Local Euro MP Sharon Bowles attacks high street's unsolicited consumer credit
November 11, 2009 5:05 PM
Local Euro MP Sharon Bowles, Chair of the European Parliament's powerful Economic and Monetary Affairs Committee, has attacked the rise of unsolicited credit, whereby consumers purchasing goods are automatically given large amounts of credit without their consent.
Sharon Bowles said: "It is outrageous that consumers, some already struggling to keep on top of their debts, are being given unsolicited credit without their permission. It is not right that consumers are being hoodwinked into taking on more debt during these difficult times."
The UK has accumulated £230 billion of unsecured debt, much of it on credit and store cards. The Citizen's Advice Bureau says that unsolicited credit has become a big problem.
Sharon Bowles said: "Unsolicited credit may be good for high street shops wanting to turn a profit but consumers should be wary of businesses giving out store cards and setting up online accounts; it could mean they have been given credit they do not want."
The National Debtline's position is that the recent increase in unsolicited credit represents "poor practice" and needs to be looked at.
Sharon Bowles said: "It is important that high street shops take a responsible approach to credit, particularly in the run-up to Christmas."
ENDS
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