Great news for UK consumers today as the court of appeal ruled that fees for unauthorised overdrafts and bounced cheques are subject to regulation by the OFT clearing the way for the watchdog to set a legal maximum on the fees that banks currently charge, the full article can be read at The Guardian’s website

Banks and building societies have been charging up to £39 in some cases for a bounced cheque, but the real cost incurred by institutions is closer to £2.

Here is a brief extract from the article:
 

The ruling follows a test case last year between the OFT and eight current account providers concerning fees for unauthorised borrowing and bounced cheques, which concluded they were covered by the Unfair Terms in Consumer Contracts Regulation of 1999.

Since then many current account providers have adjusted their charging structure and reduced their fees. But many still charge more than £12, which the OFT set as a maximum default charge on credit cards and could introduce to the current account market.

This is a great win for consumers who have been unfairly charged over the years. MoneySavingExpert.com alongside Guardian Money have been campaigning for a reduction or charges and refunds where applicable since summer 2007, this rule could mean that banks and building societies could be forced to return billions of pounds to consumers.

Are you a know-it-all type person when it comes to finances or could you do with some advice? This quick quiz posted on the BBC site will show you how financial savvy you are.

Here are a couple of examples on what to expect to answer:

If your credit card is charging 18% APR and you have used it to buy a computer for 500 GBP, how long will it take to pay off, if you make just the minimum monthly payment (if your minimum payment is 2% of the outstanding balance with a minimum of 5 GBP)?

And it goes on to ask:

What is the current rate of Value Added Tax (VAT)?

The quiz has got 10 multiple choice questions covering ISAs, savings accounts and credit cards, give it a go and let us know how it went.

If you need to spruce up your knowledge, our financial glossary is a good starting point with simple definitions, from APRs, loan interests to variable rate interest.

A cheap mortgage…check the small print

New mortgage deals may come with unexpected high costs for those who do not read the small print.

Some banks are now offering a cheap fix rate for a year, this may come as a great offer for customers, what they’re not realising is that they will be switched to a tracker rate at a high premium over base rate.

Here’s an extract from a FT article published on 10 February:

Leeds Building Society, for example, has launched a one-year fixed rate of 3.79 per cent, which is followed by a two-year tracker at 2.5 per cent over base rate. This looks good value with base rate at its current low level but there is a danger that borrowers will be stuck on this deal as rates rise. There are high charges to switch out at any time within the first three years.”

Borrowers taking on relatively high loan-to-values could be better off with longer-term deals of, say, five years.

This would cover any potential further fall in value over the next year or so, which would make it difficult to remortgage in two years’ time.

So beware of the so called ‘cheap mortgage deals’ as they aren’t as cheap as they might appear once you check the small print or don’t keep up with repayments.

Instant cash advance loans, also known as payday loans are becoming quite popular but they’re not always seen in the most favourable way, here are top 10 benefits for getting an instant cash advance:

1. Speedy money
Instant cash loans have a different approval process, dissimilar to your traditional personal loan. Most companies operate within a 24h guaranteed deposit, a few send you the money straight into your account within an hour.

2. No credit check
The majority of instant cash loan companies will not do a credit check, this can go in your favour if you’ve had bad credit history in the past.

3. Bad credit accepted
As mentioned above, having bad credit doesn’t limit you the ability to get an instant cash advance loans, a few payday loan lenders specialise in bad credit applicants.

4. No paperwork needed
The process is usually done online, which means you don’t need to send proof of income, assets, etc, making the application for your instant cash advance simple and paperless.

5. Income doesn’t matter
Usually instant cash advances are limited first time you apply, the lender will give you credit on their lowest bracket, which usually is up to £200. In order to qualify their criteria you must have enough disposible income to repay your loan, which means your income is not tied in with the ability to get credit.

6.  Many online choices
The payday loan industry has recenly appealed to many companies who in turn are churning paydyay lending websites right left and centre, this can only be good for the consumer, but how to discern amongst all the clutter? We have a quick directory on payday lending that will help you decide.

7. You don’t need to leave home
You can take care of all of this from your home, often with no paperwork or faxing, and no phone calls by searching for an instant cash advance loan over the internet.

8. Credit repair made easy
Payday loans can be a great way to repair credit for those who may otherwise have difficulty receiving a loan to work on their credit. Short of receiving a secured credit card with massive fees, and quite often a security deposit to cover the entire initial credit line, your options are slim.

9. No assets required as collateral
Instant cash advance loans fal within the personal loans area, which means you don’t need to use any assets as a collateral to get the loan you need.

10.  Payment plans are flexible
You can take an instant advance loan for a day to up to 30 days, however, some payday lenders will offer you an extension if you need a bit more time to repay your loan.

There are a lot of positives on taking an instant cash advance loan, hopefully the list above will help you understand how these type of loans work, always remember that taking out a loan should go hand in hand with repaying it, if you don’t think you can affort the repayments do not take it.

For cas advance quick, look no further, apply here

When you need fast cash and payday is a few days away, a quick solution is to get a fast cash payday loan. These loans are an excellent resource to get emergency money, approval is usually inmediate and most cash payday loan lenders will transfer the money into your bank account same day.

How much can you borrow?
As a new user, fast cash payday loan lenders will minimise their risk by starting to lend you lower amounts of money, usually between £200 to £500. Once you’ve taken the payday loan and you’ve repaid in full, they will increase the amount you can borrow. Fast cash payday loans can be costly, so before you decide to take up a payday loan you should weight whether you can pay back the interest accumulated.

What does a fast cash payday loan cost?
Fash cash payday loans are at the expensive end of the financial industry, usual interest rate paid is 1% per day, so £1 per £100 borrowed per day. This amount might look pretty hefty but bear im mind that usual loan term is 30 days or less. Some payday loan lenders will also charge a transmission fee for depositing the amount into your account.

How do you qualify for a fast cash payday loan
If you have a steady job, are 18+ and have a UK bank account and valid debit card, you qualify for a fast cash payday loan:

• No faxing
• No phone calls
• No waiting
• No credit check

Responsible borrowing
Before you decide to apply for any form of credit you need to ensure that you’ll be able to make your monthly repayments or in the case of a fast cash payday loan on the chosen date. Only you can decide whether to apply or not, but please do so only if you’re confident you’ll have the cash to make repayments comfortably, otherwise do not take a loan, the cost of missing repayments will only increase over time and put you in a difficult financial situation.