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.