Tightening consumer credit hits festive spending
According to a report from accountants PricewaterhouseCoopers (PWC) UK consumers are facing a cut in the credit available to them.
PWC’s Precious Plastic 2008 report states that credit card companies are suffering from falling profits due to customers defaulting on payments as well as an increasingly competitive environment. Credit companies have lost around £4 billion due to customers not being able to me repayments, according to PWC his has led to “thousands” of credit card applications being rejected over the Christmas period.
Richard Thompson of PWC said:
“Banks are continuing to take action in response to the rise in consumer debt by tightening their credit acceptance policies. Many consumers will find it increasingly difficult to obtain credit this Christmas.”
PWC also show that UK consumer debt is increasing, with the average British adult having £33,000 of unsecured debt, double the 2000 figure.