A leading online pawnbroker have declared that they are set to forgo the first month interest on all short term loans made before 31st January.

Borro.com have issued this response as the credit crunch situation tightens throughout the nation. The government has since made a plea for the industry to consider its customers more considering the economic state of affairs.

Paul Aitken, Founder and CEO of Borro.com commented, "The months of December and January are when access to personal credit is most restricted. This year, with the credit crisis, and banks continuing to trim consumers' credit card limits, there will be fewer options than at any time in the last 30 years."

He added, "Banks are finally starting to pass on the effects of UK interest rate reductions, but the bigger problem is that they still aren't lending."