Credit union saves members from £3m in high rates

The union said that whilst the ongoing Covid-19 pandemic and changing lockdown restrictions meant Christmas 2020 was “a time of sadness and anxiety for many”, it helped people to avoid the extra stress of taking out high interest loans from unethical loan sharks and payday or doorstep lenders.

The union promoted its low interest loans and provided information illustrating “the perils of sky-high APRs”. It said that this was at a time when “unscrupulous lenders were maliciously targeting some of Leeds’ worst hit postcodes”.

A survey conducted amongst Leeds Credit Union’s 37,000 members in December showed that more than 20 per cent of people in the local community were reliant on borrowing or credit to pay for Christmas.

Chris Smyth, managing director at Leeds Credit Union, said: “LCU was determined to ensure those struggling to cope financially this Christmas, don’t turn to unethical payday, doorstep or loan shark lenders, and we are delighted to have helped keep £3.13m in the pockets of those that need it most across the region.

“Undeniably, we are living in a time of never before seen uncertainty, with many finding themselves in unexpected financial difficulties. It has never been more important that as a credit union, we step up and ensure as many people as possible across the region have access to affordable and ethical borrowing, and that they are kept away from those looking to take advantage of the situation.”

Leeds Credit Union, which was named the region’s best lender in 2020, has expanded its member services during lockdown, setting up additional contact numbers for members to get in touch. A new mobile banking app has also been made available ahead of its official launch so members can access their accounts remotely.