Brits warned against predatory ‘Christmas loans’ which could cost desperate families hundreds
Campaigners have called for action against firms which offer overpriced loans to 'help' with the cost of Christmas
CASH-STRAPPED Brits were today warned not to fall into the trap of taking out pricey "Christmas loans" to cope with the cost of the festive period.
Campaigners accuse lenders of taking advantage of desperate families who need extra money to tide them through Christmas.
Millions of people say that Christmas sends them into the red because they shell out so much money on gifts and events.
But there are also firms which are accused of preying on the vulnerable by offering expensive loans to coincide with Christmas.
Companies even buy up key search terms online so they can be more easily found by people looking for extra cash at this time of year.
Most of the firms offering loans through the internet charge well over 200 per cent annual interest.
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That means if you take out a £1,000 loan and agree to repay it over six months, you'll end up paying as much as £500 extra.
Labour MP Stella Creasy : "These legal loan shark firms think Christmas has come early when they can rope cash- strapped customers into more loans.
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"We urgently need to expand access to affordable credit so that people don’t get stuck borrowing from these predators at sky-high rates."
The Sun has been campaigning for a cap on the cost of credit to protect vulnerable Brits from getting trapped into unaffordable loans.
This week ministers announced a new limit on the interest rates charged by rent-to-own firms.
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