Following revelations on BBC’s Panorama television programme last week* that some banks are charging customers eye watering interest rates of up to 3,650% if they go overdrawn**, these banks may need to get their own house in order first before scoffing at perceived high APR payday loans.

So says industry expert Gary Miller-Cheevers (and CEO of payday loan company speed-e-loans.com), citing the television programme’s example of how if a Halifax customer went into an authorised overdraft with the bank by just £10 for 365 days, they’d be charged 3,650% APR**.

The shocking report also highlighted how banks make £2.6bn in penalty charges each year. It showed that though headline overdraft rates may be around 19% APR, once charges and other fees have been added in, a bank customer will pay an average of 32% APR for an authorised overdraft up to £500. For an unauthorised overdraft for the same amount, it could go as high as 165% APR.

Commenting on this Mr. Miller-Cheevers said: “It’s time for the banks to do what is morally right and be more transparent with their fees and charges, so that their customers can see exactly what they are paying for.

“The taxpayer spent nearly a trillion pounds bailing out the banks*, yet this is how they reward us – by charging outrageous fees and creaming off big profits for themselves.

“With our payday loan service, people can see exactly what they will be charged right from the outset, meaning they can make an educated decision as to whether a payday loan could be right for them.

“Certainly, a 2,334% APR may look high – though when compared to what some of the banks are charging, it is positively measly – but as the loans are usually for no more than a few weeks at a time, they can often work out very cost-effective.

“With an online small loan service like speed-e-loans, customers can set how much they want to borrow, can clearly see what the cost is, and time the repayment to coincide with their pay day. They can use us once and then use a competitor the next time. They are free to come and go. On the other hand, the banks thrive on putting fear into their customers that if they ‘mess up’, no other bank will take them, and then charge them outrageous and unclear fees for very minor overdrafts. The more people work out what’s going on, the better it will be for the consumer.”

* Panorama 19.07.10

**Halifax charges £1 a day for authorised overdrafts up to £2,500 and £5 a day for unauthorised overdrafts.

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More than one million foreign holidays will end in tears this year due to flight delays, illness or bad weather, a recent study has revealed.

Arguments with a partner or friends, lost luggage and dirty accommodation also regularly ruin holidays, researchers found.

Sunburn, noisy neighbours and drinking too much also wreck sunshine breaks.

Yesterday Stephen Ebbett of travel insurance specialists www.protectyourbubble.com, which commissioned the study, said: ”Brits often spend months saving up for their annual holiday abroad and really look forward to a relaxing break in the sunshine.

”So it is understandable that when something goes wrong – such as finding out the accommodation isn’t as expected, or the aeroplane is delayed by several hours – people will be disappointed.

”Whereas you can recover from a hangover, stay out of the sunshine if you get a bit burnt, and make up with a friend or partner after an argument, other holiday disasters can’t be solved as easily.

”Losing luggage on the way to a holiday, finding out the accommodation is dirty and infested, or suffering from a holiday injury can have costly long lasting effects.”

The study found the average Brit has been on at least two holidays abroad which were a total disaster.

Four out of ten have been so upset by a situation they found themselves in abroad they ended up in tears.

Fourteen per cent of British tourists have even cut a holiday short and gone home early because they were having such a terrible time.

And a third of people refused to return to the country where they had their worst summer holiday.

Other holiday mishaps frequently suffered by Brits include rude hotel staff, finding the accommodation has no hot water or getting horribly lost.

One in 20 have found their accommodation was next to a nightclub, while 12 per cent ended up having a slanging match with a close friend.

Three per cent have had a relationship end while on holiday.

The study also showed a third of holidaymakers have been forced to change their accommodation because it was so bad.

And nearly half have changed rooms in the same hotel because the one they had wasn’t clean enough or didn’t have the view they had paid for.

Spain, France and Greece emerged as the worst destinations to travel to followed by Turkey, the Canary Islands, Egypt and Germany.

India, America and Italy completed the top ten.

Stephen Ebbett added: ”Travel insurance won’t avoid you falling out with your partner. But it’s amazing that 1 in 4 of us still go abroad without any suitable cover.”

TOP 20 HOLIDAY MISHAPS

1. Long airport delays
2. Arguments with partner
3. Bad weather
4. Dirty accommodation
5. Sun burn
6. Lost luggage
7. Late night noise
8. Food poisoning
9. Getting too drunk
10. Fallen out with a friend
11. Nasty hotel staff
12. Suffering a holiday injury
13. Noisy neighbours
14. Cockroaches
15. Getting lost
16. No hot water
17. Close proximity to a night club
18. Forgetting how to get back to the hotel
19. Ending a relationship
20. Having the hotel room broken into

WORST DESTINATIONS

1. Spain
2. France
3. Greece
4. Turkey
5. Canary Islands
6. Egypt
7. Germany
8. India
9. America
10. Italy

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Protect your bubble, one of the UK’s leading gadget insurance providers, has launched a new iPhone insurance product that costs less than half the price of iPhone insurance from some networks*.

The new policy includes cover for accidental damage, including water damage, theft and mechanical breakdown once the Apple warranty expires – all for £5.99 a month.

Unlike many iPhone insurance products, loss protection is also available for an additional £1 per month.

As well as the core features, Protect your bubble’s iPhone insurance brings a host of other benefits.

These include worldwide cover so your iPhone is protected wherever you are in the world, £100 worth of unauthorised call costs if your phone is stolen, quick 48 hour replacement once your claim is agreed and a free data backup service so you can safely store your contacts.

Cover is available for all iPhone models at the same price of £5.99 a month, including Apple’s new iPhone 4 model.

The insurance is only available through Protect your bubble’s website at http://www.protectyourbubble.com/ip-iphone-insurance.html

* iPhone insurance with similar benefits available from O2 for £15.00 a month. http://www.o2.co.uk/iphone/insurance retrieved 15/07/2010

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Following on from the Citizens Advice taking the banks to task for treating bankrupts unfairly by refusing them bank accounts, finance expert Gary Miller-Cheevers has highlighted how prepaid card accounts can be a cost-effective solution.

In a press statement*, the Citizens Advice says that: “People going through bankruptcy are too often being banned from opening even a basic, no credit, bank account. Despite there being no legal reason why undischarged bankrupts shouldn’t be able to access one, only two out of the seventeen banks that provide basic bank accounts offer them to people who have recently been made bankrupt.”

A spokesman for the consumer group highlighted how most people take having a bank account for granted saying that without access to one, basic tasks such as receiving wages or benefits and paying bills can become huge and costly obstacles to overcome, particularly for people who are often at a vulnerable point in their lives.

Gary Miller-Cheevers agrees: “It’s amazing isn’t it? The banks land billions in dodgy sub-prime mortgages, and when the house of cards comes crashing down, who do they penalise? Normal working people!”

“You don’t need these bank accounts anymore, with a speed-e-card, the whole package comes with a guaranteed e-bank account and an online statement and we send you an SMS every time you spend money or go to an ATM, so you know straight away if someone is trying to fraud you. Also there’s no bank charges for failed items and no interest”

Citizens Advice say that among the options available to people who cannot get even a basic bank account are Managed Accounts – a specialist product aimed at people who have difficulty opening a mainstream bank account. A set up fee is around £25-30 and monthly fees around £12.50.

However, says Miller-Cheevers, a more viable option may be the speed-e-card prepaid card account. “The fees associated with having a speed-e-card account potentially works out a lot cheaper than the Managed Accounts, with a set up fee of £7.95 and a monthly fee of £2.99, plus any transaction fees** on top.

“This gives someone all the flexibility of having plastic, so they can pay for purchases and services in shops, online or over the telephone. Plus, the associated e-bank account can be run just like a traditional bank account, giving the user the ability to receive monies in and make payments out***.

He added that anyone aged 13 or over can have a speed-e-card and as a credit check is not carried out, their previous financial history is not an issue.

*http://www.citizensadvice.org.uk/press_20100709

** Tariff of charges

***Direct debit facilities are not available on prepaid card accounts

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The latest payday loan application figures from Speed-e-loans have highlighted how the credit crunch continues to bite hard, particularly hitting those in the 30-40 year age band – a demographic traditionally perceived to be among the most affluent.

The figures* show how over a third (36%) of cash-strapped consumers turning to payday loans are in their thirties, with 32% of all payday loan applications being used to service day-to-day bills.

The top 3 payday loan purposes:

• 32% borrow to pay day-to-day bills
• 22% borrow for an ‘emergency purchase’
• 19% for a ‘special occasion’

Commenting on the figures, Gary Miller-Cheevers, CEO from the company says: “39% of our borrowers are aged 20-30 which one might expect, but surprisingly 36% are in the 30-40 age bracket – people who are traditionally regarded as being more financially sophisticated than their younger contemporaries.

“The fact that they are turning to payday loans in order to maintain their day-to-day living costs may indicate that borrowing money this way may be more cost-effective than turning to overdrafts or credit cards”.

Figures released last month from Speed-e-loans also revealed how white collar workers and professionals are their top payday loan borrowers, with 7% of all borrowers being employed as Solicitors, Accountants, Doctors or Financial Advisers.

*Period: February to May 2010

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Towergate today announced the launch of Towergateaffiliates.com , a new service aimed at providing website owners and online introducers with the ability to promote Towergate eInsurance product offerings online.

The platform allows affiliates to send traffic to the various Towergate businesses including Insurance4Carhire, Your Insurance and AssureUK in return for payment of commission on business underwritten.

The platform allows affiliates to view their activity in real time, something that up and until now has not been available across multiple Towergate businesses.

Simon Vella, Towergate eInsurance Director said “The single platform offered by Towergateaffiliates.com allows us to attract affiliates to a range of offers and simply bolt on new offers as they become web enabled. The system allows us to track in a single place, all the affiliate activity carried out on behalf.

“It also allows us to strictly control creative and the way in which we are promoted which is vital to make sure our programme works within the compliance framework.”

Currently the programme is offering four innovative insurance products that affiliates can earn commission on, with many more specialist insurance products available soon:

• Business insurance via Your Insurance Group
• SME and niche business insurance via Assure UK
• Car hire excess insurance via Insurance4carhire.com
• Excess Protection via Insure4 Excess

Towergate Affiliates is provided and managed by Speedie Consultants Limited. Affiliates signing up to the platform will have a direct relationship with Towergate.

The site also has a range of useful tips and articles to help affiliates attract and drive more business.

For more information about Towergate Affiliates – please visit www.towergateaffiliates.com

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We have put the finishing touches on SpeedieBlogger a new free service that will put bloggers, site owners, agencies,  and companies  in direct touch with each other to help grown each other businesses.

• You can request content for your own site(s)
• You can offer content out to other sites
• All with keyword links!

You can read more about the offering here : SpeedieBlogger

Please feel free to share with as many people as possible. The more that sign up the more it benefits us all.

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In a statement issued today, loans industry expert Gary Miller-Cheevers (and CEO of payday loan company Speed-e-loans.com) has welcomed the Office of Fair Trading’s (OFT) conclusions of the long-awaited High Cost Credit Review*.

He said: “We are pleased that the OFT report finally agrees with the long-held views within the payday and short term credit industry that products such as payday loans validly fill a void in the financial market place. Furthermore, the OFT points out that these attract few complaints, and that customers generally feel that they are treated fairly**.

“And the OFT’s decision not to cap interest rates on so-called high cost credit products means that cash-strapped consumers will continue to have a choice. A cap on interest rates would only see certain credit providers alter their product structures by charging additional ‘fees’ that a consumer would have to ultimately pay for.

“This way, it is easy for consumers to compare interest rates among the different providers, without it being clouded with extra fees, and choose the most appropriate solution for them”.

Mr Miller-Cheevers added however that he did take exception to payday loans being labelled as ‘high cost credit’ saying that in fact, borrowing money using his service, for example, could often work out cheaper than using a bank overdraft***

He explained: “Our typical APR (Annual Percentage Rate) is 2334%. This sounds horrendous. However, you have to bear in mind that this is the annual rate someone is charged, and payday loans are not designed for long term borrowing. It’s a bit like buying sausages in a supermarket and the price being shown per ton!”

He summarised: “When looking for credit, the APR charges should be put in to context. If they are in any doubt, consumers should always make sure they know exactly what they’ll need to pay back, including any fees, before they sign on the dotted line”.

Ends

*High cost credit is defined in the OFT report as financial products including home credit, short-term small sum lending such as payday loans, pawnbroking, and rent-to-buy retail credit.

** The OFT’s High Cost Credit Review said that “the markets for high-cost credit work reasonably well” citing how: the level of complaints from consumers is low; they fill a gap in the market not served fully by mainstream financial

suppliers; and there is evidence with some products that lenders can be sympathetic with repayment difficulties and may not penalise borrowers when payments are late or missed.

***Example of how APRS can be misleading

With the Speed-e-loans payday loans service we charge the equivalent of around 1% per day plus a one-off funding fee of £4.95 for a loan that is meant to be repaid in less than 30 days.

As an example, a loan to pay an urgent mobile bill of £100 for 20 days (until next payday) would cost £25.94 in fees and charges. For this we have to quote an APR of 2686% according to the ‘rules’.

Now take the same customer who needs £100 to pay an urgent mobile bill and goes overdrawn. If that overdraft is unauthorised, Halifax will charge £5 per day for up to 20 days, thus £100!

This is nearly four times the charges of our payday loans service, and yet the Halifax APR is quoted at 0%. This is explained on their website that as they charge fees and not interest, their EAR is 0%.

Overall, Speed-e-loans.com charges £25.94 and Halifax charges £100. Yet the Halifax are the ones showing a 0% EAR.

For more comparisons, please click here: http://www.speed-e-loans.com/high-street-banks.html

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In the June edition of Which? magazine, online insurance specialist Protectyourbubble.com features in three categories in their travel insurance ‘Best Buys’ tables. These ‘Best Buys’ have always been a staple part of the way Which? rates and compares products. Stephen Ebbett from Protectyourbubble.com says “this is a great endorsement of the value for money being offered by our travel insurance products”.

The Protectyourbubble.com Premier travel insurance product features in the ‘Best Buy’ tables for:

• Worldwide annual insurance policies for families
• European annual insurance policies (aged 75-79 years)
• Worldwide annual insurance policies (aged 70-74 years and 74-79 years)

Stephen added: “We are thrilled with the Which? ‘Best Buy’ results and delighted to have picked up three recommendations for our travel products*.

“It is always great to be compared against your peers and competitors and come away with recommendations of our travel insurance offerings from such a prestigious organisation.”

Visit http://www.protectyourbubble.com/travel-insurance/ for more information

*The survey by Which? compared 196 travel insurance policies by running 3,600 quotes. The Best Buy recommendations were published in June 2010

About Protectyourbubble

Protect your bubble is a new kind of insurance company. We understand that 21st century lives are busy and complicated and so we have created an online service that makes insurance simple and uncomplicated.

Our range of insurance products have been specifically tailored to offer protection in a fast changing, modern world, so that our customers have total peace of mind that if the unexpected happens, the cover and support they need is in place and immediately available.

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Payday loans are often typically associated with students, the unemployed and lower income earners. However, surprising research has revealed that 50% of payday loans borrowers are white collar workers and professionals, including Accountants and Financial Advisers – people who traditionally take care of other people’s money for a living!

Specialist payday loans company Speed-e-loans has analysed its first 3 months’ data* and found that the top 3 borrower employment categories consisted of:

1. Office workers and Administration (23%)
2. People employed in Management (14%)
3. Sales & Marketing (13% of all borrowers)

The figures also showed that 7% of all borrowers are Solicitors, Accountants, Doctors or Financial Advisers – professions that are traditionally associated with a higher wage and people who you would think would not run short of cash during the month.

The study also showed that 53% of all borrowers are female and the average income is £1430 per month after tax.

*Period: 05.02.10 – 20.05.10.

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