Ipswich Borough Council is to give financial backing to the local credit union in order to offer an alternative to people tempted by loan sharks and pay day loan companies.
The £15,000 investment in the Ipswich & Suffolk Credit Union’s Corporate Deposit Account will help it to increase its community lending programme.
The decision was made by the Council’s Executive last night (Tuesday 16th July).
Council Leader David Ellesmere said: “This is a further step in our campaign against loan sharks, who take advantage of people’s desperation in this difficult economic climate. We are also aware of the incredibly high interest rates charged by some pay day loan companies and we want to help the credit union help people save and borrow.”
Three well-known pay day lenders charge interest rates from 1,734% to 2,949%.
The Ipswich & Suffolk Credit Union (ISCU) was founded in 2001 and now has thousands of members across Suffolk. It is a co-operative financial institution owned and controlled by its members and is operated with the purpose of promoting thrift, providing a safe place for savings and low cost loans.
Opening a Corporate Deposit Account of up to £15,000 allows organisations to support the local community by depositing funds in the financial co-operative that shares social values and it has the potential for the organisation to receive a dividend payment.
ISCU General Manager Chris Mole said: “This is a very good decision by Ipswich Borough Council as it enables the credit union to help more Ipswich people with affordable credit, whilst the money remains the council’s for use in the future.”
For further information contact: Ipswich and Suffolk Credit Union, tel: 01473 690690