Inconsistencies within the variety of available tables led to the Resolution Foundation, an independent research and policy organisation, to call for a voluntary code of practice for price comparison sites.
With sites playing an important role in helping consumers make informed financial decisions, the organisation stated that there was a need for consistency with weaknesses among the sites included a failure to explain technical terms, abbreviations and financial jargon and failing to provide personalised information in relation to credit cards and savings products.
Transparency of commercial relationships were also criticised, with some providers accused of buying their way on to tables and the option of ‘Editors Choices.’
Clive Cowdery, chairman of the Resolution Foundation, said: “Comparison sites are valuable in making informed financial decisions – but many sites are undermined by a lack of transparency about their commercial relationships. A voluntary code of practice would address this and encourage a growing market, without the need for further regulation.”
Stephen Rumbelow, head of Moneyfacts.co.uk, said: “We have been constantly pushing for a code of practice to be introduced in our industry.
“It is a simple but unpleasant fact that by only providing a limited selection of products, some comparison sites are allowing consumers to make ill informed decisions that could see them choosing a product that could leave them financially disadvantaged.
“We believe that there are shortcomings with some players within our market. The introduction of a code of practice will give the consumer the confidence to continue using ‘approved’ comparison sites to help them through the maze of an ever-increasing choice of financial products.”
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