The directory enquiries service 118 118 has launched a finance arm offering personal loans to consumers rejected by mainstream lenders.
The company, known for its adverts featuring lanky, moustachioed runners in 1970s-style singlets, is offering loans of between £1,000 and £5,000 with annual interest rates ranging from 36%-80%. Like payday loans, these are aimed at borrowers who have poor credit records and are unable to borrow elsewhere.
However, the company claims it will not be in direct competition with payday lenders because it will offer loans at lower rates over a longer period of time.
News resource: http://www.theguardian.com/money/2013/oct/02/118-118-personal-loans-market
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