FSA in PPI crackdown
Some insurance providers have already been “referred to enforcement” or heavily fined by the FSA after they were found to be not up to standard. The FSA is keen to remind consumers that loans and PPI products do not have…
Financial “comfort zones” hit by rate rises
Ray Boulger, from mortgage adviser John Charcol, said that the Bank of England’s surprise decision to increase the base rate to 5.25 per cent is likely to result in a rise in the number of people falling into arrears. He…
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Cost of living ‘hampering financial independence’
Figures from Engage Mutual Assurance show that 43 per cent of parents aged between 55 and 64 are bankrolling their offspring, with many expecting the situation to stay the same until they are 67 years old. However, parents who are…
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FSA to investigate debt sales of debt insurance
Described as “one of the largest” programmes the financial watchdog has undertaken, the work will build on previous programmes conducted in 2005 and 2006. The investigation will include mystery shopping exercises in its aim to ensure sales of the product…
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Bad debt ‘could cause more firms to go under’
Online credit checking firm e-Business Credit Manager (e-BCM) believes that firms with up to 20 employees are most at risk since they lack the necessary tools to reduce their risk of debt and to follow up outstanding repayments. Dennis Scott,…
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Lib Dems criticise government’s attitude to debt
An increase to 5.25 per cent will mark the third rate rise in the last six months for mortgage lenders, says Liberal Democrat shadow chancellor Vince Cable. He adds that this “unexpected rise” will lead to further trouble for those…
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Rate rise ‘could increase number of repossessions’
Citizens Advice states that the 0.25 per cent increase, which has surprised many analysts, might cause increased numbers of homeowners to fall behind with their mortgage repayments. Peter Tutton, policy officer at Citizens Advice, said that several hikes in a…
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Consumer spending ‘to be hampered by debt levels’
Howard Archer, chief UK and European economist for Global Insight, believes that Britons are to have limited spending power over the next year. “This is due to the major headwinds that consumers face – higher interest rates, elevated utility bills,…
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