Tories launch attack on credit card providers
Officials from the Conservative Party have recently launched an attack on credit card providers, accusing them of luring consumers into borrowing money and then chewing them up and spitting them out when they run into difficulties with their finances and can no longer afford to keep up with repayments.
The level of personal debt in the UK has been of concern for some time, and credit card debt is through to make up a large chunk of the debt mountain.
The Shadow Business Secretary, Alan Duncan, has accused credit card providers of luring customers into getting into debt by offering deals such as 0% offers, but says that when the special deals come to an end and customers can no longer afford to pay the crippling interest payments the credit card companies lose interest in the client and simply ’spit them out’. He slated credit card providers for adding to an already worrying mountain of personal debt in the UK.
He told a newspaper that lenders needed to look at the human misery that could be caused by consumers getting themselves into unmanageable levels of debt.
He added that it was not acceptable practice, and that it was classed more as ‘corporate irresponsibility’. He also stated that this would all change in the event that the Tories get back into power.
Despite the attack from Duncan many credit card providers have been cutting right back on their lending levels, and have increased stringency with regards to who they will lend to, as have other lenders such as mortgage and loan providers.
This is due to the chaos caused by the global credit crunch, as well as by spiralling bad debt levels that are affecting the profits of credit card providers.
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