The Consumers' Association is warning that unless the government protects consumers from the “mis-leading and confusing information provided by mainstream lenders”, consumers will remain open to credit traps and unscrupulous lending practices.
The warning comes on the back of the CA's response to the government's consumer credit white paper in which the CA has made a number of recommendations including requiring all lenders to show the APR (Annual Percentage Rate) in all their advertising of credit products. The CA believes if this does not happen it leaves many consumers at risk of purchasing credit products that are more expensive than they appear.
CA senior policy advisor Laurence Baxter says: “The Government needs to address the escalating levels of consumer debt by banning early settlement fees once and for all. These fees tie consumers into expensive deals and discourage them from switching.”