Credit card debtors could start facing "increased pressure"

By Sarah Engle, Tue 1 Jul 2008 - Published in Credit Cards

$Credit card debtors could start facing \$

People who find themselves unable to pay their credit card bills could be at risk of losing their homes, a debt consultancy has warned.

The company Thomas Charles said although credit card loans are normally unsecured, if people fail to repay their debt, companies could apply to court to have loans secured against a borrower's property.

Managing director James Falla said: "What this will then mean is that people in debt difficulties may start seeing increased pressure in situations where they're looking at repossessions and that kind of thing."

This comes after a study by uSwitch revealed over the past year 84 per cent of successful credit card applicants were not asked to provide any proof of income to support the figures stated in their application form.

It also found some 77 per cent of those surveyed did not get their credit card from their own bank, meaning the lender would have had little or no existing information on the applicant's credit worthiness.

News Categories

News Archive

News: Credit card debtors could start facing "increased pressure"