- Tuesday, 7 July 2009The Organisation for Economic Co-operation and Development (OECD) has suggested that rules governing financial services firms should be tougher in order to protect the consumer.
New guidelines put forward by the organisation in "Good practices on financial education and awareness relating to credit" suggest that firms inform their customers about the finer details of the mortgages, consumer loans and other financial products they are entering into.
With increased clarity amongst consumers it is hoped that fewer people will find themselves in financial difficulty and entering into associated recovery packages such as
individual voluntary agreements.
Andre Laboul, head of the financial affairs division at the OECD, said: "Surveys of financial literacy continue to show that consumers … lack adequate financial backgrounds or understanding.
"The recommendations address…the protection and empowerment of consumers in an increasingly complex and volatile financial environment."
The OECD further added that in the meantime, the government should be protecting the consumer in such matters.
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