The United Kingdom has one of the most regulated financial services market with a powerful and well-funded regulator maintaining an orderly and stable market. The Financial Services Authority creates implements and polices the vast array of regulations relating to Banks, Insurance Companies, Investment Companies, Brokers, Advisers and other Intermediaries. These regulations encompass UK and European legislation as well as Conduct of Business regulations and cover the management and sale of investments, saving, lending and insurance.

However the loans sector, in contrast to other product groups, seems to enjoy a 'lighter touch' from the regulator and is largely a free-market. While this has benefited the consumer by creating a vibrant and competitive market with regular new entrants, including loan packagers, brand players (e.g. Virgin) and even utility companies, there are many instances of aggressive selling of poor-value products to vulnerable sections of the community.

At present the many lenders marketing their 'consolidation loan' products via television, radio and newspaper advertising to lower income consumers is a particularly worrying practice. These advertisements often focus on the ability to significantly reduce monthly payments through consolidating existing loans with the implication that this equates to a lower cost debt solution. However these products typically charge excessive rates of interest, and while they may indeed replace higher rate lending, the longer period of these loans make it likely that on a fuller analysis of individuals circumstances they do not represent a lower cost or better finance solution.

To avoid falling into the trap of committing to a loan that does not meet your requirements and you later regret it is essential for consumers to use a reputable and impartial broker or loan comparison portal. Consumers should avoid responding directly to lenders' advertisement whether television radio or direct 'junk' mail. Even your own bank that you trust with your current account and mortgage is likely to offer expensive or inflexible loan products. Often however the best course of action is to conduct research into the products available and to use internet comparison sites to compare the numerous products which meet your specific circumstances and requirements.

Financial Sense enables consumers to compare Personal Loans, Car Loans, and Home Owner Loans available in the UK and to compare the specific loans which meet your requirements.