‘More expansive’ credit checks urged
Service providers handing out credit cards should make more stringent checks to ensure that borrowers can pay money back, it has been suggested.
Debt consultancy firm Thomas Charles commented that people taking out plastic loans are rarely asked provide evidence of how much money they earn.
And as a result, claimed managing director at the company James Falla, it is relatively easy for people to get into avoidable debt.
He suggested that lenders ought to change matters and there should be a "tightening up" of criteria they have in place.
"Maybe some more investigation about what people can actually afford would be a way forward," he commented.
But he said that in the past firms have not altered their ways because it would cost them a fair amount of money.
Recent research undertaken by uSwitch.com found that 14 per cent of those with credit cards had not been asked to supply any information about their salaries.
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