Suman Antcliffe, money adviser at Citizens Advice in Burton upon Trent, told the Observer that he has seen money lent to individuals who have little or no chance in repaying their loans.
She said that she has successfully taken several banks to the Financial Ombudsman Service, calling for the debts to be completely written off.
Ms Antcliffe commented: “It’s absolutely appalling.”
She added that Lloyds TSB “is working with us to help our mutual clients. The bank now realises it is not in anyone’s interests to lend money to people who cannot afford to pay it back.”
Lloyds TSB added that any customers experiencing financial difficulties should get in touch as soon as possible so that the “most appropriate solution” for financial difficulties can be arranged.
In related news, recent research from the Debt Counsellors shows that credit cards in general and store cards in particular have been responsible for the majority Britain’s personal debt.