Harsh debt collection.
Citizens Advice has reported worrying activity by doorstep lenders who earn commission on collecting repayments.
It’s estimated that 1.3 million people use these loans, the average amount borrowed being £500.
Evidence submitted to the Financial Conduct Authority shows vulnerable people being harassed into making payments they can ill afford. In some cases the practice is linked to irresponsible lending without making essential checks that the borrower can afford a doorstep loan.
We hope the FCA will extend its regulation of payday lending (introduced following a campaign by Citizens Advice and others) to other high cost credit markets including doorstep loans.
Tactics of some doorstep lenders causing serious hardship for borrowers Citizens Advice 15/02/17
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