Lenders accused of being irresponsible

Posted 29/07/2009

The UK Insolvency Helpline has pointed the finger at lenders over the current economic crisis.

According to the group, lenders have been irresponsible in providing loans for the last decade.

Ian Boden-Smyth, spokesperson for the organisation, stated that the free market economy has allowed lenders to choose whatever rates they wanted.

This comes after Barnardos launched a campaign demanding an inquiry into high interest lenders earlier this month.

Mr Boden-Smyth commented: “For over ten years now there has been serious irresponsible lending going on by several niche adverse credit lenders.”

He went on to say that the government and organisations such as the UK Insolvency Helpline are now calling for financial inclusion, through which consumers would have access to standardised rates of lending.

Children’s charity Barnados has launched a campaign calling for an investigation into the practices of high-interest lenders.

In its new report on child poverty, called Counting on Credit, the charity focuses on the high levels of debt incurred by poor families at the hands of loan companies.