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By Reno Charlton
News Editor, 21 April 2008
Other Recent News
Reward card customers failing to cash in (15. 4. 2008)
It has been revealed that many of the UK's reward-earning credit cardholders are lazily forgetting to claim their points; leaving credit card issuers to rack up a massive £4 billion in unclaimed rewards.
Personal Finance Weekly News Round Up - 14th April 2008
Over the past week, the financial news headlines have included a cut in the Bank of England's base rate by 0.25%, Northern Rock operations to be halved, millions of homeowners could be facing negative equity by next year and First Direct is removing access to it's mortgages for non-existing customers.
Do you have to put up with the Halifax rate hike? (8. 4. 2008)
As one Halifax customer successfully challenged his credit card interest rate rise - industry experts are now urging people to contact their credit card issuer to request for any rate rises to be put back down if they have a good credit rating and repayment history.
Many plan to move card debts onto 0% balance transfer deals (3. 4. 2008)
4.3 million credit card users in the UK have set their sights on 0% balance transfer deals and hope to move a total of £6.68 billion to a promotional credit card over the next few months.
Over fifty percent of cardholders pay no interest (20. 3. 2008)
It's been revealed this week that half of the UK's cardholders pay no interest for using their credit card. This 50% of the plastic carrying population avoid interest charges by paying back their balances in full each month - and, what's more, they're earning rewards as well.
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More people requesting credit reports
According to a recent report there are now far more people requesting copies of their credit reports as a result of increased difficulties in getting credit.
One credit reporting agency reported that in the last six months the number of requests for copies of credit reports had doubled.
One official from the credit agency stated: "Up to 20 per cent of people now check their credit report before applying for credit. The vast majority use the internet to do so in order to get immediate access to their score, and also to receive alerts if their credit status changes."
Sub-prime borrowers may be turning to brokers too readily
The Financial Services Authority has expressed concern that some people in the sub-prime sector may be turning to brokers too readily, with the mindset that they will not be able to get finance alone and that the broker will recommend the most suitable and affordable product.
Officials from the FSA state that by not bothering to search themselves and not bothering to check what the broker tells them these people are at risk of not being able to make an informed choice about loans and mortgages.
Filing for bankruptcy online could cause problems
The process of filing for bankruptcy at present is a long and stressful one, involving forms and bankruptcy courts, which often make people thinking of filing for bankruptcy reconsider.
However, from next April the government plans to make this process available for some consumers online through the introduction of Debt Relief Orders. Some officials are concerned that the ease and convenience of being able to file for bankruptcy online will leave the system open to abuse, with people declaring themselves bankrupt even if they are not.
One official said: "It will be difficult for the intermediary to carry out a detailed investigation into the affairs of the debtor because it just wouldn't be worthwhile financially. Ordinarily, the trustee of a normal bankruptcy order has further powers to investigate the individual, more statutory muscle. This loophole may make it easier for people to break the law."
Review into FOS completed
A recent review carried out into the Financial Ombudsman Service by Lord Hunt of Wirral has been completed, and a report released.
Over seventy recommendations for various changes have been made by Lord Hunt as a result of the review, including doing more to help low income people with debt problems and changing the name of the service to something more friendly, such as the Financial Complaints Service.
 Credit card guide
Financial news round up archive
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