Home Credit Prices Unfair, says Commission

The Competition Commission has published its emerging thinking following the first 10 months of investigation into the home credit industry. The report confirms the views of Debt on our Doorstep that home credit companies do not compete on price, and that there is evidence that the structure of home credit loans traps borrowers in a spiral of growing indebtedness. The inquiry will now go onto to consider possible remedies.

Damon Gibbons, Chair of Debt on our Doorstep, commented:

"The Competition Commission's report provides the basis for intervention in the market to stop the home credit rip off. Debt on our Doorstep has been consistent in its criticisms of this industry and the points we made in our submissions have been verified by the Commission. We hope that they will now give serious consideration to placing limits on the interest rates that home credit companies can charge in order to ensure that people on low incomes do not have to pay an unfair price for their credit."