An astonishing 1.3 million desperate consumers applied for a debated credit card last year that charged its customers an appalling forty percent interest rate. 

The particulars of the happening were revealed as the borrower Provident Financial released their profit earnings showing a thirteen percent increase in 2010.  Four out of every five applicants where rejected for its Vanquis card, said boss Peter Crook.  Even so, the company approved 241,000 customers the year prior. 

Crook suggested that this reflects the fact that banks are making it increasingly more difficult for consumers to access credit.  He said, "Some are only issuing credit cards to existing current account customers."

Vanquis primarily focuses on those consumers with poor credit.  Cards issued through the company typically starts with credit limits as low as £250.  If the cardholder shows a good payment history, their credit may increase. 

Crook added, "The average limit is about £1,000 and the typical balance outstanding is around £600."

Crook also said they are losing forty percent to borrowers who fail to repay their debts.  Yet Vanquis reported a ninety percent profit increase last year. 

Vanquis also specializes in short-term loans of £100 to £500 with repayments collected by a network of twelve thousand agents.  This particular branch did not performed as well.  Crook commented, "Household incomes were under pressure from wage freezes and cuts to working hours coupled with rising food, fuel and utility bills."  He anticipates 2011 to remain just as difficult.