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MSE News: Renewed calls for simple financial products

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"A range of simplified products should be introduced to restore consumer trust, a Treasury-commissioned review says ..."
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With the financial system effectively bust from too much credit being created and 0.5% base rates, the return from these will surely be rubbish? Last government tried very similar thing - ended in failure.
Another PR exercise while the can gets kicked further down the road - i.e. not reforming the banks in any significant way?
Here's a radical idea: encourage people to read contracts they sign.
~~joosy jeezus~~
They also have a number of hybrids that give me better returns, usually in return for me using my accounts in a different way.
Calling for more "basic" accounts will simply erode competition and innovation and encourage a one size fits all approach to banking. That can only be a bad thing.
Politicians are stupid.
Stupid people are people too.
http://blog.moneysavingexpert.com/2011/10/21/a-blog-in-support-of-stupid-peoples-rights-probably-the-most-important-blog-ive-ever-written/
I wholeheartedly agree with.
In exchange, they have to provide basic services like free public toilets, free basic bank account etc.
Over a period of time, we can probably work out the cost of these "free services", and charge kingship rental by the day. I'm guessing £10 million pounds a day?
The right solution is simply to force banks to state the current interest rate + expiry date of any bonuses on both statements and the bank web site when you log into your account. Simple.
People will soon desert those accounts paying 0.1% when they realise that is all they are getting, and the constant degrading of old accounts will become pointless.
While this would happen more, it certainly wouldn't be a great deal more.
Like it or not, most people can't be bothered.
(((((HUGS))))) in advance. We need to all gang up on those dastardly stationers!
also, they are starting with products that are about as simple as financial products can be (if not as simple as pencils). how do they extend this? if a pension were made as simple as possible, it would still be pretty complicated. or to put it the other way round: if you can't understand a complicated saving account, how are you going to be able to understand a simple pension?
i'm not being very constructive here ... i suppose i think that all products should be obliged to meet standards, rather than having an option of "simple" products which might be simple but poor value. most obviously, that means regulating the quality and quantity of information given about products. but it could also involve banning (for instance) excessive complexity.