Royal Bank of Scotland and Barclays London offices have been raided by the Office of Fair Trading, seizing documents and phone records, in the latest example of the competition watchdog’s hard-line approach to possible price-fixing.

The documents were taken as part of an investigation in to alleged anti-competitive behaviour over the pricing of loans to professional services firms, people involved in the probe said.

The probe was said to have been triggered by Barclays and comes amid high-profile investigations into price-fixing allegations involving supermarkets, consumer goods companies and tobacco groups. The OFT has confirmed they are in the early stages of the investigation and have a “narrow focus” into allegations of anti-competitive conduct in the financial sector.

RBS confirmed that its office at 280 Bishopgate had been raided and that it was fully co-operating with the authorities. Neither bank would comment, however, on the scale or scope of the material seized by the watchdog.

Barclays claim that members of its professional services team had been approached from outside the bank “in a manner which we regard as inappropriate”. The bank reported the incident on March 17, applying for leniency under rules that allow whistle-blowing companies to escape fines potentially amounting to as much of a tenth of global sales.

Barclays said: “The [OFT] investigation is operating within the confines of the professional services banking area and we believe that, if there is any issue, it starts and stops there.”

The OFT, in the past, used a more aggressive approach to tackling price-fixing, imposing heavier fines and using tough legal powers that allow it to target executives with the threat of up to five years in jail.

Only last year British Airways were fined a record £121.5m by the OFT for fixing the prices of passenger fuel surcharges. BA’s co-conspirator, Virgin Atlantic, applied for leniency and escaped a fine.

Banks are under increasing pressure from competition authorities in areas such as overdraft fees. The competition Commission is expected to publish a report later this week that will accuse leading banks of profiteering in the provision of loan insurance.

Since gaining independence, the Bank of England’s investors have been more sceptical of the way the bank tackles inflation.

The widening gap between the yields on index-linked government bonds and conventional gilts indicates bon-market investors are willing to pay much higher prices for inflation protection. As Britain enters its most inflationary period for more than a decade this suggests doubts about the credibility of the monetary framework.

Ex-chief economic adviser to the chancellor, and current children’s secretary, Ed Balls described inflation expectations in bond markets as the “most important” test of credibility and confidence in monetary policy.

Paul Dales of Capital Economics said the gap could be the “first sign that the markets are starting to lose faith in the ability of the UK’s policymakers to deliver a low and stable inflation environment”.

Alongside rising surveys of household inflation expectations and corporate pricing intentions, economists said there was a greater risk of higher inflation returning to normal British life.

“In every measure you look at, inflation expectations have already moved out of the range they have occupied in the last eight or nine years.” Malcolm Barr of JPMorgan said.

Sensing that a loss of confidence in the UK from abroad is under way after sterling’s continued decline, Danny Gabay of Fathom Consulting said: “The … markets believe the ‘macro policy miracle’ [since 1997] is more style than substance”.

Over a 20-year period, the government bond market now expects retail price inflation to average 3.76 percent, according to Bank of England figures, compared with 3.47 percent on the last trading day before Gordon Brown announced Bank independence. By comparison, the 20-year expectations two years ago were just 2.85 per cent.

The warning issued by Mervyn King, the Bank’s governor, that the “nice” decade (of non-inflationary constant expansion) was over has prompted other economists to offer their own acronyms. Few yet expect a recession, but Michael Saunders of Citigroup said times will be “vile” – “volatile inflation, less expansionary”.

Urging policy makers to fight higher inflation, Jean-Claude Trichet, president of the European Central Bank said, soaring oil and food prices had created “demanding times, challenging times”, and that the challenge was to ensure the pressures did not create lasting “second-round effects” by feeding through into wage deals.

Mistakes made at the time of the first “oil shock” in the 1970s had “enshrined the high level of inflation for a long period” and led to mass unemployment. Mr Trichet sounded the alarm on inflation even as he acknowledged that financial markets were still witnessing an “ongoing, very significant market correction”.

While there has been much coverage of missing data discs, hackers cracking systems and the like, the full extent of the underground world of fraud has only just been revealed in a deeply disturbing report which was published today. Symantec, the leading internet security firm, have announced the results of their recent review of the criminal underground network which the police are finding so hard to crack. It seems that while we battle to maintain the security of our systems and personal details, those which have been stolen are on sale for as little as £5 to anyone who is interested!

Even though the UK has been in the news of late over a number of high profile data handling errors, this is something which is taking a grip right around the world. Top of the league, again, was the US with over 31% of worldwide fraudulent activity within their boundaries, China and Germany accounted for 7% each and while the share of fraudulent activity in the UK was only 4% of the worldwide figures, the details are still alarming. So what exactly is going on?

There are a number of issues which need to be addressed to improve online security which include :-

Social Networking Sites

As bizarre as this may sound, Social Network Sites are the first port of call for many of those looking to commit ID fraud or worse, with many users of these sites posting very detailed and personal information on their profiles. Using the details available it is then possible to obtain copies of birth certificates, etc and assume the life of someone else. This can lead to loan applications, mortgages, credit cards and much more, with the victims only finding out when it is too late.

Spyware

Spyware is something which we have all come across but it is still the tool of choice for so many fraudsters, offering the chance to upload software to a victim’s computer, access their files and in many cases use their computer to carryout more fraudulent activity in the name of someone else. It is vital that we all ensure that our machines are safe, our firewalls are up to date and carryout regular virus scans to see if any new threats have sneaked in.

Password Protection

How many of us use the same user name and password for a vast array of our secure accounts and websites? How many of us have not changed our passwords at any time in the last 6 months? How many of us think that it will never happen to me? These are the easy pickings for the hackers and the fraudsters, and it has proved very very simple to hack into a whole array of bank accounts and cause havoc.

The fact that personal information on a possible fraud victim is changing hands for anything from £5 in these online cyber crime shops is frightening enough, but the fact that many of us are making it so easy for them is even more alarming. Let us all do our bit and try to stamp out what could become a massive crime wave if we are not careful.

While the UK government have been heavily criticised in the past with regards to lost data, it seems that this phenomenon is not just limited to the public sector. News that HSBC has lost a disc containing the details of 370,000 customers has not only caused acute embarrassment for the Bank but will ultimately result in a massive fine. So what happened?

It seems that HSBC, who normally use an electronic system to transfer data, were forced to use the Royal Mail in this instance. However, it appears that the disc was not sent by recorded delivery and a frantic search of the offices involved has not yet yielded the missing information. One of the more alarming elements of this serious slip in security is the fact that it seems to have taken HSBC just over 1 month to realise that the data disc had not arrived at its destination.

The FSA have already stepped into the fray and when you consider that Norwich Union were fined £1.2 millions and Nationwide £1 million for smaller security breaches, HSBC can certainly expect to be on the receiving end of a large fine. However while the fine will be substantial, in the overall picture it will be small feed to a bank which makes billions of pounds each year. More worrying will be the affect that this has on the Banks customers, many of whom have yet to be officially informed whether or not their data was included in the batch of 370,000. In some ways the UK banking consumer has a very short memory and this situation could just blow over, however recent comments in the press have woken the public to the threat of ID fraud and other similar situations and this may have an impact on client figures for HSBC.

Just as the debate about the government losing data seemed to be calming down, this will put the whole issue back on the front pages. HSBC have assured the markets that there have been no signs of fraud with regards to the account data held on the disc, but they have admitted that while the data was password protected, it was not encrypted. It does not take rocket science to crack a password and if the disc was to fall into the wrong hands we may see some worse headlines to come.

The point must be made that it is not just HSBC who have lost data about customers, but the problem with this particular incident is the amount of data on the disc, and the renewed public awareness of the possible risks. Unless the banking sector is able to stem the flow of similar news features we could slowly but surely see the public confidence in the current system fall. The regulators are doing all that they can, imposing fines and advising about the future, but ultimately it will take more stringent procedures and more care before reduced confidence can be rebuilt.

While we hope that this is the last of such incidents for some time, there is a fear that this may not be the case.

With high apprehensions of a global credit crunch, Bank of England has been approached by many high street banks for emergency loans to the tune of 23 billion pounds. This has resulted in the loss of 14 billion pounds by the shares in the banks pushing FTSE 100 index to close at its lowest level in the past two and half years. It is said that the urgent rescue of Bear Stearns, the fifth biggest bank of US competitor which was earlier broken up by JP Morgan for 240 million dollars is the main reason behind the falling of shares in the banks. Bear Stearns sell-off had raised fear among investors that the exposed US recession could also bring down any British bank and this has worsened the situation further.

The credit crunch has resulted in bitter relationship between banks that are very reluctant to lend each other and this has largely affected the mortgage industry. Banks heavily depend on cash transfer to finance the loans of their customers. With the drying up of these types of loans, mortgage deals have become impracticable in the recent years. The Bear Stearns bailout has further cautioned global banks and they are indisposed to lend each other fearing an imminent collapse. The US dollar crisis has also damaged the confidence in property industry showing signals of further price falls. The problems may turn from bad to worse and lenders would cut back their offer of loan size if the price reduction takes place.

Now the situation forces the public to depend on their savings or a deposit of 25% of property value would make them eligible for a first time mortgage. The non-availability of mortgages may make purchasing a house impractical and this may also force the sellers to accept lower prices or withdraw their property from the market during the last minute. People who want to buy even a one bedroom apartment for the first time will feel the crunch as getting their accommodation may go beyond their reach.

Many economists suggest that people should avoid unnecessary selling and if they have to sell then the property can be marked at 10% less than its original value to get more interest. First time buyers can restrain themselves from buying till the situation improves and they can indulge in hard negotiations and cheap bargains of property auctions. The home buyers who want to remortgage their property may not also find an affordable home loan deal due to the credit crunch. Though the housing market usually springs at the time of Easter weekend, today only fearless investors who are able to take calculated risks are investing their money in the market. Many feel that only when the banks stop worrying about the cost of bread and focus on the banking system the situation will improve.

In recent years, arranging a loan has become very popular in UK as it has now become easier to borrow money. Consumer finance has become very popular, aided by variety of loans available with low interest rates. Secured loans are widely accepted as they suit the needs of the people who own property. Secured finance provides excellent value for the money and also affordability by all classes of people. A variety of lenders offer secured loans to consumers providing wide choice in selecting secure loans and applying for them.

The amount to be borrowed with the help of secured loans is based on the value of equity which is available on the property. In other words, market value minus outstanding mortgage or any loan is the amount available. Secured loan provide plenty of benefits. They are the best available cost effective options to arrange for finance. Unlike other unsecured and standard loans, secured loans carry lower interest rate as the risk involved and borne by the lender is less as the loan is arranged against a security or asset.

Compared to unsecured loans, secured loans have high borrowing levels though the amount to be borrowed depends on equity. Thousand of pounds or even much larger amount of finance can be borrowed with the help of secured loans to meet any purpose or need. Under the secured loan the repayment period is very lengthy as compared to unsecured loans, resulting in low monthly repayments.

Secured loans are easily accessible even for the people with bad or poor credit unlike unsecured standard loan. Lenders face less risk with secured loans as the loans are arranged against a security or asset. Lenders do not mind bad credit for sanctioning finance. People with even tarnished credit history can still manage to enjoy lower rate of repayment as bad credit loans are easily available at reasonable rates.

Most people choose secured loans for consolidation of their loans and credit. Usually, for most people, large amounts of pay outs go for high credit loans and credit cards. Secured loans convert all expensive credit loans into single convenient consolidated loan, making it easier to repay in one single repayment ever month and just pay settle for a single interest rate. Bad credit secured loans can be used to pay off debts and thereby repair and improve the credit score.

All the major lending companies provide secure loans easily available through online. Just by booking through the internet and browsing the loan information a best deal can be clinched at competitive and affordable rates of interest. It is always wise to read the terms and conditions as well as interest rates by comparing between various available loan deals in the market to get a cheap and best deal of secured loan and an affordable rate of interest.

Secured loans make the life more comfortable by making available finance for funding or purchasing or to consolidate loans and credit. The loan repayments are on the lower side with reduce rate of interest. By harnessing the internet power it is very easy to find, compare and apply secured loans in a simple and straight forward manner, speedily at total ease and convenience. Competitive deals of loans are possible over internet giving better choice for greater value of borrowed finance.

UK credit card holders may locate that their credit limits are considerably reduced in this Christmas season. Many financial institutions are focusing on lessening the exposure to poor debt by improving the quality of their lending, subsequent to the worldwide financial markets credit disaster. Many lenders are facing difficulties in US due to the collapse of the sub-prime market. So, now the companies are thinking about the quality of their lending and hence are slashing the credit limits of their customers considerably. Also, they are not accepting new applications and as a result many people are compelled to reduce their Christmas spending plans.

Many credit card companies in UK are suffering from declining profits and also due to the mounting bad debt histories. Credit card companies are still being broadly advertised however many companies are currently picking their fresh customers with great care, and they are taking in only those who have first-rate credit ratings so as to enhance the quality of their consumer base. Few years back, the customers are the king and they can compare the rates offered by various credit cards before selecting the best deal. But, now the credit card companies are choosing their customers carefully from the numerous applications they are getting every day.

Whatever the market situation may be, Britains are not worried about the changes in the market when they need finance for their Christmas spending. The tapering loan conditions and elevated interest rates are not deterring their spirits of the merry season. According to a survey, they are likely to spend more on shopping than the last year.

Many people opt for personal loans to meet their Christmas spending. But, one should make it a habit to get personal loans to meet the expenditure. If they have taken loans higher than what they can actually afford, then they have to suffer from bad debt. So, Christmas spending should be done with proper planning and budgeting.

A borrower may find the deals difficult to understand as there are so many types of loans with diverse rate of interests available in the market. Different companies offer different rate of interest and terms and conditions on their personal loans. So, the borrower should have some idea of the market before availing loan for his Christmas spending. They can get information from the internet or they can even consult a local financial advisor.

Many households are struggling under growing debt and also due to the increased mortgage payments. They are stretching their borrowing limit beyond their capacity. This may result in bad credit history resulting in mental agony and difficult life pattern. So, the Christmas spending should be done wisely and the gifts should be chosen with care and precaution. If they can defy the temptation to overspend during the festive period, then they can even save a small fortune in their bank account. So, choose the Christmas gifts wisely and spend your hard earned money after thoroughly analyzing your credit limit to enjoy the festive time with great peace of mind.

While the news that the HMR&C have “lost” two CDs holding the private and banking details of about 25 million people in the UK has been headline news for the last 24 hours, is your bank account really at risk? Will you become the victim of ID theft?

The sad fact is that no matter how hard the government try to convince people that there is no risk, there is a REAL risk to you from a number of different angles. 

Firstly there is the possibility that someone may actually have access to your bank details, your names and address, your previous addresses and your previous names.   Using this information it is not hard to redirect bank statements, cheque books and the like to a new address.

Secondly, there is a very definite threat of ID theft for both the adults on the discs and the children, with full names, addresses, dates of birth and national insurance numbers all present on the CDs which have gone missing.  This is a fraudsters dream, giving them more than enough information to apply for loans on your behalf, credit cards and many other financial liabilities – liabilities that you will be left with.

The Chancellor of the Exchequer stated yesterday that anyone found to have lost out due to this information falling into the wrong hands will receive full cover under the Banking Code.  But why on earth should the Banking Code be expected to cover what are in reality the short comings of the government? Whatever happens, if any compensation is paid out it will come out of the public purse in some way.  Forget those promises to be reimbursed; it is actually your own money they would use to do this!

While the authorities claim that the information does not seem to have fallen into the wrong hands as yet, you can bet your last dollar that each and every gang of crooks up and down the country will be looking for these discs, and the information held on them – something which could be worth millions of pounds in the right hands.  This is a problem which has possible repercussions many many months into the future – and you will only find out when it is too late!

In a surprise move ahead of the test case hearing in January 2008, the OFT have come out and publically rejected the Banking Sectors arguments with regards to overdraft charges and the like – the payments at the centre of the overcharging situation which has been rumbling on for some time.

This is actually a huge body blow for the Banks, who have already paid out a staggering £570 million to disgruntled customers on a no blame basis.  The banks claim that the overdraft charges in question are actually used to fund their all round customer services, and as such they should not be covered by the rules being used to take them to court.  The OFT strongly disagree with this idea and have dismissed the argument out of hand.

We are not even at the steps of the Court yet and the two parties are starting to crank up the pressure in what promises to be an explosive court case.  There is even speculation that the banks may actually settle out of court in order to prevent a whole host of their charging measures being presented to the public.  While legally the banks have not accepted any blame for the £570 million of payments already agreed, morally they have severely weakened their case.

The only problem for the UK banking customer is the fact that whatever is taken off the banks if they lose, they will need to recoup somewhere else, whether by reduced savings rates, increased charges or some similar income producing action.  There is no way that the banks will handover what could add up to billions of pounds and let the customer off the hook.  Keep a very close eye on this, as it is only now just beginning to simmer nicely!

While we have heard so many rumours and stories about possible takeovers, cash injections and a possible break-up of the business, it seems that Northern Rock just keeps rolling on.  While the authorities have indicated that they want the situation resolved as soon as possible, the loan from the Bank of England has risen to a massive £23 billion – all tax payer’s money!

Despite pressure from the Bank of England and the government to arrange a quick bail-out, the management of Northern Rock do not appear to be in any great rush – is it the fact that the authorities cannot afford to pull the rug from under them, or is it more complicated than that?

In all honesty it seems to be a mixture of the two, because even though the situation is not receiving anywhere near the same amount of press coverage as when it first began, the situation is still very critical – probably worse now than ever before.  While taking a step back, you also need to consider who in their right mind would take on a brand name which has been tarnished, as well as a £23 billion funding position – even though it will be backed by mortgages, loans, etc in the longer term.

Even after all of these weeks there is still no certainty that the business will survive in any shape or form and the longer it drags on the less chance of this happening.  The authorities are now in a very difficult situation as they cannot take the bank “private”, they cannot call in the loan and the pressure they have been exerting for a swift conclusion seems to be falling on deaf ears. 

Quite when and how this one will end is very very unclear.