Doorstep loans involve small loans with repayments collected from the customer's house. They provide easy access to credit for many people who would not be able to borrow any other way.
Doorstep loans are used by around 2 million people each year. Typically, the interest charged is very high and the amount owed can rise very quickly to high levels if repayments are missed.
A minority of providers of home credit loans are little more than loan sharks and the sector has come in for severe criticism from consumers and the government.
The doorstep loan market is to be opened up to competition and become clearer for customers and cheaper under new rules set out by The Competition Commission last year.
- Zopa undercut top loan providers with loan rate below 5%
- Mortgage loan approvals rise to 16-month high
- Nationwide cuts loan rate to 4.9% for current account holders
- M&S Bank lowers loan rates
- SSE fined £1.25m for doorstep mis-selling
- Zopa cuts personal loan rate to 4.9 per cent
- Credit unions join together as alternative to payday loan firms
- Tesco Bank cuts personal loan rates
- M&S cuts personal loan rates to 5.4%
- British Gas suspends doorstep selling