It has suggested that lenders must share data and give better price information and statements, as the CC believes that homeowners are paying too much for loans due to a lack of competition.
Recommendations follow provisional findings in April in which the CC concluded that consumers “face higher prices for their loans than would be expected in a competitive market”.
By giving better information to give comparisons on loans, the CC believes that this will “stimulate price competition between lenders” and could lead to price caps.
In addition, the CC plans to go to the Department of Trade and Industry to get it to change restrictions on canvassing methods used by home credit agencies, allowing home visits but still restricting cold calling.
Comments on the report are to be sent to the CC by September 8th after which the CC will decide whether or not to introduce the measures.