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By Mark Lewin
Staff Writer
Wednesday, 7 October 2009
First published 4 September 2009
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Money News Roundup
If you only do one thing with your money this week...
Best the changes to American Express credit cards by checking out the Egg card.
Egg Credit Card: 0% introductory purchase rate and up to 10% cash back at selected retailers.
Previous Money News Roundups
See our other recent Money News Roundups and other related news stories:
Money News Roundup (28 Aug 09)
A glance back at this week's personal finance news recession luxuries remain a must and the cockney bank machine that dispenses 'sausage and mash.
Money News Roundup (21 Aug 09)
A glance back at this week's personal finance news Visa cards for teenagers, disappearing reward schemes and Tesco's new scheme to encourage spending for Christmas.
Money News Roundup (14 Aug 09)
A glance back at this week's personal finance news Tories consider 20% VAT, HSBC and Barclays increase charges and why a last minute holiday might not be a good idea.
Money News Roundup (07 Aug 09)
A glance back at this week's personal finance news the CAB report record numbers of debt cases, savers receive £21 bn in compensation, Barclaycard slash borrowing and recession-proof white shirts.
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AMEX announces £20 fine, energy companies withhold savings from customers and cheap loans are few and far between despite improvements in the housing market in this week's money news roundup.
AmEx to Charge 'Dormant' Users
AMERICAN Express will start fining customers who don't use their Platinum Cashback cards for a year. This £20 so-called 'dormancy' fee is to cover the administrative costs involved in maintainng idle accounts, says AmEx.
New customers are already subject to this rule, and existing accounts will need to be used at least once per year from the 1st October, to avoid being penalised.
Amex has also reduced its top cashback rate from 1.5% to 1.25% for new customers and increased the minimum amount they need to spend to earn cashback from £2,400 to £3,000.
The credit card giant claims that, even with these changes, the platinum Amex Cashback card is the best on the market for big spenders and that cutting costs was necessary for all its customers' benefit.
Energy Bills Are Too High, Says Survey
EVEN though they are paying less for energy now than for many months, suppliers are refusing to pass these savings on to their customers, according to recent data.
The wholesale price of gas from 1 April to 24 August this year was just 25.5p per therm on average, compared to 58.47p during the same period in 2008 - less than half the price. Wholesale prices for this winter are projected at just 38.12p, compared with 101.28p last year.
However, suppliers have not been reducing prices to its customers by anything near the same amount. British Gas reduced gas prices by 10% in February, while Scottish and Southern cut prices by 4% in March.
The energy companies have been ordered to explain their pricing policies to Ofgem, the industry's regulator amidst concerns that households could be being overcharged by up to £100 per year.
Halifax Announce Counter Closures
HALIFAX are considering closing up too 300 counters across the UK, despite protestations by the Campaign for Community Banking Services (CCBS). Many of these are located in rural areas says the CCBS, and fulfill a vital role in the local community.
Halifax owner Lloyds Banking Group is reviewing its agency counters for profitability and has already identified 26 counters for closure. The counters themselves are not actually owned by Lloyds, but are operated under license out of other businesses such as solcitors and estate agents. They offer basic services such as paying in and withdrawing money.
As well as adding value to local businesses, these counters are also important to residents, particularly the elderly says the CCBS, who prefer to interact with their bank face-to-face rather than by telephone or the Internet.
Personal Loans Are Harder to Find
IT is becoming increasingly difficult to find affordable loans, a spokesperson for moneysupermarket.com said this week.
This is despite the fact that the Bank of England lending base rate is currently 0.5% - an all-time low which would usually encourage lenders to offer great deals.
Part of the problem could be the recent clamp down on selling Payment Protection Insurance, says Tim Moss from moneysupermarket.com. Lenders are having to recoup their losses by hiking interest rates.
However, Nationwide have recently introduced a 7.7% personal loan which, if other lenders follow suit, could indicate recovery of this market.
Mortgage Approvals Rise
ANOTHER sign of recovery could be the increase in mortgage approvals which, in July this year, was higher than it had been for 17 months.
The British Bankers' Association (BBA) said 38,181 mortgages were approved in July stood at 38,181, a rise of 7.4% over June's figures and 77% higher than a year ago.
The BBA warns buyers not to get too excited though. Lending is still below seasonal expectations despite greater demand from borrowers.
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