- Wednesday, 16 June 2010Simplified banking would make it harder for financial providers to mis-sell products, which could lead to the need for a
debt management plan.
According to Ed Bowsher, head of consumer finance at Lovemoney.com, a personal finance website, basic banking would reduce the number of consumers being ripped off.
Recommendations were made by the Future of Banking Commission this week and Mr Bowsher believes these will prevent banks from mis-selling financial products.
He said: "I really like the recommendation that banks should be obliged to launch standard products for some basic services with a common form in plain English explaining the terms. That would be a big step forward."
Products that can be mis-sold include payment protection insurance – usually provided when a
loan is taken out – as this can add extra money on top of the original amount borrowed.
Mis-sold products could lead to the need for effective
debt management if financial difficulties ensue.
Recommendations from the commission include better protection for depositors and the separation of banking activities.
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