Citizens Advice Scotland (CAS) has today welcomed steps by the Church of Scotland and others to set up credit unions as a low-interest alternative to payday loans and high street bank loans.
CAS has long been calling for more credit unions - which offer people more responsible lending, tailored to their individual needs. But we also want to see more initiative from politicians to help tackle the crisis of un-manageable debt in our communities.
Today CAS spokesman Fraser Sutherland says,
“We welcome the development of the credit union movement as an alternative to both payday lenders and the banking industry. We would urge anyone who needs a loan to shop around and consider a local credit union before going for the first loan they see from a payday lender or bank.
“However, this development is one small part of the solution to the problem of unaffordable debt and financial exclusion that exists for many Scots. Our latest figures show that Scottish CAB advisers currently see 8,500 new debt cases a month.
“With the general election only three months away we would like to see how politicians of all colours will challenge the financial exclusion that exists in today’s society. We need strong action from policy makers to make a real difference to those struggling financially, and while credit unions must form part of that solution they cannot be expected to do it alone.”
For interviews etc., please call Tony Hutson on 07774 751655.