War widow Doris Armstrong is to be kicked out of her home after failing to repay a loan which ran up massive interest.

A court has ordered the 77-year-old to hand over her house in Braithwaite Walk, Braithwaite, Keighley, to wipe out the debt.

The pensioner is to lose her home because her £2,784 loan rocketed to £37,000.

Mrs Armstrong fell into arrears with repayments at 45 per cent a year on the £2,784 loan.

This week a representative of Manchester based Reunion Finance said: "She's got herself into this mess and done nothing about it."

John Cohen also confirmed that his company would take possession of the house in March.

Mrs Armstrong took out the loan in May 1991 with her late son, David Armstrong, borrowing £2,784 at an annual percentage rate (APR) of 45.7 per cent. The pair had to repay £71 a month for 15 years.

By the time Mrs Armstrong had paid a £400 broker's fee, £160 for administration and £684 insurance, she received £1,640 in her hand.

Mrs Armstrong and her son failed to keep up the repayments and Reunion Finance added administration fees each time they fell into arrears. The company took legal action last year - nine years after Mrs Armstrong took out the 15-year loan - when the arrears had reached £26,000.

By then the lifelong Keighley resident had handed over around £5,600 - more than twice the value of the original loan.

In November last year a judge ordered that Mrs Armstrong should hand over her house to cover the remaining debt.

Mrs Armstrong said she was disgusted with her treatment at the hands of Reunion Finance, especially in light of her age.

She added: "I've been a widow for a long time and people think they can walk all over me. You've just got to make up your mind to be brave."

Mr Cohen said Mrs Armstrong had failed to make the agreed payments on dozens of occasions over the nine years.

He said he had worked with the Citizens Advice Bureau several times to reschedule the payments, but Mrs Armstrong had not kept to the agreements. Mr Cohen said: "We've made every effort. She's been totally aware of the situation for the past ten years. She's got herself into this mess and done nothing about it.

"At the end of the day the last thing we want to do is take her house. All we ever wanted was regular payments.

"If the woman doesn't want to pay up, this is how it ends."

Keighley MP Ann Cryer has taken up Mrs Armstrong's case and her staff are searching for lawyers willing to provide their services for free.

Mrs Cryer also hopes to persuade the finance company to call an end to the matter because Mrs Armstrong has already paid back double her original loan.

She said: "We're trying to convince this person who lends money at vast interest rates."

She added: "What we're hoping he'll do is say 'she's paid enough back, I'll turn my back on it'."

Mrs Armstrong this week told the Keighley News she was unaware she risked losing her house if she failed to keep up payments.

But the eight-page agreement, signed by Mrs Armstrong in front of a witness, clearly stated that the loan was tied to the house. It described the loan as a mortgage.

The agreement also suggested that Mrs Armstrong contact trading standards officers or the Citizens Advice Bureau if she needed advice on her rights concerning the agreement.