Penalising consumers for credit choices is of no benefit, claims expert

Wed, 23 Dec 2009

A personal finance company has argued that penalising consumers shopping around for credit is a damaging practice.

Darren Cook, a spokesperson for Moneyfacts.co.uk, said it was not fair to penalise consumers who were making "prudent and calculated choices" by trying to find the best deal.

He added: "It is only right that consumers are allowed to benefit from a competitive personal finance market by shopping around for the best deal that suits their needs.

"Penalising the consumer or consumers knowing that they might be penalised if they do shop around and then taking the first deal that is placed on the table, is of little benefit to the consumer in the long run."

Mr Cook's comments come after the Treasury Committee released a report into the fairness of credit searches earlier this week.

The report was prompted by concerns that in shopping around for credit, consumers build up a record of credit application searches on their credit reference files - which could have negative implications for future applications and rates.
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