Innovative financial lending service

500th customer of Places for People - one of the UK's largest property management and development organisations - signs up to housing group's low cost loans service

A young full-time carer from Nottingham has become the 500th person to benefit from an innovative financial lending service that aims to help thousands of vulnerable people escape the threat of doorstep credit lenders and move on from financial exclusion.

Pauline Wilson* has taken out a GBP500 loan with Places for People - one of the UK's largest property management and development organisations - in order to avoid paying sky-high interest rates of up to 150% to a number of doorstep credit lenders.

In the past ten months the Group has lent over GBP520,000 to customers, offering personal and small business loans to hundreds of people who would otherwise have turned to doorstep credit lenders.

Pauline had three loans totaling GBP700 with doorstep credit lenders and was paying back GBP36 per week over a year.

Places for People has helped consolidate her debts, so that she is now paying back only GBP11 per week - over two thirds less.

The Places for People scheme is open to thousands of people across the UK and offers personal loans between GBP250 and GBP3,000, as well as business loans up to GBP15,000.

It is one of a small number of direct lending schemes run by housing groups in England, and is amongst the most successful, offering a typical APR of just 16.9%.

"This loan has lifted a weight off my shoulders and has enabled me to consolidate my debt into something which is more manageable.

Without the advice and support I couldn't see a way out of my debt," said Pauline.

Ray Hampson, Group Treasurer at Places for People said: "The doorstep credit industry is worth GBP2 billion a year and is an attractive option for over three million people who find it difficult to borrow money or have poor credit histories.

Yet the practice has a devastating impact with people being charged interest rates of up to 900%.

"Our financial service underlines our determination to work with people who are excluded from the mainstream credit sector and offers them greater support and choice if they experience changes to their financial circumstances.

It is also helping us to tackle financial exclusion and stops people being locked into a vicious cycle of debt.".

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