Loose lending criteria 'contributing to UK's credit card debt'
Loose lending criteria 'contributing to UK's credit card debt'
Wednesday 9th July 2008
Steve Willey, head of credit cards at moneysupermarket.com, called for UK card companies to apply the more rigorous lending criteria used in other countries and scrutinise their existing debts before allowing them to take on more.
He said: "In many countries, banks will give you a card on condition that you close a card with another provider. This is something the banks or Financial Services Authority need to consider.
"Some providers are acting responsibly by refusing applications due to a person's total credit limit on all their cards, but others are still assessing things as though that person doesn't have another card."
Mr Willey was moved to issue his call for a change in lending practices after the site calculated that Britons could add a further to £198 billion to their total credit card debt this year.
Debt1, official website of Byrom & Keeley - Experts in Debt Management
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