Home » Finance » Loans

Consumers To Receive 'Improved Loan Guidance'

Oct 10, 2007
Britons, in particular the financially-vulnerable, could be set to receive better guidance towards taking out a loan, following the roll-out of a new scheme.

The news comes as the government has implemented a series of specialist teams across England, Scotland and Wales, which will target unscrupulous loan sharks, give consumers guidance on handling their debts and help them to choose fair and competitively-priced borrowing options. Following the launch of pilot programmes in Birmingham and Glasgow, an estimated 45,000 people have received guidance with their debt problems - which could consequently lead to them adopting a better attitude to managing loans and other areas of their finances.

But now the project, which has received 3 million pounds of funding, is set to help a much wider number of Britons with their money management in cities such as Leicester, Cardiff, Nottingham, Manchester and Newcastle. Swansea, Peterborough, Leeds and Plymouth are to be among the areas also to receive help.

Overall, more than 165,000 households, often living in "deprived inner-city areas", who are struggling to handle their finances are targeted by loan sharks. According to the government, such people who borrow from unscrupulous providers find that they not only have to pay "astronomical interest rates", which could actually increase their debt difficulties, but also may face "violence, intimidation or blackmail" if they struggle to keep up with repayments.

John Hutton, the secretary of state for business, enterprise & regulatory reform, asserted: "Loan sharks are criminals who prey on vulnerable and desperate people. We are committed to shutting these thugs down and bringing them to justice. Our targeted teams will make sure anyone who feels trapped or scared has the confidence to report these crooks and put a stop to their illegal behaviour".

Mr Hutton added that the government has invested some 50 million pounds into the provision of guidance on personal loans and other monetary topics for those who are financially most vulnerable as part of its Face to Face debt advice scheme.

Kitty Ussher, economic secretary to the Treasury, added: "Loan sharks prey on the least well off, using intimidation and violence to extort payment. The success of the pilots shows what can be accomplished by setting up dedicated teams to tackle illegal lending in the community. This crackdown sends a clear message that these practices are unacceptable and will not be tolerated and ensures that the victims of loan sharks have the advice and support they need."

Following the news, those concerned about difficulties in managing their money may wish to take out a low-rate personal loan with a reputable financial provider. However, upon borrowing money consumers have been advised to make sure that they are always in a position to make repayments. Research released by CreditExpert in May indicated that 80 per cent of Britons spend beyond their means, as one in ten have missed payments on personal loans, mortgages and plastic cards. Meanwhile, a quarter claim that money matters are hard to understand. Managing director Jim Hodgkins added that it is "imperative that people fully realise the implications of not managing their finances properly".
About the Author
Abbi Rouse writes for All About Loans. Our visitors can apply online for bad credit secured loans. We also specialise in cheap loans, and debt consolidation loans.
Rating:
Please Rate:
(Average: Not rated)
Views: 140
Print Email Report Share
Article Categories
    • Artists
    • Gambling
    • Humanities
    • Humor
    • Movies
    • Music
    • Photography
    • Tattoos
    • Television
    • Classic Cars
    • Motorcycles
    • Recreational Vehicles
    • SUVs
    • Trucks
    • Vans
    • Branding
    • Business Opportunities
    • Careers and Jobs
    • Corporate
    • Customer Service
    • Direct Mail
    • Entrepreneurship
    • Ethics
    • Financing
    • Franchising
    • Home-Based Business
    • Human Resources
    • Import and Export
    • Leadership
    • Management
    • Market Research
    • Marketing and Advertising
    • Negotiation
    • Network Marketing
    • Networking
    • Organizational
    • Presentation
    • Project Management
    • Public Relations
    • Small Business
    • Strategic Planning
    • Team Building
    • Telemarketing
    • Training
    • Data Recovery
    • Databases
    • Games
    • Hardware
    • Networks
    • Operating Systems
    • Programming
    • Security
    • Software
    • Spyware and Viruses
    • Ask an Expert
    • College and University
    • Home Schooling
    • K-12
    • Languages
    • Online Education
    • Psychology
    • Coffee
    • Cooking
    • Gourmet
    • Recipes
    • Wine and Spirits
    • Acne
    • Aerobics
    • Alternative Medicine
    • Beauty
    • Cancer
    • Cosmetics
    • Depression
    • Diabetes
    • Diseases and Conditions
    • Fitness Equipment
    • Fitness
    • Hair Loss
    • Heart Disease
    • Medicine
    • Men's Health
    • Muscle Building
    • Nutrition
    • Skin Care
    • Supplements and Vitamins
    • Weight Loss
    • Women's Health
    • Yoga
    • Arts and Crafts
    • Babies
    • Collecting
    • Elderly Care
    • Genealogy
    • Hobbies
    • Parenting
    • Pets
    • Pregnancy
    • Woodworking
    • Feng Shui
    • Gardening
    • Home Appliances
    • Home Security
    • Interior Design
    • Landscaping
    • Affiliate Programs
    • Article Marketing
    • Auctions
    • Audio
    • Banner Advertising
    • Blogging
    • Broadband
    • Domain Names
    • E-Books
    • E-Commerce
    • Email Marketing
    • Ezines and Newsletters
    • Forums
    • Internet Marketing
    • Link Popularity
    • Pay-Per-Click
    • Podcasting
    • RSS
    • Search Engine Marketing
    • Search Engine Optimization
    • Security
    • Social Media
    • Spam
    • Video
    • Viral Marketing
    • Web Design
    • Web Development
    • Web Hosting
    • Copyright
    • Cyber Law
    • Intellectual Property
    • National, State, Local
    • Patents
    • Regulatory Compliance
    • Trademarks
    • Buying
    • Selling
    • Baseball
    • Basketball
    • Boating
    • Cycling
    • Extreme Sports
    • Fishing
    • Football
    • Golf
    • Hockey
    • Hunting
    • Martial Arts
    • Running
    • Scuba Diving
    • Soccer
    • Swimming
    • Tennis
    • Dating
    • Divorce
    • Marriage
    • Weddings
    • Astrology
    • Buddhism
    • Christianity
    • Faith
    • Hinduism
    • Islam
    • Judaism
    • Meditation
    • Metaphysical
    • New Age
    • Cable and Satellite TV
    • Cell Phones
    • Communication
    • Gadgets and Gizmos
    • GPS
    • Satellite Radio
    • Video Conferencing
    • VoIP
    • Addictions
    • Coaching
    • Goal Setting
    • Motivational
    • Stress Management
    • Time Management
    • Clothing
    • Electronics
    • Fashion
    • Gifts
    • Jewelry
    • Causes and Organizations
    • Environment
    • History
    • Holidays
    • Men's Issues
    • Nature
    • Philosophy
    • Politics
    • Women's Issues
    • World Affairs
    • Air Travel
    • Camping
    • Cruises
    • Destinations
    • Outdoors
    • Article Writing
    • Book Reviews
    • Copywriting
    • Fiction
    • Non-Fiction
    • Poetry
    • Quotes
    • Screenplay
    • Tools and Resources