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Archive for November, 2006

Credit Card Fraud Declines

Thursday, November 30th, 2006

The first six months of 2006 saw a 5 per cent decrease in credit card fraud. This is according to the latest figures from banking association APACS.  This is a £219.5m drop to £209.3m.

CNP fraud accounts 46 per cent of losses, £95.3m compared to a 29 per cent increase between 2005. Counterfeit card fraud losses are up 16 per cent to £53.0m. Store based fraud decreased 43 per cent to £42.1m, following a 35 per cent decrease from the year before.

Cheque fraud is down to £16m, from £21.6m in the first half of 2005, a decrease of 26 per cent.

The study continues to reveal that Internet, phone and mail order fraud increased in the same period. Online bank fraud losses rose by 55 per cent from £14.5m in the first six months of 2005 to £22.5m in the same period this year. Phishing scams are still the main cause of online fraud, not purchasing products from vendors.

Sandra Quinn, director of corporate communications at APACS, said: “These latest fraud figures show that the industry’s efforts are making their mark. However, each and every one of us can also help defeat the fraudsters, and protect our cards and online accounts, by keeping our PINs, passwords and personal information safe and secure.”

APACS reports that the major segments of UK consumers are not aware of the damage a fraudster can do to their Consumer Credit Information.

Card fraud abroad increased by 16 per cent as fraudsters target countries that have not implemented the chip technology. The European banking industry plans to fully integrate chip authorisation technology by 2010.

Posted in Card fraud, Credit Card, Financial news, Identity theft, Spending, UK Finance | No Comments »

More and more British Women in debt

Thursday, November 30th, 2006

The figures speak for themselves. More and more British women are in an unmanageable debt situation. With student loans, credit cards and store cards, as well as higher and higher mortgages, many people are finding debt to be a major problem. While this is true for all sections of society, a lot of media attention is being focused on women in debt at the moment. This is partly because more women live alone these days and are financially independent, while in the past it was usually men and couples who were in debt.

Contrary to what many may think, female debt is not all down to clothes and expensive lunches with friends whilst shopping. While credit cards and store cards are a major aspect of female debt in the UK at the moment, student loans and mortgages are just as much of an issue. Many people assume that if a bank will lend them a mortgage, then they must be able to afford it, and they are very surprised to learn that they are having difficulty repaying their mortgages even when they are earning good salaries and are working in good jobs.

The secret to staying in control of your finances is knowing your income, knowing your monthly outgoings, and keeping within a realistic budget. If you want something, save your money and pay for it outright, don’t put it on a credit card and end up paying for it forever. Unpopular as it may seem, waiting until we can actually afford the things we want may be the answer to a lot of people’s debt worries.

Posted in Bad Credit, Borrowing, Consumer Credit, Consumer debt, Credit Card, Financial news, mortgages, Personal loans, Spending, Student debt, UK Finance, Unsecured loans | No Comments »

Banks Attack IVAs – Again

Wednesday, November 29th, 2006

Ian Mullen, chief executive of The British Bankers’ Association (BBA), said: “Individual voluntary arrangements can be appropriate in some cases, but we are concerned that young, inexperienced and vulnerable people are being targeted by adverts and mail shots which lead them to believe they will be able to walk away from responsibilities. ”

He added: “The results for their long term financial position could be disastrous as they may find in years to come that they can’t get a mortgage or raise a loan to start a new business. This would not just be bad news for them but bad news for the whole of the UK economy.”

The BBA, press advertising is expect a challenge to a number of claims made by providers that they can clear 90 per cent of debt.

Market research shows that eight out of ten firms do not provide adequate information about their service, costs and the consequences of entering into different arrangements. The most damaging fact is that many consumers do not realize that the IVA will garnish 99% of the consumer’s wages for the IVA, if the consumer works overtime, the IVA receives this. However, it does not necessarily mean that the IVA will be paid off earlier, or that the consumer will see any benefit.

Nine out of ten IVA firms fail to explain alternative options and their consequences. Most firms only focused on the advantages and push the writing off of debt as a bonus. When , in fact, if a consumer can arrange their own debt consolidation program to relieve their debt within five years, they are better off in the long-run.

Posted in Bad Credit, Borrowing, Consumer Credit, Consumer debt, Financial news, Financial products, Insolvency, IVAs, UK Finance | No Comments »

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