27m consumers `missing out on reduced interest rates on loans`

29 December 2008

A significant number of UK consumers are not taking advantage of lower interest rates on loans and credit cards, it has been suggested.

According to research conducted by Fool.co.uk, 27 million people have not swapped to products with lower rates because they believe annual percentage rates are "set in stone".

The organisation found that 25 per cent of people polled did not know how much interest they pay on their credit cards or loans, while 76 per cent were not aware that rates can be haggled over.

"Credit card providers have done a great job peddling the idea that the interest rates they charge are one of the unchangeable facts of finance," stated David Kuo, financial expert at Fool.co.uk.

He added that consumers who do not pay off their credit card balances in full are probably paying more than they need to.

Recently, Nationwide announced it had begun to offer individual quotations for loan charges based on the personal circumstances of consumers.

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Gregory Pennington are founder members of DEMSA (Debt Managers Standards Association).

DEMSA are the first trade body within the finance industry to successfully secure approval for its code of practice under the OFT Consumer Codes Approval Scheme (CCAS).