Almost five million people have been granted credit cards in the past year without having to prove their income, according to research.

Some 84 percent of successful credit card applicants were not asked to provide any proof of income, such as payslips, to support the figures stated in their applications in the past 12 months, according to a YouGov poll of 4,048 people. The survey also showed that 14 percent were not asked about their salary or outgoings during the application process, yet they obtained average credit of 3,545 pounds.

Just 8 percent of those surveyed were asked for proof of income or outgoings when taking out credit. It is thought that the credit crunch that has forced those feeling the pinch not only to rely more on credit cards but also to lie on applications in order to receive credit.

"The fact remains that just because a consumer appears to have a 'suitable' credit score, it doesn't mean they are always honest about their income and actually have the cash available each month to pay the bill”, a spokes person said.

Although it is certainly true that surveys may not be reflecting the true financial status of individuals due to contrived applications, it is worrying that so many of the British public are not only willing to lie in order to receive credit but also successful in their efforts.

It is hard to tell whether the latest version of the Banking Code, which came into effect in March 2008 and made credit reference checks mandatory, is having the desired effect. The Banking Code sets standards for banks, building societies and other banking service providers. It regulates how these services operate and make sure that their systems are ethical. Section 10 states:

10.10 Before we (the financial institution) give you a credit limit, we will assess whether we feel you (the customer) will be able to repay it.

Similar standards are in place for lending money to an individual. This is outlined in section 13:

13.1 Before we lend you any money or increase your overdraft, or other borrowing, we will assess whether we feel you will be able to repay it.

The new code makes it necessary for companies to also take at least one of three other measures: obtain details of income and financial commitments; evidence of how finances have been handled in the past; use credit assessment techniques, such as credit scoring or internal credit scoring processes. It is hard to understand with all these policies in place, customers who are often vulnerable, are able to successfully apply for a credit card.

Within the Banking Code details on increasing an individuals credit limit are also included. In section 10 it states:

10.11 We may increase your credit limit on your credit card. We will give you notice if we do this. We will also explain clearly, and closely to the notice we give you, that you can refuse the increase, and the ways in which you can do so.

Banks, building societies and other banking service providers are free to increase your overdraft/credit limit on their own terms. This is based on whether they think you are able to make repayments. However, if the correct procedures on assessing the customers correct financial status have been overlooked, large amounts of available credit will be offered to those that can not realistically repay the money used. It is a worrying thought that in this financial climate, consumers would be given an enhanced opportunity to spend spend spend.