Consumers getting credit pushed on to them

Despite growing concerns over the high levels of consumer debt and bad debt in the UK, a number of companies are practically pushing credit in the faces of consumers that did not even ask for it, according to recent reports. One company that has come under fire for sending out store cards to consumers that did not ask for them and did not want them is GE Capital, which is responsible for around half of store cards used in the UK. The finance company has recently been sending Laura Ashley cards out to consumers, even though they did not ask for them.

Consumer groups and campaigners are concerned that this type of activity is tempting consumers into taking out credit that they would otherwise not have done, and then leaving them in debt. One official from the Citizen's Advice Bureau stated: 'Consumers take out a store card with a specific purpose. It is wrong to then force a credit card upon them that has an entirely different use, giving them an opt-out only if they say they do not want the card.'

GE Capital has been slated by various officials over the way that it is giving credit to consumers on a plate, further fuelling the debt crisis in Britain. Liberal Democrat Treasury spokesman Vincent Cable stated: 'Once again, GE is promoting irresponsible lending. It is high time this card upgrade loophole was closed. We called for the law to be changed in 2005. In the meantime, thousands more people have found themselves with credit cards they didn't ask for and do not want.'

Due to a flaw in the Consumer Credit Act companies are allowed to send out unsolicited credit in this way, and campaigners are demanding that the Act be looked into in order to reduce this type of activity.

Tom Smith
1st June 2007