Tory MP warns Treasury that implosion of doorstep lending industry could force borrowers into hands of criminal gangs – and even prostitution
A Tory MP has warned the Treasury that the implosion of the doorstep lending industry could force borrowers into the hands of criminal gangs – and even into prostitution.
The Mail on Sunday revealed earlier this month that the biggest doorstep lender, Provident Financial, is quitting the market.
Anxious: Fears are growing that a compensation frenzy could send other firms to the wall, leaving a vacuum that criminals are certain to exploit
Fears are growing that a compensation frenzy could send other firms to the wall, leaving a vacuum that criminals are certain to exploit.
Sir David Amess has written to Economic Secretary to the Treasury John Glen ‘expressing concerns’ over reports that many poor families could be forced to resort to using illegal loan sharks and then coerced into criminal activity.
In an interview today, the boss of doorstep lender Morses Club warns that the crackdown by the Financial Services Authority on the mis-selling of high-cost loans may become the City regulator’s ‘biggest disaster’.