13 June 2006
A new lending scheme has been set up by a property management group in an attempt to protect vulnerable people from expensive doorstep lenders.
Places for People will offer loans of up to £3,000 to 7,000 people in the north-west during its pilot scheme.
It should help people avoid having to borrow from doorstep lenders, who can charge as much as 900% interest on the loans they provide.
In 2004, a survey by the National Consumer Council found the average interest charge by doorstep lenders to be 177%.
"This unique move, together with the group's wide-ranging home and support services, underlines our determination to work with our customers to create sustainable communities," said David Cowans, chief executive of Places for People.
"It will assist us to combat financial exclusion, prevent customers getting into debt and help people step on to the housing ladder."
The firm has also linked up with the Co-operative Bank, which will offer a range of mortgages to Places for People tenants. Around 400 people look set to benefit.
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