| Loan rates on the up
One month after financial comparison site Moneyfacts warned of the imminent demise of the sub six per cent loan, there is only one such loan left on the market, says Moneyfacts analyst Michelle Slade. It seems that lenders are becoming more cautious, with growing numbers of individual voluntary arrangements, bad debts and defaults. The Moneyfacts analysis reveals differing trends for credit cards and loans, says Ms Slade: 'As the 0 per cent credit card market continues to flourish, with deals in excess of 12 months easily found (although lending criteria has been tightened), it is the more structured lending which seems to be bearing the brunt. Eight personal loan providers increased interest rates by around one to two full percentage points, and in one instance by seven per cent.' There are many reasons why this may be happening, speculates the analyst.
DA: Turlock woman used DeMartini's data for credit cards
A Turlock woman has been charged with using the identity of Stanislaus County Supervisor Jim DeMartini to obtain credit cards used to make approximately $10,000 in purchases. The Stanislaus County District Attorney's office has charged Serena Essapour, 21, of fraudulently using DeMartini's Social Security number from a loan document in several credit card applications submitted over the internet. She was arrested on July 11 and goes to trial on May 4. Essapour entered not guilty pleas in October on charges of false impersonation, misuse of personal identifying information and grand theft. The alleged crimes were committed between May 16 and June 16, 2006. Essapour made purchases of clothing and jewelry and ATM withdrawals during that time, confirmed DeMartini. “I think the case is so solid that it looks like an open and shut case to me," noted DeMartini.
Moneyextra advises on car finance
With the new 07 registrations out this month, we are likely to buy some 400,000 new cars. However, financial comparison site Moneyextra has warned consumers to consider their funding options carefully. While it can take months to decide on the right card, many people move much more quickly when it comes to car finance, taking up the first agreement they are offered. Many people take out hire purchase agreements where the loan is secured against the car. This is convenient and is offered by many car dealerships, but there are some disadvantages. For one thing, you don't own the car until the last payment is made, so failure to make payments has serious implications. And average annual percentage rates tend to be in double digits. You can get 0 per cent hire purchase agreements, but only if you're prepared to deposit about 40 per cent of the car's value.
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