What next after the credit card rules agreement?
The stark difference between the mortgage industry and the credit card industry has never been more visible than when the government announced a new credit card rules agreement just last week at a time when they have been fighting the mortgage lenders for many months. It would appear that the credit card companies have little stock with which to barter with and have caved in to the government's demands.
However, the situation with the mortgage lenders is very different as they would appear to have a stronger position than the UK government and even the UK consumer. The banks have been calling the shots for a number of weeks now and while the UK government has gone public with a number of concerns and direct criticism of mortgage lenders in the UK, very little change has been agreed.
Each time an agreement appears near rumours resurface that the UK banks are looking for further taxpayer funding and this appears to have blocked any short-term announcement. Whether the UK government will need to forward further financial support in the short term in exchange for an agreement for the longer term remains to be seen.
Share this..
Related stories
The Bank of England set to keep rates at 0.5%
The Bank of England monthly meeting for May should be a fairly low-key affair with a suggestion that UK base rates will be maintained at 0.5%. While there are differing groups in the UK looking for a reduction and some looking for an increase in UK base rates it appears that the MPC will be more concerned with quantitative easing in the short to medium term.
The likely decision to m...
Is it safe to research products on the Internet?
The Internet has become a vital element of the UK financial arena and offers the opportunity for immediate access to deals, offers and financial products which may not otherwise have been visible to you. However, many people fall into the trap of assuming that because new products and new services are detailed on the Internet there is no need to take financial advice. Oh how very wrong they can be...
Read MoreUK banks forced to detail overdraft charges in the future
The Office of Fair Trading (OFT) has today confirmed an arrangement with 95% of UK banks and building societies which will see overdraft charges detailed more clearly in future bank statements. This would appear to be step one in the fight to make current account more transparent and make customers aware of various scenarios which may well see them receive significant overdraft charges.
Who will rescue UK savers?
Despite some savers in the UK hoping that UK base rates would have moved higher in the short to medium term this appears to be highly unlikely. Many experts believe that UK base rates will remain at or around current levels until at least the second half of 2011 and even this may well depend upon economic growth in the UK, which has recently been downgraded by the likes of the IMF. So who will res...
Read MoreDo we depend on computers far too much?
This weekend's revelation that a number of major stores in the UK saw their electronic payment systems down for anywhere up to 3/4 of an hour is a major blow for those who have been pushing the electronic payment model of the future. It also shows that many of us in the UK depend wholly upon credit cards and debit cards to cover our everyday costs and if the systems are in any way compromised we a...
Read More