26 July 2006
More than 150 MPs have reportedly backed the National Housing Federation's campaign to change the law to limit the amount of interest that can be charged by home credit companies.
According to the group which represents 1,400 independent, not-for-profit housing associations in England, doorstep lenders charge APR rates ranging "from 160% to an astonishing 800% on loans, trapping low income families in a vicious cycle of debt".
"People on low incomes are often driven to exploitative doorstep lenders because they don't have access to bank accounts, impartial financial advice or affordable credit," the National Housing Federation said.
The group is backing the Early Day Motion 1068: Interest Rates Charged By Doorstep Lenders, which supports the campaign and calls for the cap on interest rates.
The motion was tabled in the commons last November and has gained support from over 150 MPs across all parties.
Liz Atkins, Director of Strategy and Communications of the National Housing Federation, said: "We know from many of our own tenants that low income households are being targeted and ripped off by doorstep lenders, paying way over the top for credit.
"Housing associations are working hard to help those who are financial excluded but the government needs to go further if it is really serious about tackling the problem. It's time to cap the ridiculous interest rates set by home credit companies and doorstep lenders."
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