16 January 2009
By Neil Merrick
Social landlords have been criticised for encouraging tenants to pay their rent by credit card, increasing the likelihood of them running up debts.
A survey by the Liberal Democrats, published on January 10, shows that most councils and housing associations accept credit card payments. In one month alone, 3,300 tenants in England paid their rent using this method.
In Wales, meanwhile, a separate survey showed that rent totalling more than £1.6m has been paid by council tenants using credit cards over the past five years.
Sarah Teather, Liberal Democrat housing spokeswoman, said public bodies should be wary of encouraging credit card payments. 'Many families are already struggling under crippling levels of debt,' she said.
'Turning to credit cards to pay basic bills like rent or pay off arrears could be what finally pushes them under.'
In England, 94 of the 104 authorities in the areas surveyed accept credit card payments, along with 16 out of 20 housing associations. Seven landlords allow rent arrears to be paid off using a credit card.
There is no government guidance to state whether public bodies should accept credit cards. Abi Davies, head of policy at the Chartered Institute of Housing, said landlords should offer tenants a range of payment methods but avoid encouraging them to borrow money or run up debts.
PFjan2009
