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guardian highlights new fsa failing June 19, 2009

Posted by Bradley in : financial regulation , trackback

Much of the investor education movement involves information provided by firms who hope to make money out of customers by seeming to be friendly to their needs. The Guardian’s disclosures about the FSA’s moneymadeclear website (“helping you with your money”) today perhaps suggest the UK needs a consumer protection regulator as much as the US does:

The FSA’s site, Moneymadeclear, was set up to provide easy-to-understand and independent information and tools to help consumers learn about financial products.
While the site offers purpose-built tools to help people compare mortgages and savings accounts, the only link for comparison sites on its cards and loans page is to LendersCompared.org.uk, which is paid for by the largest home credit companies in the UK….
The cheapest rate Guardian Money could find quoted on the LendersCompared site was in excess of 120% APR, while the most expensive — a £100 home collected loan from CLC Finance repaid in 15 instalments of £10 a week — has an APR of 1,303.2% APR.

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