Avoid these mistakes to keep your credit clean

By UK.CreditCards.com

The various ways in which customers can inadvertently damage their own chances of successful credit card applications have been detailed in new analysis from Experian.

In a report published on MSN.com, the credit reporting firm highlighted the potential dangers of consumers changing addresses without notifying utilities firms and financial services providers.

If the customer does not keep their affairs in order in this way, mail containing sensitive details such as credit card numbers is at a higher risk of being intercepted and stolen. Fraudsters might then apply for additional credit cards using their victim's identity, lowering their credit score and making it harder for them to be accepted for future credit card deals.

Darryl Bowman, director of CreditExpert, Experian's anti-fraud service, said, "You may know that a clean credit report is important, but very few of us have the first idea that we could inadvertently be trashing our credit status."

Other things cited by Experian as having potentially negative effects on credit scores included:.

• Not adding your name to the electoral roll.
• Failing to separate financial affairs after splitting from your partner

Claimants await credit card debt decision

By UK CreditCards.com

Test cases to be heard in the High Court in Manchester will help to clarify the law on credit card agreements made before April 2007.

Judges are to decide on a total of 12 cases with hearings to be held towards the end of the month, the BBC reported.

Thousands of consumers have launched action to get their credit card and loan debts wiped out, taking advantage of a legal loophole which was open prior to the application of the latest Consumer Credit Act.

Commonly, the claimants argue that their original agreements are unenforceable.

Many of the cases originate from claims management companies, which offer customers help with getting debts wiped out.

However, three recent test cases have found in favour of the creditor rather than the claimant.

Speaking to the broadcaster, Consumer Credit Act expert Bob Imrie said: "Courts are not very sympathetic to claims that terms and conditions were not provided to customers. You've got a real problem trying to undo an agreement on a technicality; you've got to provide evidence the banks behaved wrongly."

Sterling is up 0.3% against the euro

By UK CreditCards.com

British holidaymakers planning to use their credit cards abroad could see lower exchange rates as the pound once again stabilises.

Sterling is up 0.3% against the euro after news of strong retail sales in the UK improved market sentiment.

The Office for National Statistics revealed that high street revenues increased by 0.4% in October, spurred on by a rise in consumer spending.

Although this growth is less than the forecast 0.6%, it could be indicative of slowly-returning confidence.

Duncan Higgins, senior analyst at Caxton FX, said: "The data is a positive sign that consumers are now feeling confident enough in their economy to go out and spend. It also supports signs that credit conditions in the UK are beginning to ease, in response to the £200bn stimulus package."

This latest rise comes a day after the pound fell dramatically against the dollar and the European single currency.

Credit card leak suspected in Spain

By UK CreditCards.com

UK residents who used their credit cards abroad during a Spanish holiday could have been caught up in a major fraud scam.

A suspected data breach has been uncovered at a payments firm that works with international credit card companies Visa and MasterCard. This could have led to transaction details being leaked to fraudsters, putting credit card customers at risk of ID theft.

Reports have suggested that around 100,000 cards will be recalled in Germany as a result of the alleged scam and that police have launched an investigation into the matter.

Andreas Martin of the German Central Credit Card Commission told Deutsche Welle: "A number of credit card distributors have been affected including some from other countries. We are not sure how many cardholders were in Spain at the time in question."

Meanwhile, Visa Europe said that there had been a "possible card data security issue in Spain," but that "no details are yet confirmed" about the breach.

Credit card warning issued over fake Tamiflu

By UK CreditCards.com

Russian fraudsters have set up fake websites offering flu drug Tamiflu in order to steal the credit card details of people worried by the swine flu outbreak.

Analysis from Sophos, an online security firm, suggested that many people are panic-buying the drug due to their fears of falling victim to the virus.

Enterprising hackers have spotted a gap in the market and have helped to develop fraudulent pharmaceutical sites offering Tamiflu. Sophos said that thousands of the online firms are currently operational and that hundreds of millions of pieces of drugs-related spam have been sent in the last year.

Graham Cluley, security expert at the firm, commented: "The criminal gangs working behind the scenes at fake internet pharmacies are putting their customers' health, personal information and credit card details at risk.

"They have no problem breaking the law to promote these websites, so you can be sure they'll have no qualms in exploiting your confidential data or selling you medications which may put your life in danger."

The swine flu pandemic began in Mexico earlier this year and has claimed 6,500 lives across the world so far.

Online shopping safest with credit cards

By UK CreditCards.com

People interested in shopping online should use credit cards instead of debit cards to make their purchases.

That is according to Patricia Davidson of online retailer The Site Guide, who explained that credit cards are a more secure form of payment.

This is because credit card holders can query suspicious transactions with providers, unlike debit card users who cannot do the same.

Ms Davidson pointed to the many benefits of online shopping, including increased flexibility and convenience.

Industry body IMRG estimates that one-sixth of all consumer spending in Britain is transacted over the internet.

However, cardholders should practice caution when purchasing goods and services from the web.

"Everything, from … Christmas decorations to the Turkey, plus gifts for family, friends and colleagues, are waiting to be ordered on the web," the retailer said. "But how do you know who to trust your credit card details to? In that race to find the cheapest deal … how can you be sure that, if someone you don't know is offering you the best price, they're safe to buy from?"

Credit card charging habits changing

By UK CreditCards.com

Credit card spending habits have changed in the UK since the start of the recession, says debt specialist David Rodgers.

Rodgers, managing director of the Debt Advice Foundation, explained that many Britons are more concerned about borrowing and have curtailed their card use.

The comments come after accountancy firm PricewaterhouseCoopers (PwC) released a report on the credit card industry, in which it suggested that providers will have to innovate to survive in a tightening market.

PwC claimed that there is a "cooling passion" for using credit cards as an instrument for borrowing and in coming years it is likely the products will be used simply as a payment tool.

"The reduction in credit card spending by consumers in the last year has shown that habits are already changing," said Mr Rodgers.

"We expect [credit card firms] will become increasingly open to the debt solutions which are available to their customers but which require their cooperation."

Barclay's posts 3Q credit card profits

By UK CreditCards.com

The credit card business of Barclays registered a strong performance over the first nine months of 2009, the firm's new interim management statement confirmed Nov. 10.

Barclays said that net pre-tax earnings at Barclaycard were "ahead" of 2008's total and that income had grown "very strongly" over the year. This is partly explained by the fact that some customers are running higher card balances in the credit crunch and recession, resulting in increased interest payments to their provider.

Barclays also said that profits across all of the firm's retail and commercial businesses reached £2.2bn, while profits for the group as a whole were at £4.5bn.

In common with its rivals, the firm has suffered financially from the global credit crisis. Charges from bad debts rose by 65% across the group over 2009, eating into earnings. However, Barclays' overall performance was praised by group chief executive John Varley.

"We have maintained strong income momentum in the third quarter," he said. "This performance shows the resilience and diversification of our portfolio of businesses."

Consumers cut back on credit card spending

Meanwhile, delinquencies are up

By UK CreditCards.com

Many borrowers have changed their financial habits and cut their credit card use in the economic downturn, a report from PricewaterhouseCoopers (PwC) suggested.

The accountancy firm said that overall borrowing fell by 3% in 2009, with the number of cards in circulation also declining by 8%.

Job insecurity could be a crucial factor behind this trend, with unemployment reaching a 14-year high on latest official figures. Almost one in three (28%) of poll respondents told PwC that they expected a pay freeze or reduction over the next year.

The report also predicted that overall credit card write-offs, caused by consumers no longer being able to pay off their debts, would rise from 3.8% to as much as 9% in 2010.

"Consumers are going to be faced with the unhappy prospect of a marked reduction in the availability of credit, a reduction in choice of products and an overall increase in charges with both increased interest rates and an expansion of annual and other fees," PwC added.

The new analysis is supported by the latest Credit Conditions report from the Bank of England, which predicted that the credit card market would tighten further over the final three months of the year.

Postal strike smokescreen for card thieves?

By UK CreditCards.com

Postal strikes might cause confusion among some credit card customers who have fallen victim to facility takeover fraud, according to CreditExpert.

New analysis from the credit report provider suggests that some cardholders believe their account statements have been delayed by the industrial action, when they have actually been stolen by fraudsters. The customer confusion has developed due to the national postal strikes, which have caused widespread hold-ups in the service.

However, facility takeover fraud can involve victims' statements being intercepted and stolen.

Criminals can then drain funds from credit card accounts or use card numbers and other personal details to take out additional credit, with the original statement never reaching its intended destination.

Darryl Bowman, a representative of CreditExpert, said: "The recent upsurge in account takeover fraud shows that we mustn't let the postal strike act as a smokescreen for fraudsters.

"It's tempting to assume missing post is down to a backlog. Investigate and report any missing items quickly."

Figures from CreditExpert show that reports of facility takeover fraud grew by 206% over the first nine months of 2009.

Cashback credit cards easier to manage

By UK CreditCards.com

Cashback credit cards are the most manageable products from providers offering incentives, say experts.

Jill Papworth, a personal finance journalist, wrote in the Guardian that credit card firms are increasingly putting forward rewards for cardholders.

Reward credit cards can be used in different ways, such as through earning redeemable points and straightforward cashback payments.

Points can be redeemed against various purchases like cars, flights or holidays, but Ms Papworth said they can be "tricky" to manage.

"Cashback cards are arguably the easiest to get to grips with," she explained. "They tell you what you'll earn as a percentage of your spending, they pay you the money in a lump sum once a year and they leave you free to spend the cash as you want."

A report in the Daily Telegraph suggested that requirements for cardholders differ and that cashback credit cards are ideal for "savvy spenders."

Credit card holders get more protection

By UK CreditCards.com

A new code that aims to improve protection for people with credit cards and other loan instruments has come into effect.

The Lending Code has been jointly developed by the Lending Standards Board, the British Bankers' Association, the Building Societies Association and The UK Cards Association.

The new rules came into effect on November 1, and are intended to determine relationships between lenders and customers and ensure the latter receive help and support when needed. Particular emphasis has been placed on credit assessments, the use of credit reference agencies and debt collection.

Robert Skinner, chief executive of the Lending Standards Board, said: "The Lending Code sets out what it means to be a responsible lender covering both credit assessment and the support that will be available if things go wrong."

He added: "It will be followed by all significant providers of credit products who currently subscribe to the [now expired] Banking Codes."