Home Collected Loans Info Pages

home collected loans informationIn this section we look to provide more general information as to how the home credit loans market operates in the UK. It’s a growing market that’s used by millions of people all over the country but has not been without controversy over the years.

We look at the attraction of home collected loans, the way they work and the controls put in place by the industry to provide the much needed confidence and security to those considering a doorstep loan.

The Workings Of A Home Collected Loan

Home collected loans are better known as doorstep loans. They are small cash loans that are delivered direct to the customers door and the repayments are then collected in the same way. They are designed to be simple, flexible and affordable which makes them highly popular with those finding it difficult to obtain a loan through the main high street institutions for various reasons such as low income, receipt of benefits, bad credit history etc.

The loans themselves are relatively small – often up to £500, although more companies are advertising loans of up to £1,000 these days but, unlike the popular payday loan, repayments can be spread over a period of time to suit but usually up to a maximum of a year, and split into weekly amounts which are then collected from the door. Interest rates may be high to reflect the increased risk and cost to lenders but, because they are split into weekly sums, tend to be very affordable.

You can read more about home collected loans here >>>

The UK Home Credit Loans Industry

Home credit differs considerably from the more mainstream type finance provided from the household name, high street banks and building societies. It provides access, for those who may not fit into traditional lending criteria, to small cash loans. This means that those on lower income, variable income, retired or on benefits along with those struggling to get finance due to previous credit problems or rejected loan applications are still eligible of consideration.

Perhaps because of the flexibility home credit loans have not been without controversy over the years and have been subject to a mixed press. The industry responded however and formed its own trade association with its own strict code of practice to ensure high standards of business and lending ethics along with better customer relations.

This home collected credit trade association was formed in 1978 under the name The name of the Consumer Credit Association. Most of the main doorstep lenders are now members of the CCA – member ship now stands at over 500 companies, all of whom have been assessed to ensure compliance to standards, the constitution and the code of practice. This shows the scale of the home credit market in the UK – it really is a growth market, especially in these difficult economic times.

For anyone considering home credit or doorstep loans the Consumer Credit Association may well be a good starting point. Whilst many members are major national organisations all members are required to have the full understanding of the local area and issues relating to the localised community which is needed to ensure the standard of personal service required.

Visit the website Consumer Credit Association website for more information here: http://www.ccauk.org/

To add to consumer confidence, trust and safety ALL home credit providers are required to hold a Consumer Credit Licence from the Office Of Fair Trading – always check and NEVER deal with anyone who doesn’t hold such a licence.

Check any company license online for free at http://www2.crw.gov.uk/

Read more about home credit loans and your safety here >>>

Also, to further build consumer confidence in the doorstep loans market, it is now possible to compare the cost of home credit loans on an industry recognised, independant comparison website called Lenders Compared which you will find advertised on all reputable home credit loans providers websites; www.lenderscompared.org.uk.

Articles in this section so far:

Home Collected Loans Explained

Home Credit Loans And Your Safety

Home Collected Loans No Credit Checks

Door To Door Loans No Credit Check

Further articles scheduled to be added so check back soon.