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By Justin Schamotta
Staff Writer
6 November 2009
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Money News Roundup
If you only do one thing with your money this week...
Transfer your current account before it's too late - £100 when you join the Alliance and Leicester current account ends on the 8th of November.
Previous Money News Roundups
See our other recent Money News Roundups and other related news stories:
Money News Roundup (30 Oct 09)
A glance back at this week's personal finance news: Halloween is pricey, say Egg, don't demonise banks says RBS chief, an investigation uncovers mistakes in credit records and a Virgin bank is in the works.
Money News Roundup (23 Oct 09)
A glance back at this week's personal finance news: bailed out banks offering the worst deals, number of houses without current accounts halved, banks required to prove guilt in card fraud cases and Barclays wins PPI appeal.
Money News Roundup (16 Oct 09)
A glance back at this week's personal finance news: Natwest and HSBC restrict credit card applications, freshers hit by late arrival of loans, credit card fraud falls by 23% and Barclaycard's website goes offline again.
Money News Roundup (09 Oct 09)
A glance back at this week's personal finance news: Households hoard their savings, the black market in credit card details, an extra £3000 for over 50s' Isas and card holders closer to compensation for PPI mis-selling.
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CREDIT card borrowing falls to new low, consumers get angry at new Halifax charges, lump sums are demanded for sub-prime mortgages and a new Lending Code is launched in this week's money news roundup.
Credit Card Borrowing Falls to New Low
Credit card borrowing has sunk to it's lowest since Christmas last year according to new Bank of England data. UK residents borrowed only £79m on their credit cards in September with debts of £262m being repaid.
The figures also show that those wishing to climb the housing ladder are receiving encouragement as lenders increased their mortgage approval rating to an 18-month high.
A total of 56,215 mortgages were approved in September, up from 52,970 in August. Analysts suggest that potential homeowners are attracted by low interest rates and greater optimism about the economy.
Consumer Anger at new Halifax Charges
IN an attempt to pre-empt curbs on bank charges, Halifax has riled some consumers with changes to the way it charges for overdrafts.
Under the new system, which comes into force next month, the bank will charge a flat fee for each day the account is overdrawn. Interest and transaction charges will be abolished.
If the borrowing is authorised, the fee will be £1 a day for balances of up to £2,500 and £2 a day on larger sums. On all unauthorised overdrafts, the charge rises to £5 a day.
Dominic Lindley, a personal finance campaigner at Which?, said: "This is bad news for any Halifax and Bank of Scotland customers who regularly use their overdraft as it's effectively a big hike in charges."
Lump Sums Demanded for Sub-Prime Mortgages
SOME sub-prime mortgage lenders have been accused of insisting homeowners who have fallen into arrears repay a large lump sum instead of allowing them to pay off the accumulated debts in a payment plan.
The claims, made by Luke Memory of mortgage and debt adviser Revival Action, come as sub-prime lender GMAC is found guilty by the Financial Services Authority of overcharging customers in arrears.
Mr Memory says demanding lump sums contravenes Section 36 of the Administration of Justice Act 1970, which states that customers should be allowed to repay accumulated debts, along with their regular mortgage payments, over a 'reasonable period of time'.
New Lending Code Launched
IN better news, this month will see consumers wishing to borrow money gaining increased protection.
The Lending Code sets rules that providers of credit must follow when providing overdrafts, credit cards, charge cards and loans to personal and small business customers.
It details how customers should be dealt with through the whole product life cycle, from marketing and account opening to the provision of information on changes to terms and conditions and interest rates.
Most importantly it highlights how lenders must help when something goes wrong, including when someone is experiencing financial difficulties.
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