PPI Claim News - 16/2/2010
Credit Card Charges: Businesses turn to credit cards as banks refuse loans
Increasing numbers of small businesses are turning to credit cards for finance as they fail to gain small loans from the banks.
In a poll of 1,000 businesses, the Institute of Directors (IoD) found that one in four had applied for a bank loan, of which some 60 per cent were refused access to finance.
As a result, "it seems that more businesses are turning to forms of unsecured finance, such as credit cards to get them through their short term spending needs," comments IoD director general Miles Templeman.
He said the fact that over half of all businesses seeking finance last year were turned away by their banks was "totally incompatible" with the banking sector's position on the state of lending in the UK.
Businesses using credit cards for finance may be subject to late payment fees, payment protection insurance and overdraft charges, which can accumulate crippling amounts of debt.
The revelation comes as Britain's largest banks continue to make bumper profits and award large sum bonuses to their staff.
Barclays Bank, the UK'S second largest bank, today posted record profits of £11.6 billion, increasing its net revenue by 92 per cent over the past year.
If you would like to make a credit card charges claim to get back all your late payment / over limit fees in the last 6 years from Barclays then fill out the Quick Claim or call Belmont Thornton on 0845 526 0000.
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