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Credit cards: data to be shared on people at risk of debt problems Disposable incomes `falling` Credit cards `being used to pay off debts` `Not surprising` loans are becoming more expensive Consumers stretching personal finances in DIY stores Credit card debt `to last for over 30 years` Newly-weds `risking debt problems` Save to prevent home disasters Credit crunch not putting off holidaymakers Holidaymakers "complacent" about cards RMIF: Businesses should protect against credit card fraud Bankruptcy warning for holiday Brits Prepaying may end credit card debt Credit cards paid off after age 47 Sainsbury`s Bank: Credit card rewards worthwhile - if you redeem them Credit card rates `are on the up` Over 50s among "hardest hit" by credit crunch `Wiser` use of credit cards could save thousands "Increased pressure" for those in credit card debt Debit cards most popular for plastic spending

`Majority` of credit cards issued with no proof of income

18/06/2008

A majority of credit card issuers are failing to ask for proof of income, a report from comparison service uSwitch has revealed.

In the past 12 months, 84 per cent of successful credit card applicants were not required to prove their income, according to the research, based on YouGov statistics.

A total of 14 per cent of applicants were not questioned about their salary or outgoings at all, equating to potential credit of £2.9 billion. Five per cent lied about their salary.

This may create fears that debt problems are continuing for consumers despite the credit crunch.

Head of personal finance at uSwitch.com, Simeon Linstead, said: "The credit squeeze will back some consumers into a corner and, in sheer desperation, people will resort to lying about their salaries as this is such an easy loophole to exploit."

Lenders should "tighten their credit checking procedures", he added.
The new Banking Code, revised in March, promotes responsible lending by making credit reference checks compulsory.

Also in the news today, credit card companies appear to be freezing increases in credit limits and not taking on new customers.

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