The Provident Financial Group have recently announced it is closing its home credit operation, also known as ‘doorstep lending’, after it become inundated with compensation claims from its customers.
The high-cost credit sector continues to see increased customer claims for unfair treatment.
Data from the Financial Ombudsman Service shows claims filed against the door step sector hit 6,000 in the final 3 months of 2020.
Doorstep lending is just one part of the ‘high-cost credit sector’ where interest rates are over 100% and can be as high as 5,000% APR. This results in people paying back £hundreds more.
Jason Eaves, from the Notts and Lincs Credit Union said: ‘Whilst it’s good news for consumer, the risk is that another high-cost credit provider, or worse illegal loan sharks, will fill the gap created by Provident closing’
‘The Credit Union will consider a loan application from anyone living or working in Nottinghamshire or Lincolnshire. We are a local, not for profit, community owned lender and are already helping thousands of people across the two counties.’ Jason continued.
Details of the Credit Union can be found at:
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