Many British residents with low incomes are being targeted by loan sharks failing to offer the best rate of interest, one expert has warned.
Rather than going to mainstream providers – which may afford borrowers the opportunity to compare loans and find the best rate – many of the UK’s most vulnerable people are being left with a lifetime of debt due to illegal lenders, claimed an official at Citizens Advice.
Teresa Perchard, the organisation’s director of social policy, has welcomed the Department of Trade and Industry’s pledge to create a task force to stamp out this criminal activity.
“These criminals target the most vulnerable in society who, in desperation, agree to loans they may never be able to pay back and are left with a lifetime of debt,” she remarked.
Recently, Scottish MP Michael Moore warned that some borrowers were being offered loans with high rates of interest, rather than the best rate available.
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