£17 billion credit 'lent without proof of income', says uSwitch

www.moneynews.co.uk > Debt > £17 billion credit 'lent without proof of income', says uSwitch

£17 billion credit 'lent without proof of income', says uSwitch

Wed 18th Jun 2008

Millions of people have applied successfully for credit cards without being asked to prove the income they stated, according to uSwitch.com.

The price comparison and switching service found that 4.8 million card applicants received over £17 billion of credit in the last 12 months without having to provide so much as a wage slip.

Of those surveyed, five per cent lied about their salary, adding as much as 70 per cent to their income and securing over £693 million of credit.

And 77 per cent of those surveyed (4.4 million) got their card from an institution other than their own bank, which would have little or no information about their credit history.

The prediction from uSwitch.com was that 6.6 million credit card applications will be rejected in the next 12 months.

Simeon Linstead, head of personal finance at uSwitch.com[,] said the credit squeeze was causing some people to lie about their salaries in "sheer desperation" and urged banks to tighten credit checks.

The Times reported shadow chancellor George Osborne telling the annual conference of consumer group Which? that it was important not to let Britain become "hooked on debt".

He reportedly told the conference that personal debt increased in Britain by £1 million every four minutes.

Related News : Debt
	Lessons in financial responsibility 'are important for young people'
	Payday loans 'can lead to significant financial difficulties'
	Brits 'becoming more focused on financial wellbeing'
	Serious debt issues emerging, says expert
	More women 'are facing debt problems'
	Debts 'down slightly in February'
	Brits 'should focus on reducing borrowings'
	Paying down debt is 'better value than saving'
	January a 'gloomy month' for indebted Brits
	Most expensive debts 'must be paid first'

Related News : Credit cards
	Brits spent less in the run-up to Christmas 2011
	Credit card spending fell in 2011
	Credit cards 'can be a useful budgeting tool'
	Credit card usage 'to rise this month'
	New measures to help Brits with finances
	Credit card spending 'less prolific in the last 12 months'
	AA Launches new reward credit card
	Borrowings 'still need to be repaid' during a gap year
	Clear information in credit agreements called for
	Brits 'focusing on zero per cent cards'