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Wednesday 18th June 2008
While the credit card industry in the UK has been very vocal with regards to the prices they charge, bad debts and the future, it now appears that they may not be as water tight as they seem. A recent survey by the comparison site uSwitch indicates that over 80% of people who applied for credit cards in the past were not asked for any formal proof of income. While a small percentage say that they exaggerated their income, the vast majority seem to have been truthful.
This begs the question as to whether the credit card companies have been as diligent as they should have been in the past, or whether they may face the same accusations as the majority of the financial industry – excessive lending.
In their defence the credit card companies do check personal credit reports before they agree any arrangements, but they should still be seeking clarification of client income at the earliest opportunity. This has re-ignited the whole argument about the UK tax payer being forced to bail out a financial industry which has been over exuberant in the past, and whether it is actually fair.
In excess of £20 billion for the Northern Rock affair and an asset swap of £50 billion are serious amounts of money! |
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