Georgie Frost, consumer advocate at GoCompare commented: “Three million people use high-cost credit in the UK, with young single-parents three times more likely to do so than the national average. After almost two years looking at this issue, the FCA’s recommendations are a welcome start but more has to be done to help those already struggling, while stopping the damaging cycle of debt hitting the most vulnerable in the future. There needs to be a more holistic approach to solving the problem of rip-off credit.
“People access credit at different times and under various circumstances, but there should be better protection when they do need it. Billions are generated from the charges imposed on unauthorised overdrafts, which are used by millions of the most financially vulnerable people, often to cover essential living. Overdraft fee structures are often complex and difficult to understand. This is a problem that has been overlooked for far too long and the industry urgently needs to address the issue and agree a better deal for consumers.”
For more information on managing debt: http://www.gocompare.com/loans/cutting-cost/
For further information please contact:
Anders Nilsson/Martyn John/Louisa Marsden at GoCompare on 01633 654 054 / 01633 654 725 / 01633 655132
Gordon, Jason or Liz at MAW Communications on 01603 505 845
Keep up-to-date with GoCompare on Twitter: @GoCompare
Notes to editors:
GoCompare is a comparison website that enables people to compare the costs and features of a wide variety of insurance policies, financial products and energy tariffs.
GoCompare does not charge people to use its services, and it does not accept advertising or sponsored listings, so all product comparisons are unbiased. GoCompare makes its money through fees paid by the providers of products that appear on its various comparison services when a customer buys through the site.
GoCompare does not sell its customers’ data.
When it launched in 2006, it was the first comparison site to focus on displaying policy details rather than just listing prices, with the aim of helping people to make better-informed decisions when buying their insurance. GoCompare has remained dedicated to helping people choose the most appropriate products rather than just the cheapest, and has teamed up with Defaqto, the independent financial researcher, to integrate additional policy information into a number of its insurance comparison services. This allows people to compare up to an extra 30 features of cover.
GoCompare is the only comparison website to be invited to join the British Insurance Brokers’ Association (BIBA) and is authorised and regulated by the Financial Conduct Authority (FCA).