Over 150 MPs have backed a campaign calling on the government to cap the sky-high interest rates of doorstep lenders, thanks to lobbying by Halton Housing Trust residents and staff in Runcorn and Widnes.

Doorstep lenders, also known as home credit companies, charge crippling APR rates ranging from 160% to an astonishing 800% on loans, trapping low income families in a vicious cycle of debt where they have to borrow more to pay off the interest on previous loans.

People on low incomes are often driven to these companies because they don’t have access to bank accounts, impartial financial advice or affordable credit.

Over the last few months residents and staff of Halton Housing Trust have been voiced their support to a national campaign against extortionate interest rates. The campaign was set up by National Housing Federation, representing England’s 1400 housing associations, and fair finance pressure group Debt on Our Doorstep.

Early Day Motion 1068: Interest Rates Charged By Doorstep Lenders, which supports the campaign and calls for an interest rate cap, was tabled in the House of Commons last November and continues to gain support from over 150 MPs across all parties.  

Nick Atkin, Chief Executive of Halton Housing Trust, said:  "The Government needs to do more to end the extortion of people on the lowest incomes. The Competition Commission has already found that doorstep lenders are overcharging customers by as much as £25 for an average loan. It’s ridiculous that these companies can name their price when lending to the poorest families. It needs to stop.”