The Welsh Liberal Democrat spokesperson on social justice, Peter Black has warned people to beware of payday lenders seeking to pass themselves off as credit unions after Somerset Savings and Loans credit union accused them of doing just that in their own area.
Reports in the Western Daily Press say that Somerset Savings and Loans treasurer, Paul Urch is writing to MPs and church leaders in a bid to expose big pay day loan companies, who, he says, are disguising themselves as credit unions and posing as ethical bankers so as to bypass bad publicity..
Mr Black, who is a member of his local credit union in Swansea, said:
“It is absolutely disgraceful for any payday lender to attempt to take advantage of people in this way. Many of those who find themselves in financial difficulty are under great stress, and may not always check what is being said to them.
“While I have not yet had an example of this happening in our region, I feel it is important to warn local people ahead of anything happening that there are unscrupulous lenders out there who are happy to misrepresent themselves in order to get a customer.
“There are three large credit unions operating in our region. All are registered with the Financial Conduct Authority, and are regulated by the Prudential Regulation Authority in exactly the same way as the High Street banks.
“They are Bridgend Lifesavers Credit Union, LASA – Swansea’s Credit Union, and Neath Port Talbot Credit Union.”
