Credit providers urged to be “whiter than white”
According to a recent study, approximately 40% of all active financial agreements do not cater for the needs of the consumer as well as could be hoped.
A representative from one of the UK’s largest building societies claims that a vast number of personal loan providers and mortgage lenders are guilty of “sugar coating” the benefits of their products, causing some consumers to suffer financially as a result.
It is believed that a great many consumers become indebted due to lack of information on their chosen credit agreement, and even worse, a lack of affordability vetting by their chosen lender.
One expert commented that more needed to be done by industry regulators in order to ensure that credit providers are “whiter than white” with regards to the promotion of their products. Any type of fee or charge associated to any form of credit should be “bolded” in the exact same way as the wealth warnings which are tagged to secured loans, and typical APR’s which are tagged to credit cards.
