Single mum-of-three spent six years paying back a £1,000 doorstep loan ‘to help keep a roof over her family’s head’
Louise Jankowski, 36, a from Guildford, turned to Provident to help keep a roof over her family when she split with her partner in 2012
A SINGLE mum-of-three took six years to pay off a doorstep loan after being charged double the initial amount in interest.
Louise Jankowski, 36, from Guildford, turned to Provident to help keep a roof over her children's heads when she split with her partner in 2012.
Today, The Sun launches its Stop The Rip-Off campaign to help the millions of families struggling with rent-to-own and doorstep lending.
Just like Louise, at the time her children - who she has asked to not be named - were aged 12, nine and three.
Suddenly a single-parent, Louise - who is a full-time carer to her youngest son - fell behind with her rent payments while she waited for her benefits to come through.
Have you ever had a problem with a rent-to-own firm or doorstep lender? Tell us your story! Email: Money@the-sun.co.uk
Louise owed her landlord £400. She turned to the only place she knew for a loan - Provident.
She claims it took her six years to pay off the £1,000 loan, after paying an additional £2,200 in interest.
Why we want to Stop The Credit Rip-Off
WE never want you to pay more than double the amount you've borrowed - whether it's for a new sofa or a loan to help pay your bills.
That's why The Sun has launched a campaign calling for a cap on the total cost of rent-to-own loans and doorstep lending at double the original price or loan amount.
A similar cap was introduced for payday loans in 2015 and since then the number of people struggling with unmanageable debts to those lenders has more than halved, according to Citizens Advice.
People on the lowest incomes, living in the poorest places, are paying a poverty premium - up to 7 million people have resorted to high-cost credit, according to the Department for Work and Pensions.
People whose wages or benefits don't stretch far enough need to borrow from rent-to-own or doorstep lenders to help pay for things such as an unexpected bill or to furnish their homes.
These come with exorbitant rates of interest - more than 1,500 per cent in some cases of doorstep lending.
It is scandalous that one mum who borrowed cash to help keep a roof over her family's head ended up paying back over THREE times the original amount.
It's time to stop the credit rip-off.
Here's what we demand:
Rent-to-own
- Cap on all repayable costs at double the item list prices (including fees, add-ons and interest)
- Ban on incentives for all sales staff
- Ban on discounts for existing customers to tempt them into more credit
- Companies to publish example interest rates and costs on all payment options
Doorstep lending
- Cap at double the original amount borrowed
- Stricter affordability checks
- Ban on discounts for existing customers to tempt them into more credit
It's time to Stop the Credit Rip-off.
She'd already used the loan company for vouchers to help with the shopping over the Christmas period.
So, when her agent came over to her house to collect the £5 she owed for the vouchers, she asked for a £500 cash loan.
"Because I'd been taking out the vouchers over Christmas for 10 years I was already on their system," Louise told The Sun.
“I hated it. Every week an agent would come over to collect the money and they’d have envelopes full of wodges of cash.
“The temptation was unbelievable. Even when I'd paid off the entire loan they tried to get me take out another loan because I’d paid mine off.
“Six years later I’ve learned and I will not be doing it again.”
A spokesperson from Provident Financial PLC said: “Our customers need access to credit to live their lives.
"We lend responsibly, our customers know what they need to pay back as the amount they repay is fixed at the outset, and we work with them should their circumstances change and they find themselves in financial difficulties.
"We’re committed to doing the right thing by our customers. We’ll investigate this case to find out what has happened."
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