BBC News - Loan shark problem 'will get worse' in the South West. The Illegal Money Lending Team in the South West has reported a daily increase in call rates. Typically, £100 borrowed from an illegal lender for a few weeks would cost £280 in interest, so the borrower would have to pay back nearly £400 in all.
Richard Graham MP writes about Gloucestershire Credit Union.
‘I have long been a passionate supporter of credit unions, they are an excellent means of allowing consumers access to cheap credit and avoiding loan sharks and this is why I have been actively involved in setting up the Gloucestershire Credit Union.
Anyone who lives or works in Gloucestershire can become a member of the Gloucestershire Credit Union, regardless of age, employment status, or income. The credit union is set up as a cooperative, with individuals paying into the service. Members are the owners and managers of the entity and run it democratically. The money accrues as savings and individuals can then apply for small loans that feature low interest rates.
The task ahead is to work on reducing the amount of credit that is made available through payday lending, and ultimately putting a squeeze on the loan sharks…... Financial guidance is also provided for those who need it. Our Credit Union is also accessible via the county's libraries’.
Do you need a low interest loan? For more information go to the Gloucestershire Credit Union web site.
How can we help? The GCU is supported by other churches and we have asked how we can help; watch this space for future updates.
Typical example of rates for quick loans from ‘responsible’ lenders such as advertised on TV.
Quickquid – Rates 819% to 2222.46% Wonga – Representative 4214%