Credit Unions Should Have A Major Role To Play In Beating The Loan Sharks

I blogged the other day about the tragic case ofthe Stanley woman who ended up paying over £80,000 to a loan shark over eight years for a £500 loan. I made that Government MUST be doing more to protect the most vulnerable from people who prey on their financial weakness. And that includes cracking down on those firms who charge interest rates of up to 10,000% APR for so-called 'quick loans'. Indeed, the fact that such firms are allowed to prosper is a modern scandal.

In the blog I suggested that Credit Unions should be promoted as a far superior alternative to those predators who prey on the vulnerable. I was pleased to see that the credit unions in Derwentside are planning to up their game. I just hope that this isn't a news blitz following the nationwide headlines of the past week and that the proactivity still remins when the isue isn't on the national news agenda.

The truth is that this dreadful case might have been avoided if credit unions had been properly promoted and awareness of them had been higher. Not only are they able to offer sensible lending services to people who would otherwise have to turn towards a seedy underbelly, but they are also able to offer often much needed financial advice to people who feel they they have nowhere else to turn. I'm a strong believer in Credit Unions. But they need to increase their visibility, proactivity and community presence to help make sure that there are no repeats of the tragic case that unfolded in Newcastle last week.