BRITAIN'S poor are paying a premium of more than £.5bn each year from having to borrow money at exorbitant interest rates, according to a new ethical lending group.
Fair Finance is a socially-responsible lending company, supported by the Treasury and consumer experts, which offers typical interest rates of 20%, 75 times less than the some of the highest recorded rates (1,564%).
Britain is one of the only countries in the EU where there is no cap on interest rates, and as a result, more than four million of Britain's poorest, with no access to basic financial services, are paying upwards of 200% APR for the finance they need.
Faisel Rahman, managing director of Fair Finance said: "Unfair interest rates are keeping people in poverty and irresponsible lending is keeping them in debt.
"We want to change this. Fair Finance is committed to challenging the poverty business by being a responsible lender and giving our customers the ability to manage their budgets."