Over the past couple of days payday loan companies have been hitting the headlines, highlighting an emerging ‘out of control' sub-culture of high interest money lending. Dagenham and Rainham MP Jon Cruddas has thrown his support behind a local credit union to promote responsible loans and secure, informed financial options.
On Tuesday 28th Citizens Advice urged the Office of Fair Trading to ban the irresponsible companies after public claims of reckless lending and harassment. It has been alleged that over the past year payday loan companies in the UK have given loans to people under the age of 18 and people with mental health issues.
Jon Cruddas MP for Dagenham and Rainham is urging those struggling through tough financial circumstances to turn to Liberty Credit Union. The credit union is a community-based savings organisation offering responsible lending schemes and financial advice on savings. The organisation which started in Havering has, in the last few years expanded into Barking and Dagenham and is based at Vicarage Field Shopping Centre, Ripple Road IG11 8DQ.
Jon Commented on payday loans and the sterling work Liberty Credit Union is doing to combat irresponsible money lenders: "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."
You can find out more about the Liberty Credit Union and apply for a savings account or preferential rate loan here: http://www.lcu.org.uk/index.html