Restricted Lending Sees Credit Card Write-offs Plummet

Bank Of England figures just released reveal £740mof credit card debt was written off in the third quarter, a 65% fall on the previous quarter figure of £2.1bn.   Industry expert David Black, a financial consultant from Defaqto said believes the improved lending practices are to thank “It looks as if banks are benefiting from their decision a few years ago to be more careful about who they lend to, especially with unsecured lending”.

Bank Of England figures just released reveal £740mof credit card debt was written off in the third quarter, a 65% fall on the previous quarter figure of £2.1bn.   Industry expert David Black, a financial consultant from Defaqto said believes the improved lending practices are to thank “It looks as if banks are benefiting from their decision a few years ago to be more careful about who they lend to, especially with unsecured lending”.

Although he did concede that changes to accounting practices may also have contributed to the drop “Changes in some banks' accounting practice during the first half of the year resulted in larger numbers for the first two quarters, however third quarter figures have moved back into line with the previous trend.”

To read the full article click here.