"Predatory lenders" keen to exploit the right to buy are targeting council tenants and tying them to expensive loan deals, according to a study by the New Economics Foundation.
The study, called Profiting from Poverty, blames a lack of government action for failing to curb what it calls some of "the worst excesses of the free-market economy".

The report is certain to rock the boat just as the government attempts to kick-start initiatives to promote a greater sense of community.

It says: "Predatory lending not only devastates individual families and households, it is systematically stripping the wealth and assets of some of the country's poorest neighbourhoods."

Problems include door-stepping loan sharks and companies that abuse of the right to buy by offering tenants up to £25,000 to relinquish ownership.

The report calls for the government and registered social landlords to tackle the problem by funding community debt and money advice centres. It also calls for a statutory ceiling on interest rate charges.

n Profiting from Poverty: Why Debt is Big Business in Britain can be bought from www.neweconomics.org.uk

Source

Housing Today