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Credit where it’s due! MP Toby Perkins joins local politicians in support of Credit Union

Credit where it’s due! MP Toby Perkins joins local politicians in support of Credit Union

With pay day loans companies exacerbating the financial problems of hundreds of people across the region, local politicians have come out in support of the Chesterfield and North Derbyshire Credit Union in an attempt to promote responsible lending. Toby Perkins, Labour Member of Parliament for Chesterfield, joined the leaders of both Chesterfield Borough and North East Derbyshire District Council and Manager Karen Peck at the Town Hall on Rose Hill where the Credit Union had temporarily set up stall in the foyer.

Financial exclusion is on the up, as people who for one reason or the other cannot access reasonable credit facilities from high street banks. Quite often they have no bank accounts at all and either no or poor credit history. People who cannot access reasonable credit are prey to loan sharks who charge exorbitant interest rates. Small emergencies in people’s lives, such as a broken washing machine, can result in people becoming trapped in a cycle of debt as the interest charged on even small loans can prove to be unaffordable. The rates of interest charged by companies willing to lend to these people vary from 85% to over 2,000% for pay day loans.

The credit union is one of the only affordable resources for people who are categorized as financially excluded. The credit union charges 28% apr and offers advice on managing money as well as sign posting people to other agencies for advice on benefits. The Credit Union offers savings accounts to those people not wishing to borrow, from which capital is made available for short and medium term loans. Money put into the Credit Union is, like any other reputable financial institution, is safe and insured.

After speaking to the Manager of the Chesterfield and North Derbyshire Credit Union, Karen Peck, about the vital work done by the organization in the town, Toby Perkins said:-

“With unemployment at record levels, it is a shocking reality that many people become stuck in a debt trap with no real means to escape. The Credit Union is an excellent organization, based in Theatre Yard, which provides a good service at more reasonable levels of interest. But of course, the Credit Union relies on savers as well as lenders to provide this service so I would urge people to visit the CU to see for themselves the ways in which they can help support a fairer, more equitable method of lending for those people who would otherwise have no option but to take on astronomical rates of interest from loan sharks”.

He added:-

“I am working hard in Parliament to limit the most pernicious loan sharks across the UK, and supporting Credit Unions is one action which almost anyone can do to join that campaign”.

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Welcome

I am Toby Perkins, Labour's Member of Parliament for Chesterfield. If you would like to get in touch with me, my office is open and can be reached by phone on 01246 386 286. I also hold regular surgeries so that constituents can meet me and I can take up their concerns. If you would like to make an appointment then please do contact my office. Thank you for visiting.

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