Barclays looks set to make a move against rising bad debt level

Recent figures have shown that banks in the UK have been hit hard within rising bad debt levels, with many seeing profits fall dramatically as a result of those that are unable to keep up with financial commitments such as credit card and loan repayments.

Many experts have already predicted that banks will be coming down harder on those fuelling this bad debt crisis, as well as being far more careful with regards to offering finance to those with tarnished credit. And it seems that Barclays Banks, one of the UK’s major banks, is now set to go a step further.

According to recent reports Barclays Bank is planning to sell off its sub-prime credit card division in a bid to concentrate more on consumers that are able to keep up with credit card repayments rather than those that have a history of struggling with finances, and could therefore contribute to bad debt levels for the bank.

According to some reports the bad credit credit card division that is currently owned by Barclays, Monument, could be in the firing line as the bank attempts to rid itself of some of its bad debts.

Monument was acquired by Barclays Bank in 2002, but the appointment of an expert from Citigroup to take charge of Barclayscard could result in the sale of this sub-prime section for the bank. Mr Anthony Jenkins was hired from Citigroup to streamline Barclaycard, and as part of his strategy looks set to rid the bank of its sub-prime credit card division in order to target more mainstream custom.

Tom Smith
24.02.07

More Related Articles

• Creating a Debt Relief Plan
  If you are in a significant amount of debt, you are a lot like many professional adults today. That does not have to be the case, however, and by creating a plan, you can get out of debt in a reasonable amount of time without compromising your lifestyle too much.
• Getting Out of Debt
  For many young professionals in England, debt is a serious problem. Debt is not confined to young adults alone, however, and it is becoming more and more important for people to be educated about how they can effectively and legally get out of debt.
• Office of Fair Trading Tips For Getting Out of Debt
  The Office of Fair Trading offers information and resources for consumers, and helps to ensure that their rights are observed by all merchants, including debtors and creditors. The OFT is an independent professional Office that is empowered by law with certain powers to enforce fair trade laws and legislation.

External Links:

• Loan information from Direct Gov
• Loan information from Money Made Clear