The problem of commissions payable to creditors and credit intermediaries by third parties deserves mention that is special.

The problem of commissions payable to creditors and credit intermediaries by third parties deserves mention that is special.

Reckless cross-selling happens to be driven by the same market problems that have actually manifested themselves within the context of high-cost credit – information asymmetry between creditors and credit intermediaries, in the one hand, and customers, on the other side, plus the extensive exploitation of customer behavioural biases by credit providers. The possible lack of customer knowledge of PPI terms has played a role that is particular this context. Being inspired by remuneration plans that award volume-based sales, but, creditors and credit intermediaries have actually lacked enough incentives to improve consumer that is irrational and acceptably notify customers concerning the item terms (cf. Fortsätt läsa The problem of commissions payable to creditors and credit intermediaries by third parties deserves mention that is special.