Debt charity slams store card lenders

Nationwide debt charity Credit Action has suggested that some store card lenders are enabling their customers to run up significant amounts of debt.

The charity is convinced that there are retailers in the UK that have taken steps to tighten up their lending practices, but makes clear that there is still much that needs to be done to help shoppers avoid adding to their debt management problems.

Credit Action insists that there are certain steps, such as not allowing consumers to spend money on a store card immediately after receiving it, which should be brought in to protect shoppers.

“I think stores could do a lot more… through lending responsibly but also in encouraging people to borrow responsibly,” said deputy editor of Credit Action, Chris Tapp.

“While stores have got a lot better, there is an awful lot more they could do in helping people think through their borrowing,” he added.

According to figures from Credit Action, the UK’s debt management mountain increases by around £1 million every four minutes.