Graduate gets nearly £3,000 of store credit. One problem is that they earn less than £1,000...
Store cards are the devil's work. They're designed to make you think you can go on a spending spree and not really worry about whether you've got any money in which to do it with. Then, you get the bill and find that the crappy £10 jumper you bought is actually going to cost you triple. You might as well shoplift. The interest rates charged on store credit range from 18.9% to 28.9%.
Anyway, one student scumbag graduate who was on a meagre wage found that they could get a stupid amount of credit from stores. As the headline states, they were offered nearly £3,000 of store card credit in two days despite earning less than £1,000 so far this year.
This kid, who has £19,000 of student debt dangling over their head, was offered six store cards on the high street with credit totalling £2,750, according to an investigation by Which? Money.
The graduate posed as a customer in 20 shops where he bought items costing between £50 and £100 and asked if he could get discounts if he took out a store card. The subsequent 12 credit checks carried out over two days bafflingly gave the green light and they got credit by day two. It seems that the stores are a bit keen to get you to sign the forms without allowing you to read the T&Cs.
Thanks to the student graduate's grim financial position, in one case, it would have taken them 20 years to clear the debt if they made the minimum repayment each month. BHS initially offered the student a store card with £100 credit... then.. well, they sent a nice card along with a £1,500 credit limit. Not only that, but the idiots put the graduate's street name on the card, instead of his actual name.
Which? are asking retailers to work more closely with credit reference agencies to make sure they are aware of customers' circumstances before they lend to them as well as calling for sales staff to be given better training in such matters. Or, alternatively, a general call for them to do their job properly.
The chances of that happening without legislation are slim-to-fuck all I expect.