Wednesday, June 4, 2008
Bank charges finally ruled unfair?
Bank charges are once again making the headlines with the news of a verdict on the test case launched by the Office of Fair Trading (OFT) against seven major banks in July 2007.
The test case verdict went in favour of the OFT and could result in bank customers reclaiming bank charges worth millions of pounds. Before July 2007, some bank customers had successfully claimed back bank charges, whilst others were unsuccessful.
This inconsistent approach led to the OFT postponing all claims made over bank charges until the test case was completed. The verdict could have a detrimental effect on the seven banks involved (which were Barclays, Abbey, Clydesdale, HBOS, HSBC, Lloyds TSB, RBS and Nationwide Building Society) because they had previously raked in as much as £3.5 billion in charges each year.
The current economic climate is gloomy and recent weeks have seen banks forced to launch rights issue's due to low balance sheets and increased sub-prime debts. As it stands, if banks are forced to pay back the millions that customers are putting in claims for over charges, the credit crisis could be affected for the worse.
Until the case was settled, banks continued to charge over the odds for crimes as petty as going over an agreed overdraft by as little as £1 and charges can be more than £30 each time. As a result, there is a backlog of customers with claims pending who are expecting thousands back as a result of the test case verdict.
However, the Office of Fair Trading lead test case is not the end, other hearings are expected to follow to decide how much banks can charge and the banks involved could still appeal. As a result of the remaining uncertainty, pending bank charge claims remain on hold until more is certain.
The OFT filed the case because it was concerned that a charge of more than £30 for going over an agreed overdraft limit was unrealistic and unfair when administration costs can be as little as £2. Banks generally charge each time you exceed your limit, meaning if you pay for two separate items without realising it has taken you over the limit you could end up owing more than £60.
The case argued by many customers who are intent on reclaiming bank charges is that the speed at which bank charges added up was unfeasible. Some claimants have exceeded their limit by just £25 but the charges have added up to over £200. The OFT test case has ruled that bank charges come under Unfair Consumer Contracts rules, but whether or no claimants will be refunded and how much remains to be decided.
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Disclaimer: Paul McIndoe writes for a digital marketing agency. This article has been commissioned by a client of said agency. This article is not designed to promote, but should be considered professional content.
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A Guide to Emergency Cash Loans and Payday Loans
In this rapidly deteriorating economic climate, emergency cash loans and payday loans are becoming increasingly popular. The problem with these is that more and more people that have never required a short term unsecured loan in the past are finding a nee...
Tuesday, June 3, 2008
Your 401(k) Investments and the IGVSI
Smack, right up alongside the head. Your 401(k) investment program deteriorated rapidly as the stock market and the economy weakened. Who would have thought that there was so much risk of loss in those mutual funds, and ETFs? Fortunately, the pain is most often temporary, but the timing of the recovery could alter some participant retirement schedules and benefits--- not to mention the hefty confiscation level retirees can count on from Uncle Sam.
The popularity of self-directed 401(k) benefit plans is understandable. Employees typically get an instant profit from generous employer matching contributions, a variety of investment products to choose from, and portability between jobs. But the benefit to employers is far greater--- an easy, low-cost, employee benefit plan with virtually no responsibility for the safety of the investments, and no lifetime commitment to benefit payments. In some instances though, employees are required to invest too large a portion of their account in company stock--- a situation that has caused major problems in the past (Enron, for example).
401(k) plans have virtually replaced the private pension system, and in the process, have transferred total investment responsibility from trustee caliber professionals to hundreds of millions of investment amateurs. Employees get little professional guidance with regard to selecting an appropriate mix of investment vehicles from the glossies provided by 401(k) fund providers. Few Employee Benefit Department counselors have degrees (or hands-on experience) in economics, investing, or financial planning, and wind up using the "unbiased" counseling services of the funds' salespersons. How convenient for them. Interestingly, most salespersons also have no hands-on investment experience either--- go figure.
Similarly, the financial planning and accounting communities seem to have little concern about such basic investment tenets as QDI (quality, diversification, and income). If they did, there would never be instances where individual investors lose everything in their one fund, one stock, or one-property investment programs. QDI is the fire insurance policy of the investment plan, but few 401(k) participants hear about anything beyond: past market value performance numbers, future performance projections, and the like. They are not generally aware of the risks inherent in their investment programs.
This is where an understanding of investment grade value stock (IGVS) investing, the IGVSI and related market statistics becomes important to 401(k) participants, company benefit departments, accountants and other financial professionals. IGVS investing is just perfect for long-term, regular-deposit-commitment investment programs.
Somehow, we've got to get 401(k) investors to understand the framework of an investment/retirement program and, then, we have to get participants and/or their professional advisors to look inside the products being offered. As much as I hate the idea of one-size-fits-all investment products, they are generally accepted as the best way to deal with larger employer 401(k) programs--- most employers don't even know that more personalized approaches exist.
Only when some form of company, sector, or economy melt down occurs, does the head scratching (and the investigating) begin. 401(k) participants need to understand that they are not immune to the vagaries of market, economic, and interest rate cycles. Along with their employee benefit plan comes total responsibility for the long-term performance of the investment/retirement program. Are you in good hands?
Historically, IGV stocks fluctuate enough (both in general and by sector) to allow for mutual fund and ETF investors to select the less risky offerings from among the 401(k) product menu at the most advantageous times--- but all individual investors need to learn how to identify the risks and to learn how to deal with them. Typically, 401(k) participants buy the higher priced, last-year-best-performing, and hot sector offerings while they sell or avoid the various products they feel have "under performed" the market.
Nowhere else in their lives do they adopt such a perverse strategy. And nowhere else in their thinking would they blindly accept the premise that any one number represents what is, or should be, going on in their personal investment portfolios. Risk minimization begins with quality, is enhanced through diversification, and is compounded with realized income.
The first two steps require research, greed control, and discipline. The income part just requires discipline, so it should be much easier to manage. If you cannot identify and understand the individual securities within an investment product, and assess the overall quality (economic viability and risk protection), don't invest in it. If you have more than 5% of your portfolio in any one individual security, or 15% in any one sector (industrial, geographical, social, political, etc.), make some changes.
Since 401(k) plans are almost exclusively mutual fund shopping malls, it is difficult to assess the income or cash flow component of the risk minimization function. Product descriptions, or your benefits representative, should provide the answers. You can stay away from products that refuse to share the income with you, but the best way to benefit from a fund based benefit plan is to establish selling targets for the products you select. If your Blind Faith Fund Unit Value rises 10%, sell all or part of it and move the proceeds to another opportunity that is down 20%. Profit taking is the ultimate risk minimizer.
So long as we are in an environment where retirement plan income (and principal in the case of all private plans) is subject to income taxation, 401(k) participants would be wise to establish an after tax income portfolio invested in tax exempt securities--- or to vote more selfishly.
Steve Selengut
sanserve (at) aol.com
800-245-0494
http://www.sancoservices.com
http://www.kiawahgolfinvestmentseminars.com/
Professional Portfolio Management since 1979
Author of: "The Brainwashing of the American Investor: The Book that Wall Street Does Not Want YOU to Read", and "A Millionaire's Secret Investment Strategy"
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Wednesday, May 28, 2008
Unsecured loans for unemployed: your security for bad times
The monthly income from a regular job is the backbone of a household of a salaried individual. When he loses his job or is unemployed due to any reason, it can bring his life to a complete standstill. A financial crunch in such circumstances can make life difficult, especially if you do not own a valuable asset which could be placed as collateral against a much needed financial loan. However, the financial market has realized this urgent need of unemployed individuals who are looking for unsecured loan options and hence, we have the unsecured loans for unemployed. Potential borrowers can now let out a sigh of relief as this unusual loan option resolves any kind of financial worry that an unemployed individual may be going through, making it easier for him to continue with a regular lifestyle.
As the unsecured loans for unemployed are a high risk transaction for any lender, it must be expected that the rate of interest on such loan would be higher than the secured loans. However, keeping their unemployed status in mind, some selective lenders may even offer convenient rates and flexible repayment clauses. However, the borrower must be cautious about the lender he chooses. As during the time of the loan application, some basic information needs to be provided like the personal details of the borrower and if the lender is not reliable, such information may be misused. So, do your basic groundwork and research well on the unsecured loans for unemployed and the lender before opting for any particular plan.
Most of the financial lenders, who offer the unsecured loans for unemployed, have their own online websites on the internet. As a borrower, you would do well to visit these websites and compare the various offers and rates of interest on such loans, before selecting a plan for yourself. Once you are convinced about the loan option, the processing becomes much easy. All one needs to do is fill the online application form available at the lender's site with basic personal details. The lending agency executives will get in touch with the borrower promptly, once they have received the online loan application. The loan approval decision is instant, and the loan amount is transferred to the borrower's bank account in the shortest duration possible.
So, if your life has come to a standstill due to a phase of unemployment in your life, you need not despair, as the unsecured loans for unemployed can solve your financial worries instantly. Also, you need not place any security against the loan and risk the loss of a valuable asset in case of delayed payment or non repayment of the loan under any circumstances. The funds from such loans can be utilized for any financial purpose that the borrower deems fit, so, no matter what your requirement, opt for these convenient loans and get the necessary finance immediately. The lenders usually provide you with feasible terms and conditions that will make it easy for you to repay the loan even on a tight budget, hence breathe easy and say goodbye to financial worries with these unsecured loans.
Branden Stewart is a financial expert dealing with various loans. He has expert knowledge about Unsecured personal loans, bad credit unsecured personal loans and various other unsecured personal loan deals. If you want to know more about unsecured loans,Unsecured loans for unemployed and any other unsecured loan deals, then you can visit www.unsecuredpersonalloansuk.org.uk
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Monday, May 26, 2008
Student Loans Defaulted-For better future
Today we see that Colleges charge has increased so much so the bank’s and even the institutions of learning provide loan options to people who want to study to get the education to fulfill their desire.
It is not possible for every person to bear have higher education comfortably. It may be that you have got a chance of admission in your dream university but money comes in your dream’s way. College student loans prove to be the best way to come out you from this situation.
COLLEGE LENDING SOLUTION offers you different programme and techniques to get an educational loan in easy way. We provide our services with balance discrepancies, incorrect interest rates, IRS offsets that have not been reported as payments, identity theft and school closures.
Our schemes and plans are designed keeping the needs of college students in consideration. Your needs weather it is related to the annual fees, the lodging and boarding expenses and the cost of technical tools if required, we have the complete solution for you.
We advise our clients to consolidate all their student loans so that they can have one loan, one low payment and one servicer. We typically lower monthly payments by 50%.We offer these loans with unique plans because of the ease and speed of application and approval procedures. With us you will definitely find it easier to offset the costs of your education with a loan while you study hard to improve yourself with your hard work. At the end of the educational period you will benefit a whole lot more than you would if you took out the loan to buy a car or a house.
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How To Win The Lottery and Enjoy Your Money
How To Win The Lottery and Enjoy Your Money
You hear about these people all the time. They win a 8 or 9 figure jackpot, and then a year later they're destitute. All of their money is gone, and they're worse off than when they started. Debt, foreclosure and repossession. It's sad, but it doesn't have to happen.
If you win the lottery (that's the hard part, keeping the money is easy), here is the 4 step process to keeping it and enjoying it.
Step 1. Confirm your win and collect your winnings
Don't go to where you bought your ticket. Find the lottery office in your city, state, region and travel there. Spare no expense, take protection, and don't publicize that you won. The only people who should know first are the lottery authorities.
When you get to the lottery office, they will officially validate your ticket, give you a bunch of papers to sign, and wire your money to you. Now you're rich!
At this point, keep your mouth shut and disappear for a while, so you can process your new-found wealth.
Oh, and if you can, have the lottery office take out your taxes FIRST. If you collect, and spend all your money, you'll be hurting come April.
Step 2. Get out of the rat race
Everyone who says they're going to live their lives just as before are fools. If you enjoy your job, great! You don't have to do what you do today for someone else. Quit your job, put your kids in better schools, upgrade your life first. This happens before you buy a single physical thing (more on that later). Money doesn't buy happiness, but it does buy time, so reinvest those 40+ hours a week into yourself and your family, be it your parents, wife/husband, children, close friends or your favorite charities.
When doing this, do it quietly and with dignity. Don't shout about how you won $50 million and the world can drop dead, because they will show up on your doorstep instead. If you want to be generous, that's more than fine, but be careful because everyone you know, knew and forgot about will find every excuse to be a part of your generosity. Be generous to yourself as well by not funding every yahoo with a telephone and a sob story.
Step 3. Invest your money
Yes. Even before you buy a single thing, get your money into something safe. If you've won over $10 million dollars (after taxes, etc.) a good solid interest rate of 5% will get you all the walking around money you need every year. Go to your bank and show them your bank balance. Negotiate a good savings rate. Not satisfied? Go to the next bank and do the same thing. Keep looking around until you find the best interest rate. You can even hedge your bets with multiple institutions. Now, you can live on the interest, and only pay taxes on the interest. You'll be swimming in money without touching the principal, which is still in the bank.
Step 4. Getting it out of your system
When people go from little money to big money, they go crazy. Get the spending bug out of your system. Principal be darned. Take out 2-4 times what you make in a year and go nuts. Cars, electronics, clothes, jewelry, gifts for friends and family, fancy dinners, travel, whatever. Enjoy yourself, and then settle into a routine that is more closely based on your interest-based budget. Just because you have a lot of interest to spend doesn't mean you HAVE to spend it. There may be something really big down the road to buy or invest in, and that may take more saving in order to acquire it.
Visit my Smart Lottery Winner site for more details.
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Saturday, May 24, 2008
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