Coles said lenders that “play fair” lose business to providers that cater products specifically with best-buy tables in mind, even though the loans they offer are often more exp-ensive in the long run.
He warned banks and building societies not to leave themselves open to allegations of foul play as consumers become increasingly aware that there is always some other way they will pay.
If providers continue to “act in an inappropriate manner”, Coles said much valued and hard-won brand names could gradually diminish over time.
He said: “Banks and building societies should be careful not to design products just with the aim of coming top of best-buy tables. They need to look at the long term, they cannot continue to offer products like this. ”