Tories slam doorstep loans

09/01/2009

The high-interest "doorstep loans" industry has been strongly criticised by the Conservative party.

A Tory report shows that one web loan firm is even charging an APR of almost 10,000 per cent - despite the Bank of England slashing its own lending rate to a lowest-ever 1.5 per cent.

The Conservatives said that they would institute a National Finance Advice Scheme in government, which would encourage consumers to compare the market and find out about cheaper loans deals than many of those offered by the "doorstep" firms.

Housing spokesman Grant Shapps said that the situation was "obscene".

The home credit sector is thought to be worth around £3 billion each year to providers.

Dominated by six companies, the loans are attractive to some customers because providers offer near-instant decisions on extending credit and a simple applications process.

However, APRs tend to be much higher than those carried by loans from high-street providers.

Tags; Debt Management and Banking, Credit Card Lifestyle,

• Share
• 
• 
• Store
• 
• Follow
•