Thomas Charles: People in credit debt increasingly face repossession

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Thomas Charles: People in credit debt increasingly face repossession

Tue 1st Jul 2008

People in credit card debt may face "increased pressure" as more card companies apply to take their properties, debt consultancy Thomas Charles said today.

Its managing director James Falla was commenting on a recent report by uSwitch.com, which found that 84 per cent of successful credit card applicants were not asked for proof of income last year.

Mr Falla said it was "quite a common occurrence" for people to apply for new credit cards to pay off old ones.

He said that it is becoming "more common" for card companies to apply in court to take charges over property so that credit debt is secured against the cardholder's home.

People in debt could then be "looking at repossessions".

Mr Falla said his firm was seeing "a lot more people now" having charges put against their property from organisations such as credit card companies.

"Five or so years ago that wouldn't have been happening," he said.

The report by uSwitch.com found that 14 per cent of people given a credit card claimed they were not asked about their salaries or outgoings, obtaining almost £2.9 billion of credit.

Five per cent (287,500) of successful applicants incurred extra debt to keep up repayments.

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