Courts To Decide The Legality Of Punitive Bank Charges
Jan 30 at 9:09am by Personal Finance Claims
Over the years, thousands of cases have been filed against banks in UK for overcharging, but customers are still finding it difficult to get rightful justice. The problem it seems is with the archaic banking rules and regulations that are quite ambiguous, especially when it comes to defining the legality of punitive bank charges. Since, the existing banking related laws are quite lax, banks and other lending institutions are easily able to find an excuse for overcharging customers and get a decision in their favour. This is why nothing much has changed over the years. Banks are still overcharging customers even when cases are continually piling up in courts all across the country.
Victims of bank overcharging however need not lose all hopes because although slow, things have certainly started moving in the right direction. You may not be aware, but the latest news is that courts have finally agreed to allow a case that seeks to determine whether or not consumers can pursue overcharging claims against banks. The best thing about the whole event is that the case is being pursued by none other than the Office of Fair Trading (OFT). Had the case been filed by an individual, not much could have been said about its outcome, but since the OFT has the necessary resources and talent, victims can at least expect a favourable outcome this time around.
The case currently being fought by OFT is against seven prominent banks and a building society. Since it mainly concerns unauthorised borrowing fees, it may not be directly related to bank overcharging, but since a favourable decision in this case will certainly act as a guiding light and set the tone for other pending and future litigations, most victims are avidly waiting for the court’s final verdict. If the court decides in favour of consumers in this case, the OFT will then file a second case that directly relates to bank overcharging. OFT officials say that the basic plan is to prove that common bank charges such as those arising from bounced cheques, overdraft, late payments etc, are way more than the actual costs. The purpose is to seek a favourable judgment that would put a limit on the fees and penalties that are generally charged by banks at their own discretion.
The final verdict may take some time, but you need not get anxious because verdict or no verdict, you can still pursue your claims with your bank. The OFT has set some limits and if your bank is exceeding these limits, you have every right to make a claim and get your money back. So, I would recommend that you file your claims right away and do not necessarily wait for the courts to decide in favour of customers.
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bank charges, claims, claim back money
How To Survive The Recent Subprime Onslaught
Jan 29 at 4:04pm by Personal Finance Claims
The subprime crisis in the US may have succeeded in dragging down stock markets worldwide, but you need not get panicky because the current phenomenon is dictated by macro economic fundamentals, which also state that recessions are temporary phenomenon and are most likely to be followed by strong economic growth. However, since it is very difficult to determine how long it will actually take for a complete revival, I would not recommend that you just keep waiting for the situation to improve. Being proactive always helps and this is what I would basically like to recommend to you.
As a Brit, you need to understand that UK’s economy is intertwined with the world economy, even more so with the US economy. This basically implies that any crisis that affects the US economy will have a direct affect on UK’s economic fundamentals. The subprime crisis has already started affecting UK’s economy, evident from the falling share prices of banks and lending companies and the rising unemployment. Experts are also predicting a substantial drop in UK’s real estate property prices, something that will leave homeowners with a lot less that what they might have bargained for. Especially affected will be those who might have applied for high-value remortgage loans, wherein the actual loan amount equals or is more than the actual value of the property. This is because in the event of a drop in property prices, it would simply mean that they are paying for something that they don’t even have.
Exactly how the subprime crisis will affect you will depend on your existing financial standing and also on the decisions you take at this early hour. If you are not all that comfortable with the existing macro economic conditions prevailing in UK, US and the rest of the world and if you are finding it difficult to ascertain the adverse affects that it can on your personal and professional life, I would recommend that seek professional help as soon as possible. You need to do this, especially while you are in the process of taking critical financial decisions such as stock investments, secured loans, mortgage loans, remortgage, etc.
Predicting the future may be difficult for experts also, but since they are well aware of the pitfalls and dark alleyways, you can rest assured that they will guide you to the most risk-free path that might be available. You will be thus be cocooned from the adverse affects of the subprime crisis that is set to take a heavy toll in the days to come.
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How Is The Subprime Crisis Affecting UK’s Economy
Jan 28 at 5:05pm by Personal Finance Claims
As stock markets tumble worldwide, triggered by the US subprime crisis, experts it seems are no longer questioning the prospects of a recession. Having come to terms with reality, they are now actually more concerned about how deep and long the recession will turn out to be. For conclusive proof on the impending recession, you just have to look at the current activities of some of the world’s biggest banks such as Citigroup, Morgan Stanley, Merrill Lynch and others, who recently had to stretch out their hands to Asian and Middle Eastern funds for bailing them out of the ongoing crisis.
The repercussions of the US subprime crisis are being felt in Britain also, evident from the recent asset reduction announcements made by some of the largest banks such as HSBC, Barclays, and UBS. The subprime crisis is also affecting Britain’s fund managers including top names such as Scottish Equitable, Friends Provident, Norwich Union and others. With share prices falling continuously, most of these funds have restricted withdrawals and it is being assumed that investors might have to wait a little longer in case they are looking for an exit. The UK property market also seems to be getting affected as IMF estimates suggest that houses in UK on an average are overvalued by around 40 percent. This is an indication of the impending fall in UK’s residential property prices.
If there is no let up in the US subprime crisis, Britain’s economy might be hit hard in the days to come. This is quite possible because Britain’s economy is already having problems with overvalued real estate, huge amounts in personal debt and a large current account deficit. Any further worsening in the US subprime crisis may just provide the spark needed for triggering the ticking time bomb. Another factor is that banks in the UK have the lowest amounts in capital reserves as compared to their counterparts in other developed nations. As such, lenders here feel that they might be in for trouble if they are not bailed out by the Treasury as and when needed.
If the subprime crisis worsens, Britain might witness increased job losses, home evictions, price rise, growing poverty and many other ills in the near future. The most affected would probably be the middle class working population, since they neither have deep pockets nor are their jobs guaranteed. Since, the future will get redefined in the next few months; it is recommended that those in the danger zone rethink their investment or mortgage decisions. The right thing to do however would be to get professional help before taking any financial decision such as a mortgage, unsecured loans, etc. It may still not guarantee anything but one thing is certain that it will significantly reduce the probability of making grave errors and losing everything in the process.
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The Consumer Credit Act 2006 Paves The Way To Challenge Lenders
Jan 24 at 4:04pm by admin
The growth in consumer credit since 1979 has taken place alongside Government policy of financial deregulation combined with ever increasing willingness of consumers to take on credit agreements.
The willingness of UK consumers to buy now and pay later, together the existence of only a basic regulatory framework to control credit, means that British consumers are widely regarded as the top of the European league table in their use of credit.
The growth in consumer credit has highlighted the issue of market regulation. Partly this has been concerned with the macroeconomic effect of a growing volume of consumer credit.
The purpose of the 2006 Act is to reform the 1974 Act to:
• provide for the regulation of all consumer credit and consumer hire agreements subject to certain exemptions;
• make provision in relation to the licensing of providers of consumer credit and consumer hire and ancillary credit services and the functions and powers of OFT in relation to licensing;
• enable debtors to challenge unfair relationships with creditors
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The Murky Side Of Sub-Prime
Jan 22 at 12:12pm by admin
A recent investigation into mortgage advisors has revealed widespread mis-selling.
The results from a BBC investigation show that some mortgage advisors have encouraged borrowers to exaggerate their income to secure mortgage deals which they have little hope in meeting repayments.
This kind of mis-selling is rife within the self-cert and sub-prime market.
The problem wlth self-cert is that a client can be encouraged to go down this route and declare any income which they like. As a result, low income borrowers have been able to secure mortgages which are doomed from the start.
For a mortgage advisor, it is easier to get the deal passed so this is what they use it for. The system has been abused.
Personal Finance Claims have helped clients, receive totally unexpected financial compensation as a result of invalid, unenforceable or fundamentally flawed consumer credit agreements. These include mortgage, secured loan and motor finance contracts.
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Technorati Tags: mortgage, self-cert, sub-prime, low income
New Concerns For Lenders
Jan 18 at 5:05pm by admin
Phil Catchpole is an associate at national law firm Shoosmiths, advising on consumer credit, mortgages and financial service regulation gives writes about the Consumer Credit Act 2006
In summary he writes about the major concerns for mortgage lenders which arise from the reforms created by the Consumer Credit Act 2006. The major concern being:
Unfair relationships - a borrower is able to challenge a credit agreement on the grounds that the relationship between the borrower and the lender is unfair. The new test will have a retrospective effect and will apply to any existing agreement. If unfair relationship/s have been found in securitisations (RMBS), those loans may need to be removed from the pools of assets or substituted by originators.
Check out the full article here…
Technorati Tags: mortgages, financial service, Consumer Credit, borrower, credit agreement
Claim Back Money On Motor Finance…
Jan 8 at 7:07pm by admin
Do you have, or have you had a motor finance since 1990 in excess of £10000?
If the answer is yes, then you may be entitled to claim back money from the lender.
Due to invalid, unenforceable or fundamentaly flawed consumer credit agreements, we are rapidly discovering that a significant amount of motor finance products of over £10,000, taken out during this period, are eligible to pursue a claim of a minimum of £5,000.
If you would like to find out more, we will review your agreement at no cost. Simply complete the enquiry form at: Personal Finance Claims and will get provide details on how we can proceed.
Who knows?…You may just be pleasantly suprised with what you will discover
Sub-prime market is in crisis
Jan 7 at 12:12pm by admin
Cartel managing director Carl Wright is warning the sub-prime market is in crisis and runs the risk of becoming the next big mis-selling scandal.
He says the recently announced Financial Service Authority investigation into the market will discover that a significant number of brokers are wrongly advising clients to take out sub-prime mortgages when 50% of them could take out a near prime mortgage.
Wright says: “A significant number of intermediaries are putting customers onto sub-prime mortgages when 50% of them could go on a near prime deal. When the FSA investigates sub-prime it is going to realise that this is not treating customers fairly and is going to want to know why advisers recommended this.”
Wright says debts and arrears have increased over the past 10 years but people have reacted by borrowing more, not spending less. He says this is also contributing to a sub-prime crisis.
Wright warns that while some lenders have realised they have taken on business that could be placed elsewhere, others have still not put their houses in order and will fall under the FSA spotlight when the investigation is carried out.
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