This year alone, nearly 7 million people have been unable to get credit from either banks or building societies according to the financial services authority.

Faisel Rahmen, the managing director of fair finance said: “It’s a race. We can forge a new way of lending but we can assume that our competition will always move in.”

Another way of getting loans for those spurned by companies such as Nationwide and Provident Financial that does not involve such unsavory lenders, is turning to sub-prime lenders, who charge much higher rates of interest than more official banks.

With choice being based more of necessity, many just have to accept the inflated levels of interest to accommodate everyday expenses and inflated fuel and food bills.