The Wrekin Housing Group & Just Credit Union offer advice as doorstep lender stops service
The news that Provident Financial is to close down its doorstep lending operation has been welcomed by both The Wrekin Housing Group and Just Credit Union.
Last month, Provident Financial announced it was withdrawing the service following compensation claims from customers who said they had been mis-sold loans. While doorstep lending is legal and regulated, it has been criticised for the high interest rates charged and the ease with which people can get into significant debt.
Deb Morrison, Financial Inclusion Manager with The Wrekin Housing Group said:
“At a time when many people across our communities are suffering financially, we welcome the news that Provident are stopping their doorstep lending service.
“The high interest rates charged by Provident have seen many people hit with unfair high cost credit. Fortunately, there are more affordable alternatives available such as the Just Credit Union.
“There is a real danger that unregulated doorstep lenders – loansharks – could step into the void Provident leaves behind. We urge people to go to their local community credit union to find out if they can offer them a better deal.
“Whenever you borrow money, check not just the amount repayable every week but also the interest rate, the total cost of the credit and how long it will take to pay it back.”
Steve Barras, development officer at Just Credit Union, said:
“These are difficult times for many households.
“People who may have lost their jobs, have outstanding debts, or are struggling to get credit through the usual means can feel like they’ve run out of options and turn to loan sharks.
“Often, what starts out as a small loan repaid weekly in cash on the doorstep can take years to pay off because of the exorbitant interest rates charged. People don’t always realise how much they have to pay back in total, which can lead to financial problems as well as stress and mental health issues.
“I would urge anyone who desperately needs financial help to not turn to a loan shark but instead to talk to us about financial support available.
“Our aim is to encourage people to start a savings habit, helping to reduce their reliance on borrowing. However, we recognise that we all need to borrow from time to time – whether that’s for big bills, one-off emergencies or important life events – and our loans provide a more affordable and responsible solution.”
To find out more about Just Credit Union and the services they provide, visit www.justcreditunion.org
If you or someone you know has borrowed from a loan shark there is help available. The English Illegal Money Lending Team investigates and prosecutes loan sharks and supports those who have borrowed from them. Help is available at www.stoploansharks.co.uk or 0300 555 2222 and suspected loan sharks can be reported anonymously.
Our Money Matters Team is on hand to help answer your questions and provide support
Our expert advisors can help and guide you with:
- Managing your budget
- Help with your utility bills
- Debt advice
- Advice and help with all welfare benefits
- Help to move into employment or training
Get in touch with our Money Matters team by calling 01952 217234 or email money.matters@wrekin.com
11th June 2021