RBS Increases Credit Card Debt Provision
Royal Bank of Scotland has increased its provision for credit card missed payments and defaults
9th June 2005
The Royal Bank of Scotland (RBS) has announced that it is to increase provision for bad debt in its credit card operations - effectively, raising its estimate of how many customers will fail to keep up repayments.
RBS says that the reasons for the increase are both a general growth in business, good and bad, plus increased credit card arrears.
The news follows similar announcements from other leading banks including Barclays, HSBC and HBOS, and is another worrying sign that the UK's borrowing spree may finally be coming home to roost.
RBS, however, says that while its bad debt provision is higher than recent years, it is still historically low and that there was 'no cause for alarm'.
Read More: Guardian Report
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Products from Royal Bank of Scotland : Mint Credit Card, Mint Loans, The One Account |
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