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There has been much media coverage recently, with regards to a string of serious blunders by high profile financial institutions in the UK. The BBC’s Watchdog programme was one of the first to report how two of the countries leading Banks were carelessly leaving sensitive consumer information in dumpsters, at the back of their branches.

In light of these findings, consumer watchdogs have placed considerable pressure on organisations that deal in sensitive financial information, to employ stricter routines to prevent such incidents from happening. However, it has recently been reported that yet another of the UK’s leading credit firms has also made a sizeable error, which could potentially harm their customer’s interests.

HBOS Plc is one of the largest financial service’s companies in the country. It provides both businesses and consumers with an array of financial products ranging from loans and mortgages to insurance and investment services.

HBOS has recently revealed that a CD ROM containing just shy of 70,000 of its home Loan customers personal details, had gone missing. It is believed that the disc was infiltrated from the post, whilst making its way to a credit reference agency and is said to have contained bank account details, home addresses, DOB ECT. It has also been revealed that the usual technical procedures that would have been used, to ensure that such data would be worthless if obtained by the wrong sought of people, was not employed on this occasion.

The bank has admitted to making a major error and assured its customers that everything was being done to ensure their interests would be protected. However, it has been reported, that the number of consumers already reporting fraudulent activity had rose, although there is no evidence to prove the cases are linked.

In today’s online, security conscious society, there are very few reasons that can be used, to justify incidents such as these. It would appear that major financial institutions are in dire need of an overhaul with regards to their security procedures, and no doubt such happenings will spur the much-needed change. Its just seems a shame that it takes blunders such as these, to make such firms sit up and take action.

One of the UK’s largest credit specialists has this week confirmed rumours that its homeowner loan division will foreclose, effective immediately.

Capital One Bank announced its intentions to foreclose its sub prime homeowner loan arm during the earlier part of this week, and it is predicted that around 300 jobs will be lost as a result.

Capital One’s Loan division was formed at the latter part of 2004, following the successful buyout of longstanding organisation The HFS Group, to the tune of £90 million. HFS was one of the best-known brands in the loans industry, and was also one the biggest players, writing an estimated £350 million pounds worth of new loans, each year. Originally, the acquisition was intended to strengthen Capital One’s position in the UK, reinforcing their brand as one of the leading all round credit providers.

According to a Capital One spokesman, the closure was simply due to strategic changes of which the division no longer fit into. The spokesman further added that the bank’s views towards the UK market remain unchanged, and that their future strategies are developed with the UK, very much in mind.

For many people, the decision as to which bank we choose to deposit all of our hard earned cash with can be a lifelong commitment. Typically, the average Brit will open their first current account at the age of 13, and is usually the result of our parents will opposed to simply being proactive. In almost 80% of circumstances, the average Brit will stick with their chosen bank for the entirety of their adult life, although a percentage will open additional accounts with different banks, for specific purposes such as savings.

Although very few people have a direct relationship with their bank manager, it is reported that the large majority of British bankers, do have relationships and indeed loyalties to the actual institution. For this reason, it is important that banks conduct their business ethically and do their up most to ensure their customers are being correctly cared for.

Once every 12 months, the British Bankers Association (the UK’s leading banking authority) releases a comprehensive report detailing certain trends and statistics designed to summarise consumer-spending habits and patterns. The report allows members of the association to better understand their customer profiles and to also formulate products to better cater for their customers needs.

According to the most recent report, throughout 2006 over £300,000 pounds was withdrawn from ATM’s across the country, every minute. It has also been revealed that more than £400,000 pounds worth of home loan applications were approved in the same time frame. These figures form a mere snippet of the collective information contained in the report, but they do demonstrate the reliance that consumers place on banks and banking services respectively.

It is widely agreed that due to the sheer amount trust and reliance that consumers put into their chosen bank, it is of paramount importance for banks to provide the highest level of service and to ensure their customers are getting the best possible deal. On the other side of the coin, it is also important for consumers to question the type of product or service they are offered by their bank, if they are not entirely happy. It makes good financial sense to review your finances every once in a while and to even possibly enlist the help of a financial advisor to ensure you are making the most of money.

A new study conducted by a leading independent financial trends organisation, has discovered that the popularity of personal loan products soared during the first quarter of 2007.

The accumulative total of new loan applications is said to have topped more than £16 billion pounds from January through to April, representing an increase of around 5% faired against Q1 2006.

It has also been discovered that total consumer savings for the same period were in decline. The accumulative total of consumer savings for Q1 2007 peaked at £38 billion pounds, representing a drop of almost 17% faired against the first 3 months of 2006.

It is not entirely known as to why consumer loan hunger had increased so dramatically for the first quarter of 2007, but analysts suggest that market conditions were the most likely contributor.

National interest base rates have rose on 4 separate occasions so far this year. It is possible that consumers were snapping up cheap rate loan deals pre interest rise number 2, for fear of offers being withdrawn. These types of conditions would almost certainly spur individuals who were considering loan procurement at later stages in the year, to move their plans forward in order to save money.

The above theory could also be used to explain the slump in national savings. Logically, if consumers looking to source a loan at later stages in the year, we’re to suddenly bring their plans forward, it is highly likely that their saving routines would be disrupted. In essence, consumers would be focusing a percentage of their disposable income towards the additional financial commitment, which ordinarily would have been saved.

It is further suggested that the total number of new loan applications for the second quarter of 2007 will have decreased substantially, compared to Q1. Rate conscious individuals will have been deterred to some degree by the recent spate of interest hikes, although we are yet to see the stats. Please check back soon to read our follow up report.

One of the UK’s leading mortgage advice firms has speculated that the housing market will be deep inside correction territory by the end of 2007/early 2008 if interest rates continue to rise.

The housing market has become incredibly volatile over the last 12 months or so. Interest rates appear to be continually rising, causing many current homeowners problems in selling their properties, and causing even greater problems for first time buyers, who are going to great lengths in order to raise a deposit.

It doesn’t take an expert to realise that house prices are massively over valued at the moment. If you look back as little as 10 years ago, the average home in Britain was valued at around 110,000. That figure is a far cry from today’s average valuations, which stand at a whopping £230,000.

Many experts agree that current market conditions are far from sustainable, although mortgage lenders are certainly doing their best to keep them so. A number of lenders have introduced loan packages designed to accommodate first time buyers with little to no deposits, other lenders are offering home loans up to 5 ½ times the applicant’s annual salary. If the housing market continues to grow at its current rate, the next 10 years would see lenders offering mortgage packages up to 10 times the applicants annual income, which is quite obviously absurd.

Although no one individual or organisation can definitively state that a correction will happen, it’s fair to say that signs are certainly pointing in that direction. On the other side of the coin, it is reported that some “would be” first time buyers are putting the purchase of their home on hold, whilst furiously saving and investing as much cash as possible. Although the actual amount of people conforming to this procedure is small, it is evidence that a percentage of the first time buyer population are expecting changes to occur and/or refuse to pay current house prices.

Ultimately, the strength of the housing market almost entirely rests on the shoulders of first time buyers to fuel its growth. If a significant proportion of FTB’s refuses and/or cannot afford to pay current prices, then a correction is inevitable.