Credit card companies are watching the way their customers spend and repay money more closely, in response to claims that they encourage people to borrow irresponsibly.

Credit card companies are watching the way their customers spend and repay money more closely, in response to claims that they encourage people to borrow irresponsibly.

As of early next year, four banks will use a new computer system to keep an eye on how customers use their cards and offer a warning should they appear to be getting into difficulties.

Credit card companies say their main aim is to aid their customers, although they too will benefit from cutting the amount of money they lose when they issue cards to people who then accumulate too much debt.

Egg is one of the banks participating in the scheme. Chief executive Paul Gratton said: "By sharing more information, we are better placed to help customers manage their borrowings and avoid financial difficulty."

Abbey, the Co-op and Barclaycard are also taking up the initiative, which has been praised by Citizens Advice, although the bureaux? warned that lenders need to market other loans equally responsibly.

The new scheme will also see banks share information on how much is spent and repaid on the card each month, how much cash has been taken out, any recent changes to borrowing limits and any repayment cheques that bounce.