Daily Archives: June 26, 2009

Credit Cards, Debts, Financial, Financial Management, Financial Services, Money, Personal Finance

Debt Management Could Help With Unmanageable Credit Card Debt

Responding to a new report suggesting that there are more than 200,000 ‘secret credit cards’ in the UK – cards that are kept hidden from the holder’s partner – financial solutions company Think Money has advised consumers that while credit cards can be a useful means of funding purchases, borrowers should be careful to ensure that they can make their repayments in order to avoid debt problems in the future.

thinkmoney

Research from Halifax Credit Cards showed that people in the UK hide an estimated 217,000 credit cards from their partners. Reasons for doing this included buying items the card holder did not want their partners to know about, hiding existing debt from partners, or simply having emergency funds available.

According to credit card trade association APACS, there are 30.2 million credit card holders in the UK. Total credit card spending in 2008 was £126.2 billion.

Melanie Taylor, Head of Corporate Relations for Think Money, said that while there is nothing specifically wrong with having a ‘secret’ credit card, card holders should ensure they are hiding it for the right reasons – and not in order to hide problem debts.

“It boils down to the same principle as having any credit card. Credit cards can be a very useful source of additional finances, as well as a ‘safety net’ against any unexpected costs. Used correctly, credit cards should not cause the consumer any problems.

“However, it’s when the borrower starts delaying their repayments – paying only the minimum – that the problems can start.

“The trouble with credit card debt is that the interest is a lot higher than on many other forms of credit. If the borrower does not repay the full credit card balance at the end of the month, then the interest that accumulates on the remaining balance may be a lot higher than a lower-interest alternative, such as an authorised overdraft.

“Over time, the interest can begin to ‘snowball’, and it can become increasingly difficult to repay the remaining balance. It may not be long before the debt becomes unmanageable – which is why it’s important to get debt advice at the first sign of difficulty.”

Mrs Taylor added that the relatively low minimum repayment on credit cards means that some people can take a long time to clear the debt.

“Unlike personal loans, which carry fixed regular repayment terms, credit cards only require a minimum repayment each month. This makes it very easy to delay repaying the full balance, which is how problems start for many borrowers.

“In general, we advise people to avoid making large purchases on credit cards unless they can be absolutely sure that they can afford to repay the debt in the near future.”

Mrs Taylor said that anyone who does find themselves struggling to repay their credit card debt should not hesitate to seek professional debt advice.

“Because the interest will only continue to grow, finding the right debt solution is vital for anyone who can no longer afford to repay their credit card debt.

“One such debt solution is a debt management plan, which is an informal arrangement with the lender that can allow the borrower to repay their debt at a more manageable pace. It is often also possible to negotiate a freeze or reduction in interest, which could be especially helpful for repaying credit card debt.

“However, borrowers should always consider all options available to them. A professional debt adviser can recommend the best debt solution for the borrower’s individual circumstances.”

Via EPR Network
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Checking & Savings, Financial, Financial Information, Financial Services, IRA, Money, Personal Finance, Retirement

Prudential Reveals That Advisers Pin RDR Hopes Online

Prudential has released research demonstrating the need for providers to constantly adapt their services to help advisers in both the online and offline environment, with more than half of the advisers surveyed (58%) ranking better quality or more online information and service options as the most important element of the product provider/distributor relationship surrounding preparations for Retail Distribution Review (RDR).

While improving online servicing is seen as a must do by advisers, they also believe that solid account management relationships must go hand-in-hand with technology. This sentiment was highlighted by 40% of advisers citing more or better dialogue with an account manager as the next most important service element surrounding their preparations for RDR. With a combination of expert face-to-face and telephone account management teams readily available to guide advisers through obtaining and completing sales, this is a service Prudential is already supports.

Ian McKenna, Director of the Finance and Technology Research Centre (FTRC) said: “RDR will make it essential for advisers to focus on the cost of doing business in ways they have never needed to previously. It is not giving the advice that takes excessive time but the preparation. Collating information manually is hugely time consuming, electronic services can deliver in seconds what might otherwise take hours. Historically the cost of those hours has been subsidised by commission, when it is the client potentially paying for the time racking up hours in this way will no longer be acceptable. Automated delivery of information to advisers will be a hygiene factor in a Post RDR environment.”

57% of advisers claimed that their volume of client enquiries regarding retirement planning remains unchanged. This is encouraging news in the current economic climate, proving that it is vital for providers to arm advisers with all the necessary tools to deal with their continuous day-to-day business.

Jon Cross, Head of eBusiness at Prudential said: “Our research shows that advisers are becoming increasingly dependent on online services to help guide them through the changes that RDR will bring. Prudential works very closely with advisers to develop its online services, we constantly review our content and navigational functionality, and will of course continue to evolve our systems to help advisers as they change their business models ready for RDR. We are committed to providing a high level of service to advisers to ensure that they spend as little time on administration as possible. Taking their business online frees up time that would have traditionally been spent processing paperwork.”

The benefits of online servicing are clear for advisers, allowing easy access to brochures, illustrations and valuations outside normal office hours. Prudential’s adviser website houses a wealth of useful material including product guides, support literature, real-time valuations and market analysis from industry experts. Advisers can also find a variety of interactive tools covering pension planning, drawing an income and annuitisation. The ‘Support for you’ section provides advisers with updates and news regarding regulatory issues such as TCF and RDR. Also under this section advisers can hear what Prudential experts have to say as they explore various opportunities and considerations advisers face in helping their clients save for and provide an income in their retirement.

Prudential surveyed 123 independent financial advisers during April 2008.

About Prudential:
“Prudential” is a trading name of The Prudential Assurance Company Limited, which is registered in England and Wales. This name is also used by other companies within the Prudential Group, which between them provide a range of financial products including life assurance, annuity products – including retirement annuity, pensions, savings and investment products. Registered Office at Laurence Pountney Hill, London EC4R 0HH. Registered number 15454. Authorised and regulated by the Financial Services Authority.

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Assets, Business, Financial, Financial Services, Money, Security

Battle Against Mortality Fraud Intensifies

In order to offer their customers increased protection against impersonation of the deceased (IOD) fraud, Tracesmart have considerably increased the coverage of mortality data they hold. The consumer data specialists have now incorporated the General Register Office (GRO) death indexes for England and Wales from 1980-1983 into their Tracesmart Corporate suite of services; this being only the beginning of their comprehensive death index digitisation project.

The GRO has collated registers of important civil events, such as births, deaths and marriages, since 1837, but it was not until 1984 that they began to digitise records. All registrations prior to 1984 are held on microfiche. In 2005 the GRO initiated the ‘Digitisation of Vital Events’ (DOVE) project to digitise the birth, death and marriage indexes, but unfortunately following major delays the project was put on hold, with only birth records up to 1934 and death records up to 1957 having been digitised; it is not known when the project will recommence.

Death index data is a pivotal tool in the fight against IOD fraud. With a lack of historical death data available electronically and having acquired microfiches holding all deaths registered in England and Wales covering 1960 – 1983, Tracesmart embarked on a comprehensive death index digitisation project. Utilising an offshore service provider, the company are ensuring 99.95% accuracy on all records digitised through a strict quality control procedure and, when completed in 2010, the project will yield approximately 14,500,000 death records in a digital format.

Tracesmart have completed the initial stage of this project and the 1980 – 1983 death indexes (some 2,500,000 records) have already been integrated into their mortality database. These additions make it both the most comprehensive and extensive commercially available mortality database in the UK.

Whilst the 1980 – 1983 death indexes will be essential for conducting comprehensive identity checks and data cleansing exercises, they will also play a significant role when financial institutions wish to trace people as part of an asset reunification program. From their considerable experience in tracing dormant account holders, Tracesmart know that many of the missing individuals will transpire to have died prior to 1984. Whereas to identify such events previously involved labour intensive research, it can now be done at the click of a button.

Commenting on how the new death records and their ongoing digitisation project will help their customers Mike Trezise, Managing Director of Tracesmart, noted,

“Following on from the integration of death registration information into our anti-fraud services last year, we are continuing to enhance our mortality database. From a service standpoint this data means we can improve and enhance much of our portfolio, especially our identity verification and mortality screening services. This, in turn, allows our clients to better defend against mortality related fraud, protecting both the company and consumer alike.”

About Tracesmart

Tracesmart Limited was formed in 1999 and supplies a diverse range of consumer data cleansing, identity check and people tracing tools to a wide variety of industries. The company’s client base ranges from SME to Blue Chip, who are all recipients of bespoke solutions, built around their specific needs.

Mike Trezise is the founder and Managing Director of Tracesmart. With over 25 years tracing and fraud analysis experience his unrivalled knowledge provides the company with a distinct competitive advantage.

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Banks, Checking & Savings, Credit Cards, Financial, Financial Management, Financial Services, Financial Solutions, Money, Personal Finance

Barclaycard Retailer Rewards Scheme Takes A Step Forward

Barclaycard, a leading payment provider in the UK, has announced that it has taken a step forward with its plan to introduce a retailer rewards scheme by signing an agreement with Welcome Real-time to provide the scheme’s IT infrastructure.

Welcome Real-time will work with Barclaycard to develop the software that will enable Barclaycard customers to benefit from a retailer rewards scheme that is expected to encompass retailers ranging from sole traders to major high street names.

Dan Salmons, Director of Payment Innovations at Barclaycard said: “Barclaycard is committed to making life easier for its customers, both consumers and retailers and this scheme will enable up to ten million of our card holders to be rewarded when using their Barclaycard to purchase goods and services with retailers participating in the scheme.”

“Barclaycard has close to 90,000 retailer relationships, many of which we expect to participate in the programme, and we believe this scheme will change the way people shop in the UK. That is why we are partnering with a world leading loyalty solutions provider to ensure that we develop a simple hassle free rewards scheme that will truly benefit our customers.”

Welcome Real-time is the global loyalty solutions provider for banks and retailers of all sizes and is headquartered in France.

Francois Dutray, CEO of Welcome Real-time, said of the announcement: “We are delighted to be working with Barclaycard in the UK to develop a rewards scheme that will make a huge impact on the British High Street. It is a great opportunity to develop a scheme with the potential for millions of customers and many retailers in the UK, whether large or small.”

Barclaycard will make further announcements about the development of the rewards scheme in the coming months.

About Barclaycard
Barclaycard, part of Barclays Global and Retail Commercial Banking division, is a leading global payment business which helps consumers, retailers and businesses to make and accept payments flexibly, and to access short-term credit when needed. The company is one of the pioneers of new forms of payments and is at the forefront of developing viable contactless credit card and mobile payment schemes for today and cutting edge forms of payment for the future. It also issues business credit cards and charge cards to corporate customers and the UK Government. Barclaycard partners with a wide range of organisations across the globe to offer their customers or members payment options and credit. In addition to the UK, Barclaycard operates in the United States, Europe, Africa and the Middle and Far East.

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Costs, Financial, Financial Information, Financial Services, Insurance, Insurance Services, Money

The More Ways You Protect Your Home, The More Willing Insurance Companies Are To Offer Discounts

insuranceagents

Did you know that summer is the most popular time of the year for home burglaries in the US? During the summer months there is a burglary every 10 seconds since so many people are on vacation, away from their homes, and the weather is nice.

An alarm system is one of the best ways of making sure your home is properly protected. However, many people don’t realize that having a home alarm system means homeowners insurance savings.

According to a recent article published by InsuranceAgents.com, “For an insurance company, low risk is the name of the game. They like policyholders who have considered home safety and security and have taken necessary steps to thwart intruders …” This means investing in an alarm system and taking other precautions like installing dead-bolt locks and shatterproof windows can save you hundreds, if not thousands of dollars, in insurance premiums each year.

To many people the idea of installing an alarm system can sound too expensive, but when compared against the 5-20% savings per year on homeowners insurance quotes, the costs suddenly seem much more affordable. Even a simple alarm system can still save you 5% a year or more with most homeowners insurance companies. Also, adding a deadbolt to all entry doors in your home can qualify you for a discount of 5% at many companies.

The InsuranceAgents.com article explains that the more you can show the homeowners insurance company that you are protecting your house against break-ins the more they are willing to discount your policy. With the economy still struggling and people looking to save every penny they can, this is the perfect time to review your homeowners insurance policy and find out how you can start to save more money by taking advantage of available discounts.

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Banks, Checks, Financial, SME

Free Customer Logo Checks With US Banking Security Backer Regulation Compliance

Carousel Checks, an online provider of personal, business, computer, laser and bank checks worldwide, announced today that it has released a line of free business customer check designs incorporating a company’s logo. The checks also include the Security Backer feature, which makes the checks nearly impossible to photocopy or otherwise reproduce for fraudulent purposes.

Carousel Checks, an online provider of personal, business, computer, laser and bank checks worldwide, announced today that it has released a line of free business customer check designs incorporating a company’s logo. The checks also include the Security Backer feature, which makes the checks nearly impossible to photocopy or otherwise reproduce for fraudulent purposes.

The checks are in full compliance with U.S. banking laws, said Carousel Checks president, Andy Crim.

“Corporate fraud is at an all time high,” Crim said. “Companies suffer from ID theft, too. These checks not only certify who wrote them with the use of a corporate logo, but they also provide extra security by being virtually impossible to reproduce or forge.”

Crim went on to say that Carousel Checks incorporates four security features on every check it prints. These features exceed industry guidelines as an extra assurance to customers that their security is assured.

The four features are:
1. Padlock Icon: This icon insures the issuer of the checks that security enhancements are being used in accordance with Financial Stationers Association guidelines.

2. MP Signature Line: The MP icon assures the issuer that micro-security print is being used in the design. Micro-security print is very small print that is designed to “break up” if photocopied. In other words, the print will be very broken and jagged on the fraudulent check.

3. Rear Panel: The reverse side of the check provides full descriptions of the security features.

4. Finally, Carousel Checks protects all online purchases of checks and other transactions with the highest levels of security.

“We realize that people and businesses can be a bit apprehensive about providing their financial information on line,” Crim said. “However, these days you have to do it if you’re going to be in business.” Carousel Checks has been awarded the highest level of security certification by GeoTrust and ControlScanTM, two leading providers of PCI compliance and security solutions.

Printing business checks that meet government and industry qualifications is nothing new for Crim. His parents founded Carousel Checks over 40 years ago as a check designer and printer for businesses and banks. Even then, security was a primary concern, even though the opportunity for fraud was much smaller.

As technology progressed, and the banking industry began to get more diverse, Carousel Checks moved into the personal – and personalized – check printing business. This included customizing business checks with company logos and other identifying marks.

Crim said that any assurance of security during an internet purchase can often turn a reluctant visitor to the site into a repeat customer.

“The trust badges we receive from different security companies serve a real purpose on our site,” Crim said. “They’re the visual affirmation of security certification. Customers know that they can order their online checks safely. They know that when they share the financial information needed for their checks that their information will not be stolen or otherwise compromised. We take great pride in that. “

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Checks, Financial, SME

Vietnam Wall Commemorative Checks By Premier Online Check Company Carousel

Nearly 35 years after the final American helicopter flew out of Vietnam, the memory of more than 50,000 American men and women who lost their lives in the conflict is preserved forever in the black marble walls of the Vietnam Veterans Memorial. Since it was first unveiled in 1982, it has become as recognizable as any other monument in Washington, D.C. and a place of healing for countless veterans of the war and their families.

carouselchecks

Carousel Checks, an online provider of personal, business, computer, laser and bank checks worldwide, recently announced the release of “The Wall,” a stirring photograph adorning the company’s newest addition to its American Pride line of commemorative checks.

The design on the checks respectfully depicts a portion of the Vietnam Veterans Memorial with a proud U.S. Marine saluting in the foreground. Names of many of the fallen can be clearly read in the design.

“The wall is such a stark reminder of the selflessness that our fighting men and women exemplify,” Andy Crim, president of Carousel Checks, said. “We received many requests from veterans and their families for a Vietnam-themed design. We chose this one because it is both heartening and solemn.”

The Vietnam Wall design joins a growing number of Americana-based check designs for the 40-year-old Carousel Checks Company. Other patriotic photos available in the American Pride line of custom checks include Mt. Rushmore, The Lincoln Memorial, the Statue of Liberty, the POW-MIA logo and several attractive “Old Glory” patterns.

“American history and Americana in general is very popular on personal checks,” Crim said. “These checks have always among our most popular designs. “ Crim added that he had no doubt that the Vietnam Wall check design would become quite popular.

“Obviously, veterans of the Vietnam War identify with it,” Crim said. “But so do the families and survivors of the men and women whose names are on the wall.” Crim added that Carousel Checks has already received many “thank you’s” from people who have ordered the online checks at the company’s site, carouselchecks.com.

“They’re truly moved by the design,” Crim said. “People tell me that the checks instill a feeling of pride every time they open their check books.”

Carousel Checks was founded over 40 years ago by Crim’s parents as a regular check printing company for banks around the country. When the internet made custom printing of checks a reality for many consumers, Carousel was one of the first companies to pursue the consumer end of the checks business.

Currently, CarouselChecks offers scores of check designs in a variety of categories, from Americana and sports to religion, education, sports, wildlife and seasonal designs.

Crim said that the Wall check design is available in a variety of package sizes. Retail prices range for $10 to $80, based on the quantity of checks ordered. The entire CarouselChecks product line is available online at Carouselchecks.com.

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Checks, Financial, Security, SME

Carousel Checks Online Security Reaches Highest Level of Security in the Nation

Carousel Checks, an online provider of personal, business, computer, laser and bank checks worldwide, announced today that it had been awarded the nation’s highest online security certification by GeoTrust®, the world’s second largest digital certificate provider.

The certification confirms that all customers of Carousel Checks may perform worry-free, secure online transactions and conduct business over the internet in complete security and confidence.

Andy Crim, Carousel Checks president, said that the GeoTrust certification provides Carousel Checks customers with the highest security when placing or checking an order online.

“With check and computer fraud on the rise, you can’t be too careful with your financial information when you’re on line…,” Crim said. “The GeoTrust Certification will help to reassure any apprehensive customers that ordering checks online is safe, sensible and secure.”

Carousel Checks, founded over 40 years ago by Crim’s parents, started business as a check printing company for banks around the country. When the internet made custom printing of checks for consumers a reality, Carousel was one of the first companies to pursue the consumer end of the checks printing business.

Crim said that customers return to order more checks from CarouselChecks.com because the company provides three important elements: security, speed and cost. “When people order checks, they’re probably a day or two away from running out of them,” Crim said. “So we specialize in being able to turn around check orders quickly, affordably and with the utmost of security. That’s where the GeoTrust certification is a real benefit. When customers see the GeoTrust logo on our site, they can be reassured that their transactions are safe.”

Carousel Checks prints all of their check orders on laser printing machines. These machines provide fast, accurate printing, with minimal time lost on printing errors other common hazards of standard printing. The GeoTrust announcement comes at the same time that Carousel Checks announced that it had received “Verified Secure” certification from ControlScanTM, GeoTrust’s parent company, based in Atlanta.

Crim stressed the importance of his company being certified by both ControlScan and GeoTrust. “These double security certifications are vital necessities for secure sites,” Crim said. When people order checks from Carousel Checks, we want them to have a good time browsing through our designs and ordering in confidence. The last thing we want is for them to worry about their online security.”

Crim added that visual “trust badges” signifying secure certification on the Carousel Checks.com website actually encourages many reluctant customers to buy. “People who want to have that extra assurance are often swayed by the security badges on our site,” Crim said. “We are absolutely thrilled to have received these certifications.”

CarouselChecks.com offers scores of unique check designs for business, personal checks, and online checks. Designs range from nature paintings and national landmarks to artwork, Americana and wildlife. Carousel also provides a wide variety of business and payroll computer checks. Among the most popular checks are Photo Checks, which allow the account owner to put their own photo on their checks. “This virtually eliminates the possibility of anyone passing a bad check,” Crim said.

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Business, Checking & Savings, Credit Cards, Financial, Financial Information, Financial Services, Interest Rate, Loans, Money

Rate Tarts Are In A Jam As 2 Million Balance Transfer Applications Are Rejected

The latest credit card market analysis from uSwitch.com, the independent price comparison and switching service, reveals that almost 2 million consumers have been rejected for balance transfer deals in the last year. This represents 57% of all credit card rejections, forcing these consumers to fork out £535 million in interest payments in the next 12 months as they are unable to switch to a new provider. In total, £3.5 billion of credit card debt is now stuck on interest bearing credit cards as consumers cannot switch to their next 0% deal.

Across all types of credit card, more than one in ten consumers, totalling 3.32 million, has had an application declined in the past twelve months. This is a clear sign that providers are still acting on the air of caution and only lending to those with a squeaky clean credit record. This is a huge problem in the credit card market, particularly for rate tarts. In 2008, consumers carried out an average of 650,000 balance transfers every month. For many people, the 0% party really is over as they have reached a dead end.

Alongside a drop in acceptance levels, the number of balance transfer deals available is also a problem for consumers. There are now 178 balance transfer credit cards, representing 74% of all credit cards compared to 204 this time last year. The biggest casualty of this has been the 10 month deals which have fallen by 83% to just 1 deal.

With just one provider, Virgin, offering a 16 month 0% balance transfer deal, consumers are pushed towards the more popular six month balance transfer deals which represent a third of the market (33%). However, with the average balance transfer fee currently at 2.9% consumers will have to pay £54.09 on the average balance of £1,846. Unless consumers are planning to pay the credit card balance during the six month offer period, this could be a costly way to move money around.

Louise Bond, personal finance expert at uSwitch, comments: “We can’t ignore the fact that the country is in economic turmoil – a situation which has been catalysed by bad consumer credit. The knock on effect for credit card customers is that those with a less than perfect credit history could find themselves being turned down for the next best 0% deal, forcing them to pay interest. This is a huge problem for switchers as these people have accumulated debt based on the fact they do not have to pay interest on it.

“The knock on effect of rejected credit applications is that it will appear on your credit report and, in the long term, have a negative impact on your score. With this in mind, it’s important to check your report before applying for products to make sure you stand a good chance of being accepted – constantly reapplying to different suppliers will make the situation worse. If you can’t get another credit card, think about using a 0% overdraft, an unsecured personal loan or, if there are no other options and debt is getting out of control, speak to your provider or seek professional advice.”

Bond’s credit card tips:

• Check your credit report before making any applications for credit.

• If you are rejected for your next credit card, do not any further applications until you have checked your credit record. Failed applications for credit will have a negative impact on your credit score.

• You must also close down any credit card accounts you are not using. The available balance on these accounts will be taken into consideration when you are applying for a new card.

• Missed credit card payments also impact your credit score, the best way to avoid this is to set up a monthly direct debit for the minimum payment.

• If you are not planning to pay the balance off in full during the 0% balance transfer period you should consider life of balance cards. This will provide one low rate of interest for the entire time the balance is on the card.

• Depending on which issuer your balance transfer card is managed by, you may not be allowed to switch your balance to another card within the same group. By using uSwitch.com’s balance transfer tool, you will only be allowed to apply for cards that are available at you.

About uSwitch:
uSwitch.com is a free, impartial online and telephone-based comparison and switching service, helping consumers compare prices on gas, electricity, water, heating cover, home telephone, broadband, digital television, mobile phones, personal finance products and car insurance.

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