Liverpool City Council Calls to Use Credit Unions Rather than Doorstep Lenders

Friday 26 January 2024

Liverpool City Council is urging residents not to turn to loan sharks to cover the rising cost-of-living and pressures on household finances, and instead look at alternatives such as credit unions.

Figures from the England Illegal Money Lending Team shows that nearly one in ten people turned to loan sharks to cover the costs of Christmas.

More than half of victims turned to illegal money lenders in order to pay for essentials such as utilities, food and fuel in the first half of 2022.

Deputy Mayor of Liverpool and Cabinet Member for Tackling Fairness and Poverty, Cllr Jane Corbett said: “We know this is a really difficult time of year for many people as they feel the pressure of the Cost-of-Living crisis.

“There is a long and proud history of credit unions in the city. They are a great way to save, bank and borrow, typically offering lower fees, higher savings rates and a more personalised approach to customer service for their members.

“In addition, credit unions may offer lower interest rates on loans, particularly compared to payday or doorstep lenders. They are also suitable for people who may not be eligible for services from a high street lender.

“Debt can quickly spiral out of control and if you’re borrowing money, it’s important to check that your lender is genuine.

“The post-Christmas period and January is going to be a very difficult for thousands of people across the city. Local credit unions understand the pressures they are under and are run by local people, and are there to help and support them. I’d like to thank all of the volunteers and staff for the work they do.”