Avoid claims management firms for credit card PPI
Consumers who are planning to try and reclaim PPI payments that were made on their credit cards are being warned to steer clear of claims management companies wherever possible, as otherwise they will lose a huge chunk of any money that they get back. Many people with credit cards and loans will be considering claiming for mis-sold PPI following the recent court ruling. However, many could lose out by going through a claims management company.
A huge number of claims management firms have now come out of the woodwork to try and get business from the thousands of people that will be making claims for mis-sold PPI. Many of these firms will be successful in getting people onboard, tempting them with their no win-no fee offers. However, officials have warned that borrowers who are successful with their claims could end up paying a whopping 25 percent of the money – more in some cases – to the claims management firm.
Claiming on mis-sold PPI is something that most people will be able to do quickly and easily themselves, especially with the variety of tools and resources available online. This means that consumers could potentially end up paying hundreds of pounds to claims management firms for something that they could very easily and quickly do themselves for nothing.
An official from the consumer campaign group Which? said: ‘Anyone who thinks they may have been mis-sold PPI should complain directly to whoever sold it to them. By going to a claims management company, you’ll pay what could be a lot of money for something you can easily do yourself. If your bank rejects your complaint, always go to the ombudsman – most complaints about PPI are upheld in favour of the consumer.’
Interest rates on credit cards reach highest levels in thirteen years
It has been reported that the interest rates being charged on credit cards have increased to their highest levels in thirteen years, despite the fact that the base interest rate stands at its lowest level in more than three hundred years, having been at just 0.5 percent for well over two years.
Over the past four months alone credit card interest rates are said to have soared by up to 2 percent, which means that the average rate being charged on credit cards is now 19.1 percent. Over the past four months the rates on no fewer than eighteen cards have increased, with lenders pushing up the rates to recoup financial losses stemming from changes in regulations such as the most expensive debt on the card having to be addressed first with the repayments that borrowers make.
The PPI rules have also hit credit card providers as well as loan providers, and many will end up paying out a fortune in compensation to those that claim to have been mis-sold Payment Protection Insurance over recent years following a recent court ruling. This is something else that will cause huge financial losses for credit card firms and could see rates being pushed up even further.
One official said: ‘There has been a sharp increase in the number of providers raising the interest rates charged on their credit cards. Several of the biggest providers of credit cards, including Barclaycard, Halifax, Royal Bank of Scotland and Santander, have been party to the increases. While credit card interest rates have risen, customers are now being offered the longest ever 0% balance transfer and introductory purchase deals ever seen. Providers hope to bank on customers’ reluctance to keep switching and can claw back the lost interest during intro periods once they end.’
Credit card use set to expand
With the government taking steps to increase broadband access across the UK, with faster speeds and access in rural areas that have always been difficult to reach in the past, it is likely that a rising number of retailers will start to advertise their services online and set up websites in order to enable customers to shop for their foods and products more easily. The broadband improvements should also mean that a rising number of people have access to the internet and can enjoy the benefits of shopping for goods and services online.
All of this is likely to equate to an increase in the number of people using their credit cards for their inline shopping, which in turn could lead to an increase in credit card relates crime, much of which takes place online. This potential rise in credit card crime means that consumers will need to ensure that they are even more careful with their credit card details.
Some of those that will be using credit cards when the broadband expansion comes around will not be all that used to making credit card payments given that they have never had proper access to broadband in the past. These are the people that will have to exercise extreme caution when using their credit cards online in order to ensure that they do not provide fraudsters with easy access to their account details.
One of the things that you need to bear in mind is that you should never link to any website from an email and then enter any personal and account details. Always make sure that you access the website through the browser directly and not from an email, as this could be a phishing scam set up just to get hold of consumers’ personal and financial details.
It is also worth bearing in mind that you should try and steer clear of entering any details on a shared computer, as this could give others that also use the computer access to your details. Of course, it goes without saying that you should always use a reputable site when you are making any purchases online, and this means checking that the website is secure. This is usually signified by https: in the address bar or a padlock signal. This shows that the information is encrypted so that your details are safe and secure.
Tap and Go payments proving popular
It has been revealed that tap & go payments credit are becoming increasingly popular in the UK, as consumers get used to the convenience, speed, and ease that they offer. These cards have been launched as a fast and effective alternative to using cash or credit cards for small payments.
According to reports London in particular is seeing an increase in mobile payments, where a card or smart phone is tapped against a special receiver that retailers have and the money is then automatically deducted from their account. There is no need for a PIN or signature with these cards and more and more retailers are said to be keen on them because they are able to save time and cut down queues.
Many well known retailers have already installed or are due to install the special receptors that are required to for these payments to be made. Tesco, Co-op, and McDonalds are amongst the latest to announce that they will be adding the receptors. The majority of contactless cards in the UK so far have been issued by banking giant Barclays and the cards can be used for payments of £15 or less in most cases.
Jatin Patel, director of accounts at Lloyds TSB, said: “It has been a bit of a chicken and egg thing. We have not been sure about issuing cards until we know there are terminals out there for customers to use. Likewise, retailers have been unsure there are enough cards to justify their investment in fitting terminals and training staff. But the momentum has been building up.”
With regards to the first tap and go smart phones, due out this summer, an Orange official added: “This is the beginning of a revolution in how we pay for items on the High Street. It is a cultural shift as important as the launches of the credit card and cash machines.”