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.
Short selling ban to end next week
The controversial short selling ban which was instigated by the UK government to try and protect troubled sectors such as the banking industry will end this week. While initially many do not expect the same degree of volatility which we saw earlier in the year there is concern that as we have "bailout part two" at the ready we may see more pressure on banking and retail shares.
UK insurer bonus rates slashed
Friends Provident has today announced a 20% reduction in with-profits payments as the insurance sector continues to feel the pain of the economic downturn around the world. While this move is no surprise and reflects the general conditions of the market it could severely handicap many who depend upon their insurance investments for their long-term financial well-being.
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Did the UK government push Lloyds Bank into acquiring HBOS?
While Gordon Brown has today issued a statement confirming that he has "no regrets at all" with regards to his intervention to speed up the takeover of HBOS by Lloyds bank many are concerned at Gordon Brown's role in the affair. This comes at a time when Lloyds Bank is looking at losses approaching £10 billion from the newly acquired HBOS operation. When the merger of the two operations was initi...Read More
Bank of England faces dilemma
Yesterday's confirmation that the Bank of England MPC expects to retain UK base rates at 0.5% for the foreseeable future was not a surprise for the UK economic arena. However, a report expected next week is set to show that while inflationary pressure in the UK is growing in the short to medium term, the economic recovery is stalling. Against this background the Bank of England faces a very diffic...Read More
Cost of renting rises by 1%
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