19 March 2007
Low-income debtors struggling with personal and secured loan repayments will in future be able to turn to a new help project run by Citizens Advice (CA) and the Association of British Credit Unions Limited (Abcul).
By developing a partnership with local credit unions, CA hopes that the Financial Inclusion Partnership will allow them to assist them with helping financially-excluded and vulnerable groups in their local area.
Teresa Perchard, Director of Policy at CA, said: "People on low incomes often struggle to find affordable credit and feel forced into taking out loans with sky-high interest rates, sometimes through unscrupulous loan sharks. Credit unions give them an affordable, safe and dependable alternative."
Chief Executive of Abcul, Mark Lyonette, added: "We are delighted to be working with Citizens Advice to link up our credit unions with their bureaux at a local level.
"Together we will be able to provide a more comprehensive service with credit unions directly helping vulnerable customers avoid serious debt."
The news follows the announcement from Abcul that it is to offer consumers a new current account service, offering a clear pricing policy up-front for monthly fees and by not offering an overdraft facility, negating the possibility of users falling into large amounts of debt.
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