Personal loan news, Oct - Dec 2006

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Lending rates down as indebted consumers cut back

22 December 2006

The market for personal loans contracted by 5.6% under pressure from rising interest rates and rising unemployment in 2005, new research from Datamonitor finds

High APR loans aren't necessarily dangerous, says CA

19 December 2006

High APR loans offered by credit lenders are not as dangerous as their reputation has led people to believe, according to national money education charity Credit Action (CA).

Cat welcomes low-interest loans for greener homes

18 December 2006

The chancellor has issued his strongest hint yet at a low-rate personal loan designed to help environmentally conscious consumers to make their home greener.

£400 unsecured loan made available for Farepak sufferers

15 December 2006

The Scottish Executive yesterday agreed to underwrite loans for Farepak sufferers which would see them get up to £400 in an unsecured loan to help finance the Christmas period.

Customers furious at Cahoot's loan rate rise

14 December 2006

Customers of Cahoot's online bank who took out a flexible loan with it have been left angry and frustrated this week as the bank gave consumers just two weeks notice of its dramatic APR rises

Interest rate remains at 5%, but for how long?

11 December 2006

The Bank of England's (BoE's) monetary policy committee's (MPC's) decision to keep interest rates at 5% came as no surprise to the majority of economic commentators, but with many consumers taking out loans to fund Christmas spending, many now question how long they will stay at current levels.

Consumers warned not to fall victim to 177% APR loan

08 December 2006

Politicians have slammed a credit company for exploiting the victims of the Farepak collapse by offering them a loan which charges a whopping 177% interest rate, a charge which one MP branded as "nothing more than legalised theft".

Beware unscrupulous loan providers, CAB warns

04 December 2006

The Citizens Advice Bureau (CAB) has issued a warning to consumers not to be taken in by unscrupulous loan providers in the run up to festive season.

CC demand home credit firms share their data

01 December 2006

Home credit loans, where small amounts of money are lent out and collected on the consumers' doorsteps, are to be more tightly regulated and forced to share their data under proposals put forward by the Competition Commission (CC).

One in five cosmetic loans are taken out by men

30 November 2006

Desperate to stay attractive in an increasingly looks-obsessed society, one in five personal loans taken out for cosmetic surgery purposes are taken out by men according to research from Sainsbury's bank.

Take advantage of the sub-6% loan while it's still here, warns uSwitch

29 November 2006

Following the decision of AA Financial Services to increase its APRs by 0.1% and Northern Rock and Moneyback bank to raise theirs by 0.2% in the last two weeks, the price comparison and switching website uSwitch.com comments on the end of the sub-6% loans.

SIVAs the way forward for debt consolidation loans

28 November 2006

Debt consolidation experts have heralded the impending arrival of Simplified Individual Voluntary Arrangements (SIVAs) as the most effective way of helping consumers consolidate their debt into one, manageable sum.

Social lending could threaten banks

24 November 2006

A report by the thinktank Social Futures Observatory has suggested that the online community may extend further into the way consumers borrow and save by offering a preferable alternative to high street banks.

Don't fall victim to loan-sharks, warns TSI

22 November 2006

The Trading Standards Institute (TSI) has issued a stark warning to consumers, urging them to not fall for the charms of unscrupulous money lenders in the lead up to Christmas.

Car loans can be dangerous for naive consumers

21 November 2006

This week is National Consumer Week and consumer groups and organisations are trying to raise awareness on a whole list of issues, from teaching consumers about their rights, to making sure they are not falling victims to con-artists and fraudsters.

Financial inclusion report praised by ABCUL

17 November 2006

The Association of British Credit Unions Ltd (ABCUL) has welcomed the Treasury select committee's report on financial inclusion, which it believes will strengthen the credit union movement and bring affordable credit and safe savings to more people.

Experian urges consumers to seek more information on loans

16 November 2006

Global information solutions expert Experian has voiced its concerns over the rising insolvencies in Britain and is urging consumers to analyse all available information before making a decision on any loan or credit agreement.

Banks respond to uSwitch loan commentary

08 November 2006

Following the price comparison and switching website uSwitch's comments on personal loans yesterday, the banking industry has responded with a defensive message, declaring that they are doing all they can to check up on borrowers.

uSwitch calls for an end to binge lending

07 November 2006

Research from the price comparison and switching website uSwitch has revealed that in the last year, almost eight out of ten borrowers were issued loans without the lender carrying out any checks to verify that they could afford to repay the debt.

Interest rate rise declared a certainty

06 November 2006

Following rumours last week that the Monetary Policy Committee (MPC) might raise the interest rate, economic experts have now declared that the rise to 5% will be a certainty and most predict a further rise in February 2007 as the MPC tries to bring rising inflation under control.



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