Coffee House isn’t always the greatest friend of the trade unions, but one union made a striking announcement today which demonstrated the good that these bodies can do in society. Unite plans to set up a nationwide network of credit unions to try to divert struggling families away from legal loan sharks.
Credit unions make small loans to members using deposits, and are a safe alternative to payday lenders such as Wonga, which charges a staggering 4,214 per cent APR on its loans. The Guardian quotes Unite’s director of executive policy Steve Turner:
‘We are in discussions to try to establish a UK-wide credit union that will give access to cheap finance and cheap credit to millions of people. We are trying to get to the point where you can get emergency loans through credit unions, to stop that third week being Wonga week.
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