A new study carried out recently in Britain showed families with poor credit are paying more for their broadband Internet access.
The research was carried out by a professor at the Cranfield School of Management and showed those with poor credit are being charged more than twice what people with high credit scores are charged.
In addition, the study showed families with poor credit paid more for their mobile phone contracts and finance charges as well.
According to Dr. John Glen, senior lecturer in economics and the study’s author, poor credit is costing households billions in extra charges.
“Those with poor credit are being
charged more than twice as much.”
Studies in the U.S. have shown similar disparities, although not on the same scale as the British study seems to indicate. Households in the U.S. also typically pay far more for Internet service than do British households.
The results were gathered from middle-income households over the same period of time and included families with credit ranging from poor to good.
A reason for the extra charges seems to come at least partly from the cost of equipment associated with receiving the broadband Internet signal. In addition, unpaid bills were higher in households with lower credit scores.
Lawmakers are currently looking into legislation that would make the billing scale less dramatic between those households with poor credit and those with good credit.
Source: cable.co.uk. Photo source: turner.com
BadCredit.org is a free online resource that offers valuable content and comparison services to users. To keep this resource 100% free for users, we receive advertising compensation from the financial products listed on this page. Along with key review factors, this compensation may impact how and where products appear on the page (including, for example, the order in which they appear). BadCredit.org does not include listings for all financial products.
Our Editorial Review Policy
Our site is committed to publishing independent, accurate content guided by strict editorial guidelines. Before articles and reviews are published on our site, they undergo a thorough review process performed by a team of independent editors and subject-matter experts to ensure the content’s accuracy, timeliness, and impartiality. Our editorial team is separate and independent of our site’s advertisers, and the opinions they express on our site are their own. To read more about our team members and their editorial backgrounds, please visit our site’s About page.