Customers are being lured into borrowing by some providers

Officials from the Conservative Party have been slating credit card firms in the UK, stating that many are luring customers into borrowing money that they simply cannot afford to repay and then dumping them when the going gets tough and they are unable to meet their repayments. Credit card debt in the UK has become a real problem over recent years, and many consumers have fallen into bad debt as a result of unmanageable credit card debts.

It is thought that credit card debt makes up a large chunk of the UK’s personal debt mountain, but despite this and despite the ongoing credit crunch lenders are being accused of luring people into borrowing money that they cannot afford. One Conservative Party official, Alan Duncan, said that credit card firms were doing this by offering tempting deals such as 0% interest for a period of time, and then when the borrower was eventually hit with interest charges the firms spat them out.

Mr Duncan went on to accuse the lenders of corporate irresponsibility, and added that the way in which many operated could not be classed as responsible lending. He added that if the Conservative Party comes back into power this sort of practice will stop. Duncan indicated that credit card companies are simply adding to the already worrying debt levels in the UK.

In the meantime credit card firms have been reporting that the level of application approvals has been falling over recent months since the onset of the credit crunch, which means that fewer people are gaining access to credit card finance. Lenders say that they are being far more careful about who they lend to and are also being more careful about credit limits.

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