End legal loan sharking in Wakefield
Wakefield MP Mary Creagh has joined Labour’s Police and Crime Commissioner candidate for West Yorkshire, Mark Burns-Williamson, local councillors and the White Rose Credit Union (WRCU) in a new campaign to end legal loan sharking in the city. Mary and Mark visited WRCU on Friday and distributed leaflets to shoppers warning them of the dangers of payday loans.
Mary Creagh said “High-cost lending is causing misery for hundreds of people across the district. A lack of Government regulation leaves legal loan sharks free to exploit people who are struggling, pushing them further into debt. With one in three payday loans taken out to pay off other payday loans it is clear these high cost credit products need to be capped but this out of touch Government refuses to act.
“We met several people who had been hit by rip-off interest rates charged by payday loan shops. We know when the Universal Credit comes in next year there will be Universal Credit loans offered by these legal loan sharks. Anyone who wants to join the campaign can get in touch with my office on 386124”
PCC candidate Mark Burns-Williamson said "I’m lending my support to the campaign to encourage responsible lending through organisations like the White Rose Credit Union and opposing the practice of high interest loans which only adds to personal debt and the black economy.”
Director of Wakefield’s White Rose Credit Union, Richard Stevens said: “The practice of ‘high interest’ lending is morally wrong; it allows organisations, such as Doorstep, Log book and Pay Day lenders, to exploit the vulnerable and make unreasonably high profits from those who can least afford it. Credit Unions are ethical organisations that will only lend in a responsible manner, to avoid pushing people into debt they cannot afford, and will always encourage members to save a little for those little emergencies.
Many Credit Unions in the UK now offer far more services that the traditional Savings and Loans which include Current Accounts, Prepaid debit cards, a range of Insurance products, Junior and Christmas Saving accounts and Payroll deduction arrangements with local employers.”