Credit card site will be a damp squib

Some 70% of consumers who have taken out a credit card in the last three years did not shop around, reports the OFT.

They also found that that consumers have problems comparing financial products in general and credit cards in particular. Why?

1. First, credit cards are necessarily complex, because of their intrinsic flexibility.
   


2. Secondly, financial products are often described in a way that makes it difficult for consumers to understand. No surprise there. It's one of the themes of the site. Financial products are basically similar. So "marketing" dictates that good points should be stressed even if they are minor, while weak points should be underplayed even if they are major.
   


3. Thirdly, the rules regulating the sale of credit products mean that a great deal of regulated information must be provided by card issuers to potential card holders. This can have the effect of dissuading consumers from reading product information. Yes, regulatory overkill. And the firms know: the more information they agree to provide, the less likely consumers are to read through it.

So the FSA is to introduce a price comparison website. Worthy, but a policy of despair.