Warning over predatory lenders over Christmas and New Year
December 24, 2009
Warnings have been issued by industry experts to consumers in the UK who might be thinking about taking a loan over the Christmas and New Year period to tide them over. Many desperate consumers who do not have the cash available to go out, entertain, make purchases and the like over the festive season may decide to turn to predatory lenders, who often prey on the more vulnerable people that have debts and little in the way of income.
Warnings were already issued before Christmas, where consumers were urged to think carefully about whether it was worth going to a predatory lender just to buy gifts for people. In many cases the people that end up going to these lenders are still in debt from the previous year, and this means that they are getting themselves further and further into debt, and with a lender that is not governed in the same way as a traditional one, which offers more protection to the consumer.
With Christmas now over many consumers may also be panicking because they have spent vial household funds on Christmas festivities and gifts, and those that now need money to make payments on bills and other financial commitments are also in danger of being desperate and going to a predatory lender. The warning was issued by the Barnstaple Poverty Action Group.
Phil Davey, the manager at BPAG, said: “Of course, we all want to give our families the best possible Christmas. However, taking out unaffordable loans to support non-essential expenditure can have severe and long-term consequences for both ourselves and our families. It is no coincidence that the period leading up to Christmas is the time of year that loan sharks, doorstep lenders and pay day loan providers are at their most active. They well understand the pressures Christmas brings, particularly to families.”
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