The Week Unzipped: Consumers call for ban on payday loans and excessive interest rates
The most expensive credit comes from door-to-door lenders, cash converters and so-called payday loans, where the interest rate can reach more than 1,000 per cent.
Respondents to the survey, commissioned by Compass and Trident Reach, believe such loans should be banned, even though a new report found the number of people taking out payday loans has quadrupled in the last four years.
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Hide AdThe OFT estimates more than 16,000 an hour is made in profit by the high-cost lending sector.
The poll also found that seven in ten want the government to provide support for alternative sources of affordable credit such as a Post Bank and credit unions.
Employers on the hop with pensions Nest egg
MANY of the country's largest employers plan to "level down" their pension arrangements by cutting contributions to existing staff when the government pensions scheme Nest is launched in 2012. A survey by the Association of Consulting Actuaries found 41 per cent of employers are "likely" or "highly likely" to reduce future benefits to meet the additional cost of newly pensioned employees.
Three quarters said the auto-enrolment regulatory regime "appears complex".
Abta online tip to avoid new US tourism charge
THE US is introducing a new charge for tourists of $14 per person on 8 September, but Abta is encouraging travellers to apply online for their ESTA (electronic system for travel authorisation) before this date and avoid the charge.
By applying early, a family of four will save $56 (40). Anyone travelling under the Visa Waiver Programme must have an ESTA to enter the US.
The US government has introduced the charge to fund promotion of the US. British visitors will contribute up to $56 million a year.
Luke Pollard, Abta head of public affairs, said: "We support the US government's wish to encourage people to visit their country. However, charging visitors $14 each to fund this drive seems a rather odd way of doing so.
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Hide Ad"Customers should go online to obtain their ESTA before 8 September. An ESTA is valid for two years, so if you intend to visit the US in the next 24 months go online now."
Record fines for major financial institutions
THE FSA has issued record fines to two major institutions. The UK branch of Zurich Insurance has been fined 2,275,000 for failing to secure customers' confidential information.Socit Gnrale, meanwhile, has been ordered to pay 1,575,000 for failures in transaction reporting.
Zurich UK was disciplined after the company lost 46,000 customers' personal details, including identity details, and in some cases bank account and credit card information, and details about insured assets and security arrangements.
SocGen is the sixth case in the last year where a firm has been fined for failure to make accurate transaction reports.