This week HM Treasury announced new funding for the Illegal Money Lending Team of £5.5 million to help with the fight against loan sharks and to help promote credit unions as a responsible, regulated alternative to loan sharks.
Head of Policy & Communications at the Association of British Credit Unions, Matt Bland, said: “It was great to see the announcement of extra funding for the fight against loan sharks this week. Many credit unions work with the Illegal Money Lending Team across the country to encourage local people to come to them before ever taking the dangerous step of borrowing from an unlicensed lender.
The extra money to promote the role of credit unions will help keep more people out of the clutches of loan sharks. But credit unions have a broader role to play in providing an ethical and affordable alternative source of credit and savings facilities than simply in relation to the fight against loan sharks.”
Despite its relative affluence, there is still evidence (from the Herts Money Advice Unit) that loan sharks are operating in the St Albans District. The St Albans District Credit Union provides a real alternative to loan sharks and other high cost lenders by offering fair cost loans. Learn more about our loans here.