Released on: June 23, 2008, 9:21 pm

Press Release Author: amenda dorothy

Industry: Financial

Press Release Summary: According to a research, Nearly five million people have been
sanctioned credit cards in the past year without having to prove their income.

Press Release Body: LONDON - Saturday, June 23, 2008 - (Ask4loan) - According to a
YouGov poll of 4,048 people, somewhat 84 percent of successful credit card
applicants, that is around 4.8 million people, were not asked to provide any proof
of income, such as payslips, to support the figures stated in their applications in
the past 12 months. This is quite regretting.

The survey also showed that 14 percent were not asked about their salary or
outgoings during the application process. It simply means that all those 14 percent
people obtained an average credit of 3,545 pounds, which equal to a total of 2.9
billion pounds. This survey was commissioned by a famous price comparing website
uSwitch.com. The survey also exhibited that only 8 percent of the surveyed people
were asked for proof of income or outgoings at the time of application process.

Some 5 percent of people admitted to lying about their salary when applying for a
credit card. Whereas, other 70 percent got the credit onto their actual income and
as a result, they have secured over 693 million pounds worth of credit.

The head of personal finance at uSwitch.com, Mr Simeon Linstead said, \"We cannot
ignore the fact that the credit crunch has forced the credit providers to tighten
their belts and reject applications that may lead to further write-offs\"

\"(However) the fact remains that just because a consumer appears to have an
\'appropriate\' credit score, it doesn\'t mean they are always honest about their
income and actually have the cash available each month to pay their credit card
bills," added Mr Linstead

He stated, \"The credit squeeze will back some consumers into a corner and people
will resort to lying about their salaries as this is such an easy loophole to
apply.\"

He also said it was too early to tell whether the newest version of the Banking
Code, which came into effect in March 2008 and made credit reference checks
compulsory, was having the desired effect or not.

The new code of conduct makes it necessary for the credit card companies to also
take at least one of three other measures. Those measures are (1) obtain details of
income and financial commitments; (2) evidence of how finances have been handled in
the past; (3) use credit assessment techniques, such as credit scoring or internal
credit scoring processes.

For additional information on the news that is the subject of this release (or for a
sample, copy or demo), contact Webmaster or visit http://www.ask4loan.co.uk

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