One local authority has paved the way for the local credit union to expand in order to protect a larger number of people from falling into debt, it was recently revealed.
The Haringey, Islington and City Credit Union has struck a deal with Haringey Council, providing funding to the financial services provider in the form of a £250,000 loan. As much as £500,000 could follow in that initial loan’s wake, as long as the credit union meets additional targets as it grows.
One of the main goals of the credit union is to increase the reach of its efforts to make a higher number of local residents aware that there are alternatives to harmfully expensive payday loans. Haringey Council approves of such an endeavour, with the local authority’s cabinet member for social inclusion and economic development, Councillor Alan Strickland, stating that the council is determined to provide a support network to its residents in order to help them weather the most turbulent financial seas since the Great Depression.
Haringey Council is taking action to fight back against the proliferation of instant cash loans shops in its high street, Cllr Strickland said, by demonstrating to payday lenders that they are not welcome within the borough and that residents have viable alternatives to high interest rate short term loans, and the local authority takes pride in backing the credit union in order to provide a measure of protection from over-burdensome debt for those living nearby.
One of the main requirements that the credit union must meet in order to continue to receive funds is to target its loans with an eye towards low income earners, as these households are often the most vulnerable to payday lending.