Credit Today Online News
Credit Today Online News

• London Scottish enters administration
  London Scottish Bank has entered administration after the Financial Services Authority said it could no longer take retail deposits.
• Debt management code endorsed by OFT
  The Debt Managers Standards Association (DEMSA) has become the first debt management industry trade body to secure Office of Fair Trading approval for its code of practice.
• CCJs still key indicator of higher lending risk
  In the era of data sharing and credit scoring, County Court Judgment (CCJ) listings on a credit file are still key indicators of high risk for lenders, according to research.
• Bidders circling for London Scottish Bank
  Robinson Way, London Scottish BankÂ’s debt collection arm, has drawn attention from several buyers, according to administrator Ernst & Young, which was appointed last Sunday.
• Brown offers mortgage interest relief
  Prime Minister Gordon Brown grabbed the limelight ahead of the QueenÂ’s Speech with his announcement that homeowners suffering a loss of earnings could defer mortgage interest payments for up to two years.
• Interest rates slashed to 2 per cent
  As widely predicted, the Bank of England slashed interest rates down from three to two per cent in an attempt to ease lending conditions as the downturn continues.
• Cautious retailers rejecting sales
  Nearly half of all customers looking for a mobile or laptop deal have been turned away after stringent credit checks, according to data from broadband comparison site Broadband Expert.
• Mobile banking set to outpace internet
  The economic downturn has prompted even greater numbers of people to use their mobiles to text or call their banks, according to research.
• Small businesses struggle with late payment
  Despite promises to extend lending to small businesses, around a third of companies are struggling to access affordable credit, according to the Federation of Small Business (FSB).
• Thames Water compensates customers
  Thames Water's 13.5m customers could receive one off payments of £50 as compensation pay outs for service failures.
• Investcorp buys £28 million stake in TDX
  Investcorp Technology Partners, the technology private equity arm of alternative investment manager Investcorp, is to buy a 40 per cent equity stake in debt management services provider TDX Group, for approximately £28m.
• Business failures touch all sectors
  Businesses across the country in all sectors are suffering, according to credit information provider, Equifax.
• Over 3.7m people struggling with finances
  A quarter of consumers are facing financial meltdown with many of the effects of the credit crunch to blame, according to new research from AXA.
• CML: 'tug of war' must stop
  The ‘tug of war’ the government is inflicting on mortgage lenders must end, said the embattled director general of the Council of Mortgage Lenders (CML) Michael Coogan.
• Survey reveals small firms struggle
  The dire difficulties small businesses have been highlighted in a Forum of Private Business (FPB) report.
• Watchdog fines Egg over PPI failings
  The Financial Services Authority (FSA) has fined lender Egg £721,000 for serious credit card payment protection insurance (PPI) failings.
• Prompt payment code up and running
  Business secretary Lord Mandelson yesterday launched a prompt payment code to increase the speed of payments to smaller companies.
• Card industry agrees borrower support
  The credit card industry has agreed to warn customers if it is planning to raise their charges because they pose a high risk.
• Banks lose billions in 'fraud' fund
  Banking giants across the UK and Europe have revealed billions of pounds worth of exposure to the $50 billion fraud fund run by Wall Street investor Bernard Madoff.
• Secured over-indebtedness soars
  Around 40 per cent of home owners owe more than £90,000 in secured debt, reveals a survey carried out for the Bank of England.
• FSA plans to up firms risk scrutiny
  The Financial Services Authority (FSA) raised the alert yesterday, saying stress testing of UK firms is too weak to prevent another bank failure like Northern Rock.
• Park Group “shrugs off” recession
  Business is booming for hamper and vouchers business Park Group, which said it is having its best Christmas since the collapse of rival Farepak in 2006.
• Woolworths to close by 5 January
  If no last minute buyer is found, all WoolworthÂ’s outlets are set to close in the New Year, say administrators.
• UK accountancy firms suffering
  As the US slashed fed rates to close to zero yesterday, London-based accountants and insolvency practitioners are also feeling the pinch on this side of the pond.
• Irresponsible lending consultation out
  After discussions with the industry, the OFT has decided to broaden its focus in its irresponsible lending consultation to include credit scoring among other issues and put UK lending practice under greater scrutiny.
• Government helps first-time buyers
  A deal worth more than £400 million to help first time buyers aspiring to buy their own home was approved last week by Housing Minister Margaret Beckett, as part of the Government's programme of action to tackle current difficulties in the economy.
• Phoenix firm directors warned of liability
  A North West law firm is warning directors of insolvent companies that they must tread with extreme care, and take thorough legal advice, if they set up again as a ‘phoenix ’ company.
• Risk models outmoded, says risk director
  Credit risk assessments are set to change forever according to a risk director, away from credit histories toward affordability and intention to pay.
• Mortgage lending down 50%
  Gross mortgage lending reached an estimated £14.6bn in November according to the Council of Mortgage Lenders (CML). <br/><br/>
• Pure Design folds after one year
  The directors of Leeds luxury home design specialist Pure Design (Yorkshire) have called in administrators Begbies Traynor after less than one year of trading.
• Whittard back from the brink
  Whittard of Chelsea, the specialist tea and coffee retailer was forced to enter administration on 23 December, after finding itself unable to trade out of trouble.
• Homebuying loans fall by 70%
  The number of loans approved for homebuyers fell almost 70 per cent year-on year to £2.1bn, according to the British Banker’s Association (BBA).
• Unity Trust Bank abolishes penalty charges
  Banker to the ‘social economy’ sector Unity Trust Bank plans to abolish all penalty and interest charging for unauthorised overdrafts from the start of January 2009.
• Shoppers set to spend £100m online on 25th
  This Christmas an estimated 5m (5.24) sho