Mauled by the credit vultures
Call for fairer cash alternatives for those in need
THE Mirror’s Fair Credit For All campaign has struck a chord with people across the country in damaging debt.
Those struggling with bills or wanting to splurge have fallen prey to high-interest lenders.
People with a poor credit history are often most at risk from vultures. As the poor pay off debts, fatcat bosses enjoy soaring interest repayments.
We are teaming up with actor Michael Sheen, behind the End High Cost Credit Alliance, to fight for people like those here. Gran-of-four
SHARPE, 75, from Sutton Coldfield, West Mids, struggled with spiralling debt following a high-interest loan. After retiring, she could not make ends meet. She says: “I had to get some furniture as the old stuff was falling apart, so I had no choice but to borrow money.
“At one point I had a loan in which I was paying back an extra £10 for every £50 I borrowed.” On top of this she was diagnosed with cancer.
Philomena then found Street UK, which helps people with a poor credit history get a loan without being exploited. She says: “They’ve been brilliant.”
Pensioner GERHARD WHILLOCK, 72, of Northfield, Birmingham, needed a bed but could not buy it outright. Unable to borrow from a high street bank as his credit history was not good enough, he turned to the popular rent-to-buy outlet BrightHouse. Gerald claims the value of the bed he rented was £471, but he says he paid £1,045 due to interest. It took him three years to pay it off at less than £7 a week. He says: “I bought the bed without stopping to think about the final cost. That’s my own fault, but I didn’t find it clear at all.”
He also got £1,000 from Everyday Loans, for people refused by conventional lenders, and claims he eventually paid back £1,890. Serving soldier MARK, 35, got in debt from payday loans after returning from a second tour of Afghanistan.
Mark, who asked for his identity to be protected, ended up owing more than £50,000. Only his wife knows.
He says: “I was a slave to the payday loans circle for at least six years. It is very appealing as you can get instant cash.
“Before you know it, you are owing more every month than the wages coming in.
“I took out loans with many firms... a few hundred here and there for a night out. You end up paying double the amount you borrowed. It is common in the military.”
Mark’s debt is down to £20,000 thanks to a debt management programme. He has two years left of paying it off and has claimed back some interest and fees.
Unemployed mum ZOE
30, from Blackburn, needed a loan after she lost her job.
She initially went to BrightHouse to buy the washing machine and basic furniture she needed.
Speaking to friends, she became alarmed at how badly some of them had got in debt through same-day instantloan providers like Wonga.
“I went to BrightHouse before but I would never use them now,” she says. “It took me so long to pay off. I’m glad I don’t have to use them again.”
Zoe found fair credit provider Moneyline, based in Manchester, which is one of the groups backed by the End High Cost
Credit Alliance.