Fenland credit union urging people in financial difficulty to stay away from payday loan companies
- Credit: Archant
A FENLAND credit union is battling to stop people in financial difficulty falling into the clutches of payday loan companies and loansharks.
Wisbech Rainbow Savers opened for business in January to make it easier for people to save money and obtain small loans.
They have signed up about 100 members but hope to entice more people to join.
Interest rates charged by payday loan companies such as Wonga, The Money Shop and Quickquid can exceed 5,000 per cent a year.
Rainbow Savers volunteers are planning to visit major food factories that pay workers with cheques to raise awareness of the credit union.
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Fenland District Councillor Virginia Bucknor said: “It costs nothing to cash a cheque but if you get paid by cheque and don’t have a bank account, like many of the agency staff, it will cost you £25 to cash a £250 cheque at The Money Shop.
“If they join the credit union they can get paid directly into the Wisbech Rainbow Savers, they get given a debit card and can then use their card in shops for 50p.
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“Sadly you can still see young families with children in pushchairs queuing up at The Money Shop in Wisbech.”
Credit unions have received the backing of the Archbishop of Canterbury, who has vowed to drive payday loan companies out of business within 10 years.