A new report published by Citizens Advice has identified a number of concerning practices by some doorstep lenders.

The evidence, submitted to the Financial Conduct Authority (FCA) today as part of its review into the high cost credit market, highlights harsh debt collection methods. Doorstep lenders, who earn commission on collecting repayments, have been shown to use intimidating behaviour which breach FCA debt collection rules to retrieve outstanding debts.

For example, Citizens Advice helped one man with substantial doorstep loan debts who was visited by a lender on the same day his son had died. The lender refused to leave until a family member was taken down to an ATM to withdraw cash.

Another case saw a lender harass an elderly, blind woman for payments while she was in hospital receiving treatment for a stroke – despite repeatedly being asked not to visit.

The charity is also highlighting irresponsible lending; people are not being given satisfactory checks to make sure they can afford to take out doorstep loans, it said.

For example, one woman who had very little money to spare because she had a legally binding debt plan to repay nearly £20,000 was given three doorstep loans by three separate lenders, despite them knowing her situation.

Citizens Advice also raises concerns about lenders putting pressure on people already struggling with repayments to take out a new doorstep loan to cover them and doorstep lenders turning up unannounced at people’s doors to sell loans.

It is estimated that over 1.3 million people in the UK use doorstep loans, with the average loan size estimated to be £500.

Last year Citizens Advice helped an estimated 23,000 people with unmanageable doorstep loan debts. Their average debt was worth nearly £700 and a third of people had taken out more than one doorstep loan.

Gillian Guy, Citizens Advice chief executive, said: “Some doorstep lenders are putting people at risk of escalating debts with their irresponsible actions.

“The personal nature of doorstep loan selling and debt collection can put customers in a vulnerable position. Our evidence shows some lenders are taking advantage of that relationship and causing serious harm to borrowers by turning up unannounced or putting clients under pressure to repay or take on more debt.

“It’s important there is strong regulation of high cost credit markets to make sure companies put the needs and interests of consumers at the heart of their services. The FCA’s intervention drastically reduced problems in the payday loan market – we now want to see similar protections introduced for consumers using other high cost credit products, including doorstep loans.”

As the FCA’s call for evidence into the high cost credit market closes today, Citizens Advice has submitted evidence and recommendations to improve problems in other parts of the sector – including the guarantor loan and rent to own market.

The charity wants the FCA to extend its cap on payday loan interest rates and fees across the market to protect consumers. It also wants the regulator to strengthen its affordability guidance into rules to ensure responsible lending across the market.

The charity’s new report includes further recommendations to improve the doorstep lending market, such as:

• New rules placing a limit on the number of times a doorstep loan can be refinanced

• A review of the methods doorstep lenders use to collect repayments

• A ban on cold call selling of doorstep loans

• A requirement for doorstep lenders to disclose the commission they make on collecting repayments so borrowers understand what is driving lenders action.