New Labour nationalises Failed bank Northern Rock

It’s the ‘general election that never was’ all over again. New Labour have spent so long pratting around, unable to make a decision over the inappropriately named Northern Rock (more like a millstone round all our necks) that they have now left themselves with no option but to nationalise it, ‘temporarily’.

Not content with exposing the taxpayer to £55 million liability, in a spectacular example of Nick Leeson-onomics, New Labour have gone double, or nothing - ramping the exposure up to £110 million!

This matter will no doubt see some considerable comment so I shall limit my myself to observing that this averages around £3,500 for each taxpayer. Personally, if I had any choice in the matter at all, I could think of a few things I would rather have spent £3,500 of my hard earned cash on.

Egg faces possible enquiry over cancelled cards

Egg’s dubious cancellation of the cards of customers who are reliable users has now led them to be reported to the Financial Services Authority. This has now been referred to the Office of Fair Trading (OFT).

New Labour MP, Nigel Griffiths stated: "I am very pleased about that. It shows how seriously they are taking it. I cannot tell you the number of complaints I have had - they just keep flooding in."

Many customers who have had their cards summarily cancelled were adamant that they always paid their bills on time and had excellent credit ratings.

Mr Griffiths said he would be introducing a Commons motion demanding an inquiry into the matter and that he was "in no doubt that is the reason" for the cancellations.

Are credit card companies over extended?

Are the credit card companies feeling the pinch more than they would care to admit?

In the last decade or so, many of us will have been aware of credit card companies thrusting increased spending limits on people, when they are nearing their current limit and use of the card has slowed.

We are all unfortunately used to what you might call postal SPAM, urging us to take out new cards together with partially completed (where do they get the details?) application forms that we then have to destroy in order to avoid the threat of identity theft.

Recently I have become aware of instances of credit limits being reduced, presumably because of some new panicked arcane algorithms applied to the owners spending habits.

I became aware of a new one the other day though. A credit card actually pulling out of the agreement - for no discernable reason at all. The person pays all their bills on time. In withdrawing the company wrote assuring that there was no problem with the person’s credit record and they could continue to make payments (how kind of them).

Given the current financial climate the owner had prudently cut back on using it and was just making the regular payments in order to reduce it. With the intent of maintain this until some assets were freed up and they could clear the card - though it is surely unlikely the card operator could have known this. Though it does rather smack of breaking up with someone before they can call it off with you.

One can only conclude that the company may be becoming slightly desperate and also possibly needs to look more carefully at it’s computer algorithms as they have lost the sort of reliable customer one would think they would be desperate to hang on to.

Let's hope we arn't going to see any more 'Northern Rocks' too soon - Do we all need to worry more than the Government would have us believe?

It would be interesting to know if anyone can add to this.