Liverpool commits £1m to credit unions

LIVERPOOL City Council has awarded £1m to a consortium of seven credit unions.

It says the aim is to save more than 23,000 families and 600 businesses from loan sharks by offering affordable finance.

The council expects the cash will be used for 12,500 loans and generate a further £2m in interest over three years.

Deputy Mayor, councillor Paul Brant, said: “This is a pioneering initiative which will help and support the most vulnerable in our community who are being hit by a triple whammy of rising unemployment, increased costs for food and fuel and cuts in welfare benefits.
 
“The banks have also toughened up their lending criteria and this means many people and small businesses are unable to get affordable credit. All of this means that the temptation to go to a loan shark or pay day lender is higher than ever, and people are increasingly resorting to them out of desperation.
 
“We want to provide a support route for vulnerable people to help them out of crisis and get their finances back on an even keel. I am delighted that seven of the city’s credit unions have come together to put together a bid for this funding.”

The seven Credit Unions are: Riverside Credit Union; Enterprise Credit Union; Knowsley Mutual Credit Union; Partners Credit Union; Lodge Lane Credit Union; Central Liverpool Credit Union; and Norris Green Credit Union.