Bank data analysis suggests lenders could be unwittingly fuelling gambling problems by extending credit
Financial institutions in the UK may be lending more than £174m a month to people who are using a risky proportion of their income on gambling, an analysis of the spending patterns of loan customers suggests.
The leading debt charity StepChange said the results suggested lenders could be unwittingly fuelling gambling problems by extending credit to people who deposited much of their money in betting accounts or used it to wager in high street bookmakers. The firm said these customers would not have been identified as risky borrowers by more traditional credit checks used by lenders who did not routinely analyse open banking data.
Losses of £1,000 a day, or £2,000 over nine months, would trigger enhanced interaction by gambling firms, with customers potentially asked to hand over bank statements or other information to show they can afford losses on that scale.
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