What the Finance

"Money makes the world go round"… all around the world.

October 10, 2014

The Future of Payday Loans in the Wake of Wonga

Payday loansWe have all heard about payday loan company, Wonga, being forced to write off £220million worth of loans as well as scrapping the interest and charges for a further 45,000 customers.

The question is: do payday loans have a future?  From the end of 2014, the FCA (Financial Conduct Authority) will implement new regulations that may make running this type of business less attractive. For a start, they will cap interest rates to 0.8% a day to stop companies like Wonga charging terrifying APRs in excess of 5000%. They will also allow default fees of no more than £15 and restrict the total cost of the loan to no more than 100% of the original amount.

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June 16, 2014

Meeting the World’s Growing Energy Needs with Renewables

oilrunoutIf you were asked to explain the benefits of renewable energy production, chances are you would first say the obvious thing – it is renewable! Aside from the many other benefits, it is the fact that you have an inexhaustible supply that makes renewable energy such an attractive proposition, and in the coming years, this is one benefit that will become much more relevant to the energy-hungry world.

The world is quickly running out of oil. Oil is harder to find and extract with each passing day, and new oil field discoveries are an increasingly rare occurrence. It is estimated that there is enough oil in the ground to last 40 years, and that by 2040 production levels will only be 20% of what we consume today. This problem is compounded by the fact that the global energy demand is likely to rise by 35% by 2040.

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February 11, 2014

Paypal’s President’s Credit Card Used In Shopping Spree

credit card fraud, PayPalPayPal President’s credit card details were stolen, his card was cloned and consequently used to finance a shopping spree.

Irony was not lost on David Marcus as president of PayPal -the online secure payment service- who said that his credit card was probably ‘skimmed’ at the UK hotel he was staying at or at a merchant he visited during his stay in the UK.

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January 6, 2014

Personal Finance: Best Fixed Rate ISAs 2014

imagesIn the UK anyone over the age of 16 can save money in an ISA and pay no tax for the interest accrued. In 2014 the tax-free allowance limit is £5,760.

There are two main forms of ISA:

  • the Cash ISA lets you withdraw money at any time,
  • while the Fixed Rate ISA is for those who do not mind locking their money away.

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December 23, 2013

Credit Card Traps and How to Avoid Them

Credit Card Traps, Predatory LendingCredit cards give us the freedom to purchase things whenever we desire. They often come with a range of attractive benefits and rewards that encourage us to spend, and the “buy now, pay later” incentive makes them very tempting to use – even if we have the cash to pay outright.

When used properly, credit cards provide significant financial freedom, but as this guide shows, there are a number of traps that are all too easy to fall victim to. If you want your credit card to work for you and not against you, make sure to avoid these traps.

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October 29, 2013

Fed Examiner Fired Over Her Goldman Sachs Findings

segarra v Fed over Goldman's malpractices

The back story of the most recent Wall Street scandal is as follows: In October 2011, the Federal Reserve Bank of New York hired a senior examiner, namely Carmen M. Segarra, to review the Legal and Compliance Division of Goldman Sachs.

As her audit proceeded, Segarra concluded that Goldman Sachs had failed to address conflicts of interest when advising clients. The patchwork of policies that Goldman Sachs allegedly had in place was pointless and fell short of the Fed’s requirements.

Moreover, Segarra later found that Goldman Sachs fabricated information about performing due diligence on a number of transactions.

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October 3, 2013

The Investec Hot 100 results are in

Investec Hot 100The Investec Hot 100 is turning up the heat this year. Perhaps most startling is the widening of the north-south divide, with even more of the UK’s fastest-growing companies based on their average growth in profitable sales coming from the south east of England.

The top spot is taken by a social enterprise, Potensial, which supports adults with learning difficulties. It was founded in 1989 by the married couple John and Rachel Farragher, who now own 42 care homes throughout the north of England and Wales. In the last four years their profits have gone from £169,000 to £2.4 million.

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September 2, 2013

Economy Latest News: UK Banks cut 189k jobs

job-cuts-2913RBS, HSBC, Lloyds and Barclays have announced that they will employ just over 600k people worldwide by the end of 2013, however, this is a sign of the times since this is 24% less than their peak in 2008 – just 5 years ago.

Due to the European debt crisis, investors are increasing the pressure on banks to reduce fixed costs as they continue to post lower revenue rates each year. Recently the banks went through a phase of making bigger, more significant redundancies, but these new figures show that this phase has not quite finished yet.

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August 14, 2013

Stockmarket Shares: Tips for Beginners

financial-pages-help-pick-stocksWith today’s low interest rates, putting your money in a savings account isn’t the most inspiring investment. It’s safe, but with such low interest rates, you could much make better returns by building up your own investment portfolio, and with little more risk.

You have the chance to make your money work harder, creating greater returns than crawling along in low single digits with your bank. By following the advice below, you will be on the way to creating a reliable investment plan which is insulated from many of the risks associated with investing in stocks and shares.

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August 7, 2013

New consumer protection laws target pressure sellers

Macintyre-undercoverThe government appears to have paid attention to all those Donal MacIntyre undercover shows and drafted legislation to deal with pressure sellers and other sales sharks. You know the people. Door to door salesmen, timeshare hawkers and insurance men who make misleading claims and bully people into signing expensive contracts for things they don’t actually want or need.

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