Gloucester MP Richard Graham says the government announcement to crack down on loan sharks and help protect the most vulnerable is “an important step in the right direction.”
The government is budgeting £5.5 million to investigate and pursue illegal loan sharks, responsible for causing up to 300,000 people to be in debt.
Richard said “I don’t want to find any of my constituents being preyed on by these loan sharks - creating a cycle of debt and stress that no-one needs. The real alternatives is for people without bank accounts to borrow from our own local Credit Union.”
The MP, who has been a member of the Gloucester (now Gloucestershire) Credit Union for the last eight years, says Credit Unions offer far lower interest rates and only lend responsibly. He encouraged Housing Associations and media to help “spread the word and encourage my constituents to visit the Brunswick Road library to meet the Gloucestershire Credit Union between 12 and 1pm on Tuesdays and Thursdays, or 10am and 12 on Saturdays.”
The government has already spent £100,000 in funds seized from loan sharks to promote credit unions in England. Over 300,000 people in Britain are in debt to illegal money lenders, with over 380 prosecutions in the last 15 years for illegal money lending, writing off over £73 million of loans.
