Friday, 17 November 2017

More than six million people have their credit card limits extended without consent, study warns

More than six million people have had their credit card limits increased without their consent in the last year, research from Citizens Advice suggests.
The organisation also found that consumers struggling financially were more likely to given extra credit - adding to concerns about the build-up of household debt.

Citizens Advice said lenders were "actively pushing" more borrowing without considering who could afford it.

It has been calling for a ban on unsolicited credit limit increases to help prevent people from accruing debts they cannot pay back - something it says puts individuals as well as the wider economy at risk.

Industry body UK Finance said providers were committed to responsible lending.

According to Citizens Advice, 28% of credit card holders - equivalent to 8.4 million people - received a credit limit increase over the past year.

But only 23% of those actually asked for the rise, with the remaining increases initiated by lenders.

BBC       News.