Debt Advice News: Crackdown on doorstep lenders?

Steps to protect consumers from severe debt problems are set to be discussed next month at Downing Street.

The plans, revealed by the Mail on Sunday, could see doorstep lenders forced to put a legal cap on their interest rates, which can often run into the thousand per cent category.

The Better Banking Coalition, made up of a group of community organisations, have brought the proposals, and are due to meet with MPs on February 3rd.

Also included are plans to encourage bank borrowing to financially excluded households, while also forcing financial institutions to reveal the social groups to which they are lending.

Kevin Still, director at Atlantic, said: "Pay day loans and other forms of short-term lending have prospered in the recession as high street lenders have restricted access to credit for low earners and those with an impaired credit file."

For people with debt problems, it is important to seek debt advice and potentially look at a managed debt solution like a Debt Management Plan.

It focuses on what you can afford to repay to your existing creditors, rather than encouraging further borrowing.

Debt problems – payday loans

15/03/2011

Once again British consumers struggling against debt problems have been told to avoid resorting to t ...

Debt problems: Interest rate threat

14/03/2011

An increase in interest rates could plunge hundreds of thousands of households into debt problems. < ...

Debt problems: borrow to pay debts?

08/03/2011

People thinking about borrowing money in a bid to alleviate their debt problems have been told only ...

Debt problems – pay off debt

07/03/2011

People with debt problems currently considering the best ways to deal with them, might be interested ...