Those Who Switch, Those Who Don't
Research reveals that not all consumers search for better financial deals when unhappy with their current deal. The oldest and poorest consumers are unlikely to dump companies they are unhappy with in order to seek better deals.
Despite growing numbers of consumers switching credit providers, the National Consumer Council says that their is a divide among consumers switching.
The area to see the fastest rise in consumers switching is . The number of consumers switching mortgage providers has risen by 158% since 2000. During the same period the number of consumers moving banks rose by 17%, with only 7% of customers swapping firms this year.
The NCC's Active Consumer Index drew information from gas, electricity, fixed telephone, current account, mortgage and home insurance customers. The statistics learned from these markets provided the information the report.
The research found a 52% rise in customer switching since 2000. However, the NCC warned that the growth in 'consumer power' did not affect all service users.
The group found that the most well-off and the youngest consumers are twice as likely to change their home insurance provider as the oldest and poorest.
An NCC spokesperson said: " Beneath the positive headline trend of smooth changeovers and happy customers, problems still lurk - especially for the oldest and poorest,"
To combat the 'switching divide', the NCC has urged the regulators for each of the six markets involved, to promote the benefits of switching and remove barriers to competition.
The group has warned customers to beware of 'lock in' practices were by customers feel obliged to stay with an uncompetitive provider. Some of these practices include early exit charges and planned incompatibilities in new equipment.
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