Doorstep loan dangers

An increased uptake of high-interest loans has raised concerns about people getting into debt.

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Statement from Government on high-cost credit

The Department for Business has issued a statement after the release of a report today that concluded that the number of people relying on quick, high interest loans is rising.

The Government is currently looking at whether any action needs to be taken to address the problem, and about what action it might take.

Read the full statement from them below:

"The Government is concerned about problems in the high cost credit sector and is determined to address these, particularly for the most vulnerable people.

"The Office of Fair Trading have been conducting a compliance review of the payday sector and are due to issue their final report shortly. We strongly support any enforcement action they take forward and the steps they will take to improve standards across the sector."

– Spokesperson for the Department for Business

"Our intention is for the new Financial Conduct Authority to be given responsibility fo regulating consumer credit from 2014. This new regulator will have a diverse range of powers to address problems across all consumer credit markets.

"The Government is currently considering whether other action may be needed in the high cost credit sector."

– Spokesperson for the Department for Business
  1. Rachel Sweeney

The dangers of high interest borrowing

The number of people relying on quick, high interest loans is rising. The Centre for Responsible Credit says companies should share information about customers who are already in debt. The change would protect low income borrowers from irresponsible lenders.

Kath Simms and Kath Carter, both from Stockton, have stuggled with loans for years. They told ITV how easy it is to fall into financial ruin.

Two women speak out about the dangers of doorstep loans

Two women from Stockton are warning people about the dangers of high-interest loans.

Kath Carter spent 10 years struggling with loans to doorstep lenders and rent-to-own schemes.

Kath Simms has 2 rent-to-own loans and 3 or 4 doorstep loans.

She now finds that after she has paid these back, she has no money to heat the house and is skipping meals to keep costs down.

Victims warn of door-step loan dangers

These women say high-interest loans have become 'the norm' for vulnerable people Credit: ITV News

Two Stockton mothers are warning others of the risks of taking out taking out high-interest loans. They say vulnerable people are being targeted by companies who knock on people's doors and are becoming 'the norm' and 'a credit line' for those who find it difficult to live within their means.

Teesside debt charity Thrive supports hundreds of people with cash problems.

Community organiser Greg Brown says, “We try to advise people on alternatives to high interest loans. We encourage people to stick up for themselves, challenge lenders and get what they are entitled to. We know what rights people have and help send people on the right way.”

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