Direct Debit insurance 'con'
The average charge each year levied against Britons choosing to pay for home contents insurance via Direct Debit is £31, a new survey shows.Abbey Home Insurance estimates that British households are paying a total of £290 million per year simply for the convenience of paying their home contents insurance premiums by Direct Debit.An estimated 9.3 million people pay for home insurance by Direct Debit and many are not aware that they are often charged for doing so, with 44 per cent of the 215 home contents policies on the market levying a fee for Direct Debit customers.Average APR on charges for payment by Direct Debit is 19.16 per cent per home insurance policy, with the highest rate charged set at 34.9 per cent. This means that, with the average annual premium for contents insurance at £160 a year, customers are paying an average of £31 a year extra for Direct Debit transactions.Prasad Shastri, Abbey head of insurance marketing, said: "Using Direct Debit to buy home insurance is not a service you should be paying for. There is no point using a competitively priced insurer if they then go and add to your annual bill using back-door methods."A recent study by financial website MoneyExpert discovered that car insurance customers pay as much as £182 extra in fees when they opt to pay their premiums monthly by Direct Debit.Consumers are advised to check that they have the appropriate level of home contents cover and are not being charged high additional amounts to pay their premiums by Direct Debit in order to ensure they have the best rate for the level of cover they require.
Wonga caps interest rates at FCAs maximum rate
17/12/2014 Payday loan company Wonga have changed their loans cap and interest rates in line with the new regulations introduced by the Financial Conduct Authority (FCA). The UKs leading payday loan company have decided to cap the interest rate on their loans at 0.8%, which is the maximum rate of interest allowed by the FCA. They have cut their missed payment fee from £20 to £15, which is...Read More
Customers cheesed off with credit cards
Even after the Office of Fair Trading capped credit charge charges at £12 nearly a year ago, a study by uSwitch has shown that one in every five customers is still dissatisfied with their credit card provider.This means that nearly seven million credit card holders are unhappy with their provider, which is 21 per cent of all people with this financial product.Yet, consumers stick with the same pr...Read More
New era beckons for UK building societies
Yesterday we reported on the financial changes going through at the West Bromwich building society and the potential impact this would have on the society's members. In exchange for writing off significant debts, investors have been offered shares that will participate in future profit-sharing programs but also dramatically increase the financial strength of the operation. It now appears as though...Read More
Mervyn King issues downbeat statement on UK economy
Even though today's statement from Mervyn King was effectively leaked to the press some time ago, the inflation report from the Bank of England monetary policy committee pours cold water on hopes of a short term recovery in the UK economy. In an admission that the recession has been deeper than previously estimated, Mervyn King believes that the recovery process will be more prolonged than first t...Read More
Can the Conservatives win the next election?
As more and more people turn against Gordon Brown's Labour government the focus is starting to turn towards David Cameron's Conservative party and their potential for making the next government. One factor which has been thrown towards the Conservative party for some time now is a lack of detail to go with regard to their economic policy, should they finally make office.