Summary
A woman in the UK, Amanda, reported that the credit-rating company, Experian, sent her promotions for high-interest credit cards as she neared clearing her debt. Amanda, who had been using the service to monitor her credit score, was encouraged to take on more credit, despite having a history of financial struggles. Experian stated it is working on a system to better identify and protect vulnerable customers by reducing such marketing communications.
Key Facts
- Amanda had a £10,000 credit card debt and used Experian to help manage her finances.
- Experian sent her emails with offers for high-interest credit cards as she approached being debt-free.
- Many people in the UK are facing challenges with credit card debt repayments.
- Experian is reportedly developing ways to identify vulnerable customers and stop certain marketing emails.
- Credit cards are widely used in the UK, with about 35 million cardholders.
- High-interest credit cards often charge Annual Percentage Rates (APRs) ranging from 0% to over 60%.
- Amanda's credit report updates from Experian included offers suggesting improved chances for credit card approval.
- Over half of low- and medium-income adults surveyed received credit card promotions from credit-score providers.
