Mum-of-two’s £2,600 doorstep loan debt stopping her from getting a mortgage
Charlene Telford, 32, took out five doorstep loans over two years - and now can't get a mortgage thanks to the thousands in debt she can't pay back
A MUM-of-two who regrets racking up thousands of pounds worth of doorstep loans is now unable to get a mortgage.
Charlene Telford, 32, from Tamworth, Staffordshire, has been locked in a spiral of debt ever since she took out her first cash loan in 2011.
She told The Sun about how taking out the short-term loans when she was younger means that she now can't buy a house with her husband - and missed payments have left a black mark on her credit score.
This week, The Sun launched a Stop The Credit Rip Off campaign, calling for a cap on rip-off credit fees and to stop hard-working Brits being fleeced by legal high street loan sharks.
Every year millions of the UK's poorest people turn to high-cost credit, such as doorstep loans and rent-to-own agreements - including, Charlene.
Over two years, she took out five doorstep loans worth £1,600 but is now stuck with a £2,583 bill she can't pay off.
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 and 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.
In 2014, the Financial Conduct Authority introduced tougher affordability checks for mortgage lenders.
Her unpaid debts mean she is unable to improve her credit score and leaves her unattractive to lenders.
Her story shows how doorstep loan debt can have a massive impact on your life and stop you from being able to get credit elsewhere.
Charlene was a full-time single mum when she took out her first loan, which was to help her out over the Christmas period.
"Almost everyone I know around here has a doorstep loan so when I needed money, I just asked my friends for the agent's number," Charlene explained to the Sun Online.
"It was so easy. Everyone knows who the local agent is and it's just the done thing around here, especially around Christmas and birthdays.
"I didn't even think to look anywhere else for the money.
"The agent came round to my house and asked me some questions like what my in-comings and outgoings were.
"It was all very basic, like they wanted to know how much rent I paid but they didn't need to ask me how much I pay for my bills or anything.
"One time I needed cash, I text the agent in the morning and by tea time I had the cash in my hand. I was so naive."
At the time of her first loan, Charlene's daughter Tia, now 15, was seven-years-old.
As a young, single mum, Charlene said she tried really hard to give her daughter the best of everything - so much so that she turned to a doorstep lender with seriously high interest rates.
Charlene was still relying on the loan sharks for cash to help her through balancing parenting and a university degree.
In 2012, she was studying to be a carer but was by then forking out a staggering £30 to £40 a week to the doorstep lender.
How to get help for free
THERE are lots of groups who can help you with your problem debts.
- Citizens Advice - 0808 800 9060
- StepChange - 0800 138 1111
- National Debtline - 0808 808 4000
You can also find information about Debt Management Plans (DMP) and Individual Voluntary Arrangements (IVA) on the and on the Government's
Speak to one of these organisations - don't be tempted to use a claims managment firm that will claim it can write-off lots of your debts in return for a large up-front fee.
"Every time it got to the point I'd nearly paid off one of the loans, the agent would call and ask me if I wanted any more.
"I was young and silly, and at the time, I wanted other people to be jealous of my daughter, you know.
"She had designer clothes and things and now I look back and think why? We didn't need that.
"I wanted her to have the best of everything but in hindsight we didn't need any of that," Charlene said.
"I took out a £400 loan for a deposit for a car which I needed but I can't tell you what I spent the rest on.
LATEST ON STOP THE CREDIT RIP-OFF CAMPAIGN
"I regret it so much but at the time I had no idea what interest rates meant.
"All I thought was I'll take the option for the smallest payments and take the longest time to payback but I was so wrong. I just needed the cash.
"I didn't realise until the Sun's campaign that the interest rates were so high and what that really meant."
Shortly before she met her now husband, Kieran, in 2013, Charlene could no longer afford the repayments.
She said: "I felt bad telling the agent because it was her wage that was going to be affected by this but I physically didn't have the money to pay them back.
"I did receive threatening phone calls from the company, and I was told they'd take me to court. I stopped picking up the phone and eventually they stopped calling but I still have the debt."
Now, Charlene is married and has a three-year-old son, Sebastian. She can't work due to illness but is unable to claim financial support either.
With no way of paying off her debts, she solely relies on her husband for financial support.
It's time to Stop the Credit Rip-off.
"Our house is Housing Association and we want to buy it but I can't get a mortgage because of my credit score and my husband can't do it alone.
"I know I'm silly because I took the loans out in the first place but I had no idea about finances when I left school.
"You're not taught about it - I didn't understand what interest is.
"All I hope is that by the time my daughter is old enough to take out a loan, the doorstep loans won't exist any more.
"And if they do, they have to have better credit checks and they shouldn't lend to people who just can't afford them."
The Sun's campaign has gathered support from MPs and thousands of readers have got in touch.
How to cut the cost of your debt
IF you're in large amounts of debt it can be really worrying. Here are some tips from Citizens Advice on how you can take action.
Check your bank balance on a regular basis - knowing your spending patterns is the first step to managing your money
Work out your budget - by writing down your income and taking away your essential bills such as food and transport
If you have money left over, plan in advance what else you’ll spend or save. If you don’t, look at ways to cut your costs
Pay off more than the minimum - If you’ve got credit card debts aim to pay off more than the minimum amount on your credit card each month to bring down your bill quicker
Pay your most expensive credit card sooner - If you have more than one credit card and can’t pay them off in full each month, prioritise the most expensive card (the one with the highest interest rate)
Prioritise your debts - If you’ve got several debts and you can’t afford to pay them all it’s important to prioritise them
Your rent, mortgage, council tax and energy bills should be paid first because the consequences can be more serious if you don't pay
Get advice - If you’re struggling to pay your debts month after month it’s important you get advice as soon as possible, before they build up even further
Groups like Citizens Advice and Money Advice Trust can help you prioritise and negotiate with your creditors to offer you more affordable repayment plans
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