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.
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The buy-to-let property market will grow by 41 per cent over the next ten years, housing experts have claimed.According to Alliance & Leicester bank, more positive attitudes towards renting will lead to buy-to-let properties' popularity soaring by 2016.The claim is based upon research conducted in partnership with the Centre of Future Studies thinktank that predicts the traditional rental market w...Read More
Will recent credit card regulation changes have an impact?
The last few weeks have seen a number of significant changes to the regulatory framework surrounding the credit card industry. This is an industry which has attracted more than its fair share of attention and criticism over the years due to a "heavy-handed" approach to customers in financial difficulty. With more and more of the UK population struggling to make ends meet the government has stepped...Read More
UK mortgage loans increased by 12% in February
The Council of Mortgage Lenders (CML) has today confirmed that mortgage agreements in February increased by 12% compared to January although the increase was 49% compared to February 2009. The value of loans agreed in February was also significantly, 9% up on January and a very impressive 67% up on February 2009. So what does this mean for the UK mortgage market? While any comparison between Ja...Read More
Pensioners may be £411 better off with new reforms
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Bradford and Bingley Saga Drags The Banking Sector Lower
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