For Your Protection and Peace of Mind
All our loans & procedures are approved and qualified by our fully experienced compliance team to ensure they meet our high standards and comply with all current regulatory requirements
 News |
|
Search Categories |
| Archive News |
NCC praises crackdown on home credit industry
The Competition Commission's (CC) decision to introduce measures designed to increase competition in the home credit market has been welcomed by the National Consumer Council (NCC).
Following a super-complaint about the high cost and low choice of home credit loans, the CC decided that action is needed to "open up the market" and allow greater transparency behind the costs of the loans.
Additionally, the watchdog announced that lenders should allow data sharing, meaning that home credit customers who have built up a good repayment record can benefit from applying for personal loans from other types of lenders that often charge smaller rates.
Ed Mayo, chief executive of the NCC, described the decision as an "excellent result".
"[Consumers] have been paying £75 million over the odds every year for these small cash loans collected at home," he said.
Mr Mayo concluded by saying that the new obligations for doorstep lenders should bring down the cost for "hard-pressed" customers.