Both lenders and borrowers are set to be charged fees for using the Zopa money lending service, reversing a previously stated intention of only levying charges on borrowers.

Zopa is a service that enables people to lend money to each other without having to using a bank. It claims to be particularly appropriate for the self employed, and others who are creditworthy but have difficulties borrowing from the major banks.

At its launch, Zopa announced that it would be charging borrowers an arrangement fee of 1% when loans were completed. It has run an opening offer that waives all fees.

Research released today shows that men are almost twice as likely to become bankrupt than women, with average debts of £46,000.

The gap is narrowing, however, with men accounting for 61% of bankruptcies in 2005, compared to 68% in 2001. The average age of a bankrupt is now 41, down from 43 in 2001. A noticeable trend is the rise in the number of younger people declaring bankrupty, rising from just under 8% in 2001 to nearly 19% in 2005. This supports widely held opinion that younger people are viewing personal bankruptcy with less stigma and increasingly as a lifestyle choice to unburden themselves from debt.

The Office of Fair Trading is to consider new legislation to try to protect consumers from difficulties associated with credit card cheques.

Credit card cheques allow consumers to draw money from an existing credit card account using a cheque, but purchases with a credit card cheque can attract a higher interest rate than those made by card and there is often no interest free period as interest is charged as soon as the cheque is processed. Additional fees are also often charged for using a credit card cheque, typically 2% of the value of the transaction.

Barclays Bank customers who fail to keep an eye on their overdraft will face a hefty increase in charges when they bounce payments or if the bank allows a payment that takes them over their overdraft limit.

The new charges are being introduced by Barclays Bank from 31st March:

• Paid Referral fees increase from £25 to £30 (going over your overdraft limit but the bank allows the payment)
  • Unpaid item fees increase from £30 to £35 (bouncing an item)

Customers who have a basic bank account, which does not allow an overdraft, pay a reduced fee of £15 for unpaid items.

Credit card customers with Barclaycard are to be offered a text service that will remind them five working days before their card payment is due.

The service will be free to all Barclaycard holders, and is likely to be especially useful in light of the company's recent announcement that it may alter payment dates. Barclaycard maintain that they will only move a cardholder's payment date to help regular late payers pay at a more convenient time of the month.

The government watchdog the Competition Commission has found that store card providers overcharge their customers by applying interest rates on average 10 to 20 per cent higher than necessary.

The CC announced in January that it was considering acting against store card providers who overcharged customers, and has announced a package of measures designed to encourage the store card lenders to toe the line.

A loan shark who admitted nine counts of illegal activity, including blackmail and intimidation, has been jailed following action by a Government-funded team of loan shark hunters.

Kim Cornfield, who operated an unlicensed money trading operation in the Churchill area of Redditch, Worcestershire, targeted vulnerable people, particularly young women on benefits. He used threats of violence, sexual intimidation and aggression to try to get them to pay up, with many threats delivered by text message. The interest rates and payment schedules were so severe his customers struggled to get out of debt.

Increasing numbers of people are falling victim to a con where companies charge money to arrange a loan which often never materialises. Such arrangement fees are rarely returned, even when then the loan doesn't arrive or is offered on different terms.

Evidence from Citizens Advice Bureaux shows that the loan companies target people who can’t get loans from regular sources, often people with a poor credit rating and on a low income who really cannot afford to lose the arrangement fee.

The annual bankruptcy statistics from the Department of Constitutional Affairs (DCA) show an alarming 38% increase in people voluntarily declaring themselves bankrupt.

During 2005, 36,897 people voluntarily applied for bankruptcy at the County and High Courts in England and Wales. This contrasts to just 26,776 people making a voluntary petition during 2004.

These figures refer to people who declare themselves as insolvent, meaning that they have debts which they are unable to pay.

A Gloucester bankrupt has been sentenced to 80 hours Community Service after failing to account to the Official Receiver for £86,000 that was transferred away from the official receiver.

Vaneda Jeanne Alexander was made bankrupt in August 2003 following the non-payment of a bill of around £57,000 owed to her former solicitor. Between September 2002 and August 2003, whilst proceedings were underway she removed £85,000 from her bank accounts. The Official Receiver asked Ms Alexander to prove where this money went, which she was unable to do.