£20 billion of loans given without proper checks
13.05.2008
A recent report claims that borrowers have been able to obtain loans amounting to billions of pounds without going through proper income and financial checks, according to the Thrifty Scot.
Lenders may have given out around £20 billion without carrying out adequate checks such as asking consumers for proof of income.
According to the research, three million consumers took out unsecured loans without proper credit checks being made and over half a million were not asked any questions about their income before their loan application was approved.
"With more than 7,716 loan repayments being missed every day and record write-offs, you might think that lenders would have learnt their lesson, but the potential profits have clearly been too good to resist," an industry official said.
Research from Halifax Unsecured Personal Loans published earlier this year showed that the most popular month to take out an unsecured personal loan is January, with the figure being nearly twice as high as in other months.
Lenders may have given out around £20 billion without carrying out adequate checks such as asking consumers for proof of income.
According to the research, three million consumers took out unsecured loans without proper credit checks being made and over half a million were not asked any questions about their income before their loan application was approved.
"With more than 7,716 loan repayments being missed every day and record write-offs, you might think that lenders would have learnt their lesson, but the potential profits have clearly been too good to resist," an industry official said.
Research from Halifax Unsecured Personal Loans published earlier this year showed that the most popular month to take out an unsecured personal loan is January, with the figure being nearly twice as high as in other months.