After national payday lender Wonga reported record profits, a local credit union has blasted their ‘rip-off’ interest rates.
Worksop-based 2 Shires Credit Union is urging people to turn their backs on payday loan companies charging high rates of interest, and instead use credit union which benefit those involved.
Chairman Jon O’Neill said: “By charging interest at an APR of almost 6,000 per cent, these organisations are clearly ripping people off and earning increasingly large profits for themselves.”
“Credit unions are only allowed to charge a maximum APR of 26.8 per cent by law, and they operate as not for profit financial co-operatives - which means they are owned by the people who use them.”
Credit unions such as 2 Shires are becoming increasingly seen as an alternative to Wonga and similar companies.
Earlier this year the government declared its aim to double membership of unions across the country, while the Archbishop of Canterbury, Justin Welby, said the Church of England wanted to drive Wonga out of business.
Residents in both Bassetlaw and Bolsover can benefit from 2 Shires’ ‘smart loans’ of up to £500 - supported by an assessment that ensures those who cannot afford repayments are not burdened with further debt.
For more information call 01909 500575 or email firstname.lastname@example.org.