Mortgage Industry News

← Back

Financial products still cause confusion

Date: Tue, 08 Jul 03 Analysis

Despite efforts from the government and industry to improve levels of financial literacy, most people are still bemused by mortgages, pensions and savings accounts.

Research by the Association British Industry (ABI) points to the fact people would like 'quality marks' on the products available, helping them make informed choices when planning for their future.

44 per cent of those with pensions fail to understand their statements, writes the ABI, and the same is true for 35 per cent of those with life insurance and 28 per cent of people with a share portfolio.

'The combination of recent stock market volatility and rising consumer debt has led to concern about the communication of financial information,' said Stuart Tragheim, director of the Raising Standards Quality Marks Scheme said.

The scheme has so far convinced ten accredited banks to rewrite the pension statements they send customers, with clearer presentation and yearly updates on investment products.

The ABI said consumers now need a quality stamp mark for companies offering other products such as insurance and mortgages.

© 1998-2005 DeHavilland Information Services plc. All rights reserved.

Endsleigh Insurance Services Limited is authorised and regulated by the Financial Services Authority. This can be checked on the FSA Register by visiting its web site at www.fsa.gov.uk/register.
Endsleigh Insurance Services Limited. Company No: 856706 registered in England at Shurdington Road, Cheltenham Spa, Gloucestershire GL51 4UE.