1 July 2008
More research should be done by service providers to ensure that credit cards are not handed out to unsuitable consumers, it has been suggested. Debt consultancy outfit Thomas Charles stated that borrowers are not usually asked to provide concrete evidence of their incomes and that this is a dangerous game. Managing Director at the company James Falla suggested that lenders ought to be "tightening up" and moving away from these methods. Individuals get into debt, he argued, because they have access to easy credit without many questions asked. "Maybe some more investigation about what people can actually afford would be a way forward," Mr Falla asserted. He added that in the past firms have probably not been as rigorous as they could because it would be too expensive to change tactics. Recently, uSwitch.com stated that 14% of people have not been asked to provide details of their income when applying for credit.
© 2008 Adfero Ltd
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