Subject category:
Finance, Accounting and Control
Published by:
IBS Case Development Center
Length: 15 pages
Data source: Published sources
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https://casecent.re/p/20759
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Abstract
In 2003 Britain accumulated a lot of credit. According to a Bank of England report, the credit card lending formed 7.16% of the total lending to individuals of the UK for the month of September 2003. Along with the increase in credit card lending, credit card debts have also increased. The Bank of England revised its interest rate to keep a check on the increasing amounts of debt and inflation. The credit card lenders are dealing aggressively with their customers by going to the courts and also engaging bailiffs. They are also selling the debts to the debt collection agencies. Overall the problem of accumulating credit card debt is contributing to the increase in the non-performing assets of banks and creating a vicious cycle in the economy.
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Abstract
In 2003 Britain accumulated a lot of credit. According to a Bank of England report, the credit card lending formed 7.16% of the total lending to individuals of the UK for the month of September 2003. Along with the increase in credit card lending, credit card debts have also increased. The Bank of England revised its interest rate to keep a check on the increasing amounts of debt and inflation. The credit card lenders are dealing aggressively with their customers by going to the courts and also engaging bailiffs. They are also selling the debts to the debt collection agencies. Overall the problem of accumulating credit card debt is contributing to the increase in the non-performing assets of banks and creating a vicious cycle in the economy.