The Consumer Credit Counselling Service has argued that it would do more harm than good to abolish doorstep lending, despite the high annual purchase rates (APRs) they tend to levy.
Head of media and public affairs for the body Frances Walker stated that the number of people using such services has risen since the onset of the credit crunch, as other sources of borrowing have dwindled.
Concerning the cost, she observed: “Although the APRs appear high, they suit some people with certain budgets because they manage on very tight budgets and they know how much they must pay off each week.”
On the other hand, were these services abolished, people would turn to illegal lenders and
The use of such borrowing is frequently related to people’s lifestyles, a study by the Office of Fair Trading has found.
Its recent poll on the subject of credit revealed that 52 per cent of those taking such