Doorstep lenders overcharge whilst people try to stop repossession

It was revealed today that there are some doorstep lenders charging in excess of 500% apr on loans. Lender’s like Provident Financial, who is probably the largest doorstep lender, commented by saying it is “a fair and transparent lender”.

Barnardo’s, the children’s charity, have called for these doorstep lenders to be regulated in the hope that the extortionate interest rates can be a thing of the past.

The people taking out these types of loans are individuals and families who are in a position where they are unable to provide for themselves or there family. This may be because they have lost their job or had to take a pay cut due to the recession. These people are on the brink or actually trying to stop repossession of their home. On top of trying to stop repossession they now have to pay a loan with an interest rate of over 500% apr because they are unable to arrange finance else where.

The doorstep lenders are targeting the people that are either on the brink or who are trying to stop repossession deliberately which is not helping these people. The loan is probably dressed up so these people feel that they are able to take on the loan and be able to afford the loan, but the reality of it all is they are probably not able to keep up the repayments due to the extortionate apr, the doorstep lender probably knows that this is the case.

If you are on the brink or are actually trying to stop repossession then why not speak to a financial advisor or consider looking into sell and rent back options.