Home Credit "Super-complaint" likely
10th November 2003
Research into lack of competition now taking place..
The National Consumer Council, with assistance from Debt on our Doorstep, is undertaking research into the door to door lending market, with a view to making a "super-complaint" to the Office of Fair Trading.
The National Consumer Council is soon to be designated as a super-complainant under the Enterprise Act 2002. This empowers it to call on the Office of Fair Trading to conduct an investigation into markets which are failing consumers, and causing "significant harm". The OFT must respond within 90 days of receiving the complaint.
The NCC's case will rest on the findings of its research in the following areas:
- Whether there are barriers to consumers switching between different doorstep lenders
- What alternative forms of credit are available to low income consumers
- How the market for home credit is shared between the major players
- Whether there are barriers to market entry
- Whether charges for home credit are kept consistently high
A variety of research methods are being used, including interviews with users of door to door lenders in Birmingham, Bradford and Leicester.
