Simon Read: How lending works: 75% to you, but just 3.5% to Tory cronies
The people's champion
A gaggle of top Tories attended a plush bank bash in the City last month. Home Secretary Theresa May led the turnout of Tory bigwigs who included Philip Hammond, Francis Maude, Lord Patten, Lord Young, David Davis, Michael Fallon, Chris Grayling and Mark Garnier.
They were celebrating the 180th anniversary of private bank Arbuthnot Latham and were treated to a slap-up, Mosimann dinner followed by a performance by opera star Katherine Jenkins.
Nice. Especially when you bear in mind that the bank’s boss has enjoyed cosy dinners in Downing Street with the Camerons. Henry Angest, pictured, is a major Tory funder who gave the party a £5m overdraft facility just before the last General Election at a “mate’s rate” of just 3.5 per cent.
The 72-year-old Swiss-born millionaire can do exactly what he wants with his fortune. But he’s not so friendly to ordinary folk who want to borrow from the high-street lender he controls.
That business – Everyday Loans – charges ordinary members of the public interest at an average 74.8 per cent APR.
That’s not a total rip-off but is around 15 times as expensive as borrowers are charged at mainstream lenders. It’s clear who Mr Angest’s lender targets – vulnerable people who can’t get a loan through normal methods.
He’s profiting from hard-up folk forced to pay excessive interest. So I’m uncomfortable seeing him cosy up to those who could decide the future of high-cost credit.
* The facility provided to the Conservative Party by Arbuthnot Latham preceded the acquisition of Everyday Loans. Profits from Everyday Loans have not been provided to any political party.
Everyday Loans have told us that it considers customers’ affordability prospects and only lends in a responsible manner which is fundamentally different to the approach used by payday lenders. Interest rates reflect the risk involved in lending to individual borrowers and are typically 20 times less than payday lenders
Cold calls: Flogging PPI claims is angering not helping people
Big Nev is Britain’s latest reality star. He dominates the screen every Tuesday night in BBC3’s series The Call Centre.
He’s boss of Swansea’s third-largest call centre and goes to extreme lengths to try to make sure it’s a happy workplace. But despite him calling his business Saving Britain Money, I suspect that the majority of the 1.5 million people targeted by Big Nev’s workers each year are far from happy to get the call.
That’s because he’s been flogging payment protection insurance claims management. A survey from Which? this week showed that almost two thirds of unwanted annoying calls come from firms flogging PPI compensation claims.
The annoying PPI calls proved very profitable for Big Nev last year bringing him profits of more than £4m, almost three quarters of the total amount his business made.
So if you enjoy the show, just give some thought to the victims of cold callers, particularly elderly folk. The calls are no joke for them.
Energy: Electric bills could start to fall if Ofgem gets its way
The energy regulator this week pledged to “break the stranglehold” of the “Big Six” energy suppliers. How? Ofgem has threatened the energy firms with fines unless they become more transparent about wholesale prices.
This is an issue which has been rumbling along for almost a decade. Smaller energy suppliers complained about the lack of transparency in pricing back in 2003 and the watchdog has been working to tackle the problem since 2008.
If the Big Six – British Gas, EDF, E.on, Npower, SSE and Scottish Power – publish the prices at which they buy and sell electricity up to two years in advance, it will allow rivals to plan better and, hopefully be more competitive.
But, in its usual stalling manner, the energy industry has called for “further discussions”.
Forget it. The time to talk about this is long gone. We need action now to bring fairer pricing to all electricity users.
20 December 2012 09:07 AM
20 December 2012 09:10 AM
Fee-free, expert mortgage advice:
- Find the right mortgage for you
- Latest best-buy deals
- Mortgage calculators
- 1 Scottish independence: Ireland since 1919 is a lesson for Scotland in what a Yes vote means
- 2 Watch a man race the Circle line - and win
- 3 A bottle of wine a day is not bad for you and abstaining is worse than drinking, scientist claims
- 4 Grandmas keep accidentally tagging themselves as Grandmaster Flash on Facebook
- 5 Daniele Watts: Django Unchained actress detained by Los Angeles police after being mistaken for a prostitute
Daniele Watts: Django Unchained actress detained by Los Angeles police after being mistaken for a prostitute
The political class is doing what Hitler couldn’t – destroying Britain
Scottish independence: Nationalist leader Jim Sillars threatens pro-union companies with 'day of reckoning' after independence
Scottish independence: Yes campaign feels the heat as Alex Salmond's NHS claims come under furious attack
Portuguese academic says British are 'filthy, violent and drunk'
£23m Birmingham cycle scheme is attacked by Tory councillor for not catering to the elderly
iJobs Money & Business
£20 - 24k (Uncapped Commission - £35k Year 1 OTE): Guru Careers: We are seekin...
£20 - 24k + Benefits: Guru Careers: This is a great opportunity for an enthusi...
£280 - £320 per day: Ashdown Group: The Ashdown Group have been engaged by a l...
£400 - £450 Per Day: Clearwater People Solutions Ltd: **URGENT CONTRACT ROLE**...
Day In a Page
A first-floor flat with two bedrooms, a spacious reception room and communal grounds in a leafy part of London
A three-bedroom flat with a spacious rootop terrace and balcony, accessed from a private gated courtyard
A Grade II-listed pile with six bedrooms, stables and 39 acres of grounds in Standlake
A two-bedroom flat with boutique hotel-style interiors, close to the foodie haunt of West End Lane
A two-bedroom flat in a beautiful old vicarage, with many original features, close to the city centre
A three-bedroom 16th-century home with an aga kitchen, private gardens and heated outdoor pool, in Hadleigh
A three-bedrom home in sought-after Queen's Gate Mews, with Italian marble-finished bathrooms
Surrounded by glorious countryside in the village of Udimore, sits this impressive four-kiln oast and barn conversion
A five-bedroom house in the picturesque village of Kettlewell, north Yorkshire
An 18th-century former coaching inn with original staircase, open fireplaces and beams throughout
A Grade II-listed Georgian town house with three bedrooms and a south-facing courtyard, near Arundel Castle
Feel on top of the world at this über chic penthouse on the 37th floor of one of Europe’s tallest blocks.
A Grade II-listed Victorian villa with six bedrooms and two further cottages, all with spectacular sea views
A grade II-listed, Georgian cottage with mature 50ft garden, perfect for summer entertaining
A magnificent Georgian pile with turrets, seven bedrooms, a heated pool and four acres of gardens
Fairoak Farm has five bedroom suites, gym, outdoor swimming pool and golf course
Chic two-bedroom river-fronted flat with a private lift that delivers you directly to your home
A spectacular seven-bedroom Tudor pile, once owned by Henry VIII, with 18 acres of land
A seven-bedroom Georgian property previously used as a picturesque wedding venue
A split-level flat in a church conversion with two en suite bedrooms and 1,200sq ft of living space
A three-bedroom bungalow situated behind an impressive stone wall, £645,000
Windsor Castle overlooks this three-bedroom Victorian cottage located on one of Windsor's smartest roads
Chapel House is a former vicarage with nine bedrooms in the beautiful Upper Wye Valley
A five-bedroom B&B and separate owner's accomodation with potential for conversion
Enjoy summer by the Thames in this two double-bedroom converted warehouse in Rotherhithe village
A one-bedroom, luxury apartment with private gym and concierge service in Moorgate
A four-bedroom house in Hermitage Gardens with three reception rooms and landscaped gardens
A seven-bedroom Grade II-listed property with a separate self-contained apartment
A five-bedroom Victorian house with three reception rooms and galleried landing, £695,000
A six-bedroom farmhouse with five acres of land in a former cloth-making village
A secluded seven-bedroom detached house with large private garden, £490,000
A three-bedroom cottage overlooking Sarratt village green with open fires and solid oak floors
A three-bedroom maisonette flat in a Grade I-listed, Georgian townhouse in a sought-after location
A one-bedroom apartment located within a private gated development, north of Turnham Green
Look forward to a brighter future at two-bedroom Sunny Cottages, ideal for Londoners looking to downsize
A three-bedroom red-brick cottage with outbuildings and pretty gardens, £200,000
This three-bedroom flat within a former textile factory spans the corner of the fourth floor and has a balcony