Two years ago the Office of Fair Trading (OFT) declared that default charges on credit cards were too high and suggested capping these at GBP 12. But market analysts say that although lenders have reduced penalty charges, they have also resorted to desperate measures to recoup lost revenue including hiking rates and fees elsewhere.
Officials from the credit cards market have suggested that some consumers may be able to get the high interest rates on their credit cards reduced simply by contacting their providers and negotiating with them. An official from Fool.co.uk recently said that many credit card customers were getting a raw deal on their interest rates, stating: “The typical Annual Percentage Rate on popular credit cards is around 16 per cent, which is over three times higher than the Bank of England base rate.
Hundreds of thousands of British homebuyers who opted for foreign currency mortgages with lower interest rates are the latest victims of the property crunch. Latest statistics now show that the euro has soared by nearly 20 per cent against sterling during the last year. The euro has climbed more than 19 per cent against the pound since this time last year, meaning that borrowers whose earnings are denominated in sterling must dig deeper to make their repayments.
Expert Author: Mildred Parker | Category: Insurance British consumers are being overcharged for Payment Protection Insurance by GBP 1.4 billion a year due to a lack of competition in the market, according to a watchdog. The Competition Commission made the disclosure today adding that the market for the insurance, which protects credit repayments if the holder is unable to work or loses their job, was failing to work competitively, leaving distributors able to charge higher prices.
Two thirds of people in Britain will not buy property in the next 12 months, according to a new survey. The poll by myfinances.co.uk suggests that falling house prices and the weakening economy has hit would be homebuyers. The study further shows the scale at which Brits have now lost their appetite for property.
Beating the mortgage crunch may seem like an uphill task for many homeowners but industry sources insist that it always pays to seek independent advice from a mortgage broker as they can advise on products from the whole of the market. Currently, homeowners and lenders are raising their rates in the wake of Bradford and Bingley crisis as the mortgage market continue to suffer a clampdown.
The mortgage market could destined for a better future as lenders continue to offer reduced rates. But with First Direct resuming mortgage lending, the signs suggest that the market could be entering a softer period in the mortgage crunch. First Direct has also announced that it will start offering mortgages to new customers again, after pulling its range at the start of April.
Nearly half of British teenagers intend to get credit cards when they are adults, according to a new survey. The survey by insurer Axa further revealed that 44 per cent of teenagers aged between 15-17 years are keen to take out a credit card when they become an adult. The Axa study which specifically looked into the financial habits of British teenagers also found that 18 per cent of respondents are keen to take out a loan when they turn 18 while a further 17 per cent confidently believe that they would be overdrawn.
Millions of Brits escape abroad for their holiday breaks, and a new report by moneyextra.com suggests that paying a holiday using a credit card is the best way to go. Reports by Moneyextra.com show that the credit card offers good financial cover for British holiday makers are better protected against separate elements of their break.
This week Abbey has launched a new credit card that will allow consumers to enjoy lower and fewer fees. The Zero Card enters the market at a time when many lenders are cutting back on financial products that cannot stand the pressure of the credit crunch. The launch of the Zero Card earlier in the week coincides with reports that customers in the UK continue to be hit by the rising costs in increased fees and charges over the past two years, according to a recent report.
Credit card consumers in the West continue to fall victims to cash-card scammers long despite the availability chip and pin technology. Latest figures suggest that credit card fraud is still on the rise as con artists perfect ways of siphoning money from consumers bank accounts. Reports reveal that criminals are getting more techno savvy and are now transporting abroad personal information from where they then take the money.
Poor inflation judgment by the Bank of England has pushed interest rates to soaring levels for a second day running, suppressing any hopes of looming cut in new mortgage rates. Three-month sterling Libor, the benchmark rate used to price many loans, soared by 0.04 percentage points to 5.84 per cent, bringing the rise to 0.08 per cent in just two days and wiping out most of the improvement of the previous three weeks.
Expert Author: Mildred Parker | Category: Insurance A research by Lloyd’s show that UK businesses could soon be faced with increased litigation challenges following the global credit crunch, which has created a future insurance liability crisis. The report warns that the credit crunch crisis means that the risk of liability insurance for businesses is a real and expensive matter if they do not face up to growing litigation issues.
A probe by a Financial Services Authority [FSA] has revealed that insurance companies are failing to comply with rules designed to ensure consumers get the best deal. The City watchdog uncovered the failings in “wake up” letters from insurers targeted at people approaching retirement. The letters highlighted the “open market option” [OMO] which offers the customer the option to scour the market for most competitive annuity contract, rather than buy it from the insurer with which their pension has been saved.
A new poll shows that UK housing prices will fall 5 per cent this year and market analysts believe that it could get worse as a result of the soaring consumer inflation which limits the scope for interest rate cuts. The poll conducted by Reuters show that the annual basis varied from a 10 per cent fall to a 2.9 per cent rise with a median forecast of a 5.0 per cent drop in UK housing market.
Controversy is brewing over race insurance cover for landowners adjoining the course only days before the TT. Island-based farmers' insurance firm NFU Mutual says ACU got it wrong when some landowners were told they would not be covered by the race promoter's insurance if they allowed spectators on their land. However, ACU dismissed the allegations and insisted that NFU Mutual got it wrong and was simply hiding that fact.
UK house builder Barrat Developments has reported decline in sales and raising cancellation rates as conditions in the market deteriorate “significantly”.
