the National Audit Office did praise the online tax returns system it did also point out that it was not clear whether the system provided value for money. According to the report more than 11.5 million consumers now use the online tax returns system each year. However, the data showed that some people were not satisfied when it came to access to the website. One pressure group is calling on the government to provide alternative options for those unable to access the online tax returns system due to not having access to the Internet. There have also been complaints about not being able to access the site at busy times and having trouble with login details from consumers. The online tax filing service does offer some obvious financial savings, such as savings on storage, posting and stationery. However, the tax authority has been unable to do a proper comparison of costs between online filing and paper filing, which the report said made it difficult to see whether maximum value for money was being achieved via the online tax returns system. text/html 2011-11-15T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Military personnel being targeted by legal loan sharks http://www.loans4.co.uk/loan_news/news.php?item=1259-Military_personnel_being_targeted_by_legal_loan_sharks It has been claimed by an MP that legal loan sharks are preying on military personnel, offering high interest finance that is specifically targets at those in the forces. This is according to Stella Creasy, MP for Walthamstow, who said that members of the armed forced and their families sacrificed a lot for their country and they needed to be protected from problems that could seriously affect their finances and therefore their lives at home. Both members of the armed forces and ex-service personnel are being targeted by legal loan sharks according to the MP. These companies are offering finance to these personnel at extremely high rates of interest by way of costly payday loans. Creasy said that she was concerned about the welfare of military personnel after data showed that they were being targeted by some payday lenders. The MP said that given the fact that military personnel were providing protection for their country it was only right that they should be given ‘the protection they deserve from problems at home’. The rates of interest that these payday lenders are charging are extortionate, with one advertising its rates at 2222.46% APR and another stating that there is no fixed rate, which means that it can charge what it wants. The Royal British Legion said that it deals with huge numbers of ex-military personnel who are experiencing debt problems, many of whom have been caught out with high interest payday loans. A spokesperson for the service said that there were many people who have come out of the military and are now struggling with their household bills and financial commitments, which was making them more susceptible to falling victim to these lenders. In the United States servicemen are protected against being charged high rates of interest by the Service Members' Civil Relief Act, which is a law that requires lenders to cap interest rates on loans for military service members. Creasy said that similar laws needed to be brought in for service personnel in the UK. text/html 2011-11-14T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Tax office to make millions from PPI compensation http://www.loans4.co.uk/loan_news/news.php?item=1258-Tax_office_to_make_millions_from_PPI_compensation After losing the Payment Protection Insurance battle in the courts, the banking industry has had to put aside billion of pounds to pay claimants who claim that they were mis-sold this insurance in the past. Successful claimants have been receiving compensation along with 8% interest from the banks. However, what many of them did not realize is that they will have to pay tax on the interest that they receive. It has now been revealed that the interest on these payouts will be subject to tax, which means that HM Revenue & Customs is set to make a fortune from the PPI payouts. In fact, the tax office could make tens of millions of pounds from the tax that is charged on the interest from PPI. A spokesperson from the tax office confirmed that tax would be taken from the interest on PPI compensation. He said that no tax was due on the repayment element of the money repaid to consumers but that, in line with other compensation claims, tax would be due on the interest element that was paid to claimants. The tax office has said that consumers should not be worse off as a result of the interest on the compensation being taxed, as if they had not purchased PPI and had instead kept that money in a savings account that earned interest they still would have been taxed on the interest. Consumers are now being urged to check with their PPI provider as to whether tax has been deducted at source. TBS/Natwest have said that they will be deducting tax at source whereas Lloyds, Cooperative Bank, HSBC and Barclays have said that they will not. Banks have also been contacting customers advising them to contact HMRC to find out how much tax is due to be paid on the interest that they have received as part of the compensation package. However, many customers said that they have been left confused by the whole affair and do not understand the amounts that they are being asked to pay to the tax office. text/html 2011-11-11T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Many hoping that lottery win will come to their financial rescue http://www.loans4.co.uk/loan_news/news.php?item=1257-Many_hoping_that_lottery_win_will_come_to_their_financial_rescue A recent survey that was carried out by British Insurance has revealed that there are many people who are worried about losing their jobs and incomes but despite this have no protective insurance cover in place. Alarmingly, a large number of them are expecting a win on the lottery to sort them out according to the research. The data showed that around 59% of workers, equating to about 17 million people, were concerned about job security, a figure that has increased by 7 percent since last year. However, far fewer workers have not got any protection in place to help them out financially in the event that they do lose their jobs. In 2010 around one fifth of people responding to the survey had unemployment insurance in place. However, this most recent survey has revealed that only 14 percent now have this cover in place. The survey showed that the other 86 percent were looking for other ways to make ends meet in the event that they lost their jobs, such as getting help from friends and family, using savings, and worryingly even winning the lottery. One insurance specialist said that consumers should have learned from the volatile economic situation seen over recent years and invested in some protective insurance to help them in the event that they lost their jobs. He said that with economists expecting the economy to stagnate next year with a possibility that things could get worse if the current situation deteriorates it is vital that workers think about insurance to protect their income. However, for many people who are close to the financial edge finding the money to take out this sort of cover is difficult in itself, which is probably why so many people are relying on other options and believe that they are better off saving the money that they would pay on the premiums. Those who do take out the cover are strongly advised to ensure they check the small print carefully and get clarification if necessary prior to making any commitment, as these protective policies often do not pay out for several months following a job loss and even then have strict criteria that must be met in order to qualify for a payout. text/html 2011-11-10T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Bank holds interest rates again http://www.loans4.co.uk/loan_news/news.php?item=1256-Bank_holds_interest_rates_again In a move that will not come as any great surprise to most industry experts, the Bank of England has announced that it is keeping the base rate on hold once again. The base interest rate is to remain at its record low of 0.5% for yet another month following today's Monetary Policy Committee meeting. This is the lowest the base rate has been in the history of the Bank of England, which spans over three centuries, and has been at this low level since March 2009. Most economists and experts had expected the rate to be kept on hold due to continued economic uncertainty and concerns over the recovery of the economy. Following last month's MPC meeting the Bank of England announced a further £75 billion injection into the economy through quantitative easing. However, this month there has been no announcement of a further extension on the QE scheme. Lee Hopley, chief economist at EEF manufacturers' organisation, said that this did not mean that further action would not be taken by the central bank and the MPC in the coming months. She said that whilst most had not been expecting any further announcements relating to QE this month, the committee would be looking at 'a much weaker set of growth forecasts' ahead of the November inflation report 'where the potential risks to the economy have increased significantly.' She added that the growing turbulence in Europe meant that further action could not be ruled out. Other experts have echoes this opinion, stating that they are not surprised by the central bank's decision not to make any further announcements relating to QE but that the MPC will be waiting to see how things develop before making any further decisions. The MPC has already said that its latest QE programme will take another three months to complete. In the meantime, speculation over when interest rates will be increased continues to bring a mixed bag of opinions from industry experts. Some believe that it could be early next year when the base rate is increase whilst others believe that it could be a long while before the MPC takes the risk of a base rate increase in the current climate. text/html 2011-11-09T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Many homeowners fail to cash in by remortgaging http://www.loans4.co.uk/loan_news/news.php?item=1255-Many_homeowners_fail_to_cash_in_by_remortgaging In the current financial climate there are many people who are trying to find various ways in which they can try and reduce their monthly outgoings to ease the financial strain. Many have been hit hard by the soaring cost of living coupled with frozen income, making it necessary to make cutbacks wherever possible to try and cut costs. However, the one thing that a huge number of homeowners are failing to do is to save money by remortgaging and getting a better deal. This is according to a new survey that was carried out recently by High Street banking giant Barclays. The bank claims that homeowners could be saving up to £1200 per year simply by remortgaging to get a better deal. Despite the considerable amount of money that can be saved by remortgaging, close to 60% of those polled as part of the survey said that they had never remortgaged other than when they had moved home and taken on a mortgage for another property. Many of these people said that they thought they would only save around £10 a month or so by remortgaging to a better deal and therefore did not consider it worth the hassle. Figures show that the majority of borrowers live in their home for more than sixteen years, which means that they could be missing out on huge amounts in savings over this period of time simply by failing to switch to a better deal. The data from Barclays showed that over the next two years alone homeowners in the UK could save up to £346 million. One mortgage expert said that there had been a number of improvements in the mortgage market over the past year or so, resulting in better deals for homeowners to consider switching to in a bid to save money. He said that some homeowners stuck with their existing mortgage or provider due to lack of knowledge whilst others did so out of loyalty. However, he added that it was vital that homeowners reviewed their mortgages to see whether they were missing out on big savings. text/html 2011-11-08T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited October sees revival in housing market activity http://www.loans4.co.uk/loan_news/news.php?item=1254-October_sees_revival_in_housing_market_activity The latest data from a poll of surveyors has suggested that there has been something of a revival in housing market activity in the UK for the month of October. The data comes from the Royal Institute of Chartered Surveyors, with reports that there were increases in both the number of property sales and the number of new buyer enquiries for the month. The increase was only a slight one but has nevertheless been viewed as encouraging in a market that has seen some very turbulent times over the past couple of years. Some believe that the reasons behind the slight revival was that seller in the property market were becoming more realistic when it came to their selling prices, which was generating more interest and increasing the abilities of many people to actually purchase a property. Some surveyors from RICS have reported that in order to successfully secure a sale in a difficult market some sellers are now willing to accept lower prices on their homes. This has resulted in 8% more surveyors reporting an increase in new agreed sales compared to those that reported a fall. In fact, levels are said to have increased to their highest since April 2010, although they are still very low compared to the same period in pre-credit crunch days. A higher number of surveyors reported falling prices than increasing ones, which many believe is a trend that will continue. A spokesperson for RICS said that the signs of life that had been seen in the market were encouraging and that surveyors were feeling more optimistic about near term prospects when it came to transactions in the property market. He did warn, however, that recovery would most likely be hampered by the eurozone crisis, which would result in only modest recovery. This is because the abilities of banks to lend may be adversely affected, which could create continued issues for first time buyers hoping to get onto the property ladder at last. Despite the encouraging data, difficulties for first time buyers are set to continue according to RICS. text/html 2011-11-07T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Slight fall in personal insolvencies http://www.loans4.co.uk/loan_news/news.php?item=1253-Slight_fall_in_personal_insolvencies The Insolvency Service has recently released data showing that the number of personal insolvencies in England and Wales saw a slight fall in the third quarter of this year although the number of corporate insolvencies is said to have increased slightly over the same period. The data shows that the number of personal insolvencies for the third quarter of this year fell by 1% compared to the previous quarter, dropping to 30,219. Corporate insolvencies over the same period are said to have increased by 2% rising to 1253. This means that the number of companies going insolvent is now 10% higher than a year ago but the number of personal insolvencies is now 11% lower than a year ago. Louise Brittain, insolvency partner at Deloitte, said that these figures reflected the fourth quarter in a row where the number of personal insolvencies at remained around the 30,000 mark. However, despite the encouraging figures one debt charity said that increasing numbers of people were likely to become insolvent in the near future, as wage freezes, higher inflation and redundancies kicked in. The Consumer Credit Counselling Service (CCCS) said that there were millions of people living on the financial edge at the moment, and small changes could tip them over the edge and leave them struggling to keep up with payments on bills, debts, and even mortgage or rent, which would force them into insolvency. It is also thought that there will be a further increase in corporate insolvencies due to the fragile economic climate, which could see a number of companies struggling to stay afloat, particularly those who are unable to get finance to help tide them over. For consumers who are experiencing difficulties in keeping up with payments on debts there may be an alternative solution to insolvency, which can obviously impact heavily on their credit report and score. Some people may be able to benefit from consolidating their debts with a lower rate consolidation loan, which can be used to pay off higher interest debts and could result in a significant reduction in monthly outgoings by streamlining other debts into one more affordable one. text/html 2011-11-04T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Post Office will no longer sell NS&I accounts http://www.loans4.co.uk/loan_news/news.php?item=1252-Post_Office_will_no_longer_sell_NS&I_accounts Whilst people in the UK have been used to being able to open NS&I investment and savings accounts over the Post Office counter over the years, it has now been revealed that the Post Office will no longer be selling these accounts. Both investment and easy access savings accounts will stop being available over the Post Office counter as of 28th November, although consumers will still be able to purchase Premium Bonds from the Post Office counter. National Savings & Investments has been running a five year plan to try and streamline and simplify its financial products, and the decision to stop selling these accounts over the Post Office counter is part of the plan. The five year plan is due to be completed in 2013 by which time, with the exception of Premium Bonds, all NS&I products will only be available from NS&I itself. The NS&I investment account is set to become a postal only account over the next year, and in place of the current passbook that users have there will be statements sent through. There will also be an increase in the amount of interest that is paid on the account, although the existing rate of interest is very low at just 0.3 percent. NS&I, which is a government backed financial institution, has said that it will be contacting customers from December onwards about the changes. Jane Platt, chief executive, NS&I, said that the company was keen the simplify its products and services in order to encourage more people to invest directly with NS&I. She said that in addition to this the Post Office now had its own range of financial products to manage. Jane added that the company took pride in the products and services that it provided to customers by post, by phone and online, adding that in the call centre staff with years of expertise and experience were available to help consumers every day of the year. The company believes that the expertise of its own staff will enable customers to make more informed decisions about their savings and investments. text/html 2011-11-03T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Financial firms warned over new style PPI http://www.loans4.co.uk/loan_news/news.php?item=1251-Financial_firms_warned_over_new_style_PPI Financial firms are being warned to steer clear of creating new style versions of Payment Protection Insurance plans following the controversy and court action that has been taken over traditional PPI. Since the courts ruled that PPI had indeed been mis-sold by financial firms for many years banks and financial institutions have had to pay huge sums of money in refunds and compensation to those who claim to have been sold the insurance cover unfairly. The discredited insurance cover has caused a huge amount of controversy after it was claimed that the cover was often sold to people who did not understand it, did not want it, could never claim on it, and in some cases did not even know it had been added to their finance. However, not the Financial Services Authority (FSA) and Office of Fair Trading (OFT) have warned financial institutions not to start devising new versions of the insurance adding that they will use their regulatory powers to stop firms from selling rehashed versions of PPI that could go on to harm consumers and cause problems similar to those experienced with traditional PPI. Authorities have expressed concern that some firms could end up inventing new types of insurance cover to replace the PPI cover that has caused so many problems, and that these newly invented insurance plans could also end up being mis-sold to customers that cannot use them or do not need them. The OFT and FSA have said that they will continue to monitor developments in this area and will not hesitate to take action if they believe that any financial institutions have created products and services that will prove detrimental to consumers. The authorities have said that they now plan to follow a strategy where they will intervene to stop problems arising in the first place with products and services such as PPI rather than waiting until problems arise and then trying to sort them out. Lord Turner, the head of the FSA, has said that it is important for the regulator to have the power to ban potentially harmful financial plans and policies before they were sold to consumers. text/html 2011-11-02T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Four year high for property demand in UK http://www.loans4.co.uk/loan_news/news.php?item=1250-Four_year_high_for_property_demand_in_UK Figures have shown that the demand for property in the UK increased for the second month in a row in September, reaching its highest level in four years. According to the data, enquiries from prospective property buyers have reached their highest levels since September 2007. Figures from the National Association of Estate Agents have shown that the number of enquiries per branch came to an average 308, which was up slightly from 304 per branch the previous month. According to the NAEA there has also been an increase in the number of properties that are available on the market for sale. Property numbers have increased to 72 per branch compared to the lower figure for the previous month, which was 65 per branch. There was also an increase in the percentage of sales to first time buyers, many of whom have struggled to try and get onto the property ladder over the past few years. The percentage of sales to first time buyers increased by 2% to 22% for the month. Some believe that this could be due to a range of more affordable mortgage deals, which have attracted a greater number of first time buyers. Wendy Evans-Scott, President of the NAEA, said that the figures were very encouraging but said that the climate and market was still very cautious and that sellers needed to therefore ensure that they priced their properties realistically. She said that there had been a slight increase in the number of first time buyers over the course of the month but that members of the association were reporting that there was still a widespread regional variation. She added that lending was still a major problem when it came to homeownership for first time buyers. The property and mortgage markets have been through a tough time for the last couple of years as a result of the effects of the global financial crisis, house prices, lack of affordable mortgages and economic uncertainty. Many people have been unable to afford to get onto the property ladder as a result of this situation and many have been forced into private renting because of the situation, which has in turn pushed up the cost of private rents to unprecedented levels. text/html 2011-11-01T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Providers launch Junior ISAs for first time http://www.loans4.co.uk/loan_news/news.php?item=1249-Providers_launch_Junior_ISAs_for_first_time For the first time, providers are now offering tax free savings accounts for children, which are known as Junior ISAs. It is thought that around six million children will be eligible for this financial product and they will not be able to access the cash in the account until they reach the age of eighteen, which makes this a great way for kids to be able to save without the risk of using the money early or having to pay tax. The new accounts will effectively replace the Child Trust Fund, which came with a voucher from the government to get the ball rolling in terms of the savings account. At present many providers are still to publish their rates with some of the larger players in the market said to be keeping their rates under wraps at least for the time being. One financial expert said that some providers were keeping their rates to themselves for now because they wanted to see what rates rival providers would be offering before going public. He said that it would be interesting to see what the various providers were able to offer in terms of their rates as more and more of the accounts were launched over the coming weeks. The accounts will be run by banks, building societies and investment groups, with family and friends able to pay money into the account for the child. The total maximum annual contribution for these ISAs is £3,600 which can be placed in a cash only ISA or in an account that comprises bonds, shares and investment funds. Alternatively the money can be divided amongst both types of accounts. The Junior ISAs will provide an effective way for parents to protect the money for their kids from the taxman, as the amount that is protected at present is very limited. It is estimated that parents who put aside the full amount each year for their child could have a nest egg of £100,000 for their child by the time he or she is eighteen years of age, based on 5% a year growth. text/html 2011-10-31T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited £2 million fine for Npower from regulator http://www.loans4.co.uk/loan_news/news.php?item=1248-£2_million_fine_for_Npower_from_regulator The UK's energy regulator Ofgem has slapped one of the big UK energy firms with a huge £2 million fine in relation to its complaints handling. Npower has been hit with the fine because of its failure to properly handle complaints. According to the regulator Ofgem had not been recording its complaints properly and had failed to provide dissatisfied complainants about details relating to the redress service from the Energy Ombudsman. The regulator has stated that the energy giant had now rectified all of the issues over which it was pulled up and fined. Npower has apologised for the problems, stating that it is sorry that it had let its high standards slip and adding that it was a small number of processes that were not adhered to. A spokesperson said that the company would be working hard to make sure that that its customers were put first from now on. Ofgem has been cracking down on energy giants over the way that they handle complaints, launching investigations and imposing fines to ensure that the firms handle their complaints in the proper manner by following regulations. It is claimed that the regulator is currently investigating the way in which complaints were handled by another of the energy giants, EDF. Several months ago the regulator imposed a £2.5 million fine on British Gas over the same issues. An Ofgem spokesperson said that poor supplier behaviour had resulted in a huge negative impact on consumer trust in energy firms but by getting behind Ofgem's reforms for the energy market suppliers could help to restore some of this confidence from consumers. New regulations were put into place by Ofgem back in October 2008, with the regulations setting out the standards that consumers should be able to expect in the event of making a complaint. The action being taken by Ofgem has been welcomed by consumer groups, with a spokesperson from Consumer Focus stating that it was great to see the regulator making it clear to energy firms that there would be a price to pay if they failed to treat customers fairly. text/html 2011-10-28T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited FSA plans crackdown on packaged bank accounts http://www.loans4.co.uk/loan_news/news.php?item=1247-FSA_plans_crackdown_on_packaged_bank_accounts Over recent years banks have become more and more focused on persuading customers to opt for packaged bank accounts rather than regular bank accounts. These accounts come with a range of benefits and the customer pays a monthly fee for the account, with the amount varying from one bank to another. Some of the benefits that come as part of the package include vehicle breakdown cover, mobile phone insurance, commission free travel money, travel insurance and lower rates on overdrafts. However, for some time there has been concern amongst many people over how suitable these accounts really are for the people that are talked into taking them out. Some believe that for the amount of money that they pay packaged accountholders are getting very little in terms of value for money, as they are only using one of two of the benefits, which they could get cheaper by purchasing separately on the open market. The UK's financial regulator, the Financial Services Authority, is now looking to crackdown on these packages accounts by focusing on the insurance element of the accounts. At present one fifth of adults have this sort of banks account but many of those who have one may not actually be benefitting from it fully, which could represent a waste of money on their part. The FSA believes that some consumers are being sold accounts that they do not need and wants to try and eliminate the risk of this happening. An FSA spokesperson said that for some people the accounts did represent value for money, as some people used most or all of the benefits that were offered as part of the package. However, for the many that use only one or two of the services the package was no such as good deal, especially if accountholders were unable to use aspects such as the insurance plans due to being ineligible for one reason or another. Amongst the measures that the FSA is putting forward are for checks to be carried out to ensure prospective accountholders would be eligible to claim on the packaged account insurance plans, ensuring that the insurance plans actually met individual customers' needs and making sure that customers knew that some insurance plans included with the package may not be suitable for them. text/html 2011-10-27T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Consumers warned about minimum credit card payments http://www.loans4.co.uk/loan_news/news.php?item=1246-Consumers_warned_about_minimum_credit_card_payments With Christmas only around the corner many people will now be applying for credit cards or getting ready to use their credit cards in order to pay for Christmas purchases, from gifts and clothes to socializing and entertaining. For the many people who have not been able to save up the cash that they need for Christmas, credit cards will provide a financial lifeline over the festive season – until, of course, the balance has to be repaid. Consumers who are planning to use credit cards for their spending over the festive season are being urged to avoid making only minimum repayments on the balance once the Christmas and New Year period is over, as otherwise they could be hit with huge interest charges and could end up paying even a relatively most debt for years to come. In fact, clocking up a balance of just £500 on a credit card charging 18.12% APR could take nearly twelve years to clear with only minimum repayments being made on it. It would also cost nearly £500 on top of the debt in interest, doubling what you have to pay. One financial expert said that with the rising cost of living and the difficult financial climate many people would be turning to credit cards this year to fund their Christmas spending and this could lead to an increase in the number of people suffering the financial effects of making only minimum repayments. Consumers are also advised to set up direct debits for the payments on their credit card balances to be paid off, as this means that the payment will go out automatically each month, reducing the risk of missed and late repayments. One expert said that this was essential for card users as it also meant that they would not lose any special promotion such as an interest free deal, which can become null and void in the event of missed or late payments. For those who want to get the best value for money on their credit cards for Christmas it is advisable to opt for an interest free purchase credit card, which offers a generous interest free period within which to clear the balance without being charged any interest on the debt as long as it is cleared within the specified timeframe. text/html 2011-10-26T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited 10% of students could be deterred by tuition fees http://www.loans4.co.uk/loan_news/news.php?item=1245-10%_of_students_could_be_deterred_by_tuition_fees Whilst there are many people who are keen to benefit from a university education in order to better their future prospects and enjoy a successful and lucrative career in their chosen field, not everyone can afford the luxury of having an advanced education. A survey that was commissioned by the BBC has revealed that around 10% of potential students who would have liked to have benefitted from going to university to further their education, knowledge, skills and qualifications, are being put off by high tuition fees. The survey involved polling over one thousand A Level students across England, and whilst most said that they would probably still go to university despite the high cost of further education there were some that were put off by the cost and would therefore have to give up their chances of furthering their education and boosting their career prospects. Of those that were interviewed around 50% said that they would base their choice of university partly on cost, choosing a university that was close to home so that they did not have to find student accommodation or even choosing a university abroad if there were cheaper tuition costs involved. Two third of those interviewed said that they would also consider an apprenticeship as an alternative. The results of the study showed that the overall opinion appeared to be that students believed that the benefits of a higher university education outweighed the cost issues relating to further education. However, opinion could change next year when universities increase the cost of further education even further as a result of a cut in the teaching grant. Whilst university fees will often be funded through subsidised loans from the government, some universities could be charging as much as £9000 for a degree course. Scottish students who are studying in Scotland will not have to pay. Also, the costs for Welsh students will be heavily subsidised. However, many other students in other parts of the UK will be hit with huge fees. text/html 2011-10-25T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Many stand to get rebates on tax http://www.loans4.co.uk/loan_news/news.php?item=1244-Many_stand_to_get_rebates_on_tax Millions of people in the UK are set to get a rebate on their tax over the coming months, with the average value of the rebate being about £400. It is estimated that around six million taxpayers will be entitled to the rebate with Her Majesty’s Revenue and Customs confirms that letters will start going out over the coming few months. This marks the second year of problems and miscalculations with tax stemming from the use of a new computer system by HMRC. Of course, for the millions of people that are expected to get a rebate on the tax the news will be welcomed and they will be delighted to receive a cheque in the post. However, there are also people that will end up owing money to the tax man as a result of the discrepancies, with around a million people expected to learn that they underpaid on their tax by an average of £600. The tax office has said that for those that end up owing money to the taxman will be given time to make payments in instalments so that they are not hit for a bill for hundreds of pounds in one go. HMRC has acknowledged that this is the second year that these problems have occurred but has said that as the new system starts to ‘bed in’ and become more effective the number of discrepancies would reduce. Last year HMRC faced criticism over being insensitive about the situations of those who were informed that the owed hundreds of pounds as a result of being under-taxed. The tax office wants to avoid the same criticism this year and has made it clear that those found to be owing money can have their tax codes adjusted to enable them to pay on a gradual basis. The rebates will be in relation to tax that was overpaid in 2007/2008 or before, and will also include interest. The rebates are due to be settled by December of this year and will come as a welcome Christmas surprise for many taxpayers who may not realise that they are owed money. text/html 2011-10-24T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Spending on store cards falls http://www.loans4.co.uk/loan_news/news.php?item=1243-Spending_on_store_cards_falls For many years store cards have been used as a way of spreading the cost of shop purchases despite their high rates of interest and the limitations on where they can be used. Many people now though are avoiding not only taking out a store credit card but also using in on a regular basis. Like credit cards, store cards provide a short interest free period within which to pay the balance without being charged interest. However, for those that spread the repayments the rate of interest charged is crippling – far higher than with a competitive credit card. Despite this many people have continued to take out and use store cards, which can only be used at a certain store or chain of stores, making them restrictive as well as expensive. However, it seems that the national obsession with store cards could finally be coming to an end, as spending on these cards is said to have fallen by 20% in the past twelve months. The figures have been released by the Finance and Leasing Association. The figures show that in the twelve months leading to August of this year credit card spending fell by 2%. However, in the same period store card spending fell by 20%. A further breakdown in figures showed that during the twelve month period there was also a drop in people taking out car finance, people paying stores through instalments, and people taking out second mortgages. Whilst many will be pleased that customers are getting wise to store cards, those who are planning to stop using their store cards need to check that there is no fee charged for leaving the account dormant. It is advisable to close down the account completely rather than just stopping use of the card, as otherwise the cardholder could be at risk of identity fraud as well as dormancy charges. Whilst spending has dropped in the twelve months to August, many stores will be revving up for their seasonal push on store cards over the Christmas shopping period, which could see an increase in the number of cards being taken out and used. text/html 2011-10-21T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited New high for private sector rents http://www.loans4.co.uk/loan_news/news.php?item=1242-New_high_for_private_sector_rents Over the past eighteen months the cost of renting in the private sector has been going up and up, with many people who are unable to get a mortgage turning to this sector and further fuelling both demand and rental prices. It has now been revealed that average rents in the private sector across England and Wales have increased yet again, taking rental costs to a new record high. Last month the cost of renting a home in England and Wales increased by a further 0.7%, which has taken the average rental price to £718 per month. Over the past twelve months rental prices have increased in total by 4.3%, equating to an extra £29 per month on the average monthly rent compared to a year ago. The data has been put together and released by LSL Property Services, which specializes in the property rental sector. The data showed that the East Midlands and the South East were the areas where rents had risen the fastest. Ongoing high demand from those who are unable to or do not want to buy a home is continuing to drive rental prices upwards, which means that in many areas it has become cheaper on a monthly basis to actually purchase a home if the initial problem of raising a deposit can be solved. LSL said that tenant who were renting in the private sector were also having to remain in their rental homes for longer due to the fact that they were unable to raise a deposit and get a mortgage. Of course, the rising rents have meant that it has become even more difficult for those in rented accommodation to save towards a deposit, which has meant having to stay in the rental home for longer, thus driving prices up further. Many are therefore stuck in a catch 22 situation. The data comes after one housing charity, Shelter, revealed that in 55% of local authority areas across England the cost of private rented accommodation had become unaffordable because the cost was more than 35% of average take home pay. text/html 2011-10-20T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Unexpected increase in September retail sales http://www.loans4.co.uk/loan_news/news.php?item=1241-Unexpected_increase_in_September_retail_sales Figures releases by the Office for National Statistics this week have shown that there was an unexpected increase in retail sales in the UK for the month of September. The increased sales level was driven by a surge in the sale of laptops and video games and has been described as encouraging for the British retail industry. Sales volumes are said to have increased by 0.6% on the month, which followed a fall of 0.4% in August. Analysts are said to have predicted that sales would remain flat for the month. Sales volumes including fuel resulted in an annual rise of 0.6% and without the inclusion of fuel gave an annual increase of 0.4%. The news will provide encouragement for British retailers, who have seen sales levels slump as a result of consumers tightening their belts and reining in their spending due to financial strains. It is not just retailers of non-essential goods that have been seeing sales levels fall but also grocery retailers, as consumers have been making cutbacks on all areas. The ONS said that the surprise increase in sales for September was partly down to an increase in laptop purchases for when kids went back to school and also due to a number of new video game releases, which were snapped up by gaming fans. Clothing sales, unfortunately, suffered their biggest annual fall since April 2008, dropping by 2.1% on the year. Economists are predicting that the retail sector will continue to face increased pressures over the course of the year, largely due to high inflation, which has now exceeded 5% - way over the 2% target set by the government. However, with the Christmas and New Year fast approaching both online retailers and bricks and mortar stores will now be getting ready for the onslaught of customers and surge in sales. One economist said that whilst the ONS figures did not indicate that the retail sector was 'robust' it did indicate increase solidity in the sector, despite the struggles created by rising inflation and increased cautions amongst shoppers. text/html 2011-10-19T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited CPI reaches highest level in three years http://www.loans4.co.uk/loan_news/news.php?item=1240-CPI_reaches_highest_level_in_three_years Consumer Prices Index, or CPI, inflation hit its highest level in three years last month, matching the high that it reached in the same month in 2008. CPI inflation jumped from 4.5% in August to 5.2% in September, taking it way over double the government target, which stands at just 2%. The sharp increase in CPI inflation is said to be largely down to the hikes in energy costs. The CPI measure was introduced back in 1997 and the 5.2% level seen last month in the September 2008 is the highest it has ever been since it was launched. There was an increase in the Retail Prices Index, or RPI, which increased from 5.2% in August to 5.6% last month. This measure also includes mortgage interest payments. This takes it to the highest level since June 1991. The data was released by the Office for National Statistics, which confirmed that the upward trend in CPI inflation levels was down to rising gas and electricity prices. There were other factors that contributed to the increase in CPI inflation, such as the pressures from communications services and air transport services. However, despite the sharp increase in inflation levels and the level by which they have exceeded the government's 2% target rate, the Bank of England governor, Mervyn King, is still expecting inflation to start coming down next year. There is a lot of significance being placed on CPI levels for September, as these will be used to determine the amount by which Jobseeker's Allowance and state pensions will increase next April. This will be the first time where CPI inflation has been used to determine increases in benefits rather than RPI inflation. There had already been predictions from the Bank of England that the CPI inflation rate would exceed the 5% mark this year due to factors such as higher energy costs. However, the central bank still maintains that over the course of 2012 and 2013 CPI inflation levels will start to come back down. Many economists and industry experts have echoed this opinion and also believe that inflation will fall over the coming two years. text/html 2011-10-18T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Insurance shock for new drivers http://www.loans4.co.uk/loan_news/news.php?item=1239-Insurance_shock_for_new_drivers As most drivers already know, the cost of insurance has increased rapidly and significantly over recent years, making insurance costs even more of a financial burden than in the past, particularly in the current financial climate. However, many new drivers who may not have realized how high insurance costs have become are facing a shock when they buy their vehicle and go to insure it due to the crippling charges that they are being asked to pay by insurance firms. Research has shown that young male drivers in particular are facing a real shock when it comes to insurance costs, with their premiums coming in at almost four times higher than the average driver. Male drivers aged between 17 and 20 years are said to have seen annual premiums increase by 8.2%. According to the Commons Transport Committee, many younger drivers now believe that they are being priced off the road, as the cost of insuring a vehicle is far more than they can afford, often coming in at as much as if not more than the value of the vehicle itself. The average annual cost for an only male driver of this age was £3,878 in the third quarter of the year. This compared to an average £1,006 for male drivers in general. The cost of cover for females aged 17 to 20 years was significantly lower, standing at £2,063 compared to an annual cost of £907 for women overall. The biggest increase in premiums was seen by people in the north of England and in general the cost of comprehensive insurance cover increased by 12.3% year on year. Insurance group Young Marmalade recently carried out a survey, which suggested that nearly all of young motorists believed that they could not afford to drive due to the cost of insurance cover. One fifth were found to have considered driving without any insurance cover whilst many others had altered the information that they provided to insurance firms to try and get a lower quote. The Transport Committee has now reopened an inquiry into the cost of cover after being presented with the results of the research. text/html 2011-10-17T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Savvy people boosting their income by thousands of pounds a year http://www.loans4.co.uk/loan_news/news.php?item=1238-Savvy_people_boosting_their_income_by_thousands_of_pounds_a_year Over recent years a rising number of people have spent more time looking at ways to supplement them income. Household budgets have been hit hard by the recession, reduced or frozen income, increasing living costs, and higher bills. However, rather than sit in feel sorry for themselves over their financial situations many Brits have done a little lateral thinking and found new and inventive ways of supplementing their income. The Internet has played a big part in the plans and ideas that many people have put into place to help bring in more money and some people have seen huge success, having boosted their income by thousands of pounds a year. One third of Brits who are trading online in order to bring in a second income to boost their finances are said to be bringing in round £10,000 per year. The Institute for Fiscal Studies claims that households are facing a drop of £2,000 in annual income due to low pay and rising inflation, which is why so many people are now determined to take steps to boost their finances. This has turned many people into entrepreneurs who have found a range of ways to earn extra money to make up for their lower income and higher outgoings. The parcel delivery and collection service Collect+ has released data showing that a third of those earning a second income through online trading are bringing in more than £10,000. Impressively, over half of those enjoying this level of success have only started trading in the last twelve months. Additionally, more than 25% of these traders are classed as young entrepreneurs and are aged between 25 and 34 years. Research shows that whilst in the past some people began online trading as more of a hobby and a way to earn a little extra spending money, the traders of today are very serious about their venture and rely on the income to make ends meet financially. Almost a quarter of traders said that they would struggle with their finances without this additional income to help them. text/html 2011-10-14T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Nearly half of all holidays are uninsured http://www.loans4.co.uk/loan_news/news.php?item=1237-Nearly_half_of_all_holidays_are_uninsured These days we have insurance for nearly everything, from our cars and our homes to our health, our travel, our pets and even our lives. With so many different premiums and insurance types to consider it seems that many Brits are having to prioritise on which insurance cover they should and should not take – and many have decided that travel insurance is something that they can do without! A large number have decided not to bother with travel insurance because they believe that they already have adequate protection from the European Health Insurance Card scheme or even the government! A survey carried out by insurance company Columbus Direct showed that around 37% of trips that had been taken so far this year had not been insured. This equated to nearly 20% of Brits heading off on their holidays without any travel insurance in place. Some of those that did not take out insurance cover said that it was due to confusion over the benefits that were provided by the European Health Insurance Card (EHIC). Of those polled, around 25% said that they thought they would be covered by the EHIC if they became ill and had to come home early. Another 20% said that they believed that the British government would cover the cost of having treatment if they fell ill abroad. The way in which the EHIC works means that there is no guarantee that you will be covered at all. The main purpose of the card is to provide up to 80% off from medical bills if your treatment is at a hospital that accepts the card. However, you may end up at a hospital that does not accept the card and could end up footing the bill yourself, which could run into tens of thousands of pounds. A spokesperson from Columbus Direct said that it was quite concerning that so many people had no idea how the EHIC worked and that many were heading off on holiday with no protection in place. He said that an accident or illness could end up financially crippling those without adequate insurance as the bills could run into literally tens of thousands of pounds depending on the injury and the treatment required. text/html 2011-10-13T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Charity expresses concern over private rental costs http://www.loans4.co.uk/loan_news/news.php?item=1236-Charity_expresses_concern_over_private_rental_costs The housing charity Shelter has expressed concern over lack of affordability in the private rental sector, claiming that in 55% of local authorities private rents have now become unaffordable. It is claimed that in these areas the cost of renting a home costs more than 35% of median average take home pay, which the Private Rent Watch report from Shelter classes as being unaffordable. According to the charity around 38% of families who have children and who are renting privately have been forced to cut back on buying food in order to ensure that they can afford to pay the rent each month. Figures show that in the ten years leading up to 2007 rents had increased at 1.5 times the rate of income. The report shows that in 8% of local authority areas in England rents are classed as 'extremely unaffordable'. This is where at least half of take home pay is spent on covering the rent. Shelter said that whilst the situation with non-homeowners being unable to get a mortgage to buy their own property had become a familiar one, the fact that renting was becoming unaffordable was more dramatic. Many have become reliant on private rental properties given the difficulties in getting a mortgage and the long lists and waiting time for social housing. Shelter said that these days there was no cheaper alternative for households and the only option for many was to cut back on essentials such as food in order to afford to pay the rent. The worst hit areas when it came to unaffordable rents were found to be rural areas, where rents were considerably higher than in inner city areas. Alice Barnard from the Countryside Alliance has now called on the government to conduct an urgent review of the rental market in rural parts of England. Grant Shapps, the Housing Minister, said that the government was aware of the importance of private landlords when it came to the provision of affordable housing in the current climate. He said that the government had already stopped red tape procedures that would have pushed rental costs up even higher whilst reducing choice for consumers. text/html 2011-10-12T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Permanent end to doorstep sales from two suppliers http://www.loans4.co.uk/loan_news/news.php?item=1235-Permanent_end_to_doorstep_sales_from_two_suppliers Two of the UK's big name energy suppliers have announced that they are putting a permanent end to doorstep sales, which have come under extreme controversy recently leading to suspensions and investigations into this method of selling. The two providers who have decided to permanently put an end to doorstep energy sales are Scottish and Southern Energy and British Gas. This makes the two energy giants the first of the big six to reach this decision and put an end to doorstep energy selling. Instead of energy sales people calling unsolicited at peoples' homes they will make pre-arranged appointments to see consumers who have a real interest in switching providers or signing up to their energy plans rather than just catching someone on the hop and making them feel pressured into signing up to deals. Ian Peters, energy managing director at British Gas, said that since the company announced that it was putting an end to doorstep energy sales the feedback from customers had been very encouraging. He said that staff had also provided encouraging feedback. Peters added that there were still many customers who preferred to deal face to face with an advisor when sorting out their energy services but they preferred this to be at a time and place that was convenient for them rather than from someone who just turned up on the doorstep. Staff from British Gas are planning to run events at community centres and in shopping centres to raise awareness of their offers and products as well as to offer advice to energy customers. They will still visit homes but only if an appointment has been arranged. Whilst many customers will be pleased to hear about the new measures, British Gas did point out that on the downside it would be difficult for job losses to be avoided. Consumer campaigners are pleased about the decision but are also keen to see other energy firms take heed. Audrey Gallacher, director of energy at Consumer Focus, said that she wanted to see other responsible suppliers following the footsteps of the two energy giants and listen to their customers. text/html 2011-10-11T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Customers will be able to enjoy more affordable choice on branded products http://www.loans4.co.uk/loan_news/news.php?item=1234-Customers_will_be_able_to_enjoy_more_affordable_choice_on_branded_products As most households know only too well, the rising cost of living has had a huge impact on their finances over recent years. More and more people are now trying to curb their spending when it comes to shopping by looking at prices from different supermarkets and shopping around the get the best deals and prices in order to keep the cost of shopping down as much as possible. This is something that the leading supermarkets have quickly picked up on, with the major supermarket giants in a constant battle with one another to claim the crown for the largest number of products that are cheaper than those of their rivals. Asda and Tesco have been locked in a battle to try and provide the cheapest prices for some years and it now seems that the other major supermarket giant in the mix, Sainsbury's, is keen to get involved in the price wars. Sainsbury's has now said that it will be matching the prices of thousands of branded products with both Tesco and Asda, which will come as good news for customers who will now have a wider choice of places to shop without running the risk of having to pay higher prices on a huge number of products. The scheme has already been trialled at twelve Sainsbury's stores in Northern Ireland and is set to launch here this week. Group Commercial Director Mike Coupe, was quick to point out that customers would not be expected to do their own research into which supermarket offered the cheapest prices on various products. He said that the supermarket itself would do all of the hard work and if prices on eligible products were found to be higher than Asda and Tesco when the shopper was checking out a voucher would be given to them for the difference, which the customer could then use on the next shop. This decision by Sainsbury's will heat up the competition amongst the supermarket giants even further, as each battles to win over customers from the rival supermarkets as well as from discount retailers such as Aldi. text/html 2011-10-10T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Payday loans sending more people into debt http://www.loans4.co.uk/loan_news/news.php?item=1233-Payday_loans_sending_more_people_into_debt One debt advisory service has revealed that the number of people falling into debt as a result of using payday loans has increased rapidly over the past two years. According to the Citizen's Advice Bureau the number of people running into debt due to payday loans has actually quadrupled over the past two years. Payday loans are designed as a short term solution for people who are in employment and need to borrow a small amount of money until they get paid. Whilst they can come in useful if used very occasionally in the event of a financial emergency such as an unexpected bill or repair, many people abuse them by rolling the loan over month after month or taking out these loans for something as unnecessary as a night out. The Citizen's Advice Bureau is now calling for stricter regulation on payday loans, stating that they are too easy to get hold of due to lack of credit and other checks. Some people turn to these loans out of desperation because they are aware that the checks and minimal but then find themselves in a situation where they have to roll over the loan month after months, incurring hefty fees as they go. Payday loans can be effective for those that use them properly and repay them promptly as well as using them only occasionally. However, with some of the loans charging a staggering 4,000% APR the costs can quickly mount up for those that do not repay the loan when its due and who use these loans on a regular basis rather than taking out a proper loan. The CAB wants ministers to take action in order to ensure that these loans are properly regulated to reduce the number of people who are experiencing debt problems as a result of them. The government claims to be doing research into the matter but has reportedly stated that placing a cap on the interest charged by such companies may not be the answer. It is claimed that the last government was reluctant to place further restrictions on payday lenders in case it pushed vulnerable consumers into the hands of unscrupulous and illegal loan sharks. text/html 2011-10-07T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Pet insurance customers left in lurch by Lloyds banking group http://www.loans4.co.uk/loan_news/news.php?item=1232-Pet_insurance_customers_left_in_lurch_by_Lloyds_banking_group Many pet owners are keen to protect the health of their pets as much as possible. With this in mind a huge number of pet owners decide to take out pet insurance cover to ensure that their cats, dogs, and other pets can get the medical treatment and attention that they need when they need it. Many of these pet owners took their cover with banks, including the Lloyds Banking Group, which have branched out over recent years to offer a range of financial services and products. However, Lloyds TSB and Halifax, which are both part of the Lloyds Banking Group, have left tens of thousands of customers in difficulty after deciding to pull out of the pet insurance market. Around fifty thousand customers are said to have been left in the lurch over the decision that has been made by the banking group. Many of those that had pet insurance with the banks could now face extreme difficulties getting affordable cover for their pets. Some may have to pay more for their cover than they did when they initially took it out because their pets have developed illnesses since they originally arranged cover for them. Some may even find that they can no longer get cover for their pets because of the nature of the illness that they pet has developed since the original cover with Lloyds and Halifax was taken out. Another issue is that some pet owners will have been paying for lifetime cover, which comes at a higher premium but claims to offer lifetime treatment and medical services for long term conditions, such as stomach complaints, diabetes, or arthritis. For those that have already made a claim against their cover the prospect of getting new cover elsewhere will also be a daunting one, as they may have to pay through the nose to get cover from another provider. The two banks, which have been selling pet insurance cover since 2000 (Lloyds) and 2002 (Halifax) have said that they will now be focussing their efforts on the 'core' insurance markets, such as home and motor insurance cover. text/html 2011-10-06T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Bank rate holds but more money to be injected into economy http://www.loans4.co.uk/loan_news/news.php?item=1231-Bank_rate_holds_but_more_money_to_be_injected_into_economy Following the October Monetary Policy Committee meeting the Bank of England has announced that the base interest rate is once again being held at its all time low of 0.5%. The MPC's decision for keep the base rate on hold again will not come as any great surprise to most industry experts. However, some may be surprised at the decision to plough more money into the economy through the quantitative easing scheme. Over recent years £200 billion has been pumped into the economy through QE. However, since 2009 no further money has been injected into the economy via the scheme. Since the coalition government came into power, therefore, QE has not been used as a means to aid the economy. However, after the most recent meeting it was announced that the QE programme would be used to plough a further £75 billion into the economy. The decision comes after recent calls for the QE scheme to be used again to help revive the economy, which grew by a less than expected 0.1% between April and June. In a statement the Bank of England said that the committee decided that it was necessary to pump more money into the economy in order to try and keep inflation on track over the medium term and to reduce a shift in the balance of risks. A number of groups have welcomed the decision to increase quantitative easing, including the Confederation of British Industry and the British Chambers of Commerce. However, the groups have said that whilst the move to expand QE will prove helpful in the short term its impact on its own will be limited. Ian McCafferty, the CBI's chief economic adviser, said that 'its impact on near term growth prospects is likely to be relatively modest' although he added that it would help to support confidence levels. The immediate reaction by some industry spectators and economists is that although it is good news and will help the economy the expansion of QE alone would not be enough and that the MPC really needed to look at other radical methods to work in tandem with this. text/html 2011-10-05T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Council tax freeze due next year http://www.loans4.co.uk/loan_news/news.php?item=1230-Council_tax_freeze_due_next_year For the many households that are worried about continued increased costs impacting on their finances, there has been some good news this week. The coalition government is planning to freeze council tax for next year, which will give consumers a little additional breathing space when it comes to their finances. Local authorities are said to be using over £800 million of their unused money in order to fund the move to freeze council tax. The chancellor, George Osborne, and other members of the government have been looking at ways to help residents and businesses to more easily cope with rising living costs and financial commitments and a freeze on council tax is one of the methods that has been highlighted. The government has admitted that they cannot do a great deal to help stimulate immediate growth in the economy but members believe that by giving consumers a little more financial leeway through measures such as freezing council tax this will eventually feel through into the economy. Speaking at the Conservative Party annual conference in Manchester, George Osborne stated that he was keen to help families and pensioners with the daily cost of living. Osborne has faced a huge amount of criticism over the spending cuts that formed part of his Spending Review and the damage that many claim this is doing to the economy in Britain. Some are surprised to hear that the government is planning to use the unused money from local authorities to freeze council tax rather than using it to further clear the public deficit. It is thought that the freeze will save the average household around £72 over the course of the year. The council tax freeze will, however, fulfil one of the promises that was made in the Conservative manifesto. In order to enable local authorities to provide this council tax freeze the government will be paying councils the equivalent of a 2.5% increase in the tax with fire services and police receiving the equivalent of a 3% increase. text/html 2011-10-04T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Improvement seen in consumer confidence levels http://www.loans4.co.uk/loan_news/news.php?item=1229-Improvement_seen_in_consumer_confidence_levels For the first time since May of this year, consumer confidence levels across the UK have increased. The GfK NOP consumer confidence index showed that after hitting a four month low of -31 in August, consumer confidence levels increased to -30 for September. Although confidence levels are still said to be around ten points below the figure in the same period last year, the signs of improvement for the first time in months has been seen as encouraging. GfK Managing Director Nick Moon said that although the increase in September was not hugely significant in terms of the level of the rise it was nevertheless ‘psychologically important’ because it ‘halts the decline of recent months’. The survey results showed that the consumer outlook when it came to the general economic situation over the next twelve months had increased from -27 to -31. There was also a slight improvement when it came to personal finance matters, with the outlook increasing to -10 from -11. There was further improvement in terms of the climate for major purchases, with levels increasing from -31 to -28. Moon stated that retailers would welcome increased activity when it came to High Street purchases, although he added that the picture would be quite different if consumers were rushing out to buy things such as ‘German fridges and Japanese cars’. Whilst these figures are encouraging a report was also released by the Confederation of British Industry, which indicated that retail sales dropped at their fastest pace in sixteen months in September. With consumers still cutting back on spending many High Street retailers are expecting continued low figures for October. However, with Christmas heading swiftly towards us these figures could quickly change as consumers flock to the High Street to purchase gifts for friends and family and spend money on new clothes and food for the festivities. The GfK NOP consumer confidence index survey was carried out on behalf of the European Commission and took place between September 2nd and September 11th with two thousand consumers taking part. text/html 2011-10-03T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Default retirement age fully abolished http://www.loans4.co.uk/loan_news/news.php?item=1228-Default_retirement_age_fully_abolished Having been phased out from April of this year the default retirement age in the UK has now been fully abolished. This means that due to the new legislation employers will no longer be able to force workers to retire when they hit the age of sixty five. This will come as good news for those that are not keen to retire as soon as they hit a certain age and means that those who feel fit and healthy enough to do so can continue to work and earn a living if they wish to. Many older workers have been devastated at being forced to retire from a job that they love simply because they have hit a certain age. One man who worked as an English teacher at a performing arts school said that he felt as though he was in his prime and was enjoying a job that he loved when he was served with a retirement notice. He said that it came as a real blow because he also needed the money as well as loving the job and would have liked to have continued working for some years. He said that whilst the legislation came in too late for him he was pleased for the many other people that were in his situation and were facing forced retirement even though they did not feel ready to give up their jobs. The legislation has also been welcomed by the charity Age UK, although the charity does believe that a lot of age discrimination still goes on in the workplace. One law firm has carried out research that indicates around one tenth of firms are planning to offer financial incentives to older workers in a bid to encourage them to move on when they reach a certain age since they can no longer force them to retire. This has been called the 'golden goodbye' and the law firm said that part of the reason some firms were indicating they would use this strategy was because they would otherwise be more limited when it came to taking on younger, new employees. Age UK said that many employers still saw pensioners in a stereotypical way, particularly when it came to recruitment. The charity said that this was why so many older people found it difficult to get a job even though they may be perfectly capable of doing the work. text/html 2011-09-30T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Elderly being warned about mobility aid scam http://www.loans4.co.uk/loan_news/news.php?item=1227-Elderly_being_warned_about_mobility_aid_scam Many elderly people in Britain are vulnerable in a variety of ways, which is often why they become the target of unscrupulous sales practices and scams, which can leave their savings accounts wiped out. One of the latest scams to emerge, where elderly and disabled people are being targeted, is in the mobility aids sector. The UK watchdog, the Office of Fair Trading, is warning consumers to be mindful of this latest scam and is promising to take action. The risks are said to come from unscrupulous doorstep sales people and traders who are offering mobility aids such as stair lifts. The OFT warned that buyers could end up paying 50% more than they would on the High Street for these mobility aids, with some being conned out of hundreds and even thousands of pounds by being overcharged. The OFT is said to have received thousands of complaints relating to this issue and said that it will be looking at measures such as removing the credit licences of firms found to be engaging in unfair sales practices or even getting officers from Trading Standards to prosecute. The complaints that the OFT has received relates to a range of mobility equipment such as adjustable beds, specially designed chairs, stair lifts and mobility scooters amongst other things. In some cases the equipment that the consumer had paid for failed to even show up. This, and the fact that much of the equipment is severely overpriced, has resulted in many victims of this scam being left hugely out of pocket. One elderly woman explained how she had paid £1,800 for a stair lift which failed to show up. Her old one had been disconnected and for five weeks she was left downstairs with no way of getting upstairs, having to use a commode instead of a toilet and having to sleep in a chair. The salesman who visited her and sold her the stair lift ended up being convicted of breaching consumer protection regulations and was also handed down a one year prison sentence. The OFT said that it wanted to make it clear to firms that were ripping off the elderly and infirm that action would be taken to put a stop to their practices. text/html 2011-09-29T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Mortgage approvals highest since December 2009 http://www.loans4.co.uk/loan_news/news.php?item=1226-Mortgage_approvals_highest_since_December_2009 The number of mortgages that were approved for property purchasers in August increased to the highest level since December 2009. This figure relates only to mortgage approvals not mortgage finance that has actually been advanced. The data comes from the Bank of England, which has stated that last month 52,410 mortgages were approved. This number of mortgage approvals was not only the highest since December 2009 but was also close to three thousand more than in July of this year. Many believe that the number of mortgage applications and property sales could increase over the coming months as a result of a slight relaxation in lending criteria from banks and financial institutions. Adrian Coles, director-general of the Building Societies Association, described the outlook for approval figures over the coming months as 'promising' adding that consumers were jumping at the chance to take advantage of more competitive rates and more relaxed lending criteria. The rise in mortgage approvals for August has come as a surprise to many, as analysts had forecast a drop from 49,644 approvals in July to 49,500 for August. Whilst mortgage approval levels are still far lower than they were prior to the financial crisis, the unexpected upward surge has been welcomed and is being viewed as encouraging. Over the past couple of years many people have struggled to get mortgage finance due to increasingly stringent criteria being put into place by lenders across the UK. This resulted in a huge number of would-be buyers scrapping the idea of even applying for a mortgage because they did not believe that they would be able to get approval in the difficult financial climate. This led to a rising number of people turning to private rented accommodation, which pushed up the cost of renting to record highs. It is hoped that news of the increased level of mortgage approvals coupled with more relaxed criteria from lenders will help to restore confidence in the mortgage markets and encourage more people to consider applying for a mortgage rather than settling for rental accommodation, which could then further push up the level of mortgage approvals in the coming months. text/html 2011-09-28T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Households worse off by £60 per month http://www.loans4.co.uk/loan_news/news.php?item=1225-Households_worse_off_by_£60_per_month A study which has been recently compiled has shown that households in the UK are around £60 per month worse off now than they were last year. The data comes from the most recent Asda Income Tracker, which showed that the spending power of families fell by around £14 per week in August. There are a number of factors that have been blamed for the drop in household spending power, including rising energy costs, increasing petrol and insurance prices, the higher cost of food and a freeze on salary rises. The £14 per week decline is said to be the biggest since records began at the start of 2007. The average family has been left with a weekly disposable income of £162, which reflects a drop of 7.9% compared to the same period a year ago. The cost of basic essentials has hit households hard, and with energy prices having recently been increased again just as the autumn approaches families could be facing an ever greater financial struggle in the near future. As an example of costs, families were paying an average 5.1% more for their electricity this August compared to last August and were paying in average 8.3% more this year for the gas. One of the largest drivers of the headline CPI inflation rate continues to be transport, with the cost of diesel having increased by 45.8% and the cost of insurance cover having increased by 74.7%. Further making the situation even worse is the fact that so many people have had their salaries frozen over the past couple of years, which leaves them having to pay out more due to higher living costs but with no extra money to do this. An Asda spokesperson said that the true cost of living was not starting to make a bigger impact on families. He said that with many people having had their salaries frozen or their pay increases capped, inflation was rising at twice the rate of earnings, petrol prices were at a record high, and energy costs continued to soar. He said this combination had resulted in the £14 per week reduction in spending power for families. text/html 2011-09-27T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Most Brits do not have adequate life insurance http://www.loans4.co.uk/loan_news/news.php?item=1224-Most_Brits_do_not_have_adequate_life_insurance It has been revealed that the majority of Brits do not have adequate life insurance cover in place, which could leave their loved ones in a very difficult predicament if something unexpected happens to them. In the current difficult financial climate many people have tried to make cutbacks when it comes to their outgoings and in some cases this has resulted in Brits taking out a reduced level of life cover or in some cases no life cover at all. Now more than ever it has become crucial for consumers – particularly main income owners – to have a plan in place to ensure that their loved ones have financial security and peace of mind for the future. As many people have realised over recent years, nobody knows what fate has in store for them and for main income earners who fail to take out adequate life insurance cover the security of their families could be at risk should the worst happen and they are no longer around to bring in their income. Insurance comparison company GoCompare recently carried out the survey and the results indicated that only a quarter of adults in the UK have actually taken out sufficient cover or had adequate cover to pay off the mortgage and other debts in the event that they passed away. Around 17% of those that were polled said that they were worried about how their death would impact on their families. However, worryingly a huge 65% said that if they could afford to spend an extra £10 per month they would prefer to spend it on playing the lottery than on purchasing life insurance. The main reasons why people said that they failed to adequately cover themselves properly included cost and apathy. The survey also showed that around one tenth of people felt that they had not taken action early enough and had left it too late to get adequate cover. A spokesperson from GoCompare said that some people found it difficult to consider life insurance because it involved them thinking about their morality. However, he said that it was vital for consumers to think ahead to provide security for loved ones and peace of mind for themselves. text/html 2011-09-26T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Consumers keen to repay debts http://www.loans4.co.uk/loan_news/news.php?item=1223-Consumers_keen_to_repay_debts Recent figures that have been released have indicated that consumers are keen to pay off their debts whilst taking a very cautious attitude to new borrowing. Major banks have said that customers seemed to exercise caution over new borrowing in August and were primarily focusing on repaying their existing debt. Figures from the British Banker's Association have shown that repayments on unsecured debts outstripped new borrowing by around £100 million in August. The data did show, however, that there had been an increase in home loan lending, which was higher than the previous month and up by 14% compared to the same period last year. The figures do show that borrowing is still subdued when compared to historic levels, with the BBA stating that consumers are loathe to saddle themselves with increased debt in the current climate. David Dooks from the BBA said there was strong evidence to suggests that households did not want to take on more unsecured debt in the current climate and that businesses were looking to see trading conditions improve before taking out more credit for expansion. This caution did not appear to spread as far as mortgages, with a rising number of people appearing to be keen to take out a mortgage loan so that they can get onto the property ladder. This could be related to the fact that private rents are continuing to soar, which means that non-homeowners may be paying a fortune each month simply to rent someone else's property. Figures showed that the number of mortgage approvals increased from 75,314 in July to 78,288 in August. It has been difficult for those looking to take out a mortgage over recent months, as the mortgage market has remained restricted with demands for high deposits continuing from some lenders. At the same time rents have been soaring, leaving many stuck in a catch 22 situation where they cannot get a mortgage without saving a hefty deposit but they cannot save a deposit because of the soaring cost of renting. text/html 2011-09-23T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Ofcom report looks at communications complaints http://www.loans4.co.uk/loan_news/news.php?item=1222-Ofcom_report_looks_at_communications_complaints We all pay allot of money for our communications devices and services each year, which includes our home phones, our broadband services, and our mobile phones. However, data would suggest that not everyone is happy with what they get for their money from communications firms, with a range of complaints continuing to flood in to the communications regulator Ofcom. The latest data from Ofom has shown that the most complained about provider in the UK when it comes to phone services and broadband is Talk Talk, which received the most complaints from April to June. During the same period the least amount of complaints correspondence relating to phone and broadband services was for Virgin Media. Ofcom did state that despite Talk Talk receiving the most complaints correspondence improvements had been noticed since the last report, which was published in October of last year. When it came to mobile phones the highest number of complaints was received by the mobile network provider 3, with many complaints being received about customer service issues and disputed charges. The least number of complaints for mobile network providers was received by O2. In the last report of this type, which Ofcom released in October, both Talk Talk and 3 came in as the firms with the most problems in terms of complaints, so there has been no change in that respect. In fact, the type and level of complaints received about Talk Talk last year resulted in Ofcom hitting the provider with a massive £3 million fine for incorrectly billing tens of thousands of customers. After the latest report was released a spokesperson for Talk Talk said it was encouraging to see that its performance and complaints levels had improved since the last report. The company said that it is committed to providing good customer service levels as well as high quality services and products, and that it was aware that there was still a long way to go. Mobile network operator 3 described its increase in complaints levels as a temporary 'blip' stating that the figures were disappointing and that the company would be working with Ofcom to try and understand what the main issues were. text/html 2011-09-22T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Housing prices expected to fall a further 4% before market stabilising in 2012 http://www.loans4.co.uk/loan_news/news.php?item=1221-Housing_prices_expected_to_fall_a_further_4%_before_market_stabilising_in_2012 A recent Reuters poll shows that nervous sellers are staying away form the market as a challenging economy dampens down the amount of buyers in the market place. Since the height of the housing market bubble, house prices have fallen by approximately 20% – 25% dependant upon the area of the country and the property type. A combination of job worries, tight day to day budgets, and large utility bill price rises are all playing there part in stopping consumers looking to purchase property. Although the bank of England base rate remains at an all time low, the factors mentioned along with high deposits required by mortgage lenders, and the government spending austerity measures are making for a stagnant market for the foreseeable future. Prices are expected to end the year at a 1.5% - 2% drop from the end of 2010. It is anticipated that the exception to the rule will be London, where prices will rise slightly next year when the rest of the UK remains flat. This is due to demand in London always outstripping supply. In the US it is relatively the same picture, though the houses prices percentage fall has dropped lower than the UK, there is an expected rise in US property prices for 2012. The good news for homeowners is that many industry experts do not expect the base rate to rise until 2013 in order to aid the economic recovery as much as possible. In terms of monthly approval rate, this currently stands at 50,000 – 55,000 mortgages taken out each month. Although stable, this is still almost half of what it was just 4 years ago, with the pre-crunch mortgage approval rate being 105,000 per month on average. text/html 2011-09-22T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Gross mortgage lending 10% higher than same time last year http://www.loans4.co.uk/loan_news/news.php?item=1220-Gross_mortgage_lending_10%_higher_than_same_time_last_year The Council of Mortgage Lenders have confirmed activity levels in the mortgage market generally remain subdued but broadly stable. In August the gross mortgage lending was £13.4 billion for August 2011, up from £12.1 for the month of August 2010. The CML said the stable description even though a 10% increase was seen last month, was due to the fact that in July the lending was much lower than expected, but with August high figure and July low figure combined, the figures even themselves out over the two month period. text/html 2011-09-21T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Another super-complaint launched by campaign group http://www.loans4.co.uk/loan_news/news.php?item=1219-Another_super-complaint_launched_by_campaign_group A consumer campaign group has launched another super-complaint, this time with regards to the charges and fees imposed when consumers change sterling into foreign currency for their trips abroad. The super-complaint has been submitted to the Office of Fair Trading by Consumer Focus, which claims that banks and financial institutions were charging an estimated £1 billion a year in foreign currency charges but that not all of this was warranted. Whilst Consumer Focus has said that it is not sure how much of the estimated £1 billion was warranted, it has illustrated how the cost of changing the same amount of sterling can vary widely for exactly the same service. The group claims that changing £500 into euros can cost the consumer between £10 and £30, which is a large variation. The banking industry has stated that it is very disappointed that Consumer Focus went directly to the OFT with a super-complaint without speaking to the banks about its concerns beforehand. It said that a report had shown that only 15% of holidaymakers got their foreign money from banks and that many went to other institutions that were not normally involved in financial dealings. In the meantime, Consumer Focus has also questioned the fairness of the various charges that are imposed on travellers who use their credit card or debit card whilst overseas. The watchdog has said that travellers take an estimated £10 billion abroad with them collectively each year and that consumers needed to be treated fairly. A spokesperson for the group said that individual who were buying money often failed to realize that it paid to shop around because of the variation in costs on exchanging money, and this meant that many of them could be losing out in terms of what they are paying for their foreign currency. The group described the fees for currency exchange as 'a cocktail of confusing charges' and wants banks and financial institutions to be far clearer about the cost of processing and the fees that are charged. It is also calling for the simplification of charging structures when it comes to using cards whilst overseas. text/html 2011-09-20T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Energy customers need to consider switching for more competitive deals http://www.loans4.co.uk/loan_news/news.php?item=1218-Energy_customers_need_to_consider_switching_for_more_competitive_deals As most people already know, the big energy firms in the UK have recently hiked their prices amidst protests from campaigners and consumers with regards to the ever increasing cost of energy. With the latest round of energy price rises many households have been plunged into even more financial trouble, with their monthly outgoings increasing once again against a backdrop of frozen wages and falling benefits. Many of those that have been hit with the price hikes have resigned themselves to the fact that they will have to pay these prices for their energy usage, as they have seen the various reports about different energy suppliers increasing their electricity and gas usage costs over recent weeks and therefore believe that no matter which energy supplier they go with they will still be paying the same huge price for their energy usage. However, a recent report has suggested that whilst the big energy firms have increased their prices once again recently, there is still competition in the market which means that there are still some competitive deals out there when it comes to energy prices. This means that consumers who take the time to compare different energy deals from a number of providers could find that they are still able to reduce their energy usage bills in order to help keep outgoings down. Whilst the big six energy firms have indeed increased their costs, some have increased them by less than others, which mean that consumers could find that they are still better off by switching to another provider. Some of the firms also have special fixed rate deals in place as well, which also provides consumers with an opportunity to keep costs down. Many may find that they can get better deals by looking into online tariffs from a different provider to their existing one, such as a deal from Scottish Power which launched has a new online tariff cheaper than it’s rivals. text/html 2011-09-19T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited OFT moves on to investigate dentist charges and treatment http://www.loans4.co.uk/loan_news/news.php?item=1217-OFT_moves_on_to_investigate_dentist_charges_and_treatment After spending the last few years focussing on bank related charges and whether they are fair and justified, the Office of Fair Trading is moving onto dentist charges due to apparent confusion in the market. The regulator is set to study charges in both the private and the NHS dentistry market and will be looking at a range of aspects of the service as well as the pricing structure. The regulator is due to look as areas such as the choice that consumers have when it comes to dental practices, the different types of treatments that are on offer, how easily dental practices can be changed, and the payment methods that are available to consumers. The inquiry is due to be completed by March of next year. A spokesperson for the OFT said that there appeared to be a lot of confusion amongst consumers with regards to the prices that they were being charged for various treatments. She added that there was also a concern that consumers were not receiving adequate information or choice when it came to their dental treatment or practice. The cost of private dental treatment in the UK is now amongst the highest in Europe according to figures, and this is something that the OFT is also acutely aware of. The spokesperson said that given the financial struggles that so many consumers were now facing in the difficult financial climate now was the best time to look at whether competition was working effectively in terms of improving services and providing consumers with better value for money. Whilst the OFT will not have the power to make dental practices change the amount that they are charging for treatments it is able to look at whether there is sufficient competition in the market and whether this is working properly to benefit the consumer. For the many people that do not qualify for free treatment the cost of going to the dentist has become something that they cannot afford, which means that many are letting their dental health suffer simply because they cannot stretch their finances far enough to afford dental check ups and treatment. text/html 2011-09-16T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Rents rising at fastest pace in twelve months http://www.loans4.co.uk/loan_news/news.php?item=1216-Rents_rising_at_fastest_pace_in_twelve_months Whilst a number of reports have shown that rents have soared over recent months as demand for private rental property continues to rise, it has now also been revealed that rents have increased at their fastest pace in the last twelve months in August. According to a survey carried out by LSL Property Services the average tenant is now paying a whopping £713 per calendar month for renting a home, reflecting an increase of 1.2% in August compared to the previous month. The group said that this was the fastest private rental increase in the space of a year with costs rising the quickest in Wales and the South East of England. The group also added that tenant arrears had increased last month for the first time since April. David Newnes, LSL's estate agency managing director, said August was one of the busiest months of the year for renting and a further surge in demand for rented homes had resulted in rents increasing at their fastest pace in twelve months. He added that this increased demand had been driven by a number of factors, including recent graduates who were moving for their first jobs. He also said that in the last two years average rents had increased by more than £50 per month. LSL believes that over the coming months private rental costs will continue to increase, which will come as bad news for the many people who are being forced into the private rental market due to restrictions on getting mortgages and the huge waiting times for properties with social landlords. Many other people are renting because they are not sure that this is a good time to buy but may be forced into making a decision before they are ready simply due to the increasing cost of renting, which is considered to be dead money for the tenant. August saw tenant arrears increase for the first time since April of this year, with 10.7% of rent either unpaid or late by the end of August. This increased from 9% at the end of July. text/html 2011-09-15T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Young drivers spending thousands to get on the road http://www.loans4.co.uk/loan_news/news.php?item=1215-Young_drivers_spending_thousands_to_get_on_the_road The cost of running a car is high for most drivers these days, with everything from the cost of petrol to the cost of insuring the vehicle having increased. However, for young drivers the situation is even more dire and according to recent reports younger drivers are shelling out thousands of pounds in order to take to the road. Younger drivers are now said to be spending a staggering £4,500 on average in order to get on the road. The data has been compiled by Cooperative Insurance, which said that the average cost of getting on the road included the cost of a vehicle, the cost of insurance cover, paying to tax the vehicle, paying for driving lessons and tests, and getting a provisional licence. The data shows that a typical eighteen year old owns a Vauxhall Corsa costing around £,1450 and spends £2,294 on insuring their vehicle. The cost of driving lessons has been worked out to an average £480 and based on taking an average of two driving tests young drivers will shell out £124 on driving test fees. With costs such as tax and theory test fees added in this makes up the total cost to an average £4,500. Although the cost of taking to the road has soared over recent years, the data also showed that new motorists are now buying their first cars younger than ever, with the average person now owning their first car at just eighteen years of age. This is four years earlier than their parents' generation according to Cooperative Insurance. It was also found that 53% of people aged between eighteen and twenty five who were buying their first car were e relying on help from their parents or family members in order to purchase a vehicle whereas more than three quarter of those aged forty five and over purchased their first car themselves. The Co-op said that the research showed that although younger drivers were getting their first car far earlier than their parents did, they were also paying a hefty price for taking to the road. text/html 2011-09-14T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Ofcom takes action to protect phone and broadband customers http://www.loans4.co.uk/loan_news/news.php?item=1214-Ofcom_takes_action_to_protect_phone_and_broadband_customers Many people in the UK end up wasting a lot of money each year as a result of being tied into contracts with their landline or broadband service or paying costly fees in order to opt out of their contracts. Part of the problem is that some providers make consumers commit to lengthy contracts in order to get the best deals. Another problem is that some providers use Automatically Renewable Contracts, which means that if the consumer does not actively cancel the contract at the end of the current period the contract is automatically renewed for yet another lengthy period. As a result of these Automatically Renewable Contracts many people end up being forced to stick with a provider that they may not be satisfied with or which does not offer value for money. Alternatively they end up having to pay costly fees to get out of the contract even though they did not actively renew the contract themselves. The UK's communications regulator Ofcom has now decided that it is taking action to protect consumers against this potentially costly practice by putting an end to providers being able to automatically tie consumers into long term landline or broadband contracts from December of this year. It is estimated that around 15% of consumers in the UK are currently on these Automatically Renewable Contracts according to Ofcom, and one of the providers that uses them is communications giant BT. Ofcom has said that these contracts effectively reduce competition in the market by restricting the ability of consumers to compare and switch deals. The watchdog said that in most cases all these contracts did was tie people into lengthy contracts, often against their wishes, and provide them with little to no benefit. The regulator has said that the contracts will be banned from the end of December, which means that consumers will no longer have to worry about being locked into contracts that they have not actively contacted the provider about to renew themselves. Many believe that this could lead to improved services, as providers will have to rely on this to hang on to customers rather than making them stay by locking them into contracts. text/html 2011-09-13T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Leading travel company could be breaking the law http://www.loans4.co.uk/loan_news/news.php?item=1213-Leading_travel_company_could_be_breaking_the_law It has been claimed by the consumer campaign group, Which?, that the leading travel firm Thomson could be in breach of the law with regards to the way in which it promotes deals in order to try and secure sales more quickly. Thomson is the UK’s largest travel firm but campaigners believe that it is promoting some of its deals in a way that results in the company breaking the law. A recent investigation has shown that in one case the company advertised a flight, suggesting that there were only a handful of seats left on it. However, it then went on to release more seats on the flight at a lower price. The Association of British Travel Agents (ABTA) has said that the way in which some offers are advertised could be clearer. One consumer who felt that he had been ripped off over a flight that was advertised by Thomson, claims that the travel company misled him over his purchase when he was buying seats on a Thomson flight to Florida. He said that he quickly booked two seats on the flight recently, paying just under £500 per seat, after he saw the words 'hurry, only three seats left' next the cost of the flight. However, the following day he checked and found that not only had more seat on the same plane been made available but that the cost had been reduced to just £411 per seat, reflecting a savings of close to 20% on what he had paid. The consumer said that he now felt as though he had been pressured into purchasing the seats as a result of the way that the seats had been advertised in terms of availability. However, TUI Travel, which owns Thomson, said that when the booking was made there was very limited availability of seats but that availability had been reviewed after the customer had made the booking. However, a spokesperson from Which? said that it felt that the travel firm was breaking the law, stating that it was illegal under consumer protection regulations for consumers to be forced into making a decision in this way. text/html 2011-09-12T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Many broadband users spending unnecessarily on mobiles http://www.loans4.co.uk/loan_news/news.php?item=1212-Many_broadband_users_spending_unnecessarily_on_mobiles There are many people who have become reliant on mobile broadband and internet services, both for business use and for pleasure. Mobile broadband has provided a huge number of people with convenience, ease and flexibility, enabling them to hook up to the Internet, download content and more whilst they are on the move. However, a recent survey has revealed that many people may be spending money on their mobile broadband service unnecessarily because they do not realise that they actually have access to free WiFi as part of their broadband plan. Alarmingly, around 90% of broadband users in a recent survey were found to be totally unaware that they had access to free WiFi and were therefore using their own data allowance or paying for mobile downloads that they could actually get for free. With millions of people having no idea that they can use free WiFi it is likely that a staggering amount of money is being wasted collectively by broadband users. According to figures around six million BT home broadband customers have access to free and unlimited WiFi when not at home but the vast majority are not even aware of this. Experts have said that when customer purchase broadband plans they are usually quick to take note of features such as the speed of the broadband and the cost of the service. However, they often fail to take note of the additional benefits that they get with their service such as free and unlimited WiFi access. There are over three million BT WiFi hotspots that customers of the communications giant have access to as part of their home broadband agreement, which means that they can use free WiFi services at a range of locations and in a variety of different areas when out and about without the need to use their own data or pay for data services. A spokesperson for BT said that the company had tried to promote this offer and make people aware that they had this benefit as a feature of their service by running a marketing campaign last year. text/html 2011-09-09T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Mortgage approvals at fifteen month high in August http://www.loans4.co.uk/loan_news/news.php?item=1211-Mortgage_approvals_at_fifteen_month_high_in_August Figures have been released showing that the level of mortgage approvals for the month of August have hit a fifteen month high. The data comes from the surveying group e.Surv, showing that August saw the highest year on year increase since May of last year. In July of this year approvals stood at 49,239 but in August this increased to 49,566 in August of this year. The figures also indicate that things are looking brighter for first time buyers who have been struggling to meet the increased deposit demands from lenders over the past couple of years. This is because around 10% of mortgages that were approved in August went to buyers who had a deposit of 15% or less of the value of the mortgage loan. Improvements in the market for first time buyers were further suggested by the data showing that almost a quarter of these mortgages were for up to £125,000 in value, which is the typical first time buyer price bracket. This figure was the highest since April of this year. Industry experts believe that competition is returning to the mortgage market after the recent launch of the first 100% mortgage since before the global credit crunch. This combination of data will come as good news for first time buyers, many of whom have encountered one problem after another in terms of trying to get a mortgage and get onto the property ladder. However, despite this encouraging news one expert said that it was important that consumers did not get carried away and assume that the problems in the mortgage markets were over. He said that the fact that the criteria in the mortgage market had been relaxed slightly only made ' a small dent in the vast backlog of buyers stuck in the rental market'. Another industry expert said that the cheapest mortgage deals were still being reserved for those that had a high deposit of around 30% or more, so whilst those with smaller deposits may find it a little easier to get a mortgage they would not necessarily get a competitive deal. text/html 2011-09-08T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Base rate held again at 0.5% http://www.loans4.co.uk/loan_news/news.php?item=1210-Base_rate_held_again_at_0.5% The base interest rate has been held once again at its record low of 0.5% following this week's Monetary Policy Committee meeting. Most economists had been expecting rates to remain on hold given concerns about the UK's economy and so the decision by the Monetary Policy Committee will not come as any great surprise to most. Once again the Bank of England has also confirmed that it will not be extending its quantitative easing scheme, which was initially set up under the Labour government. The decision to keep the base rate on hold is likely to be met with mixed responses. For savers the decision will come as bad news, as it will mean that savers will continue to lose money on their savings. Figures show that savers have already missed out on around £43 billion on their savings due to rock bottom interest rates. On the other hand the decision to keep rates on hold will be welcomed by borrowers and homeowners with mortgages. Mortgage borrowers are said to have gained £51 billion as a result of mortgage reductions stemming from the low base rate and many will be very relieved that the base rate has remained low and their repayments will therefore also remain low. The MPC is likely to have come under increased pressure this month as a result of the Chancellor George Osborne recently admitting that short term predictions for growth had been downwardly revised due to the economy weakening. With this in mind MPC members may have felt more pressure to keep rates on hold rather than to increase them in a bid to try and bring inflation down. The base interest rate has now been at its all time low of 0.5% since March 2009. There are mixed predictions with regards to when experts believe that the rates will increase, with some predicting that it will be early next year when rates finally rise and others predicting it could be later next year before this happens. However, the majority do believe that it will be next year rather than this year before the base rate rises. text/html 2011-09-07T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Teens seek help from debt charities http://www.loans4.co.uk/loan_news/news.php?item=1209-Teens_seek_help_from_debt_charities It has been reported that hundreds of teens aged around eighteen and nineteen are having to seek advice and assistance from debt charities due to the problems that many are experiencing with it comes to budgeting. One leading debt charity, the Consumer Credit Counselling Service, has stated that personal budgeting problems are affecting many people in this age group, leaving many facing debt issues. Around 753 people aged eighteen and nineteen are said to have contacted the Consumer Credit Counselling service for advice last year, which was lower than the number of people that contacted the charity in 2009 but higher than in 2008. The biggest issue for people of this age group was personal budgeting issues according to the charity. A lack of budgeting was found to be causing issues for people in their late teens, causing them to seek help from debt charities. Many of the people who are looking for advice are school leavers who are just starting out after leaving their full time education and already facing issues with their finances. The Consumer Credit Counselling Service is now concerned about people who they class as 'inbetweeners' who are part of the generation that is able to get credit cards and finance or the first time. Whilst many older people in their twenties upwards are struggling in terms of their finances, the fact that teens are now leaving school with the burden of debt on their shoulders is something that may concern many people. In a breakdown of the figures the charity stated that the average debt owed by people in this age group who contacted the charity was £2254. The average amount that was owed on personal loans as £2610, with the average amount owed on overdrafts standing at £671 and the amount owed on credit cards averaging £898. The typical age of the average caller contacting the Consumer Credit Counselling Service is between 40 and 44 years. Last year the charity counselled around 186,000 people about their debts and financial worried and only a small proportion was made up of young people still in their late teens. text/html 2011-09-06T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Landlords get better returns by renting to students http://www.loans4.co.uk/loan_news/news.php?item=1208-Landlords_get_better_returns_by_renting_to_students Buy to let investors have plenty of choice available to them when it comes to renting out the homes that they have in their portfolio. With the huge demand for private rental homes at the moment, private landlords are able to make solid returns on their investment, with no shortage of people to rent their homes, which means that they are unlikely to be left with a void property that they struggle to let. This month in particular can be very lucrative for private landlords, as many decide to rent out their homes to students who are starting out at or going back to university. According to a recent report landlords are often able to make better returns on their investment by renting out to students, which means that this month will prove to be financially rewarding one for many landlords, as the money starts rolling in from their rental homes. According to one report, the main reason why private landlords are able to get better returns by renting out to students is because they are able to rent their homes on a per room basis rather than based on the whole property. By renting out on a per room basis landlords are able to earn an average annual rental income of 6.45%. This compares to an average annual rental income of just 5.94% when renting out property to a young couple. Figures show that based on area the highest annual yield for private landlords is found in the West Midlands, where there are nine universities including Birmingham and Warwick Universities. Here the yield is 6.5% per year. The yield in Yorkshire is almost as high, at 6.4%, with fourteen universities in the area including Sheffield and York. Whilst landlords are said to be able to enjoy a considerably better rental income and return on their investment, experts have also warned that there may be more challenges faced by landlords renting their properties to students. This includes a higher degree of maintenance and repair required in many cases, which landlords then have to factor into the equation. text/html 2011-09-05T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Backlog of PPI complaints clearing http://www.loans4.co.uk/loan_news/news.php?item=1207-Backlog_of_PPI_complaints_clearing Following the loss of its court battle over claims for Payment Protection Insurance that was incorrectly sold, the banking industry has spent several months trying to trawl through a backlog of PPI complaints and claims that had been mounting up whilst the court case was still going through. A huge number of claims had been put on hold whilst the decision was made by courts as to whether banks would be liable to pay out on these claims. After it was decided that banks would indeed be responsible the major High Street banks had a job on their hands, to try and get through the huge number of pending and mounting claims as quickly as possible, It has now been revealed that banks have managed to clear an impressive 97% of their huge backlog of complaints relating to PPI. Around 200,000 complaints had been put on hold whilst the legal battle was going on and after losing this battle banks were told to deal with the massive backlog. The banks were given until the end of August by the Financial Services Authority, by which time they needed to have either settled the complaints or rejected them. Figures show that there are now fewer than six thousand complaints that are still outstanding. The FSA said that it was encouraged that most banks had used the time given to them efficiently in order to try and clear the backlog of claims. In the meantime many fresh complaints about PPI have been pouring in, with consumers who have seen the outcome of the court case and decided that it could be worth taking action. Any fresh cases that come in to the banks between 1st September and 31st December will need to be responded to within twelve weeks according to the FSA guidelines for banks. From January of next year banks will return to the original response time of eight weeks to respond to customer complaints that come in. FSA figures show that in the first half of this year the top sixteen sellers of PPI had paid out a total of £215 million for mis-sold cover, with almost 50% of this being paid out in May and June. text/html 2011-09-03T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited US files lawsuits against banks, including top UK ones http://www.loans4.co.uk/loan_news/news.php?item=1206-US_files_lawsuits_against_banks,_including_top_UK_ones Up to 17 banks and financial institutions are to be sued by the US authorities concerning the sale of mortgage backed securities that the banks named sold prior to the US banking and housing crisis. HSBC, Barclays, and RBS have all had court claims filed against them. The US Federal Housing Authority claims that there were violations in the sale of the mortgage backed securities and is seeking damages in respect of negligent misrepresentation and as a result meant that some US mortgage lenders collapsed and had to be rescued by the US authorities due to this. In particular it is alleged that the loans sold had more risky characteristics than the descriptions contained in the marketing and sales materials provided. The RBS says it will vigorously defend itself against all the allegations that have been made. Of the other non UK banks, names in the action being brought, include Bank of Americe, Citigroup, JPmorgan, and Merrill Lynch. text/html 2011-09-02T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Coupons and vouchers become a national obsession http://www.loans4.co.uk/loan_news/news.php?item=1205-Coupons_and_vouchers_become_a_national_obsession It appears that Brits are becoming increasingly obsessed with vouchers and coupons, which will not come as a great surprise to many given the financial difficulties that many people now face due to the rising cost of living. In the past searching out coupons to save money was something that was often associated with older people such as pensioners. However, these days everyone seems to be keen to seek out special deals and vouchers in order to save money each month. With the range of discount and voucher websites that are now in operations along with discount vouchers that come with supermarket loyalty points and those found in newspapers and magazines, consumers certainly have more options than they used to when it comes to finding coupons and vouchers. For many people these vouchers save them a significant amount of money on their outgoings. However, there are also people that fall into traps when it comes to discount coupons and vouchers, which can actually leave them out of pocket rather than saving them money. Whilst some people look for coupons to save them money on something that they plan to spend on anyway, whether it is a meal out or a special purchase there are others that will make a purchase based on the fact that they have a coupon for money off, even if they had no plans to make that particular purchase prior to finding the coupon. Coupons and vouchers can be extremely useful and a great way to save money if you are getting money off something that you planned to buy anyway, whether it is a weekend break, a meal out, or simply groceries from the supermarket. However, if you are making the purchase as a direct result of having the coupon you will actually end up spending money that you wouldn't normally have spent. One industry expert said that it was a great idea for consumers to trawl the internet and look for coupons to help them to save money. However, she added that it was important that consumers were able to draw the line between saving money on things that they were going to buy and buying something simply because they could save money on it. text/html 2011-09-01T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Slight drop in workless households http://www.loans4.co.uk/loan_news/news.php?item=1204-Slight_drop_in_workless_households The number of workless households in the UK has dipped slightly over the past year. These households are ones where no adults aged between 16 and 64 are in employment. Figures have been released by the Office for National Statistics showing that between April and June of this year there were 3.88 million workless households. This figure equated to 18.8% of all households and reflected a fall of 38,000 or 0.3% over the past twelve months. There was also a slight increase in the number of households where all adults between 16 and 64 were working, which increased by 0.5% up to 53.5% compared to a year ago. The figures showed that the majority of workless households were ones where all of the adults in the household were 'economically inactive' such as people that had retired. This scenario accounted for 14% of households whereas households where all of the adults were actually unemployed came to only 3%. In 2% of cases it was a combination of unemployed and economically inactive adults that were in the household. The falling number of workless households was largely driven by a large drop in the number of economically inactive households, which fell by 82,000 in the past year taking the total down to 2.92 million. According to the ONS economically inactive adults now account for around three quarters of workless households. There was an increase in the number of households where all adults were unemployed, which increased by 37,000 over the past year taking the total to 583,000. The ONS said that the movements reflected changes in the number of people that were out of work over that same period. The agency also said that over the same period there was an increase in the number of households where no household member aged sixteen or over had ever had a paid job, which increased by 18,000 to 370,000 in the second quarter of this year. The figures from which the ONS data was compiled came from its quarterly Labour Force Survey, which entailed polling 53,000 households across the UK. text/html 2011-08-31T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Banks to tell customers to cut back on spending when rates increase http://www.loans4.co.uk/loan_news/news.php?item=1203-Banks_to_tell_customers_to_cut_back_on_spending_when_rates_increase It has been reported that Britain's banks are planning to phone thousands of struggling families in the UK to tell them to cut their spending in other areas when interest rates increase or face losing their homes. According to reports more than thirty thousand homeowners will be contacted by their banks and will be advised to spend less money on things such as their mobile phones, cable or satellite television services, nights out and other luxuries. It is claimed that two tax-payer owned banks are already carrying out secret checks in order to identify the highest risk homeowners who could find themselves struggling to make payments on their mortgages in the event that interest rates increase. Those that are identified as being high risk will be contacted by the banks and advised to cut down on spending in other areas so that if interest rates increase they will have more disposable income to spend on making repayments on their mortgages rather than risking losing their homes. Industry experts have said that although banks do carry out credit checks on customers as a matter of course, this level of checking on customers that had already been approved for mortgages was unusual. According to UK Asset Resolution, which will be making the calls, around thirty thousand customers from the two banks that are carrying out checks could be in danger of falling behind with repayments if the base interest rate rises from the current record low of just 0.5%. The company is planning to contact around two thousand customers per week by phone in order to advise them about where to cut back in order to reduce their outgoings and prepare themselves for a possible rate rise and mortgage repayment increase. It is also possible that the firm will check with credit reference agencies in order to ascertain which customers have increasing debt levels and financial commitments. One industry expert said that whilst some people simply would not be able to manage once interest rates increased there were many others who could be steered in the right direction with some early advice on cutting back on spending. text/html 2011-08-30T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Housing action needed for economic recovery http://www.loans4.co.uk/loan_news/news.php?item=1202-Housing_action_needed_for_economic_recovery The NHF claims that the government needs to take more action over the housing crisis in the UK in order to aid faster economic recovery and solve the housing shortage problem that the UK is experiencing. Calls for more action over the housing crisis have been made by the National Housing Federation, which is concerned that the crisis is now affecting home ownership levels in the UK as well as boosting rents, which continue to rise from month to month in most areas. The NHF described the UK as having a 'chronic under-supply of homes' and that the government needs to take action to address the issue. However, the government has said that it has made more public land available for building and it investing around £4.5 billion over the next four years on new low cost homes. The NHF claims that this equates to a cut of 63%. The group said that it was not just lack of affordable housing that it was worried about, but also the lack of affordable alternatives to home ownership. A spokesperson for the NHF stated that economic recovery in the UK could be boosted and the housing crisis would be addressed with increased investment from the government. Grant Shapps, the Housing Minister, has said that his plans are set to 'get Britain building' again. He said that this was why he had announced that thousands of acres of public land would be released for house building. He also said that despite the fact that the government was meant to be on an austerity drive it still planned to plough £4.5 billion into an affordable homes scheme that would deliver up to 170,000 new homes over the next four years. He added that this exceeded the government's original expectations. Over recent years the level of homeownership in the UK has been on a downward spiral due to a number of factors, including the level of property prices, the difficulties that many have faced in getting a mortgage and the high deposits that lenders have been demanding. Experts from Oxford Economics have further claimed that the levels of homeownership could fall from 67% to 63.8% over the next decade. text/html 2011-08-29T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Further Quantitative Easing may be required http://www.loans4.co.uk/loan_news/news.php?item=1201-Further_Quantitative_Easing_may_be_required On Tuesday this week the money supply figures for July will be released by the bank of England, and it is likely that the effects and benefits of the original quantitative easing programme have now warn off and a new round may be required shortly, meaning an extension of the banks £200 billion money creation scheme. Quantitative Easing allows the Bank of England to create new money and buys assets from the private sector, which in turn releases much needed cash in to the economy rather than it being trapped and 'un-spendable' in hard to sell assets as is at the current time. Member of the Bank's Monetary Policy Committee are split though on if or not now is the right time to introduce more easing, with some members suggesting a further £50 Billion should be made available, with other saying it is not yet required and the committee should hold of on it. One of the factors the members look at when deciding, is the amount of money circulating in the economy. Previously, the money supply figures for June showed money circulation was down by £1.4 billion in July, which means less notes, coins, bank deposits, and bonds, being circulated and spent or transacted. Other figures the Bank will publish on Tuesday are those concerning the mortgage and housing markets, along with personal debt levels, which are all thought to be steady or showing a slight improvement. text/html 2011-08-26T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Brits failing to make savings on mobile phones http://www.loans4.co.uk/loan_news/news.php?item=1200-Brits_failing_to_make_savings_on_mobile_phones In the current financial climate it has become more and more important for consumers to look at ways of cutting back on their monthly outgoings. Many people are struggling to make ends meet each month but some are failing to make cutbacks in areas where they could easily reduce the amount they are paying for certain services without compromising on the level or quality of service that they receive. Recent reports have shown that many Brits are paying over the odds on their mobile phones and have become stuck in a rut when it comes to their provider. Competition in the mobile phone market is stiff, which means that consumers are able to access better deals from providers that are trying to win customers from rival providers. However, despite this opportunity almost twenty million mobile phone users have failed to ever switch their mobile phone provider and are missing out on savings as a result. Consumer group Which? has said that many people simply stay with the same provider through convenience or loyalty, but as a result of this many may be missing out on significant savings. A spokesperson for Which? Mobile said that if consumers had been with the same mobile provider for a number of years then the chances were they would be able to get a better deal elsewhere if they took the time to look around. He said that it could really pay consumers to shop around and see what other providers had to offer, as there were bound to be a range of deals that could beat the one that consumers were currently on if they had not bothered to compare or switch for years. Figures showed that whilst 90% of consumers find the process of switching provider easy, some are put off because they believe that the process might be a lengthy and difficult one. However, in the past two years around 5.3 million have switch their mobile provider and claim to have paid less after they made the switch to another provider than when they were on the deal that they had previously been on. text/html 2011-08-25T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited OFT confirms complaints increasing over scam fees on loans http://www.loans4.co.uk/loan_news/news.php?item=1199-OFT_confirms_complaints_increasing_over_scam_fees_on_loans It has been confirmed by the Office of Fair Trading that the level of complaints relating to scam fees on loans has been increasing. The complaints relate to businesses that demand upfront fees from those looking for a loan but then fail to actually arrange a loan, despite having been paid the fee as requested. The advice service Consumer Direct received a total of 3,167 complaints in the twelve months leading to the end of June this year, which was significantly higher than the 2,059 complaints that were received the previous year. The Office of Fair Trading has been urging consumers not to pay a fee before they have received a loan and has said that it is putting into place regulations that will help to protect borrowers against this sort of scam. The figure from the OFT suggest that in the previous year around 270,000 people paid upfront fees to have loans arranged for them. Consumers are now being advised to avoid paying any money upfront and if they are unsure of a company to carry out checks and look for reviews online to see whether other people have experienced any problems with the same company. David Fisher from the Office of Fair Trading said that the OFT had seen a definite increase in the number of complaints relating to companies who took no interest in the credit history of the applicant, demanded an upfront fee for finding a loan, and then disappeared with the money without making any attempt to arrange a loan for the applicant. He said that consumers needed to make sure that they checked out a company thoroughly before making a decision to use them. This included getting a physical address and landline telephone number for the company, ensuring that the firm had a valid credit licence, and conducting a search online to find out as much as possible about the company. The OFT has already pledged to come down hard on rogue credit brokers to get them closed down as well as to take action so that it is easier for those that have paid fees to get their money back in the event that they do not get a loan. text/html 2011-08-25T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Bank customers’ ATM access restricted http://www.loans4.co.uk/loan_news/news.php?item=1198-Bank_customers’_ATM_access_restricted Customers of Lloyds TSB, NatWest and RBS have been told that their access to ATMs will be restricted as of next month, with the poorest customers of the banks being the ones that are affected by the new rules. Lloyds TSB and RBS, both banks that have been bailed out with money from the public purse, have decided to prevent some of their poorest customers from using cash machines that belong to rival banks. For many customers this will cause a huge amount of inconvenience, as they will be restricted to using certain ATM machines. The banks have decided that customers who only have basic bank account, which is often those on low incomes or who are experiencing financial problems and find it difficult to get a traditional bank account, will only be able to use the banks’ own cash machines and not those of rival banks. Most holders of current accounts are able to use any cash machine that is part of the Link network, which enables them to enjoy convenience and ease. However, the new regulations will mean that those with basic banks accounts with these banks will no longer have this freedom. Experts are concerned that not only will these restrictions reduce the convenience and ease that basic account holder with these banks can enjoy but that it could also reduce access to free ATM machines for basic bank account holders by a massive 80%. RBS has said that its decision was based on the cost of allowing customers to use other banks’ cash machines. The decision could further fuel concerns over free banking in the UK coming to an end. The process of restricting access to other cash machines for basic account holders it set to be rolled out over the coming months. Customers who are affected by the move will be contacted in writing by the banks. The banks said that now that they faced a per transaction fee for their customers using others’ cash machines it had become unsustainable to allow all customers to freely use other cash machines. text/html 2011-08-24T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Banks say Merlin deal is not a good idea going forward http://www.loans4.co.uk/loan_news/news.php?item=1197-Banks_say_Merlin_deal_is_not_a_good_idea_going_forward The Merlin deal which was last year signed by the banks, makes sure the banks stick to targets on bonuses and small business lending, including some contributions to a new Business Growth Fund, as well as the Big Society Bank , and for investing in SME’s. The banks involved in the Merlin deal are Barclays, HSBC Bank, Lloyds group of banks, RBS, and Santander. This year though the banks are joining together in their wish not to be held to any new Merlin deal. The banks are holding talks and may present a united front concerning this when they meet minister later in the year. It it thought the general opinion is that the deal is far to wide ranging and distracting away from the banks already vast spread of products and markets and it may be restricting them operating in a competitive environment. The banks also say that there has been little benefit to anyone over the past year under this scheme and as such it it rather more a hindrance than a help. Bonuses are an issue as the banks say they need to pay bonuses to UK staff as paying uncompetitive salaries compared to US and European based rivals would not be good for the UK economy. It is expected that the lending targets will form the major part of any new agreement, though the banks consider lending targets need to be realistic and not create an over lending to people or companies who will struggle to make repayments, causing a bigger problem in effect with people and businesses default on payments increasing sharply. It is expected that other than lending targets, minister will not push or be to demanding regarding renewing the present scope of the deal. The audited Merlin report date for the first half of 2011 will be released on Friday. It is expected to confirm that the banks have met their overall lending targets however not the all important lending targets concerning SME’s. text/html 2011-08-23T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited BRC reports on level of empty shops http://www.loans4.co.uk/loan_news/news.php?item=1196-BRC_reports_on_level_of_empty_shops The retail industry has been profoundly affected by the state of the economy and the recent recession and this has been reflected in recent figures that were released by the British Retail Consortium. Many towns and cities across the UK have seen their High Streets transformed, with many smaller shops and even large well known chains like Woolworths and MFI having gone out of business over the past few years. These closures and many others, have left gaps on the High Street. The British Retail Consortium has recently released figures showing that at the end of May more than one tenth of High Street shops in towns and cities across the UK were vacant. The average vacancy rate was found to be 11.2% in the UK. However, in Northern Ireland, which was the worst hit area, the vacancy rate soared to 17.1%. The next worse hit area was Wales, where the vacancy rate stood at 13.4% and the North of England was next, with around 13.1% of shops standing vacant. According to the BRC there are a number of factors that have contributed to the closure of retail businesses and the economy in general. Job losses, frozen pay and soaring living costs have all affected consuming confidence and spending ability, which has had a knock on effect on the retail industry. The BRC also reported a drop in overall footfall in July, which refers to the number of people passing through shops’ doors. This fell by 1% compared to July of last year. Wales saw a 9.2% drop in footfall, with the West Midlands seeing a 6.6% drop in footfall and a 6.2% fall in the east of England. However, in London footfall increased by 1.6%, the South West saw a 0.4% increase in footfall and Scotland saw a 0.2% increase in footfall. text/html 2011-08-22T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Strong demand sees rental prices continue to rise http://www.loans4.co.uk/loan_news/news.php?item=1195-Strong_demand_sees_rental_prices_continue_to_rise Figures have been released showing that due to continued strong demand rental prices on property across England and Wales are continuing to increase. Private rents increased to £705 per month on average for July, reflecting an increase of 0.6%, which was the sixth consecutive increase on private monthly rents. The figures were released by the property group LSL Property Services, with the firm stating that average rents in July increased to £29 per month more than the same period in 2010. London has seen the fastest increase in rental prices, with average rents increasing to £1009 per month in July, reflecting an increase of 7.1% compared to a year earlier. David Newnes from LSL said that rents were continuing to increase across England and Wales and that it was unlikely that tenants would see the situation change any time in the near future. He added that soaring demand from thousands of people was restricting competition in the property rental market, enabling private landlords to increase their prices on rental homes. He also said that whereas in the past parents had been known to help their kids raise a deposit to put down on a mortgage so that they could purchase property of their own it had now reached a stage where parents were having to help their kids raise a deposit to put down on a rental home, as the increases in rental prices also equated to an increase in rental deposits. The typical one month deposit in areas such as London is over £1000, and Newnes said that it was now becoming increasingly common to find young people hoping to rent a home turn to 'the bank of Mom and Dad' to try and get the money together to secure a rented home. One industry expert said that tenants were stuck in a catch 22 situation. He said that the current situation in the mortgage sector was driving would be buyers to rent because they could not afford to save a deposit to buy. However, this rising demand was then pushing up rental prices making it even harder for tenants to save a deposit to purchase a home, which then strengthened demand for rental homes even further. text/html 2011-08-20T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited RBS to withdraw ATM access for free basic account customers http://www.loans4.co.uk/loan_news/news.php?item=1194-RBS_to_withdraw_ATM_access_for_free_basic_account_customers RBS has announced that it will no longer allow withdrawals from other banks cash machines, such as Barclays, HSBC, Lloyds, and Santander, for RBS customers who are using free basic bank accounts. The bank has said the customers concerned will still be able to use ATM’s for the RBS and also NatWest, and the move has been prompted by banks changing other banks when the card issuing bank’s customers use the other bank for convenience. RBS says the decision is due to the inability to recover the costs involved when basic account customers withdraw money from its rivals cash machines. Customers can also use Tesco ATM’s free of charge also, which in total equate to over 8,000 ATM’s across the UK. The charges incurred are not retrievable from the free basic type account holders so the bank at present just looses there charges, which than have to be indirectly recovered from other customers, such as customers with fee paying accounts or those who pay charges and fees on other products. The RBS deems this as unfair to the wider customer base of the bank that it can be said are effectively paying for customers who make no contribution to the charges from other banks ATM machines. An RBS spokesman said the bank is still fully committed to offering a free basic account for people who may otherwise struggle to access banking services Consumer group, Consumer Focus, said it was disappointed by the RBS decision and said it harms the groups efforts in getting the estimated 1 million people in the UK who do not have bank accounts, in to the banking system, and also rural customers who have been previously affected by bank branch closures, may now have no local ATM facility to use. The RBS spokesman added that free cash withdrawals were also available over the counter at post offices. text/html 2011-08-19T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Kids see pocket money rise despite economic climate http://www.loans4.co.uk/loan_news/news.php?item=1193-Kids_see_pocket_money_rise_despite_economic_climate Whilst most people who are working for a living have seen their salaries being frozen or in some cases even cut over the past couple of years, the kids of Britain have enjoyed experiencing something of a different trend. According to recently released figures pocket money for children has actually increase, albeit by a very small amount, despite the difficult financial climate that many households are facing. The figures show that pocket money for children has increased for the first time in eight years, having increased by an average 36% per week. Whilst this is not a huge amount of money in the grand scheme of things it is, at least, going in the right direction for kids, which is more than can be said of many of their parents' wages. The average amount of money that is now received by kids aged between eight and fifteen years is £6.25 per week according to recently released figures. Whilst this reflects an increase of 6% over the past year, figures show that it is still lower than the amount that was being paid in 2003, which was an average sum of £8.37. Surprisingly given the difficult financial climate, there has been no change in the number of children that are receiving pocket money compared to eight years ago, which still stands at 83%. Prior to 2010 the amount of pocket money that children had been receiving had been falling for the previous seven years. Industry experts said that they were surprised to see that pocket money had increased and that the same number of kids were receiving pocket money despite the economic problems. The average amount being received by kids aged twelve to fifteen years old was said to be £7.30 per week, whilst at the bottom of the scale those aged eight to eleven years were getting around £5.05 per week. The highest amount of pocket money was being received by those aged fifteen, who received £8.38 on average each week. These figures were compiled from a survey that involved polling 1,202 children aged from eight to fifteen years. text/html 2011-08-18T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited More high earners become reliant on overdrafts http://www.loans4.co.uk/loan_news/news.php?item=1192-More_high_earners_become_reliant_on_overdrafts Recent figures have shown that an increasing number of higher income earners in the UK are now becoming reliant on their overdraft facilities, as the difficult financial climate starts to impact on upper income earners as well as low and middle income households. Figures have shown that in 2008 around 15% of higher income earners used their overdraft facilities of more than £1,000, however this is now said to have increased to over 30% of high income earners. The data is from a survey that was carried out by the credit reference agency Experian, with the research spanning a period of three years. The results showed that many higher income earners were now using their overdrafts of more than £1,000 on a regular basis, which reflects how the financial climate is now taking its toll on those that may have been previously unaffected by financial problems. A spokesperson for Experian said that more and more families had started to rely on overdraft facilities in order to balance their finances but he said that this was not always the best option for those that needed to borrow money. He said that whilst it was inevitable that more people would need to borrow money in the current financial climate, it was where the money was borrowed from and the form of borrowing that could make a huge difference to consumers. He said that in many cases it was cheaper to borrow via a personal loan than through regularly using an overdraft facility. However, he added that it was important for those that were considering a personal loan took the time to compare the rates and deals available, as research suggested that in the past two years around 47% of adults who had applied for credit had failed to search out the best rates. The report found that many of those applying for finance in the last two years had opted for more expensive forms of borrowing even in cases where they did not have a poor credit rating and history and may therefore have been eligible for more affordable forms of borrowing. text/html 2011-08-17T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Customers of EDF energy overcharged http://www.loans4.co.uk/loan_news/news.php?item=1191-Customers_of_EDF_energy_overcharged It has been revealed that a seven year fault on the automated reading system of energy giant EDF Energy has resulted in around 100,000 energy customers being overcharged by the company. The energy firm has confirmed that its faulty system charged customers at the new higher rate for energy used before prices increased. It is thought that customers may have been overcharged by around £200,000 collectively, with one customer said to have been asked for payment of £500 more than was owed. EDF Energy has said that it will be reimbursing affected customers, including paying them interest. The problems have been occurring between 2003 and 2010 during periods when the energy company changed its prices. The fault occurred when customers received an estimated bill but then contacted the energy company with an actual reading. All of the additional units for the billing period are said to have been charged at the new prices. Whilst in some cases this did lead to some customers being undercharged for their energy usage, EDF Energy has said that it will not be pursuing these customers for payment. It will, however, be reimbursing those who paid more than they should have done for their energy usage due to the glitch in the system. EDF also said that whilst around 100,000 customers had been overcharged because of the problem with the system, in the majority of cases the overcharging was only by around £5 or so. The accounts of customers that have been overcharged will be automatically credited by the end of September, including any interest that is due. EDF will also be repaying the overcharges to consumers who used to be customers and were overcharged as such but who are now no longer with the company for their energy. For former customers the energy company will be contacting them in writing to explain what has happened and how they can claim the money that is owed to them. A spokesperson for the company said that EDF wanted to apologise to customers for what had happened and that action had been taken as soon as the problem was identified. text/html 2011-08-16T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Energy bills heightened by ghost customers http://www.loans4.co.uk/loan_news/news.php?item=1190-Energy_bills_heightened_by_ghost_customers Recent data has shown that many households may be paying over the odds on their energy bills because of the growing number of 'ghost customers'. Households are already facing a real struggle when it comes to paying their energy bills, with the cost of energy usage having soared recently. However, it has been suggested that energy firms are also distributing the losses from their 'ghost customers' across their database, which then results in a hike in the bills of honest households who do pay their bills. These ghost customers include those that have moved out of a property without settling their energy bill. There are also those that claim to have been unable to identify their supplier due to regular changes. Many of the so called ghosts are thought to be renting property and simply do not register with a new provider, which results in the previous tenant getting billed and refusing to pay the bill. It is thought that with more and more people having to rent property in the current climate, this is a problem that could continue to get worse, which could mean that the impact on household energy bills could continue to get worse. It is estimated that the average annual increased amount on household bills as a result of these ghost customers, comes to around £125 a year. Experts have warned anyone in rented accommodation to ensure that they check their bills from utilities companies carefully to make sure that they are not paying for someone else's usage, particularly if they have only just moved into the property. New renters should also try and find out who the existing supplier for gas and electricity at the property is and ringing them to provide a meter reading on the day of moving in. In the meantime, research has shown that there are many consumers who have failed to switch their energy provider in the last fifteen years despite the variety of price increases that have been imposed. It is believed that because of this some may be paying hundreds of pounds a year more than they need to. text/html 2011-08-15T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Doorstep sales to be ended for three months by British Gas http://www.loans4.co.uk/loan_news/news.php?item=1189-Doorstep_sales_to_be_ended_for_three_months_by_British_Gas Energy giant British Gas has said that it is to end doorstep selling for a three month period, following in the footsteps of other energy companies that have stopped utilising doorstep selling over recent months. Scottish and Southern Energy recently stopped doorstep selling after the style of the sales method was called into question by MPs and British Gas has now said that it believes the sales format is outdated. A spokesperson for British Gas said that the company will continue to employ the staff that engages in doorstep sales but they will be kept on in an advisory role rather than as sales agents for doorstep selling. There are around four hundred staff members who currently undertake doorstep selling for British Gas. Consumer Focus, the watchdog group, has pointed out that many people ended up switching to a worse deal than the one that they were currently on after doorstep sales. British Gas itself has described this method of making sales in its current format as being an outdated way for energy firms to find new customers. The company added that customers no longer saw this method of selling as being a 'preferred or trusted' one. MPs questioned the effectiveness of doorstep sales for consumers after it was revealed recently that a massive 40% of consumers who switched due to doorstep selling actually ended up switching to a deal that was worse than the one that they had been on. British Gas has already slashed the number of doorstep sellers that it has, cutting it from 1300 in 2006 to just 400 now. Ian Peters of British Gas said that doorstep selling was no longer considered a sustainable way of engaging with customers or building a relationship with customers. He said that the company wanted to ensure that customers received trusted advice that would be provided at a time and place to suit them. The doorstep sales will be suspended for three months initially after which British Gas will review the situation. Consumer group Which? has said that if the suspension is only a temporary one then it will count for very little. It also expressed concerns that energy companies would find alternative cold calling methods to use instead of doorstep sales. text/html 2011-08-13T00:00:00+01:00 http://www.loans4.co.uk Loans4 Limited Repossessions and arrears hold steady thanks to low base rate http://www.loans4.co.uk/loan_news/news.php?item=1188-Repossessions_and_arrears_hold_steady_thanks_to_low_base_rate A leading industry body has recently stated that the level of repossessions and mortgage arrears in the UK is being held down thanks to the ongoing low rates of interest. The mortgage rate has been on hold for well over two years, remaining at its record low level of just 0.5%, which is the lowest it has ever been in the history of the Bank of England, which spans well over three centuries. The Council of Mortgage Lenders has now said that level of arrears amongst mortgage holders in the UK along with the level of repossessions has been kept lower because of this rock bottom interest rate, which has kept a l