Friday 20th of November 2009
An undercover investigation by Which? Money has revealed how easy it is to get credit on Britain’s high streets - something that could be pushing consumers into unsecured debt and left requiring individual voluntary arrangement (IVA) advice.
In-store credit worth almost £3,000 was readily available to James Smith, the reporter sent out by the independent consumer champion, despite him being a recent graduate.
Which? Money sent Mr Smith to 20 leading high street companies, six of whom gave him credit totalling £2,750.
James Daley, editor of Which? Money, said: "The question remains whether stores should be handing out credit at all. If shops can’t lend responsibly, then the Office of Fair Trading should step in to make sure they do."
Interest rates on the credit offered ranged from 18.9 per cent to 28.9 per cent - rates which could see debt quickly spiral out of control if repayments are not met.
An IVA may be able to tackle unsecured debts by renegotiating repayment amounts and schedules with creditors so that what a consumer pays back is more affordable to them.
By Neil Burton
- House price rise 'may not indicate recovery'
- Equity release 'needs to be increased'
- Need for IVA help could increase as expert predicts reduction in lending
- Government announces 'breathing space' for those needing IVA help
- Lack of subprime lending creating need for IVA help, expert suggests
- IVA advice from the Insolvency Service
