Chris Franks AM gave a warning in the Senedd to people not to be tempted by pyramid schemes with the promise of getting rich quick.
He did so after a professional gambler has been found guilty of running a £34-million scam that targeted people on low incomes.
Plaid Cymru AM Chris Franks said: “Many of the people living in the South Wales Valleys, Carmarthenshire, and Llanelli invested money in the scam pyramid scheme. I would advise people to invest in and to borrow money from credit unions, rather than these too-good-to-be-true schemes. Plaid in government has supported co-operatives and credit unions by investing millions. One example of the benefits from this money is a Welsh credit union now can offer a current account.
“The London based parties are all the same; funded by the same big corporations, banks and millionaires that have got us into this economic mess. I am calling for banks to invest a share of their profits into community projects and ensure fair lending policies with a minimum level of service across all communities.”
The Plaid Cymru AM asked the Social Justice Minister Carl Sargeant about the support given to credit unions.
The Social Justice Minister said:
“Pyramid schemes or pyramid borrowing are a very dangerous game, but, at face value, can be attractive to some people. However, the proof of the pudding is in the eating, namely the devastating effect that it has on families and family life across the UK, particularly in Wales. That is why the Welsh Assembly Government has made a commitment to the all-Wales credit union programme, which we have funded significantly.”
