2 million pay 100% interest on doorstep

A RECORD two million Britons have borrowed money at interest rates of up to 100 per cent from Britain's biggest doorstep lender after being refused credit by high- street banks, it was revealed yesterday.

Provident Financial, which sells small loans door-to-door, said profits were up 11 per cent to £115 million.

Since last year's meltdown in the US subprime mortgage market, British mainstream banks have introduced stricter rules on who they will lend to, boosting business for doorstep lenders.

Provident's home credit business, which employs almost 12,000 collection agents to make 80 million home visits a year, saw its customers increase by almost five per cent to a record 1.6 million last year.

It has a large customer base in Scotland, where it provides credit to 227,086 people and has 1,772 agents.

Peter Crook, the chief executive of Provident Financial, said: "Current market conditions are favourable for us, as mainstream banks continue to tighten their lending criteria."