Six million have their credit card limit increased without being asked, study shows

Some 32 per cent of people who said that they were not confident they would be able to pay back their current debts were given a rise

The research shows that on average, credit card holders were given rises of £1,481 without being asked (iStock/Getty Images)

As many as six million people have had their credit card limit increased in the last year without being asked, according to a study, which also shows that people who are least confident they could pay down their debts were most likely to be given extra credit.

The research conducted by charity Citizens Advice shows that on average, credit card holders were given rises of £1,481 without being asked, and that around 12 per cent of people received an increase of £3,000 or more.

That’s despite 85 per cent of people thinking that credit card companies should always ask permission before increasing someone’s limit, according to the charity.

Some 32 per cent of people who said that they were not confident they would be able to pay back their current debts were given a rise, in comparison to 23 per cent who said that they were.

“It’s clear that credit card companies are contributing to the rise in consumer debt,” said Gillian Guy, chief executive of Citizens Advice.

“Rather than credit card holders seeking to take on more debts, lenders are actively pushing it on people without enough consideration as to who can afford to pay and who can’t,” she added.

“Few consumers support unsolicited increases and our research shows that they make people’s debt problems worse,” Ms Guy said.

She urged Chancellor Philip Hammond to “step in to prevent credit card companies weighing people down with unwanted debt - particularly when they are already struggling to keep their heads above water”.

The survey, in conjunction with ComRes, was conducted in early November. Over 2,000 adults were questioned of which 1,332 had credit cards.

Citizens Advice has for months been urging the Financial Conduct Authority to implement measure preventing people from slipping into problem debt.

Under rules proposed in April, the FCA agreed with credit card providers that they would start asking new customers for their consent before raising limits, and that providers would give customers the option to carry on receiving uninvited increases.