Public concern with the damage caused by high-cost lending has never been greater. Poorer households have been hit hard since the onset of the financial crisis in 2008. Wages have failed to keep pace with rising fuel, food and transport costs, and austerity measures, including both public spending cuts and welfare reforms, are taking the most from those that can least afford it. We are definitely not ‘all in this together’. In fact, for the high-cost lenders – home credit or door-to-door money-lenders, rent-to-own (‘RTO’) stores such as BrightHouse, pawnbrokers and payday lenders – this is boom time.
A former debt collector blows the whistle on the unscrupulous practices of high-cost lenders.
We’re currently running a ‘School of Participation with people who are affected by the ‘Poverty Premium’. At the first session, people shared their thoughts about what poverty means, and what challenges they face at the moment.
Is it possible to deliver decent good and services to people on low incomes that don’t cost an arm and a leg?
Almost 10 years to the day from Debt on our Doorstep’s lobby of parliament, the Government yesterday announced it has finally agreed to introduce a cap on extortionate cost of payday loans.