2 July 2008
Consumers could struggle to pay back credit handed out to them by service providers simply because the checks on them are not stringent enough, it has been claimed. According to debt consultancy Thomas Charles, the situation has got worse in recent times as people are finding it harder to pay for rent and other essential living costs. Initially, individuals head to firms to provide them with credit cards so they can pay these off, said Managing Director of the outfit James Falla, but this obviously leads to fresh problems. He asserted: "I think that kind of thing is just going to continue and we will see perhaps more people not being able to repay the money they have borrowed." The organisations giving away the credit in the past have not received the cash back, Mr Falla noted, because of the risks taken. Of those who applied for credit in the past twelve months, just 8% were asked to provide information about how much they earn, uSwitch.com has noted.
© 2008 Adfero Ltd
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