Consumer group in call for financial fairness

Consumer group the Financial Services Consumer Panel is calling on the industry to create straightforward products that are easy for consumers to compare and provide value for money.

It also wants the industry to do more to treat customers fairly, give relevant and unbiased advice, give consumers effective redress and make sure firms play by the rules.

The call, made this week, follows research carried out by the group which found that consumers did not consider the financial services sector to be as fair as the retail one, due to a lack of competition and accessibility.

It found that not only had the recent banking crisis adversely affected people's perception of the industry, but there was also a feeling that banks hid behind phones and documents instead of offering face-to-face contact.

Complex products, such as some insurance policies, and those with disproportionately high charges, such as store cards, were seen to be particularly unfair.

Consumers also complained that, unlike other sectors, financial services companies tended to penalise customers for their loyalty.

Kay Blair, vice chairman of the Financial Services Consumer Panel, said: "There is a need for more straightforward financial products to allow consumers to exercise choice. Consumers rightly regard financial services as an essential part of life.

"The industry needs to do more to increase transparency, giving customers clear and meaningful information, so that they see an improvement in standards of customer service and greater ability to compare products."

The Government recently announced plans to run a consultation on the introduction of a new range of simple products, that would be particularly geared towards encouraging saving.

It said it would work closely with representatives from across consumer groups and the industry to ensure that the products developed were viable for the industry and attractive to consumers.