Purse

Clearing up the Cost of Home Credit

03-Sep-2008

Clearing up the cost of home credit

A new website is making it easier for consumers to find the cheapest cash loan. Lenderscompared.org.uk compares the cost of home credit and other cash loans, including credit unions, available in borrowers’ postcode area. The site brings greater transparency to the home credit market, which should open it up to greater competition and choice for consumers.

LendersCompared.org.uk allows potential borrowers enter the amount they want to borrow, the duration of the loan and their postcode; the website then shows the regular payment amounts, the typical APR, and the total credit cost (overall amount of interest paid on top of the loan amount) of each lender. It also shows whether the loan is home collected and any other restrictions, e.g. being a regular saver with the credit union.

The website is funded by the home credit industry and is operated in partnership with home credit providers, the National Consumer Council, Association of British Credit Unions (ABCUL) and the Consumer Credit Association; it is regulated by the Office of Fair Trading.

Home credit companies are legally required to include their loan conditions on the site, and other lenders can add their details if they wish to. Mark Lyonette of ABCUL said, “This website is warmly welcomed by the credit union sector and we are urging our members to participate in the scheme. The website will not only help to publicise credit union services, but will also prove just how affordable credit union loans are compared to the home credit sector.”

Visit www.lenderscompared.org.uk to try it for yourself.

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