A number of lenders will now be able to gain information about their customers and find out if they are in too much debt.

They will be able to do so by asking the credit reference agency, Callcredit and can check if the customers have had previously had difficulties with their finances.

Before now, only lenders such as high street banks – which supplied the over indebtedness initiative whit information about current accounts – could access the information. But now the agency is extending the service to credit card and loan providers.

The managing director of Callcredit, Mr Graham Lund, speaking about the move said: “This enables all lenders capturing and sharing application income data to gain a true understanding of all their customers’ affordability and ensure that they treat then fairly and appropriately.”

This also comes after reports have stated that the number of people now claiming bankruptcy has increased by 8.2 per cent, between July and September last year.

Key factors that were said to cause the rise include, falling house prices and sustainability of Individual Voluntary Arrangements with a tougher creditor acceptance criteria.