Financial service firms operating in the UK should be more open about the reasons behind their lending decisions, it has been claimed.
According to uSwitch.com, around 1.6 million Britons have had their credit card limit cut over the past 12 months and in a quarter of these instances no explanation was offered.
In addition, almost 1.3 million consumers have seen their account closed or be charged an annual fee on their account during the same period, which for many could result in money and debt management problems.
Clearly, banks and other credit providers are keen to avoid any potential risks but their customers deserve to be informed about why a decision relating to their account has been taken, the comparison firm insists.
Simeon Linstead, head of personal finance at uSwitch.com, said: "Credit card companies who are taking action to close down or make changes to customers’ accounts must be completely open about how and why they have selected those customers."
Meanwhile, Citizens Advice recently suggested that lenders are failing to negotiate fully with customers who are facing serious debt problems and potential repossession.