Sir, Peter Crook is wrong to claim that people on low incomes have no choice but to turn to doorstep lenders for credit (“Could Peter Crook, chief executive of Provident Financial, redeem doorstep lending?”, Business, Aug 19). A number of community development finance institutions (CDFIs) offer a much cheaper alternative.

They provide loans to individuals and small businesses who have been turned away by the high street banks, at a fraction of Provident Financial’s rates. They do not trap people in increasing spirals of debt, as doorstep lenders often do. And as part of the voluntary sector, they are motivated by a desire to help the community rather than satisfy profit-hungry shareholders.

Unfortunately, many of the Provident’s customers really do believe that a high-interest lender is their only hope of getting credit. But by speaking to a local CDFI, many thousands can access loans at a much better rate.

Bernie Morgan

Chief executive, Community Development Finance Association

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