Figures from Provident Financial have shown that nearly two million people took out loans in 2007 with interest rates as high as 100 per cent . The doorstep small loans lender now has 1.6 million customers – a 5 per cent increase on 2006 – who borrow an average of £400. 2007 saw Provident Financial make pretax profits of £115.2 million – an 11 per cent increase on 2006. With the number of people being rejected for loans by major banks on the up – Provident estimate there are now ten million people who struggle to get loans from high street banks – the doorstep lender looks set to enjoy a profitable 2008.
The increasing number of loan application rejections from high street banks has seen doorstep lenders criticised for taking advantage of vulnerable people. Although the nature of doorstep lenders means those on the lowest income are having to pay the highest interest rates on loans, experts find solace in the fact that doorstep lenders take business away from illegal loan sharks .
Doorstep Loans On the Up
Mon, 10 Mar 2008
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