Credit limits upped by banks, despite crunch

01/08/2008

Card firms are continuing to raise credit limits for customers - despite the economic downturn making it more difficult for many to make repayments.

A survey from financial website Fool.co.uk shows that 94 per cent of card customers questioned have had these limits increased by providers without even having asked for the service.

Moreover, 44 per cent said that they had been offered credit that they "could not hope" to repay - although just 16 per cent said that they had actually taken out this credit.

When poll respondents were questioned about who they thought caused the financial downturn in the first place, blame was evenly split between banks (29 per cent), the government (22 per cent), themselves (23 per cent) and the "consumer culture" (26 per cent).

David Kuo, head of personal finance at Fool.co.uk, commented: "Both the banks and the government have to take equal responsibility for the credit crunch - banks for peddling unaffordable loans and the government for lulling people into believing that there would be no return to boom and bust."

Tags; Debt Management and Banking,

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