People who lie about their income on a credit card application could struggle to repay their debts, one expert has warned.
According to James Falla, managing director of debt consultancy firm Thomas Charles, people who are already having financial difficulties are more likely to fraudulently apply for a credit card, a situation which could make things worse.
He said: "They've got to the point where they can't afford to pay monthly bills and so the first thing they do is apply for a new credit card which gives them extra facilities from which they can draw upon to pay the other credit off."
Mr Falla believes that this is a situation which is set to continue as credit card companies are happy to risk the chance they might not get their money back in some situations.
A recent survey by uSwitch.com found that five per cent of people have lied about their income when applying for a credit card.
News Side
Warning over fraudulent credit card applications
Thu, 03 Jul 2008
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