Directory service 118118 dashes into unsecured loans business

DIRECTORY service 118118 is running into the loans business today, with customers able to borrow £1,000 to £5,000 in unsecured loans.

The company says its annual interest rates will vary from 36 to 80 per cent, and is aimed at customers whose applications have been rejected by banks.

Chief operations officer Paul Noble said the web-based loans service will “bring back the human approach” by talking to applicants as well as using computers.

“This means people who might normally have been rejected through automated systems may not be by us.”

The firm said research showed nearly 1m people were rejected for unsecured personal loans last year.

“Our findings how that 28 per cent of people don’t understand why they are rejected for a loan and 88 per cent don’t know their credit score,” said non-executive director Mark Mayhew, adding that clients would be offered guidance on their best financial options.