The Funding Corporation is warning next year's traditional peak day for refinancing credit card debt - the first Friday in February - could see a sharp rise in the number of people rejected for credit by mainstream lenders.
The reason for this change is high street providers have tightened up their risk control and credit application handling systems in response to what they see as an ongoing trend towards more relaxed bankruptcy laws, a spokesman for the the Chester-based sub-prime lender says. ”People head for high street names, but only 15% will be approved,” he says. Figures published by TFC suggest February 3 2006 will be the date when people’s credit card bills for the Christmas spending period start rolling in and they start looking to loan consolidation. The difficulties facing credit customer...
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