Cruddas backs credit union as payday loans hit headlines
PUBLISHED: 12:29 29 May 2013 | UPDATED: 12:29 29 May 2013
MP Jon Cruddas has thrown his support behind a local credit union while payday loan companies have been slammed for being “out of control”.
Citizens Advice yesterday urged trading watchdog the Office of Fair Trading to ban irresponsible firms after claims of reckless lending and harrassment.
The charity’s analysis of 780 cases between November 2012 and May 2013 found evidence of loans given to under-18s, people with mental health issues and some who were drunk at the time.
Instead Mr Cruddas urged those in need of a loan to head to Liberty Credit Union, a community-based savings and loans organisation that is local to Havering and Barking and Dagenham.
The Dagenham and Rainham MP said: “With the recent round of governmental cuts many have been left financially vulnerable and an increasing amount of people are turning to these irresponsible money lenders for a quick fix to their problems.
“The Liberty Credit Union are addressing this issue head on by offering advice alongside low interest loans, and I applaud all their hard work across Barking and Dagenham helping people get back on their feet.
“We need to invest more into responsible financial options for people and work to expand the options that are already available in order to fight the emerging culture of payday loans.”
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