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By Justin Schamotta
Staff Writer
9 October 2009
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Money News Roundup
4 Tips to Prevent Credit Card Fraud
Use different passwords for every online account with letters and numbers.
Never click on links in emails, always go directly to your online banking.
Never click on links in emails, always go directly to your online banking.
Don't send sensitive information via email.
Keep Internet Explorer up to date to enhance online security.
Consider insurance against credit card fraud from a major card supplier.
Read more in our Guide to Preventing Credit Card Fraud.
Previous Money News Roundups
See our other recent Money News Roundups and other related news stories:
Money News Roundup (02 Oct 09)
A glance back at this week's personal finance news PM loses patience with banks, secret power price hikes exposed, freshers face up to decades of debt and credit card companies invert order of payments .
Money News Roundup (11 Sep 09)
A glance back at this week's personal finance news HSBC starts a mortgage fight, the FSA clamps down on bankers' bonuses and are balance transfer deals becoming a thing of the past?
Money News Roundup (04 Sep 09)
A glance back at this week's personal finance news Amex announce fine for occasional card users, cheaper loans are still hard to find but the mortgage approval rate is rising.
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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 in this week's money news roundup.
Hoarding Households Save 5.6% of Their Income
THE UK is turning into a nation of savers as the economic downturn continues to change spending habits. Figures published by the Bank of England show that the proportion of household income that is being saved rather than spent - also known as the savings ratio - has reached 5.6%.
The figures are a sharp turnaround from the first quarter of 2008, when the savings ratio went negative for the first time.
Vicky Redwood, economist at the London branch of Capital Economics, predicts the trend will continue, with the savings ratio hitting double figures in the near future. "We still think that saving has further to rise - and that this will play an important role in constraining any consumer recovery," she said.
Credit Card Details for Just 4p
Cybercriminals are using an online black market to trade credit card details for as little as 4p according to new research from anti-virus supplier Symantec.
Online black market transactions can also involve criminals trading email address and accounts from only 5p, with a full identity going for about £45. Figures show that cybercrime is now a booming industry with an identity stolen every three seconds online.
"The majority of us use the internet, but there is a very real and growing criminal underworld we are often not aware of," says Professor Lillian Edwards, internet law specialist at Sheffield University.
"We need to do more to protect ourselves from these online perils, especially as national police forces find it dauntingly hard to stop cybercriminals from operating from other countries."
ISA Allowances Rise for Over 50s
Good news this week for savers over 50 as the amount allowed to be invested in Isas rises by from £7,200 a year to £10,200. Younger investors will catch up next April.
The temptation to invest the full allowance will be difficult to resist. According to Fidelity, the past six months have seen £7,200 put into the average UK All Companies fund grow by 30% to £9,400.
It would be rash to expect the next six months to bring the spectacular returns of the past six but Rob Fisher, head of UK personal investments at Fidelity, thinks tax considerations alone make it worthwhile using the full limit.
Card Holders Closer to Compensation for PPI Mis-Selling
Thousands of borrowers could potentially benefit from a ruling relating to the way credit card holders are sold payment protection insurance (PPI).
A county court judge has decided that an "unfair relationship" had arisen between Lynne Thorius and MBNA because she was advised to take out PPI by the card giant but was not told it would receive a commission from the sale.
Banks make profits of up to 80% on PPI premiums and the mis-selling of the policies has so far resulted in the FSA imposing fines totalling £11.8m.
Similar complaints have previously gone unheeded with firms on average rejecting around 60% of the PPI complaints they have received, although some have rejected nearly 100%.
The ruling is a welcome addition to rules recently introduced by the Financial Services Authority which state that lenders must revisit about 185,000 cases of consumers who have unsuccessfully complained about cover bought alongside unsecured loans since 1 July 2007, and compensate any they find have been mis-sold policies.
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