Best Bank Accounts -- Posted by staff on Sunday, July 22 2007 Visit credit cards

"Sainsbury's Bank has been named as the most consistent performer in the savings race over the past 18 months with its Internet Saver regularly outstripping rivals.

The newly-launched consistency best buy tables, from financial information provider Moneyfacts, show Sainsbury's market-leading internet saver, currently paying 6% and due to pay 6.25% from August 1, has also led the way over the past year-and-a-half.

However, the account lost out to a lower-rate paying rival over the longer term – Nationwide's 5.55%-paying e-Savings account – which was named the most consistent account over the past three years.

The Nationwide account has been running for longer than Sainsbury's Internet Saver, which failed to qualify for the three-year consistency test as it was launched two-and-a-half years ago.

Moneyfacts said the most consistent no-notice account (without bonus) over 18 months was Anglo Irish Bank's Easy Access Deposit, currently paying 5.85%.

Over the three-year period Chesham Building Society's Save Direct, currently paying 5.5%, was the most consistent.

Anglo Irish also managed to top the consistency tables for notice accounts over both 18 and 36 months, with its 7 Day Notice account, which is currently paying 5.9%. This consistent performance was achieved despite its having the shortest notice period and lowest minimum deposit of the top five notice accounts.

Most of the other most-consistent performers required opening balances of £5,000-plus and notice of between 30 and 90 days.

The difficulty in finding a best-buy account that is also consistent is shown by the fact that only Sainsbury's Internet Saver scores well in both categories. In the no-notice account category, Manchester Building Society is the current best-buy with a rate of 6.01%. Meanwhile, in the notice savings account sector, Nottingham BS currently pays the best rate of 6.05%.

[ http://www.thisismoney.co.uk/saving-and-banking/article.html?in_article_id=422421&in_page_id=7 ]

ING Direct Fails To Pass On Rate Increases -- Posted by staff on Sunday, July 22 2007 Visit credit cards

"ING Direct has once again failed savers by refusing to pass on the latest bank rate rise to either of its savings accounts.

It means savers in the online saver account, which attracted more than a million customers with marketing-beating rates in 2003, will now only be paid 5%, 75 basis points below the bank rate of 5.75% and 125 points below the best deal on the market.

The rate of the bank's Websaver account also remains unchanged. The Websaver was launched with a rate of 5.65% to prevent a mass exodus of customers unhappy with the online saver account where rates were left to languish. The rate opn that account was cut to 5.5% before the May bank rate rise and has not moved since. The Websaver is now closed to new customers.

This is Money reported back in May that customers had withdrawn £3bn worth of savings from ING Direct as a result of its unwillingness to pass on rate rises. It came as no surprise to our readers, who have been quick criticise the bank that was once the first choice of many savers.

Of the five Bank of England rate rises since last August, ING Direct has passed on only two. While the bank rate has risen from 4.5% to 5.75%, ING Direct's rate has risen from 4.5% to 5%.

The online saver account is now paying 1.25% less than Sainsbury's Bank, which is the highest paying no-frills account in This is Money's independent best savings rates tables, at 6.25%. The Icesave account, which comes with a guarantee to beat the bank rate until October 2009, pays 6.2%.

Principality Building Society is paying 5.85% and capital one Base Beater pays 5.8%. Older savers can earn 6.4% with Coventry Building Society, or 6.25% with Northern Rock.

A spokesman for ING Direct said other banks offered lower rates on different accounts, saying: 'If these savings providers had to pay all of their customers our 5% it would cost them a fortune and they wouldn't be able to afford to keep offering their headline grabbing accounts.'"

[ http://www.thisismoney.co.uk/saving-and-banking/article.html?in_article_id=422229&in_page_id=7 ]

Standard Life Insurance Turns Down Fewer Claims -- Posted by staff on Wednesday, May 2 2007 Visit credit cards

"Standard Life has reported a dramatic fall in the number of critical illness cover claims it turns down

Critical illness cover, the insurance that pays out if you are diagnosed with serious illness, has been heavily criticised for not paying claims that policyholders believed were covered.

Historically, insurers have turned down about 20% of all claims made on critical illness policies but the latest Standard Life figures show that it only declined 7.5% of all claims in 2006 compared to 18% in 2005.

It is finally some good news for critical illness insurers who have faced widespread criticism for turning down claims on the basis of 'non-disclosure'. These are cases where the insurer does not dispute whether a policyholder is suffering from one of the covered illnesses, but refuses to pay because it says the policyholder did not give some details of their medical history when they applied for the insurance.

Standard Life figures show that just 4.2% of claims were turned down because of non-disclosure in 2006.

In order to decide on these claims insurers will trawl the medical records of policyholders for any information that was not revealed when they applied. If they find something, whether it makes any difference to the actual illness the person is claiming for or not, the insurer can turn the claim down.

The results can be devastating for individuals and their families in the aftermath of a diagnosis of serious illness. The fact that more of these claims are being paid is good news but it comes too late for some.

Jamie Barton took a critical illness policy with Standard Life in 2001. In January this year, now 32 years old, he was diagnosed with testicular cancer and tried to claim on the policy, which would have paid £75,000 to cover the mortgage on his home in Gillingham that he shares with wife Debbie and two young children.

But Standard Life refused the claim. After going through Mr Barton's medical records the insurer found that Mr Barton had undergone tests when at school for a hereditary kidney disease that his father had suffered from.

Mr Barton had failed to mention these tests when he applied for the insurance. He said: 'The reason I did not tell them is that I did not know. My parents seperated when I was thirteen and I never knew my dads medical history. I was tested for this disease as a child and the test was negative and, as I was only 16 at the time, the results were given to my mum. Apparently I should have told Standard Life this but as I was so young and the test was negative I did not ever give it a second thought.'

But protestations have fallen on deaf ears and Standard Life refuses to pay the claim, even after Mr Barton's case was featured on the BBC TV programme Watchdog.

Standard Life insists that had it known about the tests for kidney disease it would not have agreed to insure Mr Barton. Standard Life has declared the contract it held with Mr Barton void and has returned the £30-a-month premiums he had been paying for the policy.

It has even cancelled the accompanying life insurance policy.

Standard Life said that the falling numbers of declined claims shows that people are beginning to understand the importance of disclosing all medical information when they apply. Mr Barton's case is a warning that insurers will seize any opportunity to decline a claim if they can."

Interest Rates Expected to Rise Next Week -- Posted by staff on Tuesday, May 1 2007 Visit credit cards

"It looks a safe bet that interest rates will be on the rise again next week and a number of banks and building societies are gearing up for the increase with changes to their fixed-rate deals.

Fixed rates on savings and mortgages reflect the movements of swap rates – the borrowing rates set by the money markets. These have been creeping up over the past few weeks on the back of stronger-than-expected inflation and the expectation of further base rate rises.

Two-year swap rates are currently just over 5.8 per cent – the highest for a number of years – having risen by about a quarter point since mid-March.

This is good news for savers, who are already able to lock into some attractive rates, but it means that borrowers should prepare to draw in their purse strings even tighter.

Mortgage providers were quick off the mark to withdraw their best fixed-rate deals last week. Brokers saw homeowners piling into fixed rates in the hope of bagging a good deal before the inevitable increases.

Alliance & Leicester and Nationwide were two of the fastest lenders to release new fixed rates this week. Alliance & Leicester’s went up around 0.3 of a percentage point, while most of Nationwide’s rates rose by 0.14 of a percentage point.

London & Country Mortgages, a broker, says lenders including Portman, Britannia and Northern Rock, are also already offering new higher rates. Britannia has upped most of its fixed rates by 0.25 of a percentage point. Its best three-year fix is now 5.59 per cent.

Portman’s best two-year fixed rate (which has a £499 fee) has increased from 5.55 per cent to 5.69 per cent, while most of Northern Rock’s rates have been increased by 0.2 of a percentage point.

If you are yet to seal a fixed-rate mortgage, you might just have time to get in as a number of lenders have their old rates available until Monday or Tuesday next week.

Bradford & Bingley’s current rates are available until close of play on Monday. It has a two-year fixed rate at 4.89 per cent with a £1,299 fee. From Tuesday this will go up to 4.99 per cent and the fee will rise to £1,499. Most of Halifax’s fixed rates will rise 0.2 of a percentage point on Tuesday. Woolwich and Abbey’s old deals should also be available early next week.

Better news is that rates on savings accounts – such as one-year fixed-rate bonds – have also been creeping up. However, ING surprised commentators when it cut the rate on its web saver account by 0.15 of a percentage point to 5.5 per cent. ING says this is a new account for new and existing customers – the previous rate had been only for existing customers.

Other lenders, including Saga, Birmingham Midshires, Halifax, NatWest, and Nottingham Building Society have all increased their fixed saving rates by up to 0.55 of a percentage point, according to Moneyfacts. Birmingham Midshires is today lifting the rate on its one-year fixed-rate bond for the second time in two weeks, to 6.23 per cent.

However, even though these rates may look tempting, Moneysupermarket.com is advising savers not to rush in as there may be further rate rises to come.

“In a rising rate environment consumers should be looking for the right time to lock in (to a fixed-rate),” says Kevin Mountford, head of savings at Moneysuper market.com.

“At the moment it looks likely that there will be further rises.”

A number of instant access saving rates are also nearing the 6 per cent mark. Anglo Irish’s Easy Access Deposit account, for example, pays 5.56 per cent and its seven-day notice account pays 5.7 per cent. The rate on AA’s internet savings account has jumped from 5.37 per cent to 5.61 per cent.

Rates on some other investments also look attractive. Three and five-year index-linked certificates, for example, pay 1.15 percentage points and 1.1 percentage points above the retail price index. This currently works out at a tax-free return of 5.95 per cent and 5.9 per cent respectively."

MBNA Creditcard To Charge For Positive Balances -- Posted by staff on Wednesday, February 21 2007 Visit credit cards

"Creditcard company MBNA is clamping down on customers who keep a positive balance on their cards.

The company has written to thousands of customers asking them to remove the balance or face a £10 charge.

Customers who have had a positive balance on their account for more than a year have been given three options – transfer the money to a current account, spend it or give the money to MBNA's nominated charity Cancer Research UK. They have until the end of March to decide.

If they choose to ignore the three options, they will be charged £10. If the balance is less than £10, they will be charged the correct amount to bring it down to zero.

MBNA insisted that the move was designed to clear small, forgotten accounts rather than to punish customers.

A spokesman said: 'The card was never designed as a savings account. There are only a small number of people who will incur the charge and we think many of those don't have any intention of using their card in the future.'

He added: 'We've had a couple of customers who have large balances on their accounts that they had forgotten about. They have stuffed the statements in the bottom drawer and haven't realised they have this money available to them.'

However, This is Money reader Norman Richardson from Newcastle Upon Tyne is unhappy about the company's action. He said: 'I have £29 on my account - why should they be able to charge me £10?'

MBNA was criticised in 2005 for introducing annual fees for customers of its affinity cards - cards it operates on behalf of companies and organisations. "

Barclays Saver Account Pays 25% Interest Rate -- Posted by staff on Saturday, January 6 2007 Visit credit cards

"Barclays has again upped the stakes in the savings war, raising the rate on its linked Regular Saver account by 25% to 12.5%.

The new rate is available only to new customers who open an account by the end of February.

And while the account is laden with various conditions and deposit limits, it could prove to be very lucrative for regular savers.

The Regular Saver account can be opened only by customers who have a Barclays current account, into which a salary or pension of at least £1,000 a month is paid. The savings account is linked to the current account.

Savers must deposit between £25 and £250 into their account each month and may vary the amount they deposit. But no withdrawals or additional deposits beyond £250 a month are allowed.

If any of the conditions are breached, the savings account will effectively be converted to the Barclays' Easy Saver account – currently paying 3.52%.

Savings experts have traditionally warned savers against putting cash into condition-laden accounts, because if any of the rules are breached – and they can be difficult to keep up with – you lose all your interest payments.

But a huge rate like the one being offered by Barclays may force them to rethink their advice. Savers who are confident they will be able to keep up with regular payments could earn a fantastic return over 12 months.

A saver who deposits the maximum £250 a month for £12 months will end up earning £203.94 in interest before tax.

The trade-off is that savers are forced to have their salary paid into a poorly paying current account. Barclays current accounts pay virtually nothing, at 0.1%.

Despite its rigid conditions, the Barclays account is not as restricted as similar accounts offered by other banks. Alliance & Leicester, whose Premier Regular Saver account pays 12%, has similar conditions to the Barclays account, except that it also makes savers contribute a regular amount, which cannot be altered from month to month.

Lloyds TSB also offers a linked savings account paying 8%, into which savers must deposit between £25 and £250 a month for two years. They can also make a one-off payment of up to £500 on opening the account.

Similar one-year accounts from Halifax and Abbey pay 7%. These are stand-alone accounts that do not need to be linked to a current account. "

Beware 22,600% Loans -- Posted by staff on Monday, December 18 2006 Visit credit cards

"Hugely expensive credit deals are being pushed by companies capitalising on the need of cash-strapped households to find money quickly in the run-up to Christmas.

Provident Financial, the credit-pusher giant that specialises in lending to those on low incomes and those without bank accounts, has blitzed tens of thousands of homes with junk mail loan offers.

The typical rate of interest charged is 177%, though for some borrowers it could be more than 300%.

'If you've realised you need extra cash for Christmas, don't worry,' gushes Provident's offer. 'Don't miss out on the Christmas you want!' The mailings contain its much-loved gimmick of a fake cheque made out to the addressee, with the words: 'Turn this into CASH - NOW!'

Other firms are offering even dearer credit, with the APR running into thousands or, unbelievably, tens of thousands.

Paydayuk.co.uk, for instance, charges borrowers £50 for a loan of £200, which for short-term borrowing is an APR of more than 22,600%.

Another deal is from uncle-buck.co.uk, which charges borrowers £75 for a one month loan of £250 - making a total repayable of £325. This works out at an APR of 2,339.3%.

Rival lender 4cashnow.co.uk offers similar deals. Here, borrowers write cheques to 4cashnow.co.uk, which advances the money immediately, but only banks the cheques on the borrowers' next payday. This can be expensive. Borrowing £170 for one month, for instance, costs £30, which gives an APR of 578%.

Several other online companies, such as yesloansuk.com and payday-express.co.uk, offer similar deals. They target those who cannot borrow elsewhere.

Mainstream credit-pushers, including Tesco, are also greedily vying for seasonal business. Many have cynically bought advertising rights to words such as 'Christmas' to ensure that when borrowers-search the web for loans, their deals come up first.

Typing the words 'Christmas credit' into Google, for instance, brings Tesco's Christmas loan offer to the top of the list. Tesco promises: 'Pay nothing for two months and enjoy the Christmas you've dreamed of!' But borrowers do have alternatives to companies such as Tesco that push credit for profit.

Credit unions, which are run on behalf of their members, offer loans at a rate that by law cannot exceed 2% a month of the outstanding balance, but many are far cheaper than that.

Though unions traditionally required members to save with them first before they could borrow, more than 100 offer instant credit to new members.

'They particularly suit borrowers needing smaller sums over shorter terms', says Mark Lyonette, chief executive of the Association of British Credit Unions.

Borrowers must qualify for credit union membership, which is usually based on a member's occupation or where they live.

Most people are eligible to join a union, Lyonette claims. Provident Financial spokesman David Stevenson says: 'We are not lending to the poorest of the poor. Our agents are paid on what they collect, not what they lend, so they are not incentivised like some other lenders.'

Tesco insists it has not paid for the search word 'Christmas' to flag up its deals, but says: 'We use easily recognisable terms such as cash and credit to speed up searches.' "

Loans With Penalties -- Posted by staff on Saturday, November 18 2006 Visit credit cards

"Homebuyers should beware of tempting, low rate mortgage deals - as the sting in the tail can prove expensive.

This week, Egg launched a two-year fixed rate of 4.74% - less than Bank of England base rate. It is also offering a discounted variable rate mortgage with a current rate of 3.99% for two years.

However, both have swingeing overhanging penalties which will tie in homebuyers for years after the special deal ends.

Each also has a fee of £399. For the two-year fixed rate, if you want to get out in the first year there is a penalty of 3% of the sum borrowed, then 2% in year two and 1% in the third year.

And in that third year, the rate you pay will be based on Bank of England base rate plus 2% - currently, that would be 7%.

It's similar news on the discounted rate - while the discount lasts two years, the penalties carry on for a further three years. In the first year, the penalty is 3%, then 2.5% for year two, 2% in years three and four and 1% in year five.

The rate you will pay after the initial discount expires is base rate plus 2%. Our Best Buy borrowers' table excludes any deals with overhanging penalties. And it also calculates the true cost of a home loan including the fees.

So, for example, the Alliance & Leicester's two-year fixed rate of 4.74pc with its arrangement fee of £799 would cost £14,700 over the two years on a £100,000, 25-year loan. "

Amex Slashes Credit Card Limits -- Posted by staff on Friday, November 10 2006 Visit credit cards

"American Express is slashing spending limits for thousands of cardholders, including at least one millionaire, without explanation or apology and, in some cases, without warning.

Nor will the company, which has about 500,000 UK cardholders, explain its actions, with the Amex bosses behind the decision refusing to talk to Financial Mail.

The company's call centres, based in Brighton and in India, are reported to be inundated with furious callers.

Many of those whose limits have been cut are extremely wealthy. Financial Mail has seen paperwork relating to two customers, both of whom have perfect credit records and no history of repayment problems, but whose spending limits have been cut by two-thirds or more.

In one case, the cardholder was a millionaire businessman with no mortgage and properties around the world.

Amex told Financial Mail that the decision to cut his card limits related to information stored on his credit files - though it refused to provide further details, despite being given the cardholder's signed consent.

His credit ratings with agencies Experian and Equifax, seen by Financial Mail, were 'good' (Experian) and 'excellent' (Equifax).

Amex inexplicably slashed his limit on one card from £17,500 to £10,000 and on another from £11,500 to £4,000, while he was abroad.

Ironically, it had only recently increased his spending limit. The cardholder has cancelled his cards and instructed his businesses to refuse all Amex transactions.

Other cardholders reported cuts in their credit limits from £10,000 to £2,100, £5,000 reduced to £500, £9,000 slashed to £1,800 and £2,000 cut to £620.

Some outraged former customers are bombarding Amex's European boss, James Crotty, with letters of complaint and the remnants of the cards they have chopped up.

Others demand that the company hands over all the records it holds on them, as is their right under data protection laws.

A spokeswoman for Amex insisted the reductions were not an error and applied 'to a minority of cardholders'.

All customers would be warned by letter before the reductions take effect, she added, contrary to reports from some cardholders to Financial Mail."

Bank Of England Raises Interest Rates -- Posted by staff on Friday, November 10 2006 Visit credit cards

"The Bank of England raised interest rates by a quarter of a percent to five per cent today, pushing up the cost of mortgages and credit card debts for millions of households.

Interest rates are now at their highest point since August 2001, raising fears that some households will be unable to cope following the increase in energy prices and council tax bills.

The rise will add £15.92 a month to a repayment mortgage of £110,000, while borrowers with a standard £200,000 mortgage could find themselves £28.95 a month worse off.

Nick Gardner, from Chase De Vere mortgages said that the rate rise “is the news first-time buyers were dreading and will price even more people out of the market”.

But, he added it was inevitable given that inflation remains above target and house prices continue to surge.

First-time buyers have struggled to get onto the housing market as property prices climb relentlessly. Figures from Halifax earlier today showed that the average cost of a house rose by another 1.7 per cent during October, although the lender believes that price growth will slow during the coming months.

However, today's rate increase is good news for savers, as banks pass on the better rates to customers.

Figures from MoneyFacts, a financial website, show that on an ordinary savings rate of around 4.5 per cent, today’s interest rate rise will add around £25 a year to a balance of £10,000."

O2 Broadband To Lanuch Next Year -- Posted by staff on Monday, October 23 2006 Visit credit cards

DESPITE THE fact that Oh Dos (O2) is trailing in the race to provide 'fourplay' services, the UK mobile operator's commitment to provide be broadband to key UK customers has sparked no takeover fever.

With rivals like Orange and Carphone Warehouse already offering 'free' broadband connexions and Virgin Mobile being heavily tied in with ntl /telewest, O2 is beginning to look a bit vulnerable in its range of offered services.

Everyone these days seems to want to offer cellular; landline; broadband and TV services - the so-called fourplay. Indeed, BSkyB's acquisition of UK ISP, Easynet, is a classic demonstration of this strategy.

Yet Oh Dos' declaration to the FT that it will launch a broadband offering to its key customers in Q2 2007 has led to no outburst of takeover fever, whatsoever.

As far as the INQ is aware, O2's only broadband company is Be. Which boasts absolutely no Top Ten status. So if as Oh Dos supreme, Peter Erskine, claims there will be absolutely no re-run of the Carphone Warehouse broadband oversubscription fiasco, exactly how does the company intend to fulfil user demand?

There are a number of potential candidates including Entanet and Plusnet. However, as Plusnet runs over the Tiscali network in the first place, why not buy Tiscali UK since it is already in deep do-dahs?

A wily old dog like Erskine must be plotting something. Becoming a bigger provider of UK broadband connexions than former owner and market leader, BT, must be an interesting prospect.

Bank Loans Trap -- Posted by staff on Tuesday, October 17 2006 Visit credit cards

"Sly lenders are dodging rules that force them to show the typical cost of borrowing using a personal loan.

Instead of advertising one average personal loan rate that most borrowers can get - known as the typical rate - banks have been contacting potential customers telling them that they have been approved for a loan at their own personal rate.

Consumer watchdog Which? says these personal rates allow banks to get around the Consumer Credit Act 2004, which insists that two-thirds of applicants that respond to an advert must be offered the annual percentage rate (APR) shown.

Instead, personal pricing forces customer to inquire about the type of rate they might pay. The bank will then check your credit record, leaving a mark that could damage your rating.

A borrowing rate is determined, but the more credit checks that are made, then the higher the rate you are likely to be offered.

In a related issue, there are also concerns that no one is monitoring whether banks and building societies are actually offering two-thirds of advertised loans at their typical rate.

The Office of Fair Trading, which is responsible for overseeing these guidelines, admits: 'We are not routinely monitoring the rates. There are simply too many companies and too many rates. We just have to rely on consumers alerting us to the situation.'

Which? believes that consumers would never know what percentage of typical rates are approved and declined since they would only know of their own case.

Principal researcher Mike Naylor says: 'No one is checking on whether banks comply with the rules. And it is very difficult for consumer groups to compile information on this.

'Personal pricing is just a way for the banks to get round this issue of typical rates. It means they do not have to comply with these rules. It is something we are concerned about.'

Most High Street banks offer both typical rates and personal priced loans. The typical rates are normally posted on adverts in branches and on TV and newspaper advertisements.

However, customers are contacted directly about personally-priced products, either with leaflets in their statements or notices through their online banking.

HSBC and Barclays admit that they offer loans in this way. A spokesman for HSBC says: 'When we offer a product to a customer directly, it will be something very specific to them. We can give them an example of what they might get for their individual situation, but this is not necessarily what they will receive.

'There are always caveats that the rates are subject to status. The offer we give them will be based on provisional details but be personalised as far as possible.'

When the bank runs a credit check before offering a rate, it will leave a footprint on your credit profile - which will in turn let other banks know that you have been asking for credit.

This will impair your record so that when you approach other banks you could well get offered a higher rate of interest or a lower amount of money.

Typical rates are meant to assist consumers so that when they search for a loan rate they can see what they are likely to be offered. This sort of initial search will not affect your credit history, but a mark will be left if you approach the lender directly for a loan."

 

Poker Betting Bosses Raking It In -- Posted by staff on Tuesday, October 10 2006 Visit credit cards

"While fund managers and investors are nursing heavy financial losses from the plummeting value of shares in the internet gambling industry, some bosses have bagged pots of money from generous share packages.

The bonanza will stun those who have looked on in astonishment, as £3.5bn has been knocked off the sector in the days after America signalled its plans to ban online poker, roulette and sports betting.

The victims aren't just the speculators who staked their cash on the success of the sector - but the City funds who have lost much more. These are the people managing the savings of millions of ordinary men and women with private pensions.

Any day now President Bush is expected to sign a bill that could wipe yet more off the already waning value of the industry. But while the bosses of these firms may say that they feel your pain, the collapse of online gambling isn't exactly hitting them in the wallet.

Take Sportingbet. Its annual report reveals departing chief executive Nigel Payne owns 1.5m share options, with a guaranteed share price of £2.15 - nearly triple Monday's 73¾p close (up 3¾p) and worth £3.3m.

Meanwhile, finance director Andrew McIver, who takes over from Payne later this month, has 500,000 share options on the same basis. Both would have to exercise the options between January and December next year and Sportingbet has set aside £5.1m in case they do. A spokesman said the board was reviewing the set-up but declined to comment further.

The millions netted by PartyGaming's four founders have been well publicised - but its management, past and present, have also done rather well. The poker giant granted former boss Richard Segal and finance director Martin Weigold a total of 56m share options when the company listed.

A large chunk of these options has dived in value, but Segal and Weigold are unlikely to complain because they didn't pay for them in the first place. PartyGaming said the award was to 'attract them to the company prior to the offer to incentivise and reward them for successfully floating the company'. Unfortunately it didn't persuade Segal to stay - he left less than a year after the company's debut on the stock market.

He forfeited millions of share options in doing so but had already made £10.7m at the float and was able to keep 7.5m share options, worth £2.93m at Monday's close of 39p (down 2½p).

Weigold made £4.26m in PartyGaming's listing and was handed 12.3m worth of share options, vesting at quarterly intervals over four years. Segal's successor, Mitch Garber, was granted 27m share options on joining - including 7m, currently worth £2.73m - that will vest in his first year of employment. The remaining 20m are exercisable over the next four years, depending on the share's performance.

PartyGaming declined to comment, but a source close to the company pointed out that the share options were given by the founders and so came at no cost to incoming shareholders at the company's float. Small comfort for investors looking at a 350pc drop in the share price since its 176p August 2005 high.

John Anderson, the boss over at 888, has followed Segal's lead and decided to cash in his chips. He didn't do quite as well as his mates at PartyGaming - but he did all right.

He received options on 1% of the company at float and sold 1.7m shares at the time, making £3m. He also has an option on another 1.6m shares, vesting over the next three years. Chief operating officer Gigi Levy, who takes over from Anderson at the end of the year, was given 1.35m shares, currently worth £1.4m, and 1.1m share options.

PartyGaming and 888 now appear to be far more frugal with their free shares. But many investors will probably feel it's too little, too late.

STEINBERG WALKS OUT ON EMPIRE

Lord Steinberg is quitting his role as chairman of internet gambling group Empire Online. A source close to the Tory Party donor insisted his decision to step down was unrelated to the fall-out from the US ban currently rocking the industry and follows his plans to retire from the same role at Stanley Leisure after its takeover by Malaysian conglomerate Genting.

He will be replaced at Empire by senior independent non-executive director Richard Rosenberg at the end of this month. "

IPOD Nano For Free -- Posted by staff on Saturday, September 23 2006 Visit credit cards

B&Q CreditCards ? -- Posted by staff on Friday, September 22 2006 Visit credit cards

The DIY retailer B&Q is looking for a direct marketing agency to handle the launch of financial services products.

The retailer is thought to have selected Clark McKay & Walpole and RMG Connect to pitch for the business. However, four agencies were originally approached.

The financial products are expected to be a partnership between the DIY retailer and HFC Bank (see marbles credit card), part of HSBC. CMW handles the direct marketing for HFC, whereas RMG Connect is the incumbent on B&Q's DM account.

RMG started working on B&Q in 2003, when its sister ad agency JWT took the account from Bates. It won a gold for its wage packet trade direct marketing campaign at the 2005 DMA Awards.

Among its recent work for the retailer was a mailpack containing a bag of sweets to soften the news that it was closing some local stores and to help make the longer journey to their next-closest stores more quickly.

As well as handling direct marketing for HFC, earlier this month CMW developed a new corporate identity for the bank's specialist lending operations.

Post Office Drive For Honest Insurance -- Posted by staff on Wednesday, September 20 2006 Visit credit cards

"Experts have welcomed the Post Office's campaign to encourage sellers of controversial payment protection insurance to make customers aware they have the right to shop around.

The Post Office has called on providers to be 'open and honest' with people taking out a mortgage, unsecured loan or credit card by telling them they do not have to buy PPI at the same time.

It is no coincidence that the call comes not long after the Post Office launched a stand-alone policy called Lifestyle Protection, which can be taken out to cover loan repayments.

But the initiative follows widespread concern that many banks and leading providers push customers into taking out PPI alongside loans and mortgages. Cover costs up to £30 for each £100 insured compared with about £4 for each £100 from standalone providers.

Cover can also be inappropriate for many borrowers, such as the self-employed.

Pula Houghton, spokesman for Which?, says: 'We support any steps taken to make consumers realise they don't automatically have to take out bolt-on cover. However, we still do not believe that PPI is a suitable option for most people.' "

Source: Thisismoney

Warning To Cyclists Who Do Not Have Insurance -- Posted by staff on Monday, September 11 2006 Visit credit cards
"Most cyclists do not have proper insurance cover, research has shown.

Only 2% of the five million adults who regularly cycle were covered by a specialist insurance policy, said cycling group CTC. It warned that cyclists faced compensation claims if they were involved in an accident.

Its director, Kevin Mayne, said: "Most cyclists don't give third-party insurance any thought. Cycling is safe and healthy, but it's dangerous to ignore the threat of legal action in the event of an accident. Although some household insurance policies offer a degree of third-party cover, many exclude road traffic accidents."

Car Insurance To Increase -- Posted by staff on Thursday, August 31 2006 Visit zurichinsurance

"Car insurance costs look set to rise following a move by Norwich Union, the UK's second largest car insurer, to raise its rates by an average of 16%. The firm said its hand had been forced by a similar rise in claim costs over the past two years, during which time insurance rates had remained static.

Norwich Union said claims for personal injuries had been the main reason for the rise in its costs.

Insurance for riskier customers, such as young men, will rise by up to 40%.

David Ross of the Norwich Union warned that other insurers would probably copy his firm's example.

"I think we'll find that most insurance companies will follow our lead - we're the largest insurer in the country, one of the largest motor insurers," he said.

"There is an expectation amongst various commentators in the sector that motor premiums will need to rise to reflect the increase in claims costs, particularly from the more litigious society that we find ourselves living in."

The Association of British Insurers (ABI) said costs were rising in several areas.

"The first is personal injury costs - a very large part of your premium covers personal injury - and secondly, there is a major problem around uninsured driving," said Nick Starling of the ABI.

"There's around a million uninsured drivers on the road, and all of us pay £30 on our premiums to cover those.""

Bike Insurance Win Of £35,000 -- Posted by staff on Saturday, August 26 2006 Visit credit cards

"WHEN cyclist Penny Scott-Francis suffered broken arms, legs, pelvis and a crushed shoulder in a road accident she felt confident she could win a claim against the driver of the lorry that ran over her.

Without insurance of her own, she turned to no-win, no-fee accident claims companies. But they refused to take her case. Despite this, she won £35,000 in compensation after taking out specialist insurance for cyclists.

Clogged transport systems and an appetite for a healthier lifestyle have boosted the numbers of cyclists in the UK to five million. But only around 100,000 are insured for claims they may want to make and – just as importantly – to cover themselves against being sued as a result of injuring someone else.

Specialist third-party insurance available at very low cost will cover up to £5m of costs that could arise from third-party liabilities and provide legal aid to cyclists.

Penny Scott-Francis's accident happened while riding her bike in Morden, South London. She did not have third-party insurance but she saw no problem in pursuing a claim for compensation.

Unfortunately, no-win, no-fees accident claims companies did not see it that way. They insisted that if a court did not agree that the accident was the fault of the driver, she would be vulnerable to a counter claim for causing the accident.

Penny said: 'I wasn't going to pursue it because the lawyers would only do it on a no-win-no-fee basis, and they didn't think I would win. When it looked like I couldn't claim, I gave up and concentrated on recovering.'

As Penny's health improved she joined the Cyclists' Touring Club and qualified for the club's third-party cover. Interested to get an expert opinion on her own case, she turned to the CTC legal team. They told her that her cycle insurance would protect her against any counter claim, and that she could pursue her case through the courts.

A court agreed that the accident was not her fault and she received £35,000 in compensation for her injuries.

Policies are sold as part of memberships to cycling organisations. Members of the CTC, British Cycling, the London Cycling Campaign and the British Triathlon Association all get cover in their membership fees. CTC members pay £33 a year for membership, including the cost of the insurance.

Some home insurance policies will offer limited third-party cover but cyclists will need to check that the cover extends to road traffic accidents.

Yannick Read, a spokesman for CTC, said: 'Cycling is still safe and the chances of an accident are low, but we live in increasingly litigious time. The insurance can prove very valuable if you are caught in an accident and can work out as cheap as 9p a day.'"

Buy To Let Loans At A Record 770,000 -- Posted by staff on Friday, August 18 2006 Visit credit cards
"THE number of mortgages taken out by Britain's army of buy-to-let speculators has hit a record 770,000, it was revealed yesterday.

The mostly-amateur landlords have borrowed £84billion in the belief that property prices will continue soaring.

In 1998 the buy-to-let market was worth just £2billion. But now thousands of new landlords are being created every month, according to the Council of Mortgage Lenders.

Many regard their property - usually a flat in a city centre - as a wise investment that will become their pension.

More than 150,000 buy-to-let mortgages were taken out between January and June, with a typical loan being £130,000 on a £172,000 home. This is a 63 per cent rise on the same period last year and demonstrates how rapidly the market is expanding, said council director-general Michael Coogan.

The Royal Institution of Chartered Surveyors said a massive wave of immigration is fuelling the market. Milan Khatri, chief economist at the RICS, said: 'Economic prosperity and population migration from EU countries have increased rental demand, making conditions better for buytolet property investors.

'The news is not so good for first-time buyers, with house prices continuing to rise and the alternative of renting steadily becoming more expensive.'

A recent local government report warned of the impact buy-to-let is having on Britain's towns and inner-cities and said councils must encourage the building of family houses rather than flats.

'If necessary, the Government should consider whether local authorities need additional powers to ensure a broad range of family housing units are available in inner cities,' said the researchers.

They heard evidence about the damage that buy-to-let investors are wreaking on local community life, with populations constantly on the move.

About 1.7m properties in Britain are privately rented out by landlords with some owning hundreds each but many owning only one.

Remortgaging - where people change mortgage deals - accounted for nearly half of the £ 17.5bn of buy-to-let home loans handed out during the first half of the year."

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