OFT Clamp Down On Doorstep Lending

The Office Of Fair Trading has revealed it refused 100 licence applicationsfor ‘home collected credit’ over the last 18 months and has contacted existing lenders about improving their business practices and standards.  As family finances comeunder increasing pressure during the run-up to the festive period, it can be difficult to resist the temptation to obtain additional credit from doorstep lenders. 

With many consumers paying APRs rates in excess of 1,000%, borrowing a few hundred pounds at Christmas can quickly turn into an unmanageable debt come the New Year.

The OFT’s director of consumer credit, Ray Watson, said “Over the festive period, people are looking to borrow extra money to cover their additional costs … we are advising borrowers to shop around for the cheapest and most suitable credit.”