A number of issues have been outlined in the Treasury committee’s twelfth report of this year’s session.
Entitled Financial inclusion: credit, savings, advice and insurance, the report discusses the committee’s intention to improve levels of financial inclusion and reduce the number of people who resort to high-cost loans or using illegal lenders.
It says that a number of people find financial services to be difficult or inaccessible and consequently face higher-than-average charges and fees for loans and other products.
Those who may be excluded could include the disabled, people with certain religious beliefs or those who cannot afford the higher charges, according to the report.
In addition, it was suggested that these people can then be limited in terms of employment potential, which in turn causes additional costs for society and the state.
Also stated was the need for “generic financial advice” that is not bound to any particular products or services.
The Association of British Credit Unions has welcomed the report, which also acknowledged the necessary role played by credit unions in improving access to financial services.
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