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Loan sharks charging upwards of 10,000% in doorstep loan shock

While it has long been known that the doorstep loan sector is one of the most cut-throat and expensive in the UK, few would have guessed that some doorstep loan companies are charging interest rates of up to 10,000%. A report by the Conservative party has highlighted the growing problem for the U.K.'s low-income classes who are struggling to raise money by traditional methods and are often forced to accommodate doorstep loan companies.

This is a subject we have covered a number of occasions and while the UK authorities have made progress in tightening regulations and legal implications of "unreasonable rates" the matter is still ongoing. The sector itself is said to be worth in excess of £3 billion year although this figure is much higher is you take into account the excessive interest rates being forced upon the U.K.'s most vulnerable classes of society.

When you consider the situation and the rates being charged by doorstep lending companies this further highlights the crazy suggestion only a few weeks ago by the government, when they looked into the possibility of charging interest on crisis loans. While this particular income stream idea was quickly dropped after a serious backlash in the financial press it would appear that the low-income groups in the UK are "easy prey".

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