AA: Access to loans should be increased

More needs to be done to ensure there is access to affordable credit products.

There needs to be greater access to affordable credit.

Such is the assertion of AA Financial Services director Mark Huggins, who claims there is an increasing division between those who are unable to take out loans, credit cards and other forms of borrowing and those who can - but only at a high cost.

Appearing at the Institute of Economic Affairs conference, he states that while a more "responsible approach" towards lending must be taken, the continued polarisation of the market could see millions of creditworthy consumers denied access to personal loans and other financial products.

"The credit market trend is increasingly disenfranchising large numbers of the population who now either can't obtain credit at all, or can only do so if they are prepared to pay very high interest rates," he says.

Mr Huggins' comments come as lovemoney.com's Mark Adams recently reported that despite the cost of borrowing surging over the past few years it is still possible to obtain a competitive deal.

By Emma North