RBS Hits £2.9 Billion in Total PPI Redress

RBS recently added £250 million to its PPI redress package, bringing it to a total of £2.6 billion for PPI redresses. RBS is second only to Lloyds, who had now reached £8 billion following an addition of £750 million after its third quarter financial results announcement. RBS said that its recent provisions will provide repayments for a total of 10 months based on the monthly utilisation of the bills.

RBS also admitted that it could be possible their PPI redressing could still reach until halfway the following year. There are still uncertainties to the actual redress costs, complaint numbers and uphold rates.

In total, the UK PPI redress package has now reached £17 billion, with Lloyds taking almost half of the entire bill. Experts estimate that the entire UK PPI bill could reach £20 billion or more the following year as PPI claiming does not show any sign of slowdown.

PPI repays consumer loans and mortgages in case of sickness, accidents or unemployment. You could be owed £3000-3500 for an average PPI complaint. You might want to consider having help from claims management companies in claiming PPI from RBS, Lloyds and other financial companies in the United Kingdom.

PPI has become one of the most expensive financial scandals in the United Kingdom. However, consumer confidence will still remain at an all-time low should the UK move on from PPI as banks are involved in the Libor and Euribor scandals.

Franchising for 2014? Yes or No?

I’ve had some people ask me about the feasibility of franchising for an investment in the upcoming year. This 2013 had played its toll on the European economy. The Euro zone crisis took the most highlight with the property bubble bursting and the currency’s value dropping. Everyone has smaller capital to start with. So is franchising a feasible solution? 

1.    Franchiser’s Health

Many strong fastfood and restaurant chains still remain strong especially in the corporate areas of many countries. However, those that gain greater recognition from consumers are the ones that present something unique, and most of these are small businesses. Now small businesses are likely higher risk investments, but they’re innovative. If you haven’t taken a risk with your investment for quite a while, asking the small business for franchising could open up great opportunities.

2.    Franchise Fees

The only downside to franchising is that you will really have to pay higher franchise fees. Resources, establishment and training fees are rising because of competitiveness and a proprietor will need to scrounge up some high capital. As for returns, refer to number one.

3.    Attractiveness

Still, the kind of company you work with will be the basis of your business’ attractiveness to audiences. Targeting children with kid-themed fastfood could work when you are established in nearby schools or supermalls. However, stay away from standard franchises, such as McDonalds or KFC; they are not as attractive as they once were and more people are leaning to either extreme dishes (giant burgers or fries) or fusion and specialty dishes.

The Best Way to Find Investors For Your Business

Small businesses begin humbly with small backings and for further developments, business proprietors will need investors to help them reach the other length. Finding investors, especially in today’s economic stature, could be difficult, but here are a few ways to help you.

1.    Brokers

Contacting the services of entrepreneurs or people who have successfully raised money through fundraising and preparing business plans can help you greatly. Brokers also have a network of investors looking for new business to put their money in. They could give you good insight about investors. They can also point out which investors could benefit from your business.

2.    Profiling

Your broker could give you an idea about the investors you need, but you need to lay it down on paper. There are different kinds ofinvestors; some choose to be passive and allow you free rein on the business. Others will give you advice and want to have a say in terms of the hiring process, product or project implementation and other details. Each of them could give you an advantage in your business.

3.     Total Capital Needed

Nothing attracts an investor more than knowing how much capital do you need to increase your business. If you say a good enough figure and the returns you could provide to your investors, you have a better chance of gaining more investors. It is highly important that this number is final as investors will not take kindly to figure errors, especially in business.

Common Car Warranty Scams

Many car dealers, especially certified ones with good brands and rapport with customers, could give you a good deal off a car. However, some car dealers could easily scam their way into your pocket through seemingly-harmless warranties that you do not actually need or would not actually cover your vehicle. Here are a few common car warranty scams you should know.

1.    Extended Service

Only the original car manufacturers could issue extended warranties for vehicles. What car dealers are offering you are extended-service contracts, which have different provisions from warranties. So if you receive a notification that your warranty expired but you took an “extended warranty” from your car dealer, assume that it is only extended service.

2.    Misleading Sales Pitches

Your add-ons are usually the target of car dealers in having their scams make their way into your bank account. If you purchase an add-on, some car dealers would say they have separate warranties of their own. This is a good deal, but a bundled package of warranties with your vehicle is somewhat suspicious.

3.    Shoddy Repairs

A totalled car could run for a week with rather shoddy patch ups and some car dealers sell new or used vehicles in this manner with clever paint jobs. Automatically, car dealers will offer you warranties for these types of rip-offed vehicles. If you bought one such vehicle and you have a warranty that covers your vehicle once, you can be in big trouble. Beware of very low or “too good to be true” extended warranty or service rates.

Tips on Investing in Certificates of Deposit

Certificates of Deposit (CD) ensure that you get a high return for a low risk investment you make. However, like some deals that may seem “too good to be true” you’ll need to watch out for complex and risky CD deals. Here are a few things you should note.

1.    How CDs Work

Certificates of Deposit are deposit accounts you open and deposit in with banks or thrift institutions that have a higher interest rate than regular savings accounts. CDs, like all bank accounts, are FDIC insured. You’ll invest a fixed sum of money for a fixed period of time that could go from six months to decades. It pays out once it reaches maturity and you earn the interest of the profit with your deposit.

2.    Financial Goals

Take a great look at your financial situation and ensure that you have a definite financial plan. Always assess the risk and know the call features of your CD. A small detail often forgotten by investors is how they will get paid and the processes needed once the CD matures.

3.    Brokered CDs

When you purchase CDs from a legitimate broker, the entire process may become more complex and you could put yourself at a great risk than investing directly with banks. A brokered CD could have you lose some of your principal if you withdraw early as a penalty. Always check their background, know your issuer and ask about your deposit broker’s record keeping.

Commodities You Could Invest in This Year

Oil is actually leading the commodities streak this year, but aside from oil, you have other commodities you could purchase in to ensure maximized profit this year. Here are a few things to consider when investing in commodities today.

1.    Aluminium

Forecasters expect increased infrastructure and construction stimulating contracts and policies from many developing countries in Southeast Asia including the gigantic China. This could move the prices for aluminium on the rise. Aluminium had the value of $2,087/ metric ton last year and forecasters project that by 2014, $2,300/metric ton would be its value.

2.    Copper

Again, because of infrastructure and stimulus from China, demands for copper could increase. However, the mineral could become rare and expensive as supplies are forecasted to slow down by the next five years. Copper had $2.61/pound last year and by 2014 it is projected to increase up to 3.05% from 2012 with a price of $3.72/pound

3.    Gold

Gold still has a high value especially today when the European Central Bank allows unlimited bond-purchasing this year. However, lower public demand could limit its growth by 2014. Gold had a value of $1,665/ounce in 2012 and is expected to increase by $1,800/ounce 2014.

4.    Sugar

Any investor looking for stable prices should invest in sugar. A huge supply of sugar coming from Brazil and India lowered the prices of the commodity will prevent major changes for the next two years. Sugar had $0.19/pound on 2012 and in 2014, it could increase to $0.20/pound.

The Possible Causes of Your PPI Claim Getting Rejected

Customers continuously complain about PPI claims being rejected by banks because of some undisclosed reasons. While some rejections are fair because customers have a lack of evidences to prove their point, sometimes, banks reject claims for their own selfish reasons. Here are a few possible causes of a PPI claim getting rejected by banks.

1.    Lack of Provisions

According to the Financial Ombudsman Chief Natalie Ceeney, banks impose new “claims standards” whenever their promised provisions run out. First, they promise shareholders their estimates regarding the expenses needed to redress mis sold PPI. To avoid having their shareholders disappointed, they try to weed out some of the PPI claims by using these standards.

2.    Deliberate Rejection

Lloyds was recently involved with a scandal regarding its PPI claims contractor Deloitte, who deliberately rejected PPI claims to lessen their workload, with trainers ensuring trainees that the Financial Ombudsman will probably handle the rejected claims, saving them more time.

3.    Fraud Crackdown

Banks are actually using their fraudulent claims crackdown as an excuse to chop off some numbers from the PPI claims they receive. This is why claims experts advise customers to ensure they have all documents and they confirm they have a PPI with their loan, mortgage and credit card before filing a claim.

If your claims get refused by your bank and you find a lack of time to make your claim, don't hesitate to call help from a PPI claim company to help you.

The Difference Between Being a Systematic and Reactive Investor

The way you address your portfolio to accommodate losses and gains during economic changes, stock market drops or gains and other factors affecting the value of your items show if you’re a systematic or reactive investor. 

A systematic investor is one who has a well-balanced set of stocks, bonds, equities and other financial instruments that have a predicted amount of loss and predicted amount of gain that endures the worst economic situations. Systematic investors rarely need to adjust their portfolios and only address issues when they go out of hand.

A reactive investor is one who tries to maximize gains while cutting losses by buying and selling financial instruments at the proper time. For every economic, industrial and financial trouble, reactive investors will try to cut their losses by selling stocks and bonds, getting futures contracts, and buying lower stock which they predict would increase in value over time.

There is no better kind of investor than the two listed above except that each one of them offers advantages and disadvantages. Systematic investors tend to get lower gains but they ensure stability when offered long positions for futures contracts and they meet long term objectives, specifically stocks and bonds that hold 20 years. Reactive investors tend to maximize their income by short term deals and goals.

Preparing For Your Child’s College Education

Parents could only save so much for their child’s elementary, middle and high school education, but college, with its whopping £75,000 price tag (just for public colleges), is something that will be difficult to save without proper financial planning. Here are a few ways you could save up for your child’s college education.

1.     Public Vs. Private

Many differences in the quality of education, courses, specialities and teaching mechanisms exist between both public and private colleges and universities. Public colleges might cost around £75,000 to £90,000 in total for four years; private colleges can cost around £145,000 to £160,000 for the same span of time. Choose carefully while considering the other items as well.

2.     Estimate the Total Costs

While you know the numbers for public colleges are five digits and private ones six digits, you should not let it scare you; it is possible that your child could gain scholarships for excelling in certain fields that make them a college or university’s asset. You could also get financial aid and student loans. You’ll need a separate financial plan for student loans (like we did with my son).

3.     Don’t Save, Invest

One thing most households today do is save money and leave it in a bank. That is not a viable option. The best way to finance four years of your child’s college education is through investing in financial instruments. Invest aggressively. Stock funds historically have exceeded other investments over long periods of 10 to 15 years. With enough money, you could cash in and have everything, including your debts, settled at once.

Should I Get Stock Market and Brokering Classes?

At my age of 34, probably, taking a college undergraduate degree in stock trading would help me in my retirement age. I plan to invest in stocks and bonds once I reach my retirement age. But I often asked myself, “do colleges really have courses designed to help graduates know more about the stock market?” I’ve asked around the Internet and discovered the following truths.

In reality, no college or university actually offers a course in stock trading. You and I can learn about stock trading by reading books about the stock market, looking at the daily Wall Street Journal and Barrons and knowing the terminologies they use in the magazine. Stock trading is like a foreign language.

However, based on my research, experts say that if you want to learn a thing or two about stock market investing in college, I should probably take economics courses and audited accounting classes.

Understanding a company financial report, knowing how to calculate risk analysis, probability and statistics are great knowledge that can help future investors know where to put their money to minimize losses and increase gains. 

Many experts also say that many beginners in the field will ultimately lose so much in the first year. Inevitable as it is, according to them, the stock market is a lesson on trial-and-error. Some patterns, no matter how predictable, still have a tail risk that is highly improbable, yet they can still happen.

So, should I take classes or no? I think I’d rather trust my experience on this one. Besides, online courses for the mathematical side of things are available online.

How I Keep My Credit Cards Free

In my opinion, credit cards are double-edged swords. They can help you raise your credit scores when you are a bit short, or they can drive you a debt hole that could be difficult to climb back out. However, if you use your credit card carefully, you could avoid great debt because of high interest rates and keep your credit card free. Here are a few ways to do such.

1.     Pay in Full

In my opinion, the convenience of a credit card is not because you could afford to have payment plans for expensive items and services instantly. A credit card is a tool to raise your credit limit and avail for yourself better financial deals with lenders in the future. I always make sure to pay my credit card bills in full. Not only do you avoid debt and raise your credit score, you also avoid the stress of having to worry about your bills later.

2.     Pay on Time

The number one reason I ended up with great debt in the past is because I always skipped the deadline payment date for my credit card. My card had a 5% interest rate at that time. Even for just three months of an additional 5% of my previous bill, it could create a hole in the budget. So pay on time and in full always.

3.     Limit your Purchases

If you apply for a credit card, you will need to use it at least once monthly. I use my credit card to purchase groceries or things that my family only needs. I don’t go overboard and purchase things that I want, such as a new television. Limiting your purchases allows you to fulfil tip number 1 and 2. You could do this more effectively if you write your purchases in a notebook to keep an eye on them.

Where to Invest Money in 2013?

If you failed to meet your investment expectations in the first half of 2013, you might just get lucky in the second half. The economy literally fluctuated worldwide and many investors found themselves having great losses. However, don’t fret; here are a few more things that could get you the investment returns you need from your diversified portfolios.

1.     Technology

The mobile device and technology developers today have not stopped developing new ways to entice their customers to place high value on their products and services and more and more start-up software developers continue to join the scene. Sticking with strong competitors in this arena that had proven for years to grow increasingly is a good way to invest your money in the 2^nd half of 2013, especially with the 3^rd Quarter technology expos already nearing.

2.     New Ground

Southeast Asian countries report well on their finance and economy for the 2^nd quarter of 2013. With most Asian countries now increasing their credit ratings, more entrepreneurs continue to lay their businesses into these new grounds. Look for these companies trying to tread on new ground and stick with them because according to experts, it is greatly possible these businesses can grow enormously the following year.

3.     Bank Woes

Coming out of terrible financial scandals, heavy losses and backlogs, investing in banks is not an option this year. With many financial companies involved in insurance and investment frauds, you could only expect lacking confidences from investors. Growth can be minimal with banks or at best, greatly fluctuating.