Recent research regarding unauthorized overdraft charges from High Street banks revealed a very alarming situation. Some banks are charging an APR of more than 819,000 percent, which is enough put any customer into shock. The British Banking Association (BBA) has referred to using APR to calculate overdraft charges as “mathematical manipulation” but is willing to ...

The credit rating agency Moody’s recently downgraded deposit and senior debt ratings for 12 financial institutions in the UK. It believes that the largest lenders will continue to receive government support, while smaller banks will be left to fail. This recent move by Moody’s has only worsened an already shaky level of consumer confidence. Moody’s ...

Recommended UK governmental legislation regarding a ring fence of retail banking operations by big banks is expected to be handed down by the Independent Commission on Banking. This ring fence will separate investment banks from retail banks. Experts say that it should be phased in over several years in order to prevent bigger issues. Large ...

European Central Bank (ECB) President Jean-Claude Trichet recently announced something most UK residents know- that the region is experiencing “particularly high” economic uncertainty. Given this, the ECB will engage in another refinancing operation, he said. The bank has also decided to keep the eurozone interest rate at 1.5 percent, as was predicted. Mr. Trichet was ...

The European Central Bank (ECB) is not taking it easy this summer. It just increased the interest rate, much to the chagrin of the 17 members of the euro bloc. This is the second rate increase since April and is designed to keep inflation under control. Even the ever-growing Greek debt crisis is not enough ...

The global debt crisis continues, with many countries seemingly going broke. Speculators are placing bets on the order in which national financial systems will collapse. Central Banks have done what they can are now falling behind. We took a brief break from the financial crashes but we now seem to be headed back down this ...

In a move to retain its most lucrative customers, banks have begun tailoring interest rates for borrowers and savers. The profitability and loyalty of a customer may now determine the rate the person receives for a savings account, mortgage, credit card, or loan. This is causing some people to think twice before changing financial institutions. ...

Things are getting heated between politicians and central bankers in Europe regarding the debt crisis of Greece. Some euro-zone states, including Germany, have called for a restructure of Greek debt. One of the top officials with the European Central Bank referred to this idea as a “horror scenario.” Things seem to have entered a new ...

Banks have officially given up their attempts to fight the High Court regarding payment protection insurance (PPI). This means millions of UK customers can begin reclaiming their money. The waiting now begins, as banks must refund an estimated £10 billion. Consumer advocate groups are seeing to it that people receive their money in an efficient ...

The payment protection insurance (PPI) saga goes on in the UK. Last week, Lloyds Banking Group announced that it will not pursue legal action regarding issuance of this insurance. It also has allocated approximately £2.3 billion to compensate the thousands of people who were missold PPI, which is designed to cover credit card or loan ...

Banks in Iceland were kind enough to offer residents of other countries, namely the Netherlands and UK, the ability to hold high-yield savings accounts in the country. However, no explicit guarantee was provided by the government. When the global financial crisis hit in 2008, banks in Iceland failed and these depositors fell victim. Unlike Ireland, ...

Payment protection insurance, also called PPI, is an insurance product that covers outstanding debt like overdrafts or loans. Banks and credit providers sell it as an add-on to an overdraft or loan product. PPI covers a borrower against events that may limit earnings used to repay the debt such as sickness, unemployment, accident, or death. ...

Athanassios Orphanides, Central Bank Governor, was the subject of a recent attack from Cyprus President Demetris Christofias regarding the financial situation in Cyprus. The Cypriot President blamed the Central Bank governor for failing to control Cypriot banks that made heavy investments in Greece. The result was a credit agency downgrade in the sovereign credit ratings ...

For the past ten weeks, the UK Treasury and the four largest banks in the region have searched for middle ground between letting market forces dictate business lending and nationalizing credit provision. Ministers want the financial institutions to increase credit in support of economic recovery in exchange for a “responsible” approach regarding bonuses. In the ...