However, despite the all time low base interest rate credit card interest rates are said to have soared and have now reach their highest level in over a decade, with the average rate coming in at 18.8 percent.

There has been outrage and concern over the huge gap that now lies between the average credit card interest rate and the base interest rate. One report has now suggested that the level of interest that credit cards are charging consumers on their borrowing could even be illegal, and that because of this card providers may have to reduce interest rates and in some cases even make refunds to borrowers.
The last Consumer Credit Act was brought in two years ago, and lawyers have said that there are parts in this Act that could mean the level of interest being charged on credit cards is actually illegal. Lawyers have said that the rules of the Act are not well known by consumers, and that card providers are terrified that someone will realise that they may have a case and may take the card provider to court over the level of interest being charged.

One consumer credit lawyer stated: “Bank executives are terrified that someone might take this to court and win, opening the floodgates for millions of other card holders.”

”In a test case in 2001, a court established that the lender would have to show they had not acted unreasonably. But the 2008 change brought in a rule preventing lenders imposing an ‘unfair relationship’ with their borrower.”

”The old curb on credit charges said consumers could only contest them if they were ‘extortionate’. The onus has moved to a situation where it’s up to the card provider to prove they are not being unfair – and there appears to be a strong argument they are when the base rate is so low.”

Over the past year many workers have seen their pay frozen, or in some cases even cut, and many officials predicted that the same thing would happen this year.

A recent report has suggested that these officials were right with their predictions, and around sixteen million workers have said that they do not expect to get a pay increase this year.

The data comes from a recent YouGov survey that was conducted, and the figure equates to more than 50 percent of the UK’s workforce. The results of the survey also showed that around nine million workers expected a pay increase that would be below the level of inflation.

It is thought that the smallest pay increases are expected by nurses, civil servants, and teachers. A third of consumers also thought that this year they would be worse off than they were last year according to the survey results.

The figures suggested that around five million workers were actually spending more than they were earning, with nearly half of them having to bridge the gap by using their overdraft facility.

The survey was commissioned by the comparison site uSwitch, and an official from the firm stated: “Consumers face a double threat – the government is toying with measures such as raising taxes to reduce the public deficit, which will have a direct impact on personal finances. When coupled with lower than anticipated salary increases, it can only mean that we are in for a bumpy ride, and the situation could get worse before it gets better.”

The contactless cards have been launched to offer speed and convenience for both consumers and retailers, but the limit that was originally put on these cards was £10.

However, according to reports the payment card giants Visa and Mastercard made a request for the limits on the contactless cards to be increased from £10 to £15, and this request was agreed by the banking industry and card providers.

It is thought that by the end of this year around one in every seven UK consumers will have a contactless credit card, and the increased limit will enable users to enjoy greater flexibility and more choice when using their card to make a payment.

Officials have said that the increase in the transaction limit on these cards will bring the maximum spend closer to the limits that are in place across Europe.

There is a maximum transaction limit of 25 Euros in the Eurozone, which is the equivalent of over £20. The cards are used by placing them close to specialist sensors, and the cardholder does not have to put in any PIN or sign any receipts in order to make their purchase, which makes things easier for the consumer and the retailer.

An official from Barclays stated: “Contactless technology is undoubtedly the future of payments and we are seeing it grow hugely in popularity. The new higher limit gives customers the flexibility of paying for even more transactions quickly, securely and conveniently via a contactless card payment and will lead to more retailers implementing the technology.”

There are now many different price comparison sites in operation, and there are all sorts of goods and services that can be compared and purchased through a price comparison site. This means everything from insurance services and financial products to holidays, utilities, and more.

Price comparison sites can provide a very effective solution for those that do not want to have to go from one website to another using the Internet in order to compare prices on the services and products that they are looking for.

Looking through individual websites can be very time consuming and frustrating, and this is something that can be avoided by using a price comparison site, which effectively does the research for you and bring everything under one virtual roof for your perusal.

However, whilst price comparison sites are very useful they do also have a downside, and those that do not use them effectively are in danger of opting for the wrong service or product or paying more than they should be for the product or service that they purchase.

One thing to bear in mind is that most comparison sites do not include all companies that deal with that particular service or products, so it is important to remember that the best deal on the site is not necessarily the best deal on the market.

When you use a price comparison site you should make sure that you are as specific as possible with regards to what you are looking for, and you can use the filtering options available from most comparison sites in order to do this quickly and easily.

This will ensure that the products or services displayed are ones that will fit your needs, saving you the hassle of having to go through a large number of unsuitable products or services.

Try not to rush through the process of using a price comparison site, as the whole point of using these is to try and save money as well as time.

In fact, it is a good idea to use more than one comparison site so that you can see the different in the best deals that each of them offer – remember the companies and providers that each of the sites work with can vary so some may have offers that others do not.

It is essential that when you find a product or service that seems to suit your needs through the price comparison site you look carefully into the deal and read through the terms and conditions so that you know exactly what you are getting for your money.

Also, check out the deal directly through the provider to see whether there is any promotion or deal that may enable you to get it cheaper if you purchase direct.

Having been reduced to this level last March this now marks the twelfth month where the base rate has been at its all time low of 0.5 percent. The news will be welcomed by many homeowners who will be relieved that their repayments will not be shooting up.

The central bank has also announced that there are still no further plans to pump any more cash into the economy through the quantitative easing scheme, through which it has already put an additional £200 billion into circulation.

However, this does not mean that the quantitative easing scheme will not be used again in the future should the need arise, but the Bank of England first needs to take stock of the benefits that have been seen by the money pumped in through QE so far.

Economists and industry experts have said that the decision by the Monetary Policy Committee to keep the base rate on hold has come as no surprise, and with the UK economy having only just come out of recession it would have been too high a risk to the UK’s fragile economy to increase the base rate already. Most were also not surprised by the decision not to put anymore cash into the economy through QE for the moment.

The final three months of last year saw the economy grow by 0.3 percent according to reports, although initial estimates had put the growth level at just 0.1 percent. This had raised fears over a double dip recession due to the low level of growth, and officials believe that a base rate increase could have resulted in a severe negative impact on the economy that could have pushed it nearer to sliding back into recession.

It is estimated that drivers who get married could save up to 16 percent on the cost of their cover just by declaring their husband or wife on the policy. The policyholder simply needs to update their marital status on the policy, and there is no need for a new policy to be taken out in order to benefit from the discount.

One official from the insurance industry said: ‘The reasons for this are quite simple. The risk has been calculated and by having only one driver on the policy there is more risk of accident taking place whilst with a married couple the decision to tie the knot would hopefully suggest they are responsible and more cautious on the roads’.

With many people looking for ways to save money on their outgoings it is hoped that more people will ensure that they let their insurance firm know if and when they do get hitched. The official went on to state: ‘I hope couples wouldn’t marry just to save on their car insurance but if they were to make that decision they could be in for a saving’,

The boy, Sam Scott, was cut and bruised after the collision with the car, and according to reports he had ridden his bike into the path of the car. The collision caused the windscreen of the car to shatter before the twelve year old boy was thrown off his bicycle, after which he hit the kerb. He received the letter whilst he was recovering from his injuries at home.

He was told by Direct Line that if he did not send a cheque for £150 towards the cost of the accident he could be taken to court, but the boy does not even have a bank account. His mother stated: ‘I’m really furious. I have never heard anything like it before. It’s terrible that people are asking children for money.’

She added: ‘He is very lucky to be alive, it was the full impact,’ Mrs Scott said. ‘He actually smashed her windscreen. I’m so surprised he’s not been seriously injured. He was badly bruised and his back is still bad.’ She went on to state: ‘I can’t believe they would consider suing a 12-year-old. At the end of the day it was an accident and he is a child. They wrote to Sam himself, the letters were addressed to Mr S Scott not me. I just rang them and said; ‘Is this a joke?’. They were asking him for a cheque, but he doesn’t even have a cheque book.’

If the level of insolvencies does rise by this level it could take personal insolvencies to a new record high. With a Debt Relief Order someone that is on a low income could get their debt written off without having to pay the fees that are normally associated with bankruptcy. However, eligible consumers will have to meet strict regulations with regards to asset levels and how much disposable income they have left at the end of the month.

Mark Sands, head of personal insolvency at accounting group KPMG, said: ‘DROs will bring new people into the insolvency system. ‘We are talking about people with very little income, no assets and debts of £15,000 or lower.’ He added: ‘Until now, they are the sort who would have made token payments on the debt or simply laid low until the six-year limitation on debt enforcement was passed.’

Whilst these DROs could help some people on low income and with high unsecured debt levels, who could not afford to go for bankruptcy, some people have expressed concern that the orders could make it too easy for many people to escape from their debt.

Recent date was released that showed even those with a decent credit rating were often being charted over 12 percent on overage on their personal loans in terms of interest rates. However, when the base rate stood at ten times its current level back in October the average rate of interest charged on a personal loan was just over 10 percent for the same consumer group.

One industry official said: ‘Lenders are under more funding pressures now and they are reluctant to lend to all but those with top credit scores.’ He added: ‘The imminent loss of payment protection insurance sales will also hit lenders’ profits so they are looking to stretch their margins.’

Another went on to state: ‘This may all sound very negative, but there is no need to panic. Loan rates in general are not increasing as much as credit card rates and, unlike these variable rates, your loan rate will not rise as it is fixed for the length of your agreement. Other great deals on, for example, a £5,000 loan over three years include Sainsbury’s Finance (8.8%), Tesco Personal Finance (8.9%), Alliance & Leicester (8.9%) and Lombard Direct (9.4%), to name a few. You’re going to need an excellent credit file to get them – no missed credit card payments over the past six months – but they are nonetheless there for the taking.’

The UK’s payment clearance association, APACS, has said that as a result of fraudsters using sophisticated methods such as this to gain information about others’ accounts the level of online banking fraud more than doubled in 2008.

According to APACS the level of fraud in relation to online banking soared from £22.6 million in 2007 to £52.5 million in 2008. An increasing number of people have started to use online banking facilities over recent years, with more banks making these facilities available and more people deciding to conduct their banking transactions from the comfort and privacy of their own homes.

An official from APACS said: “The industry continues to remind customers to ensure that they have their computer’s firewall switched on and anti-virus software up to date.”