Credit union comes to Stourbridge to offer relief to loan sharks
A GROWING plague of “immoral” payday lenders in Stourbridge has prompted a long-standing credit union to move to the city.
The Castle and Crystal Credit Union is opening a branch at Stourbridge Library as it celebrates its 20th anniversary, offering an alternative to payday lenders who charge exorbitant interest on loans.
Credit union business and finance manager Dharminder Dhaliwal said payday loan shops are popping up in the city due to the economic climate.
He said: “If you go back five years, there weren’t any payday loan shops in Stourbridge, but now there are more than two on the High Street.
“Due to the recession and the way the banks have closed the lending hatches, people are having a hard time finding finance – often working people who have good credit scores but have difficulties in accessing financing. ”
Credit unions are becoming a popular alternative as they offer low interest nonprofit loans rather than payday loans that charge interest rates so high that borrowers see their debts spiraling out of control.
The credit union service desk will open on Tuesday, September 17, and will be open from 10:30 a.m. to 2:30 p.m. every Tuesday through Saturday. The first 20 people to sign up will receive a £ 10 High Street voucher.
People can sign up for membership on the spot, open savings accounts, and learn about loan options.
Councilor Pete Lowe, Deputy Head of the Dudley Council and Cabinet Member for Finance, said: “Credit unions are quickly becoming a real alternative to banks and other financial institutions offering secure savings and affordable loans.
“People are starting to realize that payday lenders and loan sharks are only preying on the vulnerable with their immoral terms.”
All Borough residents, businesses, charities and volunteer groups can become corporate members and invest with Castle and Crystal.
For details call 01384 815771 or visit www.castleandcrystal.co.uk.