Some lenders are charging as much as 2500 % annual interest. The government is looking to curb rise in unregulated loans.
A campaign is being launched to demand action to stop legal loan sharking, and Ministers are considering capping interest rates.
The government has already curbed the rates charged on credit cards and store cards. However, at the the moment lenders can charge any amount for credit, sometimes this is as high as a charge of £82 for every £100 lent. Annual charges of 2500 % are quite common these days too. When consumers borrow at these rates it traps them into a circle of debt and poverty.
It is estimated that 3 million people take out expensive door step loans, many of whom end up speaking to the Citizens Advice Bureau for help with controlling their money.
Hopefully this campaign will help people control their finances and obtain quick cash at a reasonable rate.
Well, seems like pretty nice survey with well written story. Thanks a lot for sharing this story.
Thumbs up !
Good story. Load sharking is a terrible business that preys on those who are most vulnerable.
Its about time somebody regulates these credit card compaies. I feel like between them and the mortgage companies everybody is taking advantage of people. Its robbery if you ask me how they can double their rates
the blog is so insightful..
for the company or even individual that offers loans, they have to consider also the consequences of charging bigger interests on the lent money. they have to be fair enough, there should be justice..what happens now, rich became richer while the poor became poorer..sad to say but its the reality..
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Really great post. Every one should be really careful. This will help me a lot. Not only me but a lot of people. This campaign should be successful.