Growing emphasis on price leaves consumers at risk

17:32 01 February 2012

With competition rife on the high street, everyone claims they have the best deal when it comes to mortgages, pensions or investments – but how much do people actually know about the features of the financial products they are purchasing?

A new study from independent financial research company Defaqto has revealed a shift in consumer shopping patterns when looking for financial products – with price being a key factor for many when it comes to making a decision.

Interestingly, the research found that almost 50% of people do not understand the features of products they currently own.

Despite this apparent lack of understanding surrounding the features of financial products – with the research finding that a quarter of people admit they fear purchasing a mortgage or pension which isn’t right for them – the majority are now turning to price comparison websites when they want to know the options out there.

Defaqto has this week launched its 2012 Star Ratings to help people base their financial decisions on the features and benefits products provide, not just how much they cost, and to better understand what financial products offer.

Taking a wide range of features and benefits into account, Defaqto have given each product a rating from 1 to 5 depending on how comprehensive they are.

For more information on DefaqtoÂ’s Star Ratings, and to find out and compare what Star Rating a financial product has, you can visit www.defaqto.com/stars