- Thursday, 30 July 2009Poorer families in the UK are becoming increasingly dependent on high-interest lenders as they struggle to survive the recession.
That is according to the UK Insolvency Helpline which insists that, owing to a lack of alternatives, less well-off families are turning to "adverse credit" lenders.
Ian Boden-Smyth, a spokesperson for the helpline, said: "Banks on the high street [have turned] their back on the public. People have nowhere to turn apart from high-interest lenders."
He added that if people sought advice, they may be able to find a more attractive alternative and avoid the high payments.
Other options open to consumers facing financial difficulties could include entering into an
individual voluntary agreement (IVA).
Mr Boden-Smyth made his comments following a recent call by children's charity Barnardo's for the Office of Fair Trading to investigate the practices of high-interest lenders.
Revised legislation could bring an end to the hazardous financial implications for less wealthy parents and their children.
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