The report says such websites can encourage people with already low credit scores to apply for secured loans, personal loans, credit cards etc.,
October 3, 2006 (Press Release) --
A recent report has urged financial comparison sites to warn people with poor credit ratings. The report says that such sites encourage people with low credit scores to apply for loans which they have less chance of getting. The findings has been strongly criticised by financial websites.
London (shakespearefinance) 25 September 2006:Online financial comparison websites must come with a warning, according to a report by Professor Merlin Stone of Bristol Business School. The report says such websites can encourage people with already low credit scores to apply for secured loans, personal loans, credit cards etc., which they have less chance of getting and which will further worsen their rating.
In the report commissioned by MoneyExpert.com, Prof Stone said: "It is misleading to encourage people to apply for a rate which they will not qualify for and which in turn will impact their credit score as rejections are held against their file."
Jim Spowart, chief executive of Peopleschampion, has criticised the report for being incorrect and outdated.
Spowart said: "On our site we direct people with bad credit ratings and County Court Judgments to sub-prime providers who will consider them. If someone goes direct to a lender to apply for a loan, for example, and they are turned down, this would leave a footprint on their credit record."
Spowart also dismissed the finding that there is little advice for people with poor credit scores on these comparison sites.
Spowart said: "On Peopleschampion you can click on a link to an independent financial adviser if you want further guidance."
London (shakespearefinance) 25 September 2006:Online financial comparison websites must come with a warning, according to a report by Professor Merlin Stone of Bristol Business School. The report says such websites can encourage people with already low credit scores to apply for secured loans, personal loans, credit cards etc., which they have less chance of getting and which will further worsen their rating.
In the report commissioned by MoneyExpert.com, Prof Stone said: "It is misleading to encourage people to apply for a rate which they will not qualify for and which in turn will impact their credit score as rejections are held against their file."
Jim Spowart, chief executive of Peopleschampion, has criticised the report for being incorrect and outdated.
Spowart said: "On our site we direct people with bad credit ratings and County Court Judgments to sub-prime providers who will consider them. If someone goes direct to a lender to apply for a loan, for example, and they are turned down, this would leave a footprint on their credit record."
Spowart also dismissed the finding that there is little advice for people with poor credit scores on these comparison sites.
Spowart said: "On Peopleschampion you can click on a link to an independent financial adviser if you want further guidance."
Email
Print
SPAM
