Saturday, 28 June 2014

Credit where credit's due

Payday loan company Wonga has been in the news for sending threatening letters to customers using fake law firms.

They have said that they "voluntarily" ceased this practice 4 years ago - no explanation of why they started this in the first place.  Wonga MD Tessa Cook has said that it's "not a proud day for Wonga".  When your business makes profits out of other people's poverty, how can any day be a proud day?

Of course, Wonga, and other businesses like them will claim that they are subject to the laws of supply and demand - they can only exist because people are in such dire straits that they need so called payday loans to tide them over.

Whilst this may be true, there is a better way.

Credit unions provide a way of borrowing money for a short time whilst avoiding the exorbitant interest rates of "payday lenders" - credit unions are owned by their members, and run as a co-operative, thus they do not have to make profits to satisfy shareholders. They are protected by the Financial Services Compensation Scheme, meaning that any money saved with a credit union is safe in the event of a collapse.

My trade union, PCS has it's own credit union that I have a savings account with - it's a good way to build up a nest egg, whilst knowing my money is being used for ethical purposes.

You can find your local credit union here - I would encourage everyone to open an account, and keep them in mind as an alternative to expensive payday lenders.

1 comment:

  1. Hi Gary! My church was involved in setting one of these up in my local town recently. I must get around to opening an account as you are dead right- this is a brilliant way to save money and help others!X