MSE News: 'Ask Ma how to waste £50 million - it must completely change strategy'

Former_MSE_Helen

The Treasury has finally released its response to the independent report commissioned on the Money Advice Service...

Read the full story:

'Ask Ma how to waste £50 million - it must completely change strategy'




Click reply below to discuss. If you haven’t already, join the forum to reply. If you aren’t sure how it all works, read our New to Forum? Intro Guide.

bexster1975

There are loads of reasons MAS hasn't worked. Many people won't trust a government led financial advice service ( who can blame them given how untrustworthy MPs across parties continue to prove to be).
It's not really in the governments interests to make individuals financially competent. The people in charge of the big banks don't end up with places in the House of Lords and colossal salaries and bonuses because people are on the whole financially smart. It's rather like the smoking cessation programs. Imagine the tax revenue lost if everyone quit smoking tomorrow? If the Government actually wanted to help they could. I might humbly suggest the following as a starting point:

Ban all payday loan companies charging anything more than 40% interest ( this seems arbitrary, but looks at max. Credit card interest rates as a guide).

Reduce zero hours contracts so people have a regular income

Educate children properly about money - this is just beginning, but the responsibility for this is left with teachers ( no offence to teachers but I have never read anywhere that they are particularly financially skilled - tho a look at MFW section of MSE may suggest otherwise!)

These are just simple ideas to get the ball rolling.

The problem is most members of parliament do not, and often never have,lived in the "real world" so how on earth can a government Initiative be successful without real world input.

Bexster

helenfinsk

It makes my blood boil to see money going to waste in such a way. I deliver Financial Capability training and my funding has all but disappeared. With local authorities budgets cut to the bone the third party advice sector has seen its funding decrease year on year and then we read what we knew already MAS is not fit for purpose.

Castle

bexster1975 wrote: »

There are loads of reasons MAS hasn't worked. Many people won't trust a government led financial advice service ( who can blame them given how untrustworthy MPs across parties continue to prove to be).

Interesting comment about government advice, because in general, governments don't want to give out advice, just in case "it comes back to bit them". For example, the new changes to pensions will see guidance being made available, which will basically mean advising people to seek professional advice.

As for educating children, well it should be a combination of teachers and parents, providing the basics and hopefully guidance as too where further information is available.

And for MAS itself, well the TV advert is annoying enough to put me off going to their website.

Pincher

I don't think there is any real difference between people getting done over by cowboy builders and people who get sold inappropriate financial products. Outside their comfort zone, a brain surgeon can get sold an endowment mortgage just as easily as dud double glazing.


The salesmen have ten tricks up their sleeves for every tip you pick up in a pub.

For buying a new car, the salesman put me through a interactive computer program that he claimed was a legal requirement the FSA (before FCA) needs to confirm that I was fully informed of the benefits of this £500 insurance. In the event of my writing the car off in the first three years, this insurance will make up the difference between the insurance payout, and the full price of the car. I was seriously considering reporting him to the FSA, but I expect the FSA would have just chucked it away and done nothing about it.


They need to do some serious red hot pokering for damaging people's wealth and old age survival; and not just in financial services. Gas chamber for meter bypass leading to deaths. Brick a cowboy builder up in a wall, and feed him through a hole.

magpiecottage

The customers of MAS get a service worth every penny they pay for it - or at least every penny they pay directly for it.

The reality is that it is paid for indirectly because of the levy on the financial services industry which, like anything else, is passed on to customers.

Just like the cost of their FCA fees is passed on to the customer.

Just like the cost of the Financial Ombudsman Service is passed on to the customer.

Just like the cost of the Financial Services Compensation Scheme is passed on to the customer.

Just like the cost of the qualifications and continuous study required of advisers is passed on to the customer.

Just like the cost of professional indemnity insurance is passed on to the customer.

Just like the cost of spurious complaints about PPI is passed on to the customer.

Castle

Pincher wrote: »

For buying a new car, the salesman put me through a interactive computer program that he claimed was a legal requirement the FSA (before FCA) needs to confirm that I was fully informed of the benefits of this £500 insurance. In the event of my writing the car off in the first three years, this insurance will make up the difference between the insurance payout, and the full price of the car. I was seriously considering reporting him to the FSA, but I expect the FSA would have just chucked it away and done nothing about it.

Funny, I remember my car dealer doing the same thing back in 2009, but it was only £399 then. I told him if it was free I 'd take it, otherwise no thanks; short conversation!

robin58

Martin if you said "If the product wasn't crap....:money:" directly to to the Treasury Select Committee, I wished I had been there to see their faces.:D

Pincher

Castle wrote: »

Funny, I remember my car dealer doing the same thing back in 2009, but it was only £399 then. I told him if it was free I 'd take it, otherwise no thanks; short conversation!

I bought a new car in 2006, and the salesman just offered it, and I said no, easy.


Back to the same dealership, in 2013. They obviously realised stronger measures is required to get you to bite, so the "compulsory FSA" session was not optional, because "FSA could revoke his credit license" if he didn't make me do the session and sign the form.


Having failed on the insurance, he tried to force me into a £500 treatment. He claimed it was a complicated Scotchguard type thing for the leather that had already been applied to the seats, so yet again not optional.


If it wasn't for the £2,000 manufacturer's discount (a real one), I would have walked out long ago. Even on that, he tried to cheat me by charging for automatic gearbox. I had to call the manufacturer to call him up to give it to me.


Money Advisory vs. Salesmen: it's like going up against a tank with a stick of celery.

Castle

Pincher wrote: »

Having failed on the insurance, he tried to force me into a £500 treatment. He claimed it was a complicated Scotchguard type thing for the leather that had already been applied to the seats, so yet again not optional.


If it wasn't for the £2,000 manufacturer's discount (a real one), I would have walked out long ago. Even on that, he tried to cheat me by charging for automatic gearbox. I had to call the manufacturer to call him up to give it to me.
.

My dealer wasn't quite this bad; but he did charge me for a full tank of fuel, but when he handed the keys to me the tank was virtually empty. I made him drive to the local garage and he paid for a full tank out of his own pocket, (or so he told me).

Butterfly_Brain

I have a simple philosophy that if a government department says it is here to help then I take it to mean the exact opposite