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.
ISA holders could lose on savings front
New regulations coming in on 6 October will increase the annual ISA allowance from £7,200 to £10,200 there are fears that those who have existing ISAs and looking to top up in the future may well miss out on the best savings rates. The amount each person is able to push into a cash ISA will increase from £3600 to £5100 but it looks as though only those taking up new plans will be eligible for...Read More
Nationwide reintroduces the 125% mortgage
While the headline looks controversial and in total contravention of recent UK government guidelines, Nationwide has today announced a 125% mortgage aimed at those with negative equity. While the 125% mortgage figure will send tremors down the spines of UK regulators it is perhaps not as bad as it looks at first glance.
The offer will only be available to a minority of current Natio...
Can the Conservative party afford to reorganise the benefit system?
There is no doubt that the UK benefit system is one of the most lucrative in the world but there is also no doubt that the system has been somewhat out of control for the last few years. However, Iain Duncan Smith has now been put in charge of reorganising the UK benefit system but many are concerned whether the Conservative Party has the bottle and whether it can actually afford to push through t...Read More
Another day another economic forum
The World Economic Forum in Davos has received many column inches in the press but what exactly will we learn and what have we learnt so far?
The initial comments coming from the forum appear to be a repeat of those official statements made by the likes of Gordon Brown and other world leaders who are tackling serious economic unrest in their own country. Gordon Brown is also risking...
Wealth gap 'at 40-year high'
The gap between the rich and poor in Britain has reached a 40-year high, according to a new report.An analysis of wealth and poverty trends across the country between 1968 and 2005 concludes that people living in affluent areas have become "disproportionately" wealthier than individuals living elsewhere.There is also evidence of "increasing polarisation" between the rich and poor, warns the report...Read More