Doorstep Loans, also known as home credit loans, is where a representative (or agent) of the loan company comes to your home to give you the loan. They also come to your house to collect the repayments, rather than the borrower paying them through a bank or standard repayment scheme. A Doorstep Loan is very similar to a Payday loan, in that they are short term loans, designed to bridge shortfalls between paydays, and are repaid on payday.
Doorstep loans are used by just over 1.3 million people and lenders include Morses Club, Provident and Loans at Home. Doorstep loan lenders build personal relationships with their borrowers via agents on the doorstep. These agents have historically been given targets to meet and commission rewards.
The practice of Doorstep loans has resulted in many customers locked into these relationships for years and year, with agents (and the lenders they represent) failing to recognised that the borrowers have been re-borrowing out of necessity – not personal choice. The borrowers of Doorstep Loans have incurred high fees on loans intending for short term use.
Like Amigo and the lenders who offer Guarantor loans, doorstep loans have come into the spotlight recently, with the Financial Conduct Authority keeping a very close on on companies like Provident, The BBC documented that the doorstep loan provider, has to pay “almost £169m in compensation to customers’ after mis-selling a particular loan product to customers whilst paying a fine of £2million to the FCA.
Other complaints about doorstep loans include people being sold a home credit loan by an agent, when they could not afford it. In 2019, there was also controversial report of Provident offering “lending bonuses” to it’s doorstep lending staff, with concerns of having “bonus payments linked to loans issued to subprime borrowers”.
If you found yourself unable to pay back the loan you took with a Doorstep Loan company, like Provident, you may be eligible for a Provident refund claim– and the Reclaim Experts can help you receive what you are owed
With all types of loans, including Payday, Guarantor and Doorstep loans, it is possible to claim against the lender of each loan, if the loan was unaffordable to the borrower and the loan lender acted irresponsibly.
We understand the pressure that a loans can put on borrowers, especially if it becomes unaffordable. If you have experienced (or are experiencing) a unaffordable Guarantor loan, then you may be eligible to claim a loan refund and the Reclaim Experts can help.
Use our easy to use FREE Loan compensation calculator that will give you an idea of how much compensation you maybe able to claim as a refund from the lender.
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