5 February 2007
Price comparison and switching website uSwitch.com has called for banks to take on more responsibility when it comes to lending practices, following results from its survey which revealed that 96% of credit card applicants were not asked to prove their outgoings.
Despite growing concern over irresponsible lending and the resulting debt problems, uSwitch.com's survey revealed that 90% of credit card applications were successful without any proof of income or expenditure, resulting in £3.08 billion being lent in credit without proof of earnings.
Nick White, uSwitch.com's Director of Personal Finance, said that the study was not carried out to "sensationalise an issue that doesn't exist or blame the banks or regulatory bodies for consumer debt" but that it was important to raise issues that needed to be resolved.
Mr White also commented that it was alarming just how much credit was being lent to consumers considering there was very little background checking done to make sure that the debtors can pay back what they owe.
"It's nothing short of irresponsible for providers to grant applicants living on less than the average wage credit limits which they would never be able to afford and in many cases tie them to a lifetime of debt," he added.
© 2008 Adfero Ltd
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