Mortgage and Credit Card Companies Under the Spotlight on Consumer Charging
For the first time since May 1996 reports have indicated that wage increases have risen faster than house price inflation. According to Nationwide, "The overall picture remains one of a gently softening market".
The signs indicate that the housing market activity is finally starting to pick up, with estate agents reporting that buyers have begun returning to the market and sellers are more willing to negotiate on prices, however transaction levels are still reported to be low compared with last year. This represents good news for buyers looking to get a property, however it stands in stark contrast to findings from the Council of Mortgage Lenders (CML) showing that the number of homes being repossessed has risen for the first time in seven years, from 3,070 six months ago up to 4,640 for the first half of 2005.
The sharp rise in home repossession applications by lenders adds to growing concerns that consumers are struggling with debt. Ed Stansfield of Capital Economics, said, "Today's figures show that for a small but growing minority of borrowers levels of debt have become a problem, despite historically low interest rates." These figures for repossessions were still, according to the CML, "extremely low" compared with the early 1990s; however adverse credit, arrears and repossessions look set to rise.
Richard Brown, Chief Executive of personal finance comparison site Moneynet is disappointed to recently see, in light of a possible base rate cut, which would help to ease the burden of mortgage debt within the housing market that, "many lenders are taking this opportunity to increase their margins at the expense of their loyal savers by reducing their fixed savings rates by more than the mortgage rates".
The personal debt problems of the nation have also not been helped by the punitive charging activities of several of the major lenders.
The Office of Fair Trading (OFT) has warned eight of the major credit card firms regarding their activities towards customers who miss payment deadlines or exceed credit limits, and ordered them to reduce their "excessive" and "disproportionately high" charges, usually in excess of £20 per transgression, to consumers or face being taken to court.
There are currently 30.6 million people in the UK possessing at least one credit card, with a total of almost £60 billion owed on them.
The credit card firms have defended the need for late payment charges claiming that their use was fair, "Only a very small proportion of customers attract a default charge and as a responsible lender we must have a process in place to manage late payments," a spokeswoman for RBS maintained. Which? have determined that as many as one in four cardholders have been subject to some form of default charge being imposed on them within the past six months. With the number of people accruing charges, the credit firms have admitted they are able to make £400 million a year from default charges alone, and Barclaycard has admitted that 43 per cent of its operating income is generated from these fees.
The OFT have said that the sum being charged by companies is far in excess of the actual costs to the card firms, for late payment. "The levels of the default charges imposed by the credit card companies need to be reduced in order to be fair".
Which? have seen the announcement by the OFT over the credit card penalty charges not being fair, and the threats of court action as, "great news", but also wants other situations where banks hit customers with unfair charges to also be looked into.
The Chief Executive of Money Advice Scotland, Yvonne Gallacher, said of the prospect of reduced credit card fees: "This would make a big difference to the thousands of low-income credit cardholders who struggle to pay off these fees and charges."
Moneynet is not so optimistic for consumers, and advises for caution following the OFT announcement, warning that credit card companies may be looking to increase their profits via alternative 'stealth' charges, "We are concerned that credit card providers may simply attempt to recoup their lost income via higher charges for all?Moneynet recommends credit card customers consider their options before taking out a card -and take into account all charges as well as the headline interest rate", said Richard Brown.
Some moves seem to be getting made to help those most at risk, but these measures seem to be mainly driven by increased levels of consumer dissatisfaction, and while house prices still look expensive compared with incomes, the worst off may not feel a huge change in their circumstances for some time to come.
Resources:
Government - Office of Fair Trading
Mortgage and credit card comparisons - Moneynet
Bio:
Richard lives in Edinburgh, occasionally writing for the personal finance blog Cashzilla, and staring out the office window when he should be working.
 Google News Updated : Wed, 09 Jul 2008 01:08:02 GMT Bad blood hampering Obama's effort to help retire Clinton's debt - Kansas City Star
Kansas City Star - By PATRICK HEALY A prominent donor to Sen. Barack Obama recently sent an e-mail plea to other supporters, asking them - for the sake of Democratic unity - to write checks to Sen. Hillary Rodham Clinton to help retire her $23 million in campaign debt. While Markets Peer Ahead Research firm: Obama outpacing McCain in Web-site traffic, online ... Publ.Date : Wed, 09 Jul 2008 00:23:52 GMT McCain, Obama pitch economic plans to Hispanics - Kansas City Star
Kansas City Star - By LIZ SIDOTI and CHARLES BABINGTON AP Writers Democratic presidential candidate Sen. Barack Obama, D-Ill., left, accompanied by Los Angeles Mayor Antonio Villaraigosa, waves, Tuesday, July 8, 2008, at the League of United Latin American Citizens in ... McCain, Obama pitch economic plans to Hispanics Obama Assails McCain on Immigration Before Latino Audience Publ.Date : Wed, 09 Jul 2008 00:25:20 GMT Iraq wants US withdrawal deadline - CNN
CNN - BAGHDAD, Iraq (CNN) -- A deadline should be set for the withdrawal of US and allied forces from Iraq, and the pullout could be done as soon as 2011, an Iraqi government spokesman said Tuesday. Video: Iraqi PM Calls for Withdrawal Date UPDATE 1-Pentagon chief downplays Iraqi calls for withdrawal Publ.Date : Tue, 08 Jul 2008 22:32:49 GMT Obama proposes bankruptcy changes - Atlanta Journal Constitution
Atlanta Journal Constitution - By AARON GOULD SHEININ Barack Obama moved Tuesday to paint the 2008 presidential election in stark terms of rich vs. poor, and fat cats vs. Ad Hawk: McCain's Generation Gap Obama ad attacks McCain on energy solutions Publ.Date : Tue, 08 Jul 2008 23:41:26 GMT Whistleblower: Cheney Wanted Cuts in Climate Change Testimony - ABC News
ABC News - By Z. BYRON WOLF President Bush is in Japan pledging to do his best to put the US on a long-term path to cut greenhouse gas emissions in half by 2050, but back in Washington a former Environmental Protection Agency official said staffers at the White ... Cheney wanted cuts in climate testimony Cheney's Office Pushed Purge Of Climate Change Testimony Publ.Date : Wed, 09 Jul 2008 00:32:45 GMT Wildfires push some from homes; some allowed back - The Associated Press
The Associated Press - BIG SUR, Calif. (AP) - Firefighters pushed back a blaze threatening this small coastal community just enough to allow hundreds of people to check on their homes Tuesday as a separate fire 300 miles north forced residents of another town to evacuate. Video: Hot, Dry Weather Developing on Calif Fire Lines Much of US West Coast Under `Explosive' Fire Threat (Update2) Publ.Date : Tue, 08 Jul 2008 22:40:34 GMT VMware Ousts CEO Greene - BusinessWeek
BusinessWeek - by Aaron Ricadela VMware ended a long-running battle over its strategic direction on July 8, ousting co-founder and Chief Executive Diane Greene and installing Microsoft veteran Paul Maritz in her place. VMWare Drops 25% Of Market Cap; CEO Out Why VMware Dumped Diane Greene Publ.Date : Tue, 08 Jul 2008 23:18:50 GMT Display RSS Feeds on Your Website |
PARLOT::Ebooks, Scripts,
Websites, and more... Presently council tenants are able to purchase their rented property... Read More One of the biggest reasons homeowners refinance their mortgage is... Read More Most people approach the act of getting a home mortgage... Read More Being a creature of habit can cost you plenty when... Read More A mortgage is a loan, usually from a bank, finance... Read More Everybody wants to own a house because it is something... Read More Slight increases in the interest rates raise your hackles. Tension... Read More Here in Spain the concept of a mortgage period of... Read More Buying and financing a home today can be overwhelming. Here... Read More Mortgages are easy as long as you understand them well.... Read More Every year over 8 million homeowners are seeking help preventing... Read More Refinancing your home mortgage can come with some great perks.... Read More According to the Council of Mortgage Lenders, first-time buyers are... Read More What is a mortgage? Here's what The New Merriam ?... Read More Getting on top of your mortgage so you can pay... Read More How does an ARM work.The borrowers interest rate is determined... Read More Listed below is a guide to mortgage terms. It is... Read More If you have bad credit history, no down payment or... Read More If you fall behind in your mortgage payments, you face... Read More Buying a home or refinancing one is perhaps the largest... Read More Finding the right buy to let mortgage is crucial to... Read More Homes that have been foreclosed can be one of the... Read More Whether you are a first time home buyer or a... Read More Because the new bankruptcy laws go into effect on October... Read More Home equity loans or lines of credit have increased dramatically... Read More
Adsense
websites
Housing Bill - Changes in the Right To Buy Scheme
Why Refinance Back into a 30-Year Loan?
Residential Mortgage - Finding The Best Home Mortgage Lender
How to Save Money by Using an Independent Commercial Mortgage Broker
What is a Mortgage?
A Mortgage Loan For Homes
Thought Fixed Rate Will Give You a Respite from the Perils of Variable Rates! Think Again
An Infinity Mortgage?
Mortgage Questions to Ask Your Lender
Thought You Can Go All Alone In Mortgages! Mortgage Advice Beneficial In All Important Decisions
Preventing Foreclosure Proceedings and Understanding Your Options
Refinance Mortgage Loan ? Tips on Refinancing Your Home Mortgage
The Debt Test: Are You Making Out a Mountain Out of Your Mortgage?
Mortgage ? What, Why, When, and How?
5 Steps to Getting on Top of your Mortgage
Adjustable Rate Mortgage - How They Work?
Guide to Mortgage Terms
Subprime Mortgage Lenders - Helpful Tips When Getting a Subprime Mortgage Loan
Avoiding Foreclosure
Shopping for a Mortgage, Avoid Three Common Mistakes
Buy to Let Mortgages
Financing the Purchase of Foreclosed Homes
Save Yourself from Homebuying Disasters
Recent Bankruptcy? Its Not Impossible to Obtain a Home Loan
Home Equity Loan ? Good Choice for Luxury Purchases?
Affordable and Reliable Web Hosting Starting at $4.49/Month
Self Employed Mortgage Loan ? Getting a Mortgage When You?re Self Employed
Being self employed has many benefits. When you are self-employed,... Read More
Adjustable Rate Basics
An adjustable rate loan, most simply stated, means that your... Read More
The Worst Way to Shop for a Home Mortgage
You've found a house that is perfect for you. It... Read More
Jumbo Mortgage Loans - Getting Approved for a Jumbo Mortgage Loan Online
Getting approved for a jumbo mortgage loan online is similar... Read More
Bad Credit Mortgage Loans - Are You Killing Your Chances of Getting Approved?
When you have poor credit, your list of lenders that... Read More
How do I know what is the best Second Mortgage Home Loan for me?
The information in your credit history helps mortgage lenders decide... Read More
Bad Credit Home Financing - Buy a House Even With Poor Credit
Sub prime lenders come in two groups: reasonable and unreasonable.... Read More
Residential Mortgages ? a Step Ahead on the Property Ladder
Doesn't Residential mortgage give the impression that they are a... Read More
4 Things to Watch Out for When Choosing a Mortgage Company
We all know that there are a lot of mortgage... Read More
Bad Credit Mortgage Loans Online - How Your FICO Credit Score Can Affect Your Loan Approval
When applying for a mortgage loan when you have a... Read More
VA Loans, A Gift from Uncle Sam
Uncle Sam has a gift for the men and women... Read More
Credit Problems? With a Subprime Mortgage Lender, Poor Credit is Not a Problem
Have you been turned down for a home loan recently... Read More
Mortgage Calculator ? How to Calculate Your Monthly Mortgage Payment
Just starting to shop for a new home? Do you... Read More
Home Loans ? Would You Buy a Home Without an Inspection?
The housing market has exploded, with home prices rising beyond... Read More
Florida Refinance - Refinancing in Florida
The decision to buy a home in Florida can be... Read More
How Homeowner Can Save Their Home From Foreclosure
Drive around and see how many signs you see that... Read More
What is a Self-Certification Mortgage?
A Self-Certification mortgage is a mortgage designed for people who... Read More
Carolina Mortgage Loans
You're selling your home and are looking to relocate to... Read More
Sub-Prime Mortgage Company - 4 Signs of a Predatory Sub-Prime Lender
If you have bad credit and are looking to get... Read More
What is a Capped Mortgage?
A capped mortgage is a variable rate mortgage with a... Read More
Refinance Home Loan and Refinance Home Loans
Refinance home loan lenders are eager to lend money to... Read More
This Secret Weapon Will Eanble You To Close Up To 200% more Home Remodel Sales
Many Homeowners are not aware of all the options that... Read More
Renters Have Much to Gain by Pursuing Home Ownership
Buying a home vs. renting is a big decision that... Read More
7 Credit Improving Steps You Must Take Before Applying For A Mortgage
If you think you have good credit, think again. Chances... Read More
Refinancing Online - Tips For Getting a Low Interest Rate When Applying Online
Refinancing online is a great opportunity to find low interest... Read More
Mortgage Refinance |