Many consumers getting raw deal on loans from supermarkets
In the UK the supermarket has always been linked to value for money and special offers when it comes to groceries, toiletries, and even clothes and toys. However, the humble supermarket has come a long way over recent years, and today's supermarket giants offer far more than food, drink, toiletries, toys, and clothes. These supermarkets have branched out enormously, and are now offering a wide range of financial products to consumers, including loans and credit cards.
However, although the availability of these financial products means even more in the way of choice for consumers, experts have urged consumers not to assume that just because a supermarket offer great value for money on milk, bread, and toilet rolls, that it will automatically offer great value for money on financial products. It is all too easy to pop to your local supermarket and pick up a loan or credit card along with your shopping, but experts warn that unless you shop around you could find yourself getting a raw deal.
A recent survey carried out by the consumer group Which? revealed that consumers that take out finance through their local supermarket, assuming that they will be getting value for money on their finance deal, could actually end up paying far more than they need to in interest. In fact, according to reports consumers could end up paying hundreds of pounds extra on many supermarket loan deals compared to what they would pay if they shopped around to find a competitive loan deal.
One official from Which? said that borrowers should not assume that supermarkets offer great value on finance as well as groceries. He added: "Just because the supermarkets offer good value on groceries don't assume that this applied across the board. You can pay well over the odds for the convenience of picking up a financial product with your weekly shopping."
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