Online price comparison service uSwitch has called for banks to perform more credit checks when it comes to lending practices, after it revealed that 96% of UK credit card applicants were not asked to prove their outgoings.
In addition, the switching website revealed that 90% of credit card applications were successful without any background checking into proof of income or expenditure. As a result, GBP3.08 billion has been borrowed in credit without evidence of earnings.
The results come amid growing concern over irresponsible lending and debt problems in the UK.
Nick White, uSwitch.com’s director of personal finance, said: It’s nothing short of irresponsible for providers to grant applicants living on less than the average wage credit limits which they would never be able to afford and in many cases tie them to a lifetime of debt.