A woman who had accumulated £10,000 in credit card debt reported to BBC Panorama that Experian, a credit-rating service, sent her numerous emails promoting high-interest credit card offers as she neared paying off her debt. The woman, Iona Bain, believed the service would help her manage her finances, but instead, she felt pressured to take on more debt.

Experian's actions have drawn criticism from consumer groups, who argue that such offers, especially from credit-scoring companies, can exacerbate financial difficulties for vulnerable individuals already struggling with repayments. Industry figures indicate that approximately 35 million people in the UK hold credit cards, making them a widespread financial tool. However, the annual percentage rate (APR), encompassing fees and charges, can vary significantly, ranging from 0% to upwards of 30% or more, potentially leading to escalating debt for consumers.

Experian responded to the BBC Panorama report by stating that it is developing a process to identify potentially vulnerable customers and prevent them from receiving marketing emails. The company maintained that the credit card options presented to Bain could have potentially enabled her to pay off her existing debt more quickly or at a lower overall cost.

The incident highlights the broader debate surrounding the role and responsibility of credit-scoring agencies in consumer finance. While these companies provide valuable services in assessing creditworthiness, concerns are growing about the potential for conflicts of interest when they also market credit products. Consumer advocates are calling for greater transparency and stricter regulations to protect vulnerable individuals from predatory lending practices. The Financial Conduct Authority (FCA) is currently reviewing the practices of credit reference agencies to ensure fair treatment of consumers.