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The demise of the doorstep lenders set to hit low-income families

As news of the demise of the London Scottish Bank continues to reverberate through the UK banking industry, it seems as though a legitimate business offering funding to low-income and low credit rating families has been taken away. While there were some concerns about these tactics used by London Scottish Bank they were by far and away one of the more regulation conscious operators in the sector.

There are now serious concerns that some of the more "unfriendly" doorstep lenders may step in to the void and introduce many low-income and low credit rating families to massive interest charges. We are looking at rates often in excess of 100% per annum, massive fines for late payment and seriously hard sell tactics. However, as we approach Christmas and many low-income families struggle to make ends meet it seems as though more and more people are willing to take the chance that they can cover future repayments.

Many are expecting the government to re-establish the regulatory environment for the doorstep lenders in order to strengthen the powers available to courts around the UK. However, in the short term this is unlikely to reduce the massive pressure on low-income families as the festive period approaches.

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