Newspaper article Manchester Evening News

Support Credit Unions to Stop Payday Lenders ; Christine MooreMANCHESTER CREDIT UNION CHIEF EXECUTIVE

Newspaper article Manchester Evening News

Support Credit Unions to Stop Payday Lenders ; Christine MooreMANCHESTER CREDIT UNION CHIEF EXECUTIVE

Article excerpt

ON Monday, the Diocese of Manchester will lend its weight in supporting credit unions from all across Greater Manchester at the city's cathedral.

The aim of this union is to encourage the residents of Greater Manchester to use our historic and trusted credit unions to make more ethical and responsible borrowing and saving decisions; choices that can keep families out of spiraling debt.

An Ofcom report states that in 2009 payday lenders advertised 19,000 times on television in the UK. Fast-forward to 2012 and that figure approached a staggering 400,000. With the huge marketing budgets spent by payday lenders throughout the year reaching a large audience through TV advertising, these high interest lenders often seem like the only available option despite their extortionate interest rates.

But that's not all. Some people turn to illegal money lenders - we know this because loan sharks have been arrested in Greater Manchester. These people often start out being friendly but don't provide proper paperwork, will take people's passports, bank cards and very often use threats and intimidation.

What the Diocese - in conjunction with credit unions - aims to express is that there is a more responsible, more ethical and safer way of borrowing - and indeed saving - money that already lies at the heart of many of the city's communities and businesses. By borrowing from a credit union instead of other high cost options, collectively the local people in Manchester can save in excess of Pounds 3m in interest in one year. That's money that stays in the local economy and in people's pockets.

Credit unions are local financial cooperatives owned and controlled by their members. They are organisations that encourage their members to save together and lend to each other responsibly.

They can help educate people to become financially wise. …

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