- Monday, 13 July 2009High street banks are affecting borrowers' credit ratings by not adhering to guidelines concerning quotation searches, according to the Guardian.
Consumers are being penalised for shopping around for the best deals on loans and credit cards, despite an initiative launched five years ago for people to be able to do just this without leaving a credit footprint.
Consumers that shop around for the best deal are considered by the banks as desperate or potentially fraudulent and are marked down accordingly.
People's resulting inability to secure the best deal – if any at all – could result in a rise in debt advice needs.
Speaking to the Guardian, Frances Walker of the Consumer Credit Counselling Service, said: "Borrowers should not be punished for not being able to properly shop around. Greater use of quotation searches should be in place."
The Information Commissioners Office states that when shopping around, consumers should inform each bank that they are only enquiring about their credit options, not applying.
Research by uSwitch.com indicates that credit card balance transfer fees have risen, with consumers now paying £422 million per year.
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