Experian records 18% rise in pre-tax profits

Global information services group Experian has posted a pre-tax profit of $318 million (£216m) for the first half of the year; up from $270 million (£183m) for the same period in 2007. First half revenues totalled $2.02 billion; up 13% compared to last year with revenues from UK and Ireland increasing 4% to $475 million (£322m).

Chairman John Peace said: “Experian performed well in the first half, delivering good revenue, profit and cash performances, even though market conditions were exceptionally challenging.”

Experian is expecting similar growth in the third quarter whilst stating it’s full year objective remains: “to broadly maintain margins and to grow profits, while continuing to position the business for long term success”.

Experian is the parent company of Credit Expert, which offers 30 days free access to your online credit report.

HSBC fails to pass rate cut on to customers

Despite the Bank of England cutting 1.5% off the base rate two weeks ago, HSBC has finally announced today that its standard variable rate (SVP) will be cut by just 0.81% bringing it down from 6.25% to 5.44%. First Direct, which is owned by HSBC, will also cut their SVP 0.81% bringing it from 6.5% down to 4.69%.

HSBC is the ONLY major bank not to pass on the full rate cut to their customers.

Andrew Montlake of Cobalt Capital said: “It is disappointing that HSBC has only decided to pass on just over half of the latest base rate cut, and taken an age to come to this decision as well. HSBC has some attractive deals at the moment, but this half-hearted move suggests that it is unlikely they will pass on future cuts.”

Shortly after the Bank of England announced its decision to cut the rate of borrowing, Halifax, Lloyds TSB and Royal Bank of Scotland confirmed they would pass the full cut on to their customers. All three are part of the Government’s £37 billion bail-out of the banking system.

UK Mortgage approvals fall by a whopping 64%

Approvals for house purchases in the UK are 64% lower than a year ago.

The British Bankers’ Association (BBA) have reported that major banks in the UK approved 21,086 mortgages, down from 58,564 in August last year.

Also, approvals for remortgaging a property were down 28% at 47,765.

Experts advise that falling house prices, stricter lending criteria and the uncertainty on stamp duty are the main reasons for the huge drop.

The BBA’s members account for roughly two thirds of the UK mortgage lending.

Is it safe to leave your savings in the bank?

With the biggest financial crisis in decades do we need to worry about our savings?

We are seeing financial institutions and companies collapsing nearly every day. One of the biggest investment banks Lehman Brothers collapsed last week, Merrill Lynch was sold to Bank of America, AIG has been given a $20bn loan to keep it solvent, and in the UK HBOS has been bought by Lloyds-TSB.

Alliance & Leicester is being taken over by Santander and the Cheshire and Derbyshire building societies are being taken over by Nationwide due to financial difficulties.

All this and the credit crunch are causing investors and savers to panic and to worry about how safe their money actually is.

If you have your cash in a UK bank or building society then the first £35,000 is protected under the Financial Services Compensation Scheme (FSCS). However, this is not as straight forward as it appears. Some banks have more than one “brand” and use the same banking authority. For example The Royal Bank of Scotland and NatWest are both part of the Royal Bank of Scotland Group and Birmingham Midshires comes under Bank of Scotland.

Post Office accounts are covered by this compensation system as accounts are run by Bank of Ireland and ING accounts are also covered.

The FSCS is largely untested as to date no UK bank has collapsed so it is not known how long it would take to make payments if it needed too.

If you have savings of more than £35,000 and want to keep it in a bank account, it would be wise to look to spreading your money through various banks ensuring you are aware of who is related to who.

1.2% rise in UK retail sales

The ONS (Office for National Statistics) have revealed High street sales rose by 1.2% in August which is 3.3% higher than a year ago. Analysts had predicted a 0.5% drop after several gloomy surveys.

Clothing and footwear sales led the increase followed by back to school shopping – this is despite reports that consumers would be cutting back because of the current economic gloom and doom.

Consumers are cutting back on food spending which fell slightly by 0.2%.

While the latest monthly figures are positive, sales in the three months up to August fell by 0.8% compared to the previous three months which is the largest dip since November 1990.

Analysts are saying that following the latest bad news from the banking and finance industry it is very likely that retail sales will drop over the next few months. Consumer confidence is running low due to rising inflation, loss of confidence in the banks and rising unemployment.

Repossession Orders rise by 24%

Homeowners in England & Wales who face having their homes repossessed after falling behind with their mortgage repayments has risen by 24%.

Figures from the Ministry of Justice show 28,658 orders were made by the courts in England & Wales from April to June this year. This is up 24% on the same period in 2007 and up 4% from the first quarter of 2008.

Repossession orders come early in the process and do not necessarily end in repossession. A deal can very often be agreed between the mortgage lender and the borrower.

However, the figures released for actual repossessions across the UK have showed a huge increase. Last week the Council of Mortgage Lenders (CML) reported the number of actual repossessions rose to 18,900 the first six months of this year. This is up 48% for the same period of last year.

The credit crunch is responsible for more expensive mortgages which borrowers are finding more difficult to keep up with along with other rising household bills.

The charity Shelter has also reported that the number of people coming to them for help has risen by 55% and they are seeing more ordinary hardworking people seeking their help.

Ways to save thousands of pounds without really trying…….

Cancel your Sky+ subscription – save up to £280
Change your costly Sky subscription for Freeview Plus – you can access dozens of digital channels, pause live TV and record programmes with no contract or monthly subscriptions.

Get cheaper broadband with a dongle – save up to £250
Think about ditching your landline telephone and buying a “dongle” for your mobile instead. It plugs into your USB port and allows you to get high-speed internet access at home and on the move, via Bluetooth. The major mobile networks are offering monthly subscriptions from just £10.

Don’t buy books – save £100 or more
Don’t pay £7.99 for new books – use your local library, charity shops or online book swap clubs.

Take your own lunch to work – save up to £1,000
Making your own sandwiches can save a fortune and often taste better too. Buying family packs of crisps, chocolate bars and bags of fruit will give you a varied tasty lunch for a fraction of the cost.

Cancel your gym membership – save up to £800
Most of us don’t use the gym regularly - if at all! Try taking to the streets, walking or jogging for free. Exercising at home can be more effective too – most of us have keep fit DVDs and exercise equipment at home.

Have your hair cut by a trainee – Save up to £350
The price of a cut and blow dry at a good salon is about £50 whereas a cut and blow dry with a trainee stylist can start from only £10.

Stop buying Lattes and Cappuccinos – save up to £500
Your daily coffee bought from the many high street coffee shops can set you back about £12 a week. Invest in a thermos mug and make your own. Or drink water and get healthier too!

Try own brands at the supermarket – save up to £1,200
Don’t be a slave to brand names. More often than not you won’t be able to tell the difference. Next time you are at the supermarket pick out
one or two of their own brands and give them a try.

Card Company Increases Payments

One of Britain’s largest credit card providers is demanding bigger payments from its customers.

MBNA is increasing its minimum monthly repayments from 3% to 5% in September. This is a sure sign that the rates squeeze is spreading.

Borrowers with an average debt of £2,300 will see their minimum payment increase by £46 a month.

Only last month MBNA raised its minimum rate from 2.5% to 3%.

It is thought up to a third of credit card users have had their rates hiked over the last 6 months according to latest research.

About 14% of MBNA customers have seen rate increases over the last 12 months and Egg has increased rates for 11% of its customers. It is when 0% deals come to an end that the huge rate hikes are applied. Some have seen rises of 10% - from 14.9% to 24.9% when their 0% deal ended.

MBNA have said not all customers will have to pay the new 5% minimum but did not say how many would be affected.

8.7 million to pay more in the new road tax reforms

The Government has confirmed more than 9 million people will pay more road tax under the new controversial tax reforms.

43% of motorists will have increased bills of £245 by April 2010 and only a fifth of drivers will be better off in the long term.

Ministers are insisting the new measures are aimed at cutting pollution and not to raise revenue. However, experts have calculated that more than a billion pounds extra revenue will be taken by 2011.

Treasury minister Angela Eagle has hinted that drivers may be offered cash by the government to have their old gas guzzling cars scrapped – rather than selling them on to other drivers.

She said experts believed that in 2009-10 “a third of cars will be better off in real terms, and in total, approximately 55% of cars will be no worse off”. However, it is predicted that a little more than 44% - 8.7 million drivers in the six most polluting bands, will pay more.

By 2010/11 it is expected 9.4 million will be paying higher bills.

Debit cards sent to children

A high street bank is sending children debit cards without their parent’s consent.

Lloyds-TSB are mailing debit cards to children as young as 11 who are able to use them to buy goods on the internet without their parent or guardian’s knowledge.

In the past, children have only been able to use their debit cards for cash withdrawals from cash machines or bank branches.

It has been reported that one father has already made a complaint to the bank after his son, who is only 15, used his card to buy cigarettes and a fake adult ID on line.

Lloyds-TSB are saying they openly advertise on their website that these cards can be used for online shopping and it is up to parents to monitor how they are used.

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