Doorstep lenders: your rights and how to switch to cheaper credit

Doorstep lending (also called home credit) charges some of the highest interest rates of any legal lending. A £300 loan can cost £500+ to repay. But there are better options.

What is doorstep lending?

A collector visits your home weekly to collect payments. Companies include Provident, Morses Club, and others. APRs are typically **300–500%**.

Your rights

Cheaper alternatives

Credit unions

Local, not-for-profit lenders with APR capped at **42.6%** (vs 300%+ for doorstep lenders). Find yours at findyourcreditunion.co.uk.

Budgeting loans

Interest-free loans of up to £812 from the DWP (if on qualifying benefits for 6+ months).

Local welfare assistance

Your council may offer emergency grants for essentials — no repayment required.

Fair4All Finance

A government-backed initiative supporting affordable lending. Check fair4allfinance.org.uk for options in your area.

If you're already in doorstep debt

1. **Don't take a new loan to pay off the old one** — this is the trap

2. Contact the lender and ask for an affordable repayment plan

3. Doorstep debt is non-priority — it can be included in DMPs, DROs, or IVAs

4. Check if the loan was properly assessed for affordability — if not, complain

Making a complaint

If the lender gave you a loan you couldn't afford, complain to them first, then the Financial Ombudsman. Many people have received refunds of interest paid. Provident Financial has paid out millions in compensation.