Research shows 1.2m taking out payday loan each year

Story link: Research shows 1.2m taking out payday loan each year

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 [...]

Lloyds confirms it will cease selling PPI

Story link: Lloyds confirms it will cease selling PPI

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

Story link: Lending criteria set to tighten further

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

Story link: Competition Commission step nearer to banning PPI

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

Story link: Students to face higher interest rates on loans

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 [...]

RBS and Lloyds to increase lending targets

Story link: RBS and Lloyds to increase lending targets

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 [...]

Student loans and grants face delays again this year

Story link: Student loans and grants face delays again this year

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 [...]

Consumers to save millions under new credit card protection

Story link: Consumers to save millions under new credit card protection

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” [...]

FSA delays PPI reforms

Story link: FSA delays PPI reforms

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 [...]

APR on £5,000 loan soars to 13.9%

Story link: APR on £5,000 loan soars to 13.9%

It appears that despite interest rates being held for one year at the historic low of 0.5%, rates on personal loans continue to soar.
Research carried out for The Independent by personal finance group Defaqto found the average annual percentage rate (APR) has soared in the last two years.
http://www.independent.co.uk/money/loans-credit/massive-rise-in-interest-rates-on-personal-loans-1917782.html

Banks and building societies have raised the [...]