7 March 2005
One of the UK's leading debt charities has motioned for a new legislation to be introduced capping interest rates charged for doorstep loans to prevent consumers being ripped off.
Debt On Your Doorstep has said that it wants all doorstep lenders and their products to be registered with credit reference agencies and to be more tightly regulated.
Speaking to the Daily Mail, on behalf of the charity, Damon Gibbons, said: "The home credit industry has been getting away with sharp practices for years.
"Hidden fees for possible default which are never refunded if payment is made on time, and the charging of interest as loans are rolled over creating a spiral of growing debt could both be eliminated by the Competition Commission and we continue to be optimistic that the case for price capping in this sector will be made out."
Experts have suggested that people struggling with spiralling debs could be best advised to consolidate them with one more manageable loan but numerous consumers are still taking doorstep loans.
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