Consumer Focus wants nothing to do with doorstep lending site

Government campaign group, Consumer Focus, which was formerly known as the National Consumer Council, has recently stated that it is disassociating itself with a doorstep lender comparison website, which was set up in response to a complain made by the MCC with regards to the difficulties consumers had when trying to find the most competitive doorstep lender.

The website, lenderscompared.org.uk was set up by the Competition Commission in response to the NCC complaint. The website claims that it is ‘operated in partnership with organisations including the National Consumer Council, Association of British Credit Unions, the Consumer Credit Association and other representatives which are independent of the home credit sector’.

An official from Consumer Focus stated: ‘We don’t know how our name got in there. They are obviously trying to associate us with their work. We’re not against doorstep lending per se, but we believe there is not enough competition in the market. We recognise it is an important source of credit for some people but we want a competitive lending market, which it is not at the moment. Some of the rates charged on this site make it extortionate.’

It is thought that an increasing number of consumers may have turned to doorstep lenders over the past year, as credit conditions from traditional lenders have become increasingly tight, and getting affordable mainstream finance has become more and more difficult for many.