A home collection or doorstep loan is a type of loan or credit that is delivered directly to the customer’s home premises.

Are doorstep loans [home collections loans] legal?

It is considered a criminal offense when a doorstep lender calls you at your home to offer you a loan. However, if you requested a loan or credit from the doorstep or home collection lender via a written on signed request, then it is considered a legal practice.

What are the doorstep lenders in United Kingdom.

There are many home collection lenders in the United Kingdom but we have compiled a few that could be suitable for your need below.

1. Morses Club

Morses Club PLC has its history dating 130 years before being listed as a Public Limited Company in the year 2016. The company operates under two divisions, home collateral credit, and digital financial services.

Within the two divisions, three brands are providing affordable and easily accessible credits to over 180,000 UK customers.

What are the 3 brands operating under the two Morses club divisions?

• U Account Specialized in offering customers online current account services based on a monthly fee or pay-as-you-go pricing models.

• Dot Dot Loans Launched in March 2017, dot dot loans is a complete lending provider.

How much can you borrow from Morses Club (Dot Dot Loans)?

This brand aims at providing loans to 2 segments of the market: The short-term duration which serves up to 35 weeks offering customers £300 to £1,000 as loans. Also, it offers £1,500 to £4,000 to the customers who want to borrow for the longer term up to 52 weeks.

• Morses Club Morses Club is among the UK’s largest Home collected credit lenders. It provides small short-term loans to customers unable to access traditional high street lending.

Regions covered by Morses club

• United Kingdom

2. Loans at home

Loans at home is a highly flexible and convenient home loan and credit provider, this is due to their speed of loan process execution which would mostly take as little as 24 hours.

To acquire a loan, a customer has to complete a two-minute loan application online by providing their information and how much they would like to borrow. Then one of their agents will be in touch to visit the customer’s home so they can go through the loan details face-to-face.

How much can you borrow from Loans at home?

A customer can borrow from £100 to 600£. The payback duration spans from 14 weeks to 42 weeks.

Regions covered by Loans at home

• Wales
• Scotland
• England

3. Skyline Direct Limited

Skyline Direct mainly provides cash loans and high street vouchers, credits can be paid on weekly basis and the amount borrowed never goes up, meaning there are no late payment fees or penalties for going slightly over the loan repayment duration.

Also, there are circumstances where the customer might be busy during the day so they resolved this problem by offering loan repayment via debit card.

How much can a customer borrow from Skyline Direct ltd?

It takes 20 weeks up to 30 weeks. They do not charge late fees in case of late payments.

Who owns Skyline Direct Ltd?

Skyline Direct limited regards Skyline Direct holdings limited as the parent company. Skyline Direct Limited’s parent undertaking is Skyline Direct holdings limited which is considered as both the controlling party and the ultimate controlling party.

Example of Skyline Direct loan quote:

If you borrow £200, you will have to pay £10 per week for 30 weeks, where £300 is the total amount payable. The rate of interest is 86.91% per annum. Fixed Typical APR 330%.

Regions covered Skyline Direct Ltd

• Northern Ireland
• Scotland

4. Streek-UK

This is a non-profit community lender which only charges fees to cover the cost of operation and services. Street-UK neither lends to customers who aren’t able to make repayment nor overcharges their customers who can make repayments.

Loans can be offered within the same day of approval and the loan can be deposited into the customers’ accounts within 24-hours.

The company boasts as being cheaper than other doorstep lenders, pawnbrokers, high-cost online lenders, and expensive money shops since they do not charge unnecessarily for extra charges or costs.

Street-UK serves as a social enterprise and community lender hence it doesn’t have shareholders and all profits go back to investing in the community.

How does Street-UK collect loans?

Other companies deploy a doorstep loan collection scheme but Street UK only collects the customers’ repayments via direct debit. This is because the customers are comfortably knowledgeable that the loans are taken care of.

How much can a customer borrow and what is the duration for loan repayment?

Customers can borrow from £200 to £2000 and the loans can be paid over 26 weeks to 52 weeks basis.

Regions covered by Streek-UK

• Coventry
• Birmingham Central
• Walsall
• Birmingham Northfield
• West Brom
• Wolverhampton

5. Arena Personal Credit

For customers seeking extra cash to cover costs on unforeseeable emergencies, unexpected bills, or MOT failure, Arena personal credit could be a better option. This is because they not only offer loans with an affordable repayment but also do not ask so many questions or discriminate whether the customers are employed or not.

How much can customers borrow from Arena personal credit and what is the time duration for loan repayment?

The company offers loans from £50 to £800 with a repayment duration ranging from 14 weeks to 51 weeks.

Existing customers can apply for loans up to £1500 via their assigned agent. All loans are subject to the customer’s affordability assessment.

Example of Arena personal credit loan quote:

If you borrow £200 you will have to pay £10 per week for 31 weeks where 310 is the total amount payable. The rate interest per annum is 92.51% with APR or 365.1%.

Regions covered by Arena Personal Credit

• East-Midlands (UK)

6. Naylors Finance

Naylors finance has been serving its customers for over 40-years notable via door-to-door loan collection. Currently, they’ve been providing credit and loan services via their internet portal.

Loans provided to customers are based on affordability assessment. Unfortunately, as opposed to companies like Street-UK that don’t charge extra fees upon late loan repayment, with Naylors Finance it could cost a customer serious money problem.

How much can a customer borrow from Naylors Finance and how long should the loan be paid?

A customer can borrow anywhere between £100 to £400 and he or she has to repay within 27weeks.

Example of Naylors Finance loan quote:

If you borrow £300 you will have to pay £18 per week for 27 weeks where 486 is the total amount payable. The rate interest per annum is 119.41% with APR or 602%.

Regions covered by Naylors Finance

• East-Midlands
• N-East
• N-West
• West-Midlands
• Y&Hum

Wrapping up.

Above are a few doorstep or home collection loan services providers in the UK. We will be covering more in the next article. Please feel free to share your experience and suggestions on borrowing from home collection loan companies.