Credit card firms often fail to carry out proper checks

A recent report has claimed that despite the global credit crunch and the tighter credit conditions that have come into play over recent months, many credit cards are still being dished out to consumers without proper checks being carried out by the credit card companies. Credit card debt has often been blamed for much of the personal debt mountain in the UK.

It is thought that many people may have been able to get their hands on a credit card without the necessary checks being carried out, and without having to provide documentation such as proof of income. The data comes from the price comparison website uswitch.com.

Officials from uswitch.com claim that in 2007 around 84% of those that managed to get a credit card did so without having to provide any proof of income and various other documentation. One official said that these checks were extra important because the tighter credit conditions were resulting in more people lying to get hold of a credit card.

He 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.”