Doorstep loan companies are bombarding borrowers with phone calls and personal visits to pressure them into dropping complaints, legal experts have revealed. More and more desperate Brits who are struggling to make ends meet during the cost of living crisis are turning to the high-cost borrowers to pay bills and put food on the table.
Lawyers say it could end up costing double the amount they initially borrow, driving tens of thousands into a vicious cycle of debt and further poverty. And some lenders – who are also accused of mis-selling and not carrying out proper checks – are telling customers that lodging a complaint will affect their credit rating.
David Whelan from civil litigation specialist CEL Solicitors, who helps those with multiple doorstep loans, said: “Some of the people we’ve spoken to say they feel harassed and even threatened. They are being told to drop complaints or their credit history will be affected and the company will not lend to them again.
