Report: Premium credit cards given to poor

OTTAWA, April 21 (UPI) -- The Canadian Federation of Independent Business is questioning why unsolicited premium credit cards are being mailed to people who can't afford them.

In a release from Ottawa Tuesday, the CFIB cited a national poll it commissioned in which 22 percent of 1,524 credit card holders said they had received premium major cards such as MasterCard and Visa, but had not requested them.

Further data from the poll found the majority of those who didn't ask for the cards but got them were "the poor, elderly and least educated."

The cards provide additional reward programs such as travel points and additional insurance coverage, and often have hefty annual fees.

In the release, CFIB president Catherine Swift said it appeared the card companies aren't very concerned about vulnerable customer segments when it comes to their ability to take on debt.

"These current findings reinforce the need for some form of government oversight on the credit card industry," Swift said.

The Canadian senate is conducting hearings on credit cards and the wide-ranging interest rates some charge.

The poll of users had a 2.6 percent margin of error, the release said.