Tuesday, December 22, 2009

“Government to ban 'logbook loans' (Channel 4)” plus 4 more

“Government to ban 'logbook loans' (Channel 4)” plus 4 more


Government to ban 'logbook loans' (Channel 4)

Posted: 21 Dec 2009 04:14 PM PST

Updated on 22 December 2009

Source PA News

The Government has announced plans to ban so-called logbook loans which typically charge interest rates of around 400%.

Under the loans, also known as bills of sale, lenders advance money secured against the borrower's personal property, typically a car.

But there are concerns that the legislation governing the loans is out of date, and vulnerable people's goods can be seized without a court order.

Some of the loans also contain provisions that allow lenders to "break open doors or windows" of premises where the borrower's vehicle is located.

Consumer minister Kevin Brennan said: "These bills of sale are archaic and allow vulnerable people's goods to be seized without a court order. They were developed in the days of Charles Dickens and don't meet 21st century consumer standards.

The Government has launched a consultation on the future of the loans.

Ministers favour an outright ban on the use of bills of sale for lending to consumers, but other measures being considered include the introduction of a voluntary code of practice, and reform of legislation governing the loans.

The number of registered bills of sale has increased in recent years, with nearly 40,000 taken out in the year to the end of March, with lending to consumers thought to total around £30 million. But the Office of Fair Trading has received more than 1,000 consumer complaints about the loans during the past four years.

Many of the complaints relate to the lack of protection available to people who get into arrears on the loans, as well as unfair collection practices, the excessively high cost of the loans and the complex and confusing nature of the language used in the agreements.

Citizens Advice has seen a doubling in the number of inquiries received about bills of sale during 2008-09.

These news feeds are provided by an independent third party and Channel 4 is not responsible or liable to you for the same.

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Online Personal Finance Application Money Dashboard Launches Beta Testing (PRWeb)

Posted: 22 Dec 2009 12:22 AM PST

Money Dashboard, a free online personal finance service for UK consumers, has launched its testing programme before its full roll-out next spring. The application brings an individual's bank accounts, credit cards, store cards and loans together on one screen.

Edinburgh, UK (PRWEB) December 22, 2009 -- Money Dashboard's eagerly anticipated beta testing programme launches today. Testing of the budgeting software is by invitation only and thousands of people have already signed up to take part.

For the first time testers will get a feel for how Money Dashboard will finally look when it launches next Spring. Users can aggregate their bank accounts, tag transactions and use the budgeting tools provided. A forum to provide feedback is also now live.

Money Dashboard is a free online personal finance service for the UK consumer. It brings a person's bank accounts, credit cards, store cards and loans together on one screen - giving a clear up to the minute picture of their personal finances, making it the one place to manage your money.

Consumers can access the Money Dashboard personal finance application from any PC and by using it for just ten to fifteen minutes a month it allows them to track spending, set budgets and helps them save. It will also send email and text alerts of budget overspend, suspicious transactions or important events.

Independent of banks, building societies and lending organisations, Money Dashboard is the consumer's friend. It puts people in control of their finances and helps them identify suitable products and ways to save.

Money Dashboard's CEO Gavin Littlejohn comments: "This is an exciting day for us - to finally see Money Dashboard come to life with people using it is fantastic. The feedback from our testers will help shape the final product and ensure we can put the UK consumer back in charge of their own finances."

Money Dashboard will be rolling the service out to those that are currently signed up over the next few weeks - applications for access are still being accepted at www.moneydashboard.com/signup.aspx.

About Money Dashboard:
Founded by Gavin Littlejohn in 2006 and backed by a heavy weight management team including Non Executive Chairman Stuart Sinclair, former CEO of Tesco Personal Finance and David Robinson, founder and former CEO of Bright Grey, Money Dashboard is tipped to crack the UK online personal finance market.

Aimed at the 20 - 40 UK market Money Dashboard will finally give consumers the power to manage their personal finances. Currently undergoing closed beta testing, Money Dashboard will launch to the general public in Spring 2010.

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Online Personal Finance Application Money Dashboard Launches Beta Testing (PRWeb via Yahoo! News)

Posted: 21 Dec 2009 11:01 PM PST

Money Dashboard, a free online personal finance service for UK consumers, has launched its testing programme before its full roll-out next spring. The application brings an individual's bank accounts, credit cards, store cards and loans together on one screen.

Edinburgh, UK (PRWEB) December 22, 2009 -- Money Dashboard's eagerly anticipated beta testing programme launches today. Testing of the budgeting software is by invitation only and thousands of people have already signed up to take part.

For the first time testers will get a feel for how Money Dashboard will finally look when it launches next Spring. Users can aggregate their bank accounts, tag transactions and use the budgeting tools provided. A forum to provide feedback is also now live.

Money Dashboard is a free online personal finance service for the UK consumer. It brings a person's bank accounts, credit cards, store cards and loans together on one screen - giving a clear up to the minute picture of their personal finances, making it the one place to manage your money.

Consumers can access the Money Dashboard personal finance application from any PC and by using it for just ten to fifteen minutes a month it allows them to track spending, set budgets and helps them save. It will also send email and text alerts of budget overspend, suspicious transactions or important events.

Independent of banks, building societies and lending organisations, Money Dashboard is the consumer's friend. It puts people in control of their finances and helps them identify suitable products and ways to save.

Money Dashboard's CEO Gavin Littlejohn comments: "This is an exciting day for us - to finally see Money Dashboard come to life with people using it is fantastic. The feedback from our testers will help shape the final product and ensure we can put the UK consumer back in charge of their own finances."

Money Dashboard will be rolling the service out to those that are currently signed up over the next few weeks - applications for access are still being accepted at www.moneydashboard.com/signup.aspx.

About Money Dashboard:
Founded by Gavin Littlejohn in 2006 and backed by a heavy weight management team including Non Executive Chairman Stuart Sinclair, former CEO of Tesco Personal Finance and David Robinson, founder and former CEO of Bright Grey, Money Dashboard is tipped to crack the UK online personal finance market.

Aimed at the 20 - 40 UK market Money Dashboard will finally give consumers the power to manage their personal finances. Currently undergoing closed beta testing, Money Dashboard will launch to the general public in Spring 2010.

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Banks seek freedom to price loans (The Economic Times)

Posted: 22 Dec 2009 12:05 PM PST

MUMBAI: Lenders have asked the Reserve Bank of India (RBI) to allow them to freely decide interest rates on loans below Rs 2 lakh to enable them reach out to unbanked sections which are presently serviced by microfinance institutions and money lenders at high rates.

At present banks cannot charge more than their benchmark prime lending rates (which range from 11% to 16%) on loans up to Rs 2 lakhs. This ceiling applies to borrowings by farmers and small businessmen in rural India as personal loans are exempt from this cap.

If banks are granted freedom to decide the rate of interest on these loans, interest rates are bound to rise. But banks say that they would still be competitive compared to microfinance institutions which charge in the range of 30% to 35%. Some private banks have told the RBI that given their distribution network they will be able to grow the market significantly if rates are freed.

"The differential in rate is gives scope for pilferage in the system leading to a situation where the beneficiary may not get the full benefit of lower rate," pointed out a banker who attended the meeting with the RBI. Bankers point out that there may be instances of branch officers taking personal favour to sanction the loan at low rates when MFI are charging double the rate.

When contacted by ET, M V Nair, chairman of Indian Banks Association (IBA) and chairman of Union Bank of India declined to comment on proposal made to the RBI. However he pointed out, "Any distortion in the interest rate in the market place gives rise to malpractice. So long as banks make credit available in time at appropriate price that market can bear it will be help in achieving finance inclusion."

But given the political pressures in India it is unlikely that RBI may immediately look at deregulating rates for small borrowers. The cap on such loans is basically aimed at protecting the interest of small borrowers, who would otherwise to charged higher rate since the transaction cost of financing such loans is high for a bank. "RBI should attack pilferage in the system than deregulating rates," suggested a general manager in charge of priority sector lending in commercial bank.

The working group on benchmark lending rates chaired by Deepak Mohanty, RBI's executive director, had suggested that the interest rate for loans up to Rs. 2 lakh may be deregulated. "Banks should be free to lend to small borrowers at fixed or floating rates, which would include the base rate and sector-specific operating cost, credit risk premium and tenor premium as in the case of other borrowers," said the report.

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Money Monday: The Best Personal Finance Stories from the Weekend (Forbes)

Posted: 21 Dec 2009 12:24 PM PST

Here's a rundown of the best personal finance stories you might have missed this weekend:

In Forbes, we wrote about the nine best and nine worst financial moves you could have made in 2009. Among the best moves: buying gold, hardware stocks, or investing in Latin America. Among the worst: selling your bank shares in March, buying Japanese stocks this year, or holding onto a lot of cash. We also looked at how investors often misfire when buying target-date mutual funds and how Congressional inaction over the fate of the estate tax is leading to chaos for financial planners and their clients.

The New York Times wrote that economic uncertainties led middle-class and younger Americans to save much more in 2009 than in previous years, that few stock analysts have optimistic predictions for 2010, and that while some stores like Nordstrom's have lenient return polices, some retailers like Home Depot and American Apparel won't take back merchandise purchased online.

The Los Angeles Times looked at how a freelance movie location scout can shore up his finances despite uneven yearly earnings and ran a Q&A on why the new healthcare bill requires people to buy insurance.

The Washington Post wondered when parents should stop helping their adult children pay their bills or student loans.

Bad Money Advice argued that the real reason behind the many economic problems in America is "not just that many Americans do not understand personal finance as they should. It is the widespread attitude that it is unreasonable to expect Americans to understand personal finance as they should."

And Get Rich Slowly wrote that it's time to start saving for next year holiday gifts now. -- David K. Randall

 

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