Equifax sees rise in consumer requests
By UK CreditCards.com
Credit report firm Equifax has reported a 10% rise in customer requests due to tightening criteria for borrowers.
Customers are being rejected for low rate credit cards in increasing numbers due to the financial crisis and are ordering reports in order to find out why, the Financial Times reports. Financial pressures on providers caused by the credit crunch have led them to turn down people they perceive as being higher risk.
According to figures cited by the Financial Times, lending flows for credit card deals and loans have dropped by as much as 40% as a result. "More people are getting copies of their credit report to find out why they were rejected," Neil Munroe at Equifax told the newspaper.
He added: "More stringent lending criteria [means] that more consumers are unable to obtain the right product or rate, they are likely to start challenging the lender's decision."
Recent figures from financial charity Credit Action show that each UK household owes an average of £10,000 in unsecured borrowing -- including personal loans and credit cards.
Published: 4 June 2009
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