Hundreds sign up to credit union against loan sharks

HUNDREDS of people have signed up to a credit union in North Yorkshire which was launched to help combat loan sharks operating throughout the county.

Figures released this week have shown that more than 700,000 has been provided in low interest loans to more than 700 customers, many of whom have been struggling financially during the recession.

The new scheme went live last spring and was formed by extending the York Credit Union, which was launched four years ago, to cover the whole of North Yorkshire.

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North Yorkshire County Council provided a 200,000 start-up loan while a further 100,000 was invested by York Council.

Calculations have suggested that loans using the loan provided by York Council could save borrowers more than 400,000 in interest repayments compared with the cheapest alternative legitimate loans – and much less than the exorbitant interest rates charged by loan sharks.

York Council leader Andrew Waller said: "I am delighted that by using some of the council's reserves in this way we have helped the credit union to go from strength to strength and meet many more loans than they were previously able to.

"They provide a great service lending to people who don't have easy access to credit much needed funds in the short-term. Anything that we can do to rid our streets of loan sharks must be worth doing."

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Evidence has emerged nationally that loan sharks are charging interest rates of up to 117,000 per cent and have forced victims into prostitution to repay debts as well as carrying out acts of extreme physical violence.

There is significant deprivation in some rural communities as well as cities such as York.

More information about the North Yorkshire credit union is available at the website, www.nycu.org.uk , by calling 01904 676633 or e-mail [email protected]

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