Liberal Demoncrat Shadow chancellor Vince Cable has criticised lenders for “irresponsible behaviour” following Lloyds TSB’s move to increase provisions to cover bad debts.
Cable says: The irresponsible behaviour on the part of lenders and consumers over the last few years is now starting to show through in the bad debts that banks have to write off.
Banks must share some of the blame for rising insolvencies and must act more responsibly in the future.
While some individuals may have acted recklessly, banks are also to blame for increasing credit limits without a customer request and for bombarding individuals with unsolicited mailings.
Personal bankruptcies are rising very rapidly now, and with interest rates likely to rise in the future and soaring energy bills, households are likely to increasingly feel the pinch.