It’s been reported this week that some of the major banks may challenge the recent court ruling which said the OFT can investigate and influence the fees they charge for overdrafts. The banks make an estimated £3.5 billion per year from charging customers who go overdrawn without permission. An appeal could lead to a decision being delayed for months.

Even if you go a few pounds overdrawn without authorisation you can get stung by big fees which far outweigh the cash you needed in the first place. With Wonga.com you’ll be able to access instant cash in the form of a short term loan, which you pay pack on a date that suits. We’ll calculate the full cost of the loan up front and, unlike an overdraft, you’ll repay the cash within a set time frame.

Wonga will soon be offering short term loans more conveniently and flexibly than other online lenders. They won’t be cheap loans - interest will be charged at 1% a day - but you will only borrow cash for between five and thirty days. And that’s a crucial point. It’s a short term loan you pay back on a date that suits.

Not only that but, unlike most short term loans, you’ll also be able to choose exactly how much you want to borrow, down to the last pound. As you make that decision, we’ll tell you how much the loan will cost you before you apply. For example, borrow £100 for ten days and it’ll cost you a tenner - £1 per £100 borrowed per day.

Sound fair? We think transparency and flexibility are vital and people are then bright enough to check out the cost of the loan and make a decision whether to go for it or not. What we’re not so sure about is the fact we’ll still have to publish the official ‘APR‘ on the site. It’s currently law for all loans in the UK, but is a theoretical calculation of how much a five or thirty-day loan would cost if taken for a year really helpful to consumers? We think this excellent cartoon from a leading US short-term lender makes a great point!

It’s been reported that financial giant HSBC has lost a server containing the personal details of over 150,000 customers in Hong Kong. It’s the latest in a seemingly never-ending string of reports about ’secure’ files going walkabout. It’s not so long ago that the bank also lost the details of more than 350,000 British life assurance customers and it’s not the only high profile organisation to come under fire for poor security.

If you have ever been the victim of such a security lapse, or fear your personal details may have been compromised in another way, you should keep a close eye on your bank statements and bills. Watch out for any unfamiliar or unusual transactions and report them to your bank, building society or service provider straight away. You can also get advice on protecting your identity from potential fraudulent use at CIFAS.

When we launch the Wonga service we will naturally be committed to maintaining the security and confidentiality of customers’ information - by using electronic and procedural safeguards that meet or exceed industry standards.

An article on thisismoney.co.uk paints another gloomy picture of Britain’s economy today, with poor growth in the services sector and a dissapointing bank holiday weekend for retailers…

“There was also grim news on the High Street in the wake of a miserable bank holiday weekend for retailers in London and around the country.

“Exclusive research for the Evening Standard by SPSL showed Saturday was particularly bad in the capital, with shopper numbers down 3.8% on the equivalent day last year.

“Retailers fared slightly better on Sunday when footfall was down 0.8%, but the improvement could not hide the pain on what was seen as a vital weekend for struggling stores.”

Consumers are certainly starting to feel the pinch in a very real way. The rising cost of gas, leccy, petrol and grub, plus uncertainty over housing and tightening of lending criteria by banks are all contributing. It’s a sensible time to minimise your long-term credit commitments as far as possible - credit cards, overdrafts and bank loans.

It’s worth making a list of what you owe, who you owe it to and what the repayments are. You should also make sure you find out the early repayment terms of any such commitments and work out if you can reduce some of the balances or even pay off a loan ahead of time without being penalised.

Although it’s easier said than done, it’s worth cutting down on any luxuries in the short-term if it means you might be able to reduce your outstanding debt during turbulent times. Use Wonga’s budget tool to assist you.

A recent BBC article highlighted new figures from CIFAS, the UK’s fraud prevention agency, which show that more people are lying in applications for loans and credit cards in the hope of covering up a poor credit history…

“Lies on application forms have risen by 13% from 19,239 in the first three months of 2007 to 21,780 in the first quarter of 2008.”

“The most frequent lie, according to CIFAS, was failing to disclose a previous address where the applicant had a poor credit history.”

It’s never a good idea to withhold information, or use misleading information in any application for credit. Not only is it fraud, but providers of financial services share information and any such record would seriously damage your ability to gain credit in the future.

If you are concerned about your credit history then the best thing to do is order a report from one of the major credit agencies, such as Call Credit, and seek advice about how you can improve it. Prevention is always better than cure, but you’ll find plenty of webistes offering tips on steps you can take.

Here are just a few examples: Thisismoney, uSwitch, TimesOnline and MoneySavingExpert.