Bad debt sees credit card lenders ‘get tough’

Debt management problems among millions of consumers have seen banks losing profits to bad debt in recent years and the so-called crackdown is seen as a direct response.

Over the course of the last six months, more than 2.8 million Brits have been refused access to a credit card deal, which equates to a full six per cent of the population, the financial comparison service reports.

Sean Gardner, chief executive of MoneyExpert, said: “Credit card companies have been badly burnt with bad debts and are putting the shutters up in response by turning down more and more applications.

“Anyone with debt problems who is hoping for an easy way out by taking out another credit card is liable to find that they’ll be turned down.”

Enough people to fill the new Wembley Stadium applied for an Individual Voluntary Arrangement during 2006, a report from accountancy firm KPMG revealed recently.