From: Robin T Cox 
Subject: Re: Savings shake-up to protect consumers
Newsgroups: uk.finance
Date: Sat, 23 Jun 2007 15:07:20 GMT
Bytes: 2745

On Sat, 23 Jun 2007 12:35:42 +0100, Andy Pandy wrote:

> It's good that he's recognising that customers need to take some of the blame. People
> who just walk into a bank and say "give me a mortgage/pension/ISA etc" without
> understanding the first thing about mortgages/pensions/ISAs, and who then expect the
> bank to sell them a product that's in the customer's best interests, not the banks,
> are frankly, as stupid as someone who does the same when buying other products like a
> car, double glazing, a TV, or a house.

Surely that's just the point. If a customer buys a car, they are entitled
to expect it not to have defective brakes. If they buy double glazing,
they are entitled to expect that it will be made of shatterproof glass. If
they buy a TV they are entitled to expect that it will be electrically
safe. And if they buy a house they are entitled to expect that it will not
collapse on them.

In other words, it is a well accepted principle in other industries that
the seller has a duty of care to the customer, and must not sell defective
goods, or sell goods not fit for purpose.

If you buy a service, such as laser eye surgery, which requires the
supplier to exercise a degree of skill, you are entitled to expect that
the supplier has a level of competence commensurate with what they are
supplying. 

So, it is perfectly reasonable to expect the financial services industry
to exercise a similar duty of care in providing advice, and in supplying
their products and services. And, since they are the financial experts, it
is their responsibility to educate their customers as to what their
products will and will not do; not to hide the snags in reams of small
print.