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Citizens Advice response to the credit and store card proposals

27 October 2009

Citizens Advice Director of Public Policy, Teresa Perchard said:

“The Government’s determination to develop a more responsible framework for credit and store cards is very welcome.

“Citizens Advice Bureaux dealt with over 300,000 new enquiries about credit, store and charge card debts over the last year* making it the biggest single issue we see. In particular we see far too many people on low incomes who have drifted into very high levels of borrowing as a result of unsolicited increased access to credit.

“A lot has been said about responsible lending and borrowing over the last few years, but it has yet to be achieved. The banning of unsolicited credit card cheques is therefore a very positive step and one we hope to see extended towards banning the practice of increasing credit limits without prior consent. Together these measures could result in a significant long term culture change where increases in credit limits are customer driven and people are no longer sleep walking into debt.”

*Citizens Advice Bureaux in England and Wales saw 305,581 new enquiries Credit, store and charge card debts from 1 July 2008 – 30 Jun 2009

Notes to editors

  1. The Citizens Advice service comprises a network of local bureaux, all of which are independent charities, and national charity Citizens Advice. Together we help people resolve their money, legal and other problems by providing information and advice and by influencing policymakers. For more information in England and Wales see www.citizensadvice.org.uk
  2. The advice provided by the Citizens Advice service is free, independent, confidential, and impartial, and available to everyone regardless of race, gender, disability, sexual orientation, religion, age or nationality. For online advice and information see New windowwww.adviceguide.org.uk
  3. Citizens Advice Bureaux in England and Wales advised 2.1 million clients on 7.1 million problems from April 2010 to March 2011. For full 2010/2011 service statistics see: www.citizensadvice.org.uk/press_statistics
  4. Out of 22 national charities, the Citizens Advice service is ranked by the general public as being the most helpful, approachable, professional, informative, effective / cost effective, reputable and accountable. (nfpSynergy’s Brand Attributes survey, May 2010).
  5. Most Citizens Advice service staff are trained volunteers, working at around 3,300 service outlets across England and Wales.