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.
Lord Myners set to appear before the Treasury select committee next week
Lord Myners, who is the government's chief in charge of the bank rescue programme, has been called to appear in front of the Treasury select committee next week regarding the pension arrangements of Sir Fred Goodwin. This could be a seriously embarrassingly week for the UK government with questions being asked as to why Sir Fred's pension doubled from £8 million to £16.6 million on the very week...Read More
WHO increases risk assessment for swine flu pandemic
The World Health Organisation (WHO) has today increased the level of risk associated with a potential swine flu pandemic from level four to level five. This is just one little short of the full pandemic risk with a feeling that this is inevitable in the short to medium term. The impact on the worldwide economy would be enormous as borders are closed, travel restrictions are imposed and businesses...Read More
European economies under severe pressure
As the ongoing expansion of the EU continues at great pace many people believe that this rate of growth in member numbers needs to be reined in. Figures suggest that some of the more recent additions to the EU are struggling more than the average economy in Europe which is placing more and more pressure on EU budgets and the European Central bank. We have seen a significant fall in many of the eas...Read More
Where have the green shoots of recovery gone now?
As the Bank of England issues one of the most depressing inflation reports in modern history, suggesting that the UK recession is deeper and far reaching than first thought, the green shoots of recovery which appeared to be breaking through just a few days ago have now disappeared. So what has happened over the last few days for the Bank of England to suggest the recession will take longer to reco...Read More
Sale and rent back agreements to be regulated
The Financial Services Authority will regulate the sale and rent back market from 1 July in a move which will protect many homeowners in the UK who have been tempted by the scheme. Historically these particular schemes, which see property sold at below the market price in exchange for a long-term rental agreement, have attracted the attention of cash-strapped investors looking to maximise their as...Read More