New research has shown that just 70 per cent of loan applicants in 2007 didn’t have to provide any proof of earnings . Just 663,617 people out of 2.9 million provided proof of income, whilst 15 per cent didn’t even disclose how much they earn on their application form.
45 per cent of loans, meanwhile, were obtained indirectly, through a source other than the bank, and with often little information on their applicants judging by the absence of any proof of earnings, it seems that banks were still operating a risky policy for the most part of 2007. The high risk level is reflected in the £17 billion of write offs throughout 2007.
The research also shows that 1.3 million loans were taken out in order to consolidate other debts, though only 23 per cent of loans were used to clear debts.
Earnings Proof Not Needed for 70pc of Loan Applicants
Tue, 22 Apr 2008
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