UK Lenders Introduce Personal Pricing As A Smokescreen

Mon, 22 Oct 2007

More and more UK high-street lenders are using personal pricing as a "smokescreen" in order to operate using a less than transparent pricing scheme, an expert has claimed.

Online services comparison site uSwitch.com has claimed banks are failing to advertise typical annual percentage rates, which prevents the industry knowing what rates customers are receiving and harms competition in the process.

The website also revealed that seven high-street lenders have introduced personal pricing for in-branch customers, leading to confusion over rates .

Mike Naylor, personal finance expert at uSwitch.com said there are already "huge" variations between loan deals available on and offline, and that throwing personal pricing into the mix only causes confusion for customers.

"It is far from transparent and a perfect way for the big banks to prey on loyal customers that trust their existing bank to provide them with a competitive deal," commented Naylor.

Research into the UK loan market pricing strategies, carried out by Datamonitor, found that a few major lenders had switched to personal pricing in 2006 as a response to "rising personal debt levels".
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