Worries about the price of home credit
Home Credit customers are generally happy with the loans they receive but this satisfaction comes at a high price, according to the latest document published by the Competition Commission (CC) as part of its inquiry into competition in the home credit market.
The CC also notes that there may be a lack of effective competition in the market with little evidence of customers switching between providers, or price falls either as a result of competition between providers or from other forms of credit. Home credit refers to the supply of small loans, repayments for which are then collected in instalments (often weekly or fortnightly) from the customer's home. Some customers have low incomes and some have difficulty getting other forms of credit.
The document is published today on the CC's website and sets out the CC's emerging thinking in its inquiry into home credit based on the evidence received so far, including customer surveys and submissions from the companies involved.
Frontier (London) advises Provident Financial.
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