Borrowers "confused" by price comparison sites

21 August 2008

People looking for consolidation loans to clear their debts may be left bemused by comparison sites, Which? has said.

In a study of the three largest websites offering comparisons of loan and credit card deals – as well as insurance, which may protect against debt – the consumer magazine found discrepancies between results.

The cheapest quote varied from website to website in the majority of cases, the report concluded, a situation that could lead to people unknowingly choosing a more expensive option than necessary.

For example, while one price comparison site said the cheapest standard-rate credit card on the market had an annual percentage rate (APR) of 12.9 per cent, another found a card with an APR of 6.8 per cent.

Editor of Which? Money Martyn Hocking said consumers may take the easy option by using price comparison sites.

"But you might be very confused to find that different sites can give you vastly different quotes and often don`t give enough information for you to make an informed choice," he warned.

Today Which? also gave advice on saving money which may help people with debt problems.

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