New Tenant Loan Comparison Site Launched To Mixed Reactions
Since the beginning of the credit crunch last year, it has become ever more difficult for someone to obtain finance through a traditional personal unsecured loan with their bank, or other lender due to the much more restrictive lending criteria which is being enforced by loan companies.
As a result of this, an ever increasing number of people who are desperate for a loan are turning to doorstep lending companies, to help them meet their financial needs, often ending up with a very expensive loan.
Following a complaint made by the National Consumer Council (NCC), now known as Consumer Focus, regarding how customers had very little way of making a comparison between different doorstep loan companies, a new website has been launched by the Competition Commission to try and help those borrowers who are looking for a doorstep loan to be able to make an informed choice with regards to the lender they choose, although by the very nature of this type of lending, a borrower is more likely to take a personal loan out with whichever company happens to knock on their door.
Lenderscompared.org.uk has claimed to be set up in association with various consumer organisations, including the National Consumer Council, amongst others, but the NCC has now said that it is disassociating itself from the website.
A spokesman for the organisation said “We don’t know how our name got in there. They are obviously trying to associate us with their work. We’re not against doorstep lending per se, but we believe there is not enough competition in the market. We recognise it is an important source of credit for some people, but we want a competitive lending market, which it is not at the moment. Some of the rates charged on this site make it extortionate.”
