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Thu 30th Nov, 2006
Posted in UK Finance, Credit Card, Card fraud, Spending, Identity theft, Financial news at 11:26 am by admin
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.
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Posted in Bad Credit, Consumer Credit, Personal loans, UK Finance, Credit Card, mortgages, Consumer debt, Student debt, Spending, Unsecured loans, Financial news, Borrowing at 11:25 am by admin
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.
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Wed 29th Nov, 2006
Posted in Bad Credit, Consumer Credit, UK Finance, Consumer debt, IVAs, Financial products, Financial news, Borrowing, Insolvency at 12:34 pm by admin
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.
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Posted in Consumer Credit, Homeowner Loans, Banking, UK Finance, interest rates, mortgages, Consumer debt, Homeowners, First time buyers, Property, Financial news, Housing news, Borrowing at 12:33 pm by admin
For many people, the prospect of taking out a mortgage with a standard twenty five year term is a daunting prospect. However, if you have ever complained about the term of your mortgage, and the length of time it will take you to repay it, then take a look at the new mortgage from the Abbey that is being offered to teenagers.
The Abbey’s new mortgage is offered at a term of fifty seven years. This, says the bank, is the only way that such borrowers can afford to get on the housing ladder and buy a property that they can live in. Tesco Personal Finance, part of the Royal Bank of Scotland group, also offers mortgages of up to fifty two years.
These loans, say critics, are forcing young people to enter into extraordinary commitments that bare no relation to the reality of the situation. It is difficult to imagine anyone, let along a teenager, being able to properly understand the nature of a mortgage which will last well past their working life, and will stretch to the limits of their life expectancy.
Many have concerns about the lack of freedom and the restraints that such mortgages will put on such borrowers and the effects that this will have on their long term decisions and life paths. There has also been raised, concerns on the grounds of fairness, especially when one looks at the amount of interest that is being repaid if a mortgage is taken on over such extraordinary periods.
Lenders say that they are simply finding ways to allow more young people onto the property market and that as borrowers’ incomes rise as they get older, they will be able to increase their rates of repayment and clear themselves of the debt at a more usual pace.
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Tue 28th Nov, 2006
Posted in Bad Credit, Consumer Credit, Personal loans, Debt Consolidation, Homeowner Loans, UK Finance, Credit Card, mortgages, Consumer debt, Homeowners, Unsecured loans, Financial news, Borrowing at 12:38 pm by admin
Indebted consumers are being urged not to seek a ‘quick-fix’ solution by consolidating their debts, Citizens Advice has said. The statement was in response to a report by the BBC’s Watchdog programme, which showed that some consolidation companies were not adhering to pledges to pay off a client’s debt.
Moira Haynes, spokesperson for the organisation, said that problems could arise when consumers look for a quick solution to their problems.
She said: “I think people just need to be wary of being offered what looks like a magic wand as it may not be the right thing for them and it may actually cause them more problems than it solves.”
In fact, the advertising suggesting that “there is an instant solution and that consumer can write off all their debts” is in some degrees a false statement.
Ms Haynes also explained that if indebted customers came to the group to receive advice they would not be pushed into choosing one particular solution.
This is important for UK consumers facing debt. There are many personal loan venues that the consumer can arrange themselves, free of the debt consolidation fee, that will, in fact, accomplish the same task of eliminating debt, without putting the consumer’s lifestyle and property at dire risk.
The best method is to switch unsecured personal loans to a more affordable secured loan. However, many UK consumers overlook this option because they are uncomfortable dealing with branches, and they are unaware of the alternatives – like online brokers. The consumer’s fear of putting collateral against their loan is unfounded. If a person defaults on an unsecured loan, they are still at risk of losing their property whether it is through court action or insolvency.
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Posted in Bad Credit, Consumer Credit, Homeowner Loans, UK Finance, mortgages, Consumer debt, Homeowners, House buying, Financial products, First time buyers, Property, Financial news, Housing news, Borrowing at 12:36 pm by admin
Many readers will recall the period in the early 1990s when tens of thousands of British home owners were forced into a position of negative equity. This is when the amount you owe is more than the actual value of your home. It means that for many, they cannot afford to sell their house, as there will still be thousands of pounds outstanding on their mortgage which they simply do not have the funds to repay.
Negative equity is always a risk when house prices drop, but many say that borrowers today are more at risk of the situation than ever in the past. This is because of the growth in popularity of the 100% mortgage.
For many, the 100% seems like a great way of getting onto the property ladder without having to come up with a large deposit. It can mean getting on the property ladder sooner, which in today’s housing market, can make the difference between being able to afford the house you want, and simply being priced out of the market.
However, it also means that the borrower is extremely vulnerable to a decrease in the value of his or her home. If you put down a 10% deposit on your home, you are borrowing the other 90%. If you house falls in value by 5%, your equity is still 5% greater than the value of your debt. However, if you have put down no deposit, and your home falls in value by any amount, you are immediately in a negative equity situation.
Exacerbating this situation is the growth of mortgages that are in excess of 100%. These mortgages mean that the borrower is immediately in a negative equity situation and will remain so, even in a healthy housing market, for a number of years. Many say that the growth in negative equity is a recipe for disaster and will lead to more defaults and repossessions.
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Fri 24th Nov, 2006
Posted in Consumer Credit, Personal loans, Homeowner Loans, Banking, UK Finance, Consumer debt, Financial products, Unsecured loans, Financial news, Borrowing at 12:59 pm by admin
Banking Business Review released a report that highlights how Britons apply for and borrow personal loans. Most UK consumers go through direct channels to acquire a personal loan. In 2005, Datamonitor estimates that direct distribution accounted for 87.7 per cent of personal loan advances.
Retail banking has seen branch closures as banks try to focus on cheaper distribution. However, in the last 12 to 18 months the tide seems to be turning and a number of banks have been opening branches.
Due to the structure of the secured personal loan market, direct distribution is not as common as it is for unsecured personal loans. There are only a small number of lenders in the secured personal loan market. This changes how they deal with consumers. Media reports suggest that consumers shop online for secured loans, through a broker, as well as seek out a direct channel.
Some secured personal loan lenders lend directly to consumers. However, the majority lend exclusively through intermediaries like brokers, both online and brick-and-mortar. There are significantly more brokers than lenders. A few maintain high profile TV and newspaper marketing campaigns, others operate via the Internet, while others have little brand presence.
The report goes on to say offer an in-depth analysis of the personal loan market, showing where opportunities lie. The market for personal loans, secured and unsecured, is strong.
Other Media highlights the act that while unsecured loans are still the easiest to acquire, secured loans are more affordable. This makes them a better deal, and has them attracting the attention of consumers looking for a debt consolidation alternative.
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Posted in Consumer Credit, Banking, UK Finance, Savings, Financial products, Spending, Financial news at 12:26 pm by admin
Perhaps in response to recent OFT investigations into penalty fees, First Direct has decided to introduce monthly fees to customers. This is probably an attempt to recoup revenue that would otherwise be lost were fee capping to be introduced.
Head of News and Press at moneyfacts.co.uk Andrew Hagger, comments on the decision:
“First Direct has a reputation within the banking industry for its high levels of customer satisfaction. By operating via telephone and internet channels, it doesn’t have the service issues associated with running retail outlets on the high street.
“For the 15% of customers (approx 195,000 people) that First Direct estimates will be impacted by the new funding requirements, it will be interesting to see how many are prepared to make First Direct their primary bank, or are prepared to pay the monthly fee in order to continue to receive a good level of service.
Mr. Hagger also suggested that customers also have the option of closing their account and transferring it to another provider, but cautions that it is only a matter of time before other banks and building societies introduce a similar charging structure. In other words, banking clients could find themselves back at square one, potentially paying a monthly fee and facing poorer customer service.
Hagger further commented: “Customers have been somewhat lethargic in switching current accounts in the past, purely on the basis of interest rates on competitor products. However, when monthly charging and customer service levels are thrown into the equation, will these factors be the catalyst to make them vote with their feet?
“This move from First Direct is no real surprise, especially when only just over three months ago, Dyfrig John, Chief Executive of HSBC, hinted that a general move towards annual fees was “inevitable” when he was reporting on their first half profits.
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Posted in Consumer Credit, Homeowner Loans, UK Finance, mortgages, Consumer debt, Homeowners, House buying, Financial products, First time buyers, Property, Financial news, Housing news, Borrowing at 12:20 pm by admin
With house prices continuing to rise, and the average age of a First Time Buyer (FTB) currently 34 years of age, it is clear that it is becoming increasingly difficult for many people to buy their first home.
Although parents would like to help out, many either do not have sufficient savings of their own, or they cannot afford to support both mortgages.
Leeds Building Society may have come up with a solution that can help young First Time Buyers (FTBs) get onto the housing ladder.
Karen Wint, LBS’ Head of Marketing & PR, explains:
“At Leeds Building Society we are very aware of the challenges faced by FTBs and their parents, who are keen to support their children with a house purchase. We have combined our 100% product with a guarantor facility. This enables parents to act as guarantor without having to hand over any cash or release equity from their home, as there is no deposit required and no up front costs.
Furthermore, a guarantor only needs to guarantee the shortfall between the amount their children can support with their own income and the purchase price, thus removing the restriction of having to support the whole of their own mortgage and that of their child.
“It is also important for people buying their first home to be able to budget, particularly if interest rates continue to rise. Therefore, the new product is a 3-year fixed rate, which provides purchasers with the peace of mind associated with guaranteed repayments and protects them against any rate increases in this period and avoids payment shocks.”
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Thu 23rd Nov, 2006
Posted in Consumer Credit, Banking, UK Finance, Credit Card, Financial products, Card fraud, Spending, Identity theft, Borrowing at 11:10 am by admin
There are only 32 shopping days until Christmas, and millions of shoppers are choosing to buy online to avoid the crush and bustle of the high street stores. But they as safe shopping in virtual stores as they are in their bricks-and-mortar counterparts? Barclaycard believes not.
Yesterday the banking giant released research which reveals that 1 in 10 shoppers are making basic internet security mistakes when they shop online.
So to help consumers shop safely over the holidays, and avoid credit card fraud, Barclays has compiled twelve simple safe-shopping tips:
Barclaycard’s Twelve Christmas Tips for Shopping Safely Online:
- Install and update anti-virus, anti-spyware, and personal firewall software on your home computer.
- Use a secure browser and set it to high security.
- Check for a locked padlock or key symbol at the bottom of your browser window.
- Shop on secure sites. They usually have https:// at the beginning.
- Learn all passwords and PINs by heart. Destroy any evidence of them, and do not share them with anyone.
- Sign Up to Verified by VISA or MasterCard SecureCode.
- Conduct a background check on the company before you buy.
- Limit use of non-secure or multi-user computers.
- Save all records of online transactions and note the website address.
- Reconcile your monthly statement against your saved receipts as soon as you receive it. If there are any unrecognized transactions, contact your card issuer immediately.
- Remember, the use of online or third party payment methods such as Paypal or Mypay systems may affect your legal rights to claim for non receipt of goods, faulty goods or missing refunds as Paypal or similar companies are not the supplier of the goods.
- Visit your banks’ website for more information and keep updated with the best ways of shopping online and what to be aware of .
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