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Home Collected Loans – Stay Safe

Home Collected Loans – Stay Safe

Home Credit or Doorstep Loans are home collected loans whereby an individual borrows money on the understanding that a local agent of the lender will call to the home to collect the repayments on a regular (often weekly) basis.

Such loans are normally relatively small in value, flexible in so much as there is often less of a criteria to satisfy before being approved for such a loan but can be subject to high rates of interest.

Doorstep loans do have their place in today’s society, that’s for certain and, as such, legislation has been put in place to protect the consumer from loan sharks and unscrupulous lenders.

Licensed Lending

All doorstep lenders are required to hold a Consumer Credit Licence which is issued by the Office Of Fair Trading (OFT for short). This makes it possible for the potential borrower to check on the Consumer Credit Register in order to verify the lenders credentials.

Under the Consumer Credit Act of 1974 the OFT has a legal duty to upkeep and maintain an accurate register of all consumer credit licence holders including applications for licences past and present, holders of licences past and present, renewals and changes to licence holders details, refused applications, revoked applications and any subsequent appeals. It also keeps records of credit agreements made by unlicensed lenders.

Checking any company license is fast, simple and free. It can be carried out online at ( and is highly recommended before entering into any form of home credit agreement.

Comparing Home Collected Loans

Back in 2004 the Competition Commission started an investigation into the home credit industry, as a result of this investigation a new, independent price comparison website was set up to ensure healthy competition between companies operating in the UK home credit market for the benefit of companies, customers and the economy. This website has set the benchmark for fair lending and all major home credit companies have signed up to it.

As a result of this any prospective doorstep loans customer can now compare the cost of home credit loans on Lenders Compared, an independent comparison website which can be found at

Complaints Against A Home Credit Lender

Although voluntary, most reputable home credit companies have signed up to the Consumer Credit Association and have agreed to operate in accordance with the CCA Code Of Practice in order to promote high standards of business and to consumer relations.

The CCA was established in 1974 and, in dealing with a member company, the consumer should be assured of the best service possible as all members abide by the stringent regulations set out in the CCA’s Code of Practice. Most members are well established, reputable businesses, both household names, national companies and local providers who know and understand the local community and the demands of the consumer.

If you have any complaints against any member of the CCA there is a published procedure to ensure that this is a simple, accessible process which can be accessed at the CCA UK website.

Avoid Loan Sharks

Follow the guidelines above and home credit should be safe – any doubts about a lender and the golden rule is DON’T DEAL WITH THEM.

Anyone lending money legally has to hold a Consumer Credit Licence – anyone operating without one is trading illegally and breaking the law and these individuals of companies are known as loan sharks.

If you have any reason to believe that a money lender is working without a licence you can call the Illegal Money Lending Hotline on 0300 555 2222 or simply text loan shark followed by the lenders details to 60003.

Any contact is anonymous, confidential and safe so don’t hesitate if you have any concerns whatsoever.

Source by Tom J Brewer

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