Loans News

Research shows 1.2m taking out payday loan each year

admin — Sun, 15 Aug 2010 17:07:21 +0000

According to research by watchdog Consumer Focus, the number of people taking out a payday loan has quadrupled in the last 4 years.

The consumer group said 1.2 million people are now taking out a payday loan every year - borrowing more than £1 billion.

Payday loans are becoming more popular and are seen as attractive - particularly to those who have been finding it hard to secure finance.

However, it is recommended that these types of loans are best reserved as a product of last resort, since loan interest rates offered may not be competitive by comparison to high street rates.

http://www.financemarkets.co.uk/2010/08/15/research-shows-1-2m-taking-out-payday-loan-each-year/

Lloyds confirms it will cease selling PPI

admin — Tue, 27 Jul 2010 12:03:08 +0000

Banking giant Lloyds has confirmed it will no longer sell the controversial payment protection insurance (PPI).

Lloyds Banking Group, which is 41% owned by the taxpayer, is the first bank to drop PPI sales and the decision will apply to customers of all its brands including the Halifax, Bank of Scotland and the Cheltenham & Gloucester.

http://www.financemarkets.co.uk/2010/07/27/lloyds-confirms-it-will-cease-selling-ppi/

Lending criteria set to tighten further

admin — Fri, 02 Jul 2010 09:05:18 +0000

A report by the Bank of England has revealed fresh concern over mortgage lending.

In its latest Credit Conditions Survey covering the three months to early June 2010, the Bank of England said the wholesale money markets that fund the lenders is tightening and therefore, mortgages are expected to be “less readily available”.

http://www.homemove.co.uk/news/02-07-2010/lending-criteria-set-to-tighten-further.html

Competition Commission step nearer to banning PPI

admin — Sun, 16 May 2010 17:20:48 +0000

The Competition Commission has announced it is pressing ahead with its proposal to ban the sale of the controversial payment protection insurance (PPI).

It was found that millions of PPI policies were mis-sold and in September 2009, City Watchdog the Financial Services Authority (FSA), proposed a major overhaul of the rules.

http://www.financemarkets.co.uk/2010/05/16/competition-commission-step-nearer-to-banning-ppi/

Students to face higher interest rates on loans

admin — Fri, 14 May 2010 09:26:32 +0000

The Russell Group, which represents 20 elite, research-intensive universities, has suggested that graduates may have to start paying back their student loans earlier and at a higher rate of interest, in order to prevent a major funding crisis.

Following an official review of student finance and fees, the group warned that the financial sustainability of the UK’s top universities was “severely at risk” under the current system.

http://www.financemarkets.co.uk/2010/05/14/students-to-face-higher-interest-rates-on-loans/

Report reveals failings in Government’s debt advice strategy

admin — Thu, 08 Apr 2010 08:08:10 +0000

A report published by the Public Accounts Committee has branded the management of the Government’s debt advice strategy a “complete failure.”

Six years ago, the Government introduced a strategy aimed at improving the support to, and cutting the number of people who struggle with unmanageable debt.

The Department for Business, Innovation and Skills shares responsibility for co-ordinating the strategy with the Department for Work and Pensions and the Ministry of Justice.

However, there has been a complete failure to manage delivery of the strategy, according to the report.

http://www.financemarkets.co.uk/2010/04/08/report-reveals-failings-in-government%e2%80%99s-debt-advice-strategy/

RBS and Lloyds to increase lending targets

admin — Thu, 25 Mar 2010 09:05:03 +0000

In yesterday’s Budget, Chancellor Alistair Darling unveiled plans for rescued banks, Royal Bank of Scotland (RBS) and Lloyds Banking Group, to lend more to businesses.

In a legally binding agreement, RBS and Lloyds, which are 84% and 41% owned by the taxpayer respectively, were rescued at the height of the financial crisis but there have been concerns that the bailed out banks have not helped small businesses through the economic downturn.

http://www.financemarkets.co.uk/2010/03/25/budget-2010-bailed-out-banks-to-lend-more-to-businesses/

Student loans and grants face delays again this year

admin — Fri, 19 Mar 2010 08:20:19 +0000

A report published by the National Audit Office (NAO) has warned the student loans and grants system is at “substantial” risk of being hit by delays again in 2010.

The student loans system plunged into crisis after the Student Loans Company (SLC) acquired the processing system of all England’s student applications for grants and loans for the academic year 2009-10 from local authorities.

Ministers thought a centralised service would be more cost efficient in the long-term but has since ordered a “health check” of the firm’s capacity to deliver.

http://www.financemarkets.co.uk/2010/03/19/student-loans-company-provided-%e2%80%9cunacceptable%e2%80%9d-service-say-nao/

Consumers to save millions under new credit card protection

admin — Mon, 15 Mar 2010 12:07:47 +0000

New measures unveiled by the Government look set to shake up the credit card industry and save consumers hundreds of millions of pounds.

http://www.financemarkets.co.uk/2010/03/15/consumers-to-save-millions-under-new-credit-card-protection/

The Government-led crackdown on credit card companies is expected to save consumers around £300 million a year.

The crackdown comes after the Government warned credit and store card firms to “clean up their act” after it launched a review of the industry in a consumer White Paper in July 2009.

According to Prime Minister, Gordon Brown, the cost of borrowing will be slashed after new rights, coming into effect by January 2011, will put a stop to “irresponsible lending practices”.

FSA delays PPI reforms

admin — Wed, 10 Mar 2010 10:27:12 +0000

Earlier this week, research by Defaqto found that the average annual percentage rate (APR) had soared and one of the reasons behind this, according to the finance group, is “the absence of PPI sales income”.

The FSA is in the process of reforming the PPI market but has announced a delay to its plans.

http://www.financemarkets.co.uk/2010/03/10/fsa-delays-ppi-reforms/

The Financial Services Authority (FSA), has announced a delay on its plans to reform the Payment Protection Insurance (PPI) market.

The City Watchdog said its consultation will be delayed by six weeks due to a heavy amount of criticism from the financial industry.