3 July 2008
Individuals in debt may see matters are made worse as service providers threaten them with house repossessions, it has been suggested. Thomas Charles, a consultancy, argued that credit card firms are more regularly beginning to "take charges" over homes as consumers cannot pay money back. Companies may apply to court in a bid to get debts secured against people's homes, the outfit noted, which means that the situation worsens for the debtor. "So that, potentially, is a longer-term consequence of the situation we've got and one that is perhaps a bit more serious than it has been in the past," commented managing director at the organisation James Falla. And the trend is "becoming more common" than it was a few years' ago, Mr Falla asserted, as card firms start to change their methods. Recent research carried out by uSwitch.com said that 5% of those who applied for credit in 2007 lied on the application form about how much they earn.
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