Lloyds TSB in the firing line for credit card gambling promotion

By Reno Charlton Staff Writer 7 May 2009

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LLOYDS TSB has been called up over "stupid" and "irresponsible" letters sent to cardholders suggesting 50% of their credit limit could be used for gambling.

Over recent years a number of issues have raised increasing concerns amongst officials in the UK, including the increased level of gambling and gambling addiction, as well as the increase in credit card debt.

These concerns are only further heightened by the current financial climate, and many people have found themselves in unmanageable levels of credit card debt because they have used their credit cards to fund gambling additions.

Lloyds TSB called up

It comes as no surprise that debt charities and campaigners are up in arms over letters that high street bank, Lloyds TSB, has been sending to some of its credit card customers.

The letters sent out have been construed as encouraging cardholders to not only get further into debt on their credit card but also suggesting that they use the money to conduct gambling transactions.

Charity officials as well as politicians have attacked Lloyds TSB over these customer letters.

The letter that was sent out to customers allegedly stated that they could use up to 50% of their credit limit to conduct "transactions such as gambling", it also said that the credit card could be used to purchase gaming chips.

MP Outrage

A senior Tory Party official was outraged, and said: "It beggars belief that a bank so heavily reliant on public funds is promoting itself as a provider of credit for gambling habits. Taxpayers who are on the hook for a bailout worth billions of pounds will be horrified. This is grossly irresponsible behaviour and Lord Myners needs to put a stop to it at once.

Vince Cable from the Liberal Democrats added: "The senior management who signed this off need to be fired. It's quite extraordinary that a publicy owned company is effectively encouraging borrowers to gamble on their credit cards. It is exacty the type of stupid, irresponsible behaviour that has to be stopped. What makes this even more breathtaking is High Street banks such as Lloyds TSB are refusing to lend money to well-run businesses and borrowers with good credit histories."

A campaign official said that it was amazing that at a time when banks had been accused of already acting like casinos they actually appeared to be promoting them in this way.

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