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Article: Escape from the doorstep lending trap; CREDIT UNIONS OFFER A SAFER ALTERNATIVE FOR VICTIMS OF LOAN FIRMS THAT CHARGE UP TO 1,000% INTEREST.
- Article from:
- The Mail on Sunday (London, England)
- Article date:
- May 14, 2006
CopyrightCOPYRIGHT 2006 Solo Syndication Limited. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: HELEN LOVELESS
Doorstep lenders such as Cattles and Provident Financial have faced harsh criticism for the punishing rates they charge borrowers, many of whom are on low incomes or benefits. The Competition Commission last month reported that customers of these and similar lenders had been overcharged by about [pounds sterling]500 million over the past five years - equivalent to [pounds sterling]9 for every [pounds sterling]100 borrowed.
The amounts borrowed are usually small, typically between [pounds sterling]100 and [pounds sterling]500, but the interest is high. The consumer watchdog found that the average rate was 177 per cent, rising to a ...