Consumer Focus Wales is calling on consumers to tell us about their experiences of financial gobbledygook in a bid to pressurise banks and other financial providers to make life easier for consumers.
A survey for Consumer Focus Wales shows that almost two-thirds of people in Wales (65 per cent) admit they find the language used in financial services and products difficult to understand.
More than half (56 per cent) said banks fail to make their financial products simple, while more than one in four (28 per cent) said they had bought a financial product without fully understanding what they were buying.
A panel of experts from across Wales will judge the worst examples people send in to the consumer watchdog and results will be announced later this summer.
Chair of Consumer Focus Wales and panel member, Vivienne Sugar, said:
‘It is clear that consumers are fed up and frustrated with the baffling language often used in financial services. Too many are confused and it is hardly surprising that more than half of people we spoke to feel the financial industry fails to make their products easy to understand. Some of the information in financial documents can be impenetrable.
‘It is in everyone’s interests that consumers are given information in a way which encourages them to understand the commitment they are making before they sign on the dotted line.
‘People need sound advice and easy to understand products from financial providers, especially when they are faced with greater pressures on household finances. The consequences of buying a poor value or inappropriate product could end up punishing people, particularly vulnerable consumers.
‘Consumers need concise, clear advice when it comes to making important financial decisions – not jargon and gobbledygook.’
Notes:
Submissions should be sent to Financial.Jargon@consumerfocus.org.uk or by post to: Gobbledygook, Consumer Focus Wales, Capital Tower, Greyfriars Road, Cardiff CF10 3AG.
The deadline for submissions is Friday 20th August.
The panel will reveal the worst examples in the autumn.
Examples of financial jargon can be found on the Plain English Campaign website http://www.plainenglish.co.uk/specialist-areas/finance/examples-of-financial-jargon.html
[1] The survey was carried out by Beaufort Research Ltd between 18th June and 2nd July. A total of 1,012 interviews were completed and analysed.
Introduction to the panel members:
Vivienne Sugar was appointed as the Chair of Consumer Focus Wales in January 2008. She is a Fellow of the Chartered Institute of Housing having previously been Director of Housing at both Cardiff and Newport. Vivienne was Chief Executive of the City and County of Swansea between 1995 and 2003. She is Pro-Chancellor of Swansea University and between 2005 and 2009 she was Wales Advisor to the Joseph Rowntree Foundation. She is also a Consultant to Government and Local Government.
Fran Targett has been associated with Citizens Advice since 1978, and was appointed Director, Citizens Advice Cymru in 2000, heading a team responsible for delivering services to bureaux across Wales and for leading the policy work of Citizens Advice Cymru. Fran holds several posts including: Wales Council for Voluntary Action Board; represents the Advice and Advocacy sector on the Voluntary Sector Partnership Council; Chairs the Community Legal Services (CLS) National Independent Provider Forum; sits on the CLS Committee for Wales as a provider representative.
Lee Phillips is the Consumer Financial Education Body’s (CFEB), Financial Capability Manager for Wales. Set up by the Financial Services Authority, CFEB is responsible for helping consumers understand financial services in the UK and manage their finances better. In this role, Lee is a member of the Welsh Assembly Government’s Financial Inclusion Steering Group and the Wales Financial Inclusion Champion’s Advisory Group. Lee is also on the advisory group to NEA Cymru (fuel poverty) and on the national stakeholder group for the Wales Illegal Money Lending Unit.
Les Cooper is a Money Advice Officer with Wales & West Housing Association. He has been involved in delivering financial capability projects across Wales for over 10 years and has been the chair of the North Wales Financial Capability Forum since 2006.
Sion Barry is business editor of the Western Mail. His role is to oversee the paper’s comprehensive coverage of Wales plc; from start-ups to companies listed on the London Stock Exchange.
[1] The survey was carried out by Beaufort Research Ltd between 18th June and 2nd July. A total of 1,012 interviews were completed and analysed.