26 November 2007
Further evidence for the tightening-up of consumer credit in the UK has come from accountants PricewaterhouseCoopers (PwC).
In its Precious Plastic 2008 report, the firm states that credit card providers are facing slumps in profits due to increasing numbers of consumers being unable to make repayments, as well as increased competition in the sector.
Around £4 billion has been lost by the credit companies as a result, according to PwC, leading to potentially "thousands" of credit card applications being rejected this festive season.
Moreover, the UK's debt problem is worsening, with PwC figures showing that the average British adult now owes £33,000 in unsecured loans - double 2000's figure.
Richard Thompson of PwC said: "Banks are continuing to take action in response to the rise in consumer debt by tightening their credit acceptance policies.
"Many consumers will find it increasingly difficult to obtain credit in the run-up to Christmas."
© 2008 Adfero Ltd
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