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Community bank aims to see off high interest lenders and loan sharks

Not for profit community bank Wolverhampton City Credit Union (WCCU) is helping hundreds of local families to borrow affordably this Christmas - and steer clear of high interest lenders and loan sharks.

Community bank aims to see off high interest lenders and loan sharks
Helping hundreds of local families to borrow affordably

The Worcester Street co-operative's Christmas loans are up by 50% on last year and it estimates that it has so far saved its members £135,000 in high interest loan repayments.

WCCU manager Matt Goulding said: "At a time when people are struggling with rising prices, stagnating wages and cuts in benefits, the last thing they need is to be exploited by lenders charging high interest rates.

"As the credit union is owned and run by its members - people who live or work in a WV postcode area - it doesn't have to pay out bonuses to bankers or shareholders, keeping more cash with local people and communities."

WCCU has extended its service to 2 pop up credit unions in Low Hill and The Scotlands in a bid to see off doorstep lenders and loan sharks who target the neighbourhoods. And thanks to partnerships with 12 major local employers, workers can also join the credit union and save and borrow affordably directly from their salary.

Councillor Andrew Johnson, Cabinet member for Resources, said: "We welcome WCCU's efforts to bring fairer finance to local people especially at a time when so many are finding it harder to make ends meet. Its commitment to helping people save as well as borrow affordably will build the financial stability of thousands of families in the city."

Wolverhampton City Credit Union is a not for profit cooperative owned and run by its 8,000 plus members, people who live or work in a WV postcode area. Members who save with the credit union provide the pot of cash from which other members can borrow affordably. Savers also earn an annual dividend on their instant access savings. As it keeps its interest rates low, the credit union helps to keep more cash in local households and neighbourhoods, boosting local economies.

For more details visit Credit Union website.

  • released: Monday 4 December, 2017