Centrepoint urges credit crackdown

Youth homelessness charity Centrepoint is calling for a
crackdown on companies that target people living in hostels with
mailshots for credit cards.

Research by the charity shows more than eight out of 10 young
homeless people are in debt. Almost a quarter of those surveyed
said they are encouraged into a “spiral of debt” by companies
targeting them with credit cards, catalogue or store cards.

Centrepoint’s chief executive Anthony Lawton said: “It is clear
that these products should not be promoted to young people who
lenders know to be living in hostels, or who they know to be
homeless.”

The charity has called for the Department of Trade and Industry
and the Financial Services Authority to develop guidelines to
tackle the issue through regulation.

The charity also wants young homeless people to have more access
to affordable credit and financial advice to help them manage their
own money. Youth homelessness charity Centrepoint is calling for a
crackdown on companies that target people living in hostels with
mailshots for credit cards.

Research by the charity shows more than eight out of 10 young
homeless people are in debt. Almost a quarter of those surveyed
said they are encouraged into a “spiral of debt” by companies
targeting them with credit cards, catalogue or store cards.

Centrepoint’s chief executive Anthony Lawton said: “It is clear
that these products should not be promoted to young people who
lenders know to be living in hostels, or who they know to be
homeless.”

The charity has called for the Department of Trade and Industry
and the Financial Services Authority to develop guidelines to
tackle the issue through regulation.

The charity also wants young homeless people to have more access
to affordable credit and financial advice  to help them manage
their own money.