Get involved! Send your photos, video, news & views by texting SB NEWS to 80360 or e-mail us
Credit union coming to Stourbridge to offer relief from payday loan sharks
12:46pm Monday 2nd September 2013 in Local
A GROWING scourge of “immoral” payday lenders in Stourbridge has prompted a long-running credit union to set up shop in the town.
The Castle and Crystal Credit Union is opening a branch in Stourbridge library as it celebrates its 20th anniversary, offering an alternative to payday lenders which charge extortionately high interest on loans.
The credit union’s Business and Finance Manager Dharminder Dhaliwal said payday loan shops are springing up in the town due to the economic climate.
He said: “If you go back five years there weren’t any payday loan shops in Stourbridge but now there are more than two in the High Street.
“Because of the recession and because of the way the banks have battened down the hatches in terms of lending people are finding it very hard to find finance - these are often people in work who have good credit ratings but who are having difficulty accessing finance.”
Credit unions are becoming a popular alternative as they offer low interest not for profit loans rather than payday loans which charge such high rates of interest borrowers find their debts spiralling out of control.
The credit union’s service desk will open on Tuesday September 17 and will be manned from 10.30am to 2.30pm every Tuesday till Saturday. The first 20 people who sign up will receive a £10 High Street voucher.
People can sign up for on-the-spot membership, open savings accounts and find out about loan options.
Councillor Pete Lowe, Dudley Council’s deputy leader of the council and cabinet member for finance, said: “Credit unions are fast becoming a real alternative to banks and other financial institutions providing secure savings and affordable loans.
“People are starting to realise payday lenders and loan sharks are just preying on vulnerable people with their immoral terms and conditions.”
Any borough residents, businesses, charities, and voluntary groups can become corporate members and invest with Castle and Crystal.
For details call 01384 815771 or visit www.castleandcrystal.co.uk.
Comments are closed on this article.