Originally published April 7 2005
Reckless and irresponsible lending can cause a lifetime of debt for individuals, say experts
by Mike Adams, the Health Ranger, NaturalNews Editor
Consumer groups say banks encourage low-income families to apply for cards they can't afford to drive profits. The result of this is that an increasing number of people will be burdened with Britain's 1 trillion pound debt, with no hope of ever clearing it. Says Eddy Weatherill, CEO of the Banking Advisory Service, "This is a sign of the severely irresponsible, reckless lending policies of many banks which are seeking to inflate their profits for short-term gains. They are interested in profit, not consumer well being, so they lend money to people who can't afford to pay it back and face a lifetime of debt as a consequence."
THOUSANDS of credit card users face a lifetime of debt because of 'reckless and irresponsible' lending, it has been claimed.
Consumer groups said banks were encouraging people on low incomes to take out cards they cannot afford in a ruthless drive to increase profits.
Credit card debts alone account for �2bn, a staggering twenty-fold increase in ten years, which shows how much the credit culture has spiralled out of control.
Eddy Weatherill, chief executive of the independent watchdog the Banking Advisory Service, said: 'This is a sign of the severely irresponsible, reckless lending policies of many banks which are seeking to inflate their profits for short-term gains.
They are interested in profit, not consumer wellbeing, so they lend money to people who can't afford to pay it back and face a lifetime of debt as a consequence.
'When you see the banks have written off �6bn it sounds as if they are shouldering the cost, but the truth is that consumers will pay.
Personal bankruptcies are now at record levels, with half of all bankrupts aged under 30.
Most have been swamped by credit card debts, loans and excessive mortgages from lenders indifferent to their ability to pay.
Outstanding credit card and personal loan debt stands at �180bn - more than �3,000 for every man woman and child in the country.
There have been a series of suicides blamed on the easy availability of credit card cash.
The figures on bank write-offs, to be released by the Bank of England this week, come amid mounting concern that the debt crisis is being worsened still further by a rapid rise in 'self-certified' mortgages.
Around a third of all home loans are being granted without borrowers having to prove how much they earn, experts warned.
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