Comment on the Treasury Select Committee's announcement of an inquiry into credit searches

Published:

22/09/2009

Topic:

Press Release,Money,Credit Cards,Debt,Loans

Tim Moss, head of loans and debt at moneysupermarket.com said; "This is a welcome, but long overdue move"

The way in which people are forced to apply for credit in this country is a fundamental barrier to transparency and inhibits borrowers getting the best deal possible. Consumers can shop around for gas, electricity, insurance and baked beans freely without it harming their credit score so why should searching for credit be any different. Currently consumers can only find out if they will be accepted, at what rate and the size of the loan by making a full application, but every application they make leaves a 'footprint' on their credit rating which potentially increases the APR on any future credit applications and reduces their chances of being accepted elsewhere. Ultimately the bank who quotes first is using the system to the detriment of consumers.

"It certainly doesn't have to be this way, in Germany, for example, borrowers are told which lenders will accept them, at what price and the size of the loan and they compare all the offers from all major lenders before they make our choice. This means they can find the best deal for them, without any risk to their credit record. I urge the Government to take strong action on this issue; the way in which we sell credit products in this country must be entirely rethought."

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