UNISON takes on payday lenders

The public service union UNISON is the latest union to take on the growth of payday lending firms, by creating a nationwide network of credit unions to help impoverished members deal with personal debt and financial difficulties. So far 40 credit unions have signed up to the initiative, with double that number in the pipeline.

The scheme is being set up in response to a massive explosion in the number of members seeking help from the union’s charity — "There for You". More and more people are victims of payday loan companies charging exorbitant interest rates, growing fuel debt and unforeseen household emergencies tipping family finances over the edge.

UNISON general secretary Dave Prentis said: “The credit union network is a practical solution to help members drowning in debt. The pay freeze and squeeze has taken a harsh toll on members, particularly the low paid. Many have had cuts to their take-home pay, allowances slashed or hours reduced, leading to growing financial hardship and insecurity."

He added: “As part of the union’s fair deal for tackling debt we want the government to take on the payday loan industry. The obscene interest rates and the profits they rake in at the expense of desperate people is a scandal that should not be tolerated.”

The Unite general union has already announced the launch of a credit union network (see Fact Service, issue 33).

www.unison.org.uk/news/unison-creates-credit-union-network-to-tackle-growing-debt-crisis