What Is Home Credit (Doorstep Lending)?

Home credit — also called doorstep lending, home collection loans, or door-to-door loans — is a type of short-term personal loan where a lender’s agent visits your home to deliver cash and later returns to collect weekly or monthly repayments in person.

For decades, doorstep lending was one of the only routes to credit for millions of UK households with poor or limited credit histories. No bank account? Bad credit score? Doorstep lenders didn’t care much. The convenience came at a steep price: interest rates frequently reached 300% to 1,500% APR — far above any credit card or bank loan.

But the UK doorstep lending landscape has changed dramatically since 2021. The two biggest names in the industry have collapsed. What remains is a much smaller, more cautious market — and a growing list of alternatives that are significantly cheaper.

The Collapse of the UK Doorstep Lending Sector (2021–2024)

The industry has been decimated by a wave of unaffordable lending complaints upheld by the Financial Ombudsman Service. The FCA cracked down on irresponsible credit practices, and compensation claims piled up faster than lenders could pay them.

Provident Financial — Closed 2021

Provident was the UK’s largest doorstep lender, operating for 141 years before closing its home credit arm in 2021. The company moved its lending book into a special purpose vehicle (scheme of arrangement) to cap runaway redress claims. Provident no longer offers doorstep loans.

Morses Club — Collapsed November 2023

After Provident’s exit, Morses Club became the UK’s largest doorstep lender with around 141,000 customers. It too was overwhelmed by affordability complaints and entered administration on 17 November 2023. By March 2024, administrators had sold some loan books to debt collection firm Lantern and written off the rest. Customers who were owed redress payments are expected to receive less than 0.5p per £1 owed — meaning a £4,000 redress claim would yield under £20.

Dot Dot Loans — Also in Administration

Dot Dot Loans, a subsidiary of Morses Club, went into administration at the same time.

Bottom line: If you see an article recommending Morses Club or Provident as active lenders, it is out of date. Neither is lending anymore.

Who Still Offers Home Collection Loans in the UK? (2025)

The doorstep lending sector is much smaller than it was. A handful of smaller, regional lenders continue to operate. All must be authorised by the Financial Conduct Authority (FCA). You can verify any lender at the FCA Register.

Loans at Home

One of the longest-running surviving doorstep lenders. Offers short-term loans typically between £100 and £1,000 for new customers, with repayments collected weekly by a local agent. The application starts online, then an agent visits your home to discuss terms and assess affordability.

Naylors Finance

A Yorkshire-based lender founded over 40 years ago. Loans range from approximately £100 to £400, repaid weekly over 27 weeks. A £300 loan repaid over 27 weeks costs around £18/week, with a representative APR of around 600%. While Naylors is transparent and has reasonable Trustpilot ratings, the cost is high compared to alternatives.

Cockle Finance

Essex-based, family-run home credit provider operating for over 50 years. Cockle Finance is FCA-authorised and focuses on responsible lending with thorough affordability checks. They serve customers in the South East of England.

Street UK

A non-profit community lender — one of the most ethical options in this space. Street UK doesn’t lend to customers who cannot afford to repay, charges no hidden fees, and doesn’t have shareholders — all profits go back into community investment. Repayments are collected via direct debit rather than home visits. Loans can be approved and disbursed within 24 hours.

Always check FCA authorisation. Any person who turns up at your door offering an unsolicited loan is almost certainly a loan shark — illegal, unregulated, and dangerous. Authorised lenders cannot cold-call you. You must initiate contact first, in writing.

How Does a Doorstep Loan Work? (Step-by-Step)

1. You apply — online, by phone, or via a local agent
2. Affordability check — the lender assesses your income and outgoings
3. Agent visits your home — to verify your ID, explain terms, and finalise paperwork
4. Cash delivered — either at the home visit or sometimes by bank transfer
5. Weekly repayments — collected in person (or occasionally by direct debit)
6. Loan ends — once all repayments are made

Under FCA rules, agents collecting repayments cannot offer you additional credit during their visit. Any new loan requires a separate assessment and a new written request from you.

The Real Cost of a Doorstep Loan

Home credit is one of the most expensive forms of borrowing available. Here is a realistic comparison:

For a £200 loan over one year, you could pay as much as 300% in interest — that’s £600 back on a £200 loan. No other mainstream credit product comes close to this cost.

Why Is Home Credit So Expensive?

The high rates reflect three genuine cost factors:

• Operational costs — every transaction requires a physical home visit, fuel, staff time
• Credit risk — borrowers often have poor credit histories and no collateral; default rates are higher
• Short loan terms — small amounts over short periods generate large effective APRs even at modest flat rates

That said, the profits from many doorstep lenders were also extremely high before the regulatory crackdown. The FCA’s Consumer Duty (fully effective from July 2023) now requires lenders to demonstrate they are delivering fair value to consumers — a bar that traditional doorstep lending models have struggled to meet.

Your Rights as a Doorstep Loan Borrower

Under FCA rules, all doorstep lenders must:

• Never cold-call you — you must initiate contact in writing before any agent can visit
• Carry out affordability checks before lending
• Never pressure you into taking out a loan or a top-up
• Not send an agent to offer more credit during a repayment collection visit
• Not charge penalties for missed payments (though terms vary by lender)
• Allow early repayment at any time with a rebate on future interest

If you believe a lender failed to carry out proper affordability checks, you may be entitled to a refund. You can complain to the lender first, then escalate to the Financial Ombudsman Service (FOS) for free.

Smarter Alternatives to Doorstep Loans in 2025

The collapse of Provident and Morses Club has pushed consumer groups and regulators to promote better options. Here are the main alternatives — all significantly cheaper.

1. Credit Unions

Credit unions are member-owned, not-for-profit financial cooperatives. They offer small personal loans at rates typically between 12% and 42% APR — a fraction of doorstep loan rates. The UK has around 450 credit unions; most are FCA-authorised.

To find one: visit findyourcreditunion.co.uk

Some credit unions require you to save with them first; others offer loans to new members. They are particularly strong in communities previously served by Provident and Morses Club.

2. Budgeting Loans and Universal Credit Advance Payments

If you receive Universal Credit or certain other benefits, you may be eligible for an interest-free Budgeting Loan or an advance on your UC payment. This is genuinely free money to borrow — no interest at all.

Apply through GOV.UK — Budgeting Loan or via your Jobcentre.

3. Community Development Finance Institutions (CDFIs)

CDFIs are ethical lenders backed by government and social investors, designed specifically for people who can’t access mainstream credit. Responsible Finance’s member directory lists CDFIs near you. Rates are far lower than doorstep lending.

4. Salary Advance Schemes

If your employer uses a salary advance platform (such as Hastee or Wagestream), you can access earnings already made before payday — often fee-free or for a very small flat fee.

5. Online Short-Term Lenders

For those with bad credit who need funds quickly and digitally, online direct lenders such as Salad (69.9%–79.5% APR) and Oakbrook/Evlo offer rates far below traditional doorstep APRs, with fully online applications and direct bank transfers.

6. Local Welfare Assistance and Charitable Grants

Local councils administer Local Welfare Assistance schemes that can provide grants (not loans) for urgent essentials. Some charities and food banks also have emergency funds. These don’t need to be repaid at all.

How to Avoid Loan Sharks

With the collapse of Morses Club and Provident, some people previously served by these companies may be approached by illegal lenders (loan sharks). Warning signs:

• They approached you — you didn’t contact them first
• No written agreement or confusing paperwork
• Taking valuables as “security”
• Threats or intimidation if you miss a payment
• No FCA registration

You can report loan sharks anonymously to the England Illegal Money Lending Team: call 0300 555 2222 or visit stoploansharks.co.uk.

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Frequently Asked Questions

Q: Are doorstep loans still available in the UK in 2025? Yes, but the sector is much smaller. Provident closed in 2021 and Morses Club collapsed in 2023. Smaller lenders like Loans at Home, Naylors Finance, and Cockle Finance still operate. All must be FCA-authorised.

Q: Can I get a home collection loan with bad credit? Yes. Doorstep lenders and credit unions focus more on affordability than credit scores. Credit unions are the far cheaper option.

Q: What happened to Morses Club? Morses Club went into administration on 17 November 2023 after being overwhelmed by affordability complaints. It is no longer lending.

Q: Is home credit the same as a mortgage? No. Home credit (doorstep loans) are small, short-term personal loans — usually £100 to £1,500. A mortgage is a long-term secured property loan. They are completely different products.

Q: What is the cheapest alternative to a doorstep loan? An interest-free Budgeting Loan (if you’re on benefits) or a credit union loan are both far cheaper. A budgeting loan costs nothing in interest at all.

This article is for informational purposes only and does not constitute financial advice. Always check that any lender is FCA-authorised before applying for credit.