Christmas is when consumers are likely to be "feeling the pinch" and so they shouldn't be penalised for shopping around for credit, especially unsecured credit like
personal loans and
credit cards. That's according to Treasury Committee chairman John McFall, who has called on the Office of Fair Trading to investigate the fairness of the sector.
In a report entitled "Credit Searches", the committee probes the phenomenon of consumers building up a record of credit application searches on their credit reference files, with the result that high numbers of recorded applications make it harder for them to obtain
personal loans or
credit cards - or affect the interest rates they are charged for such credit.
"Everyone naturally wants to be able to give their loved ones something nice," said John McFall of the festive season. "While it is right to protect consumers from potentially reckless lending, equally they shouldn't be penalised for shopping around for loans."
In the report, the committee calls for the
credit card and
personal loan markets to be "subject to the disciplines of informed consumer choice", aiming for a balance of public interest between ensuring fraud is prevented and protecting consumers from reckless lending.
