THE Bishop of Stafford has joined forces with a credit union in a bid to help put pay day lenders out of business.
The Right Reverend Geoff Annas was at the Blurton Hub on Ingestre Square yesterday morning to highlight the issue of borrowing debt.
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He highlighted the need for the county to embrace credit unions instead of allowing those short of cash to rely on loan sharks and pay day companies.
And bosses at the Staffordshire Credit Union joined the calls to 'run pay day lenders out of town'.
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Reverend Annas, below, said: "As a Christian our belief is we should be supportive particularly for the poor and disadvantaged.
"For a long time the church has been involved in credit unions and we want to highlight the services that will help those in need.
"They offer an alternative, ethical way of accessing funds and also encourages saving.
"Debt is a real issue for so many people. We want to divert them away from loan sharks and payday loans which create further debt and anxiety."
The Church of England will promote the service by encouraging parishioners, local employers and church councils to save with their credit union.
Its message will be included in parish magazines, presentations, meetings and on notice boards.
Kevin Waters, chief executive of the Staffordshire Credit Union, said: "This is a continuation of the attempt to run the payday lenders out of town.
"We have had support from Geoff to highlight the presence of the credit union within North Staffordshire and the good work that we do.
"I am concerned about pay day lenders whose interest rates are enormous. They accept benefits as payment and then allow people to take out top-up loans.
"With credit unions we are ethically run and can even be used by people who have been declared bankrupt or those who have a bad credit history."
Only two per cent of people in England are members of a credit union compared to 70 per cent in the Republic of Ireland.
A credit union is a business owned and run by its members who manage and save money, as well as being able to access low-cost loans.
It is also used by savers who want their cash to be with a secure organisation where it can be used by other people who need to temporarily borrow the money.
The maximum loan interest rate is 26.8 per cent and that money goes towards the running costs and dividends. This can be compared to an internet-based pay day firm which charges 2,758.17 per cent APR.
Only members who are 18 or over, who have saved money regularly through the union can apply for a loan.
The amount offered depends on the person's ability to pay and total savings.
For more information about how to join the Staffordshire Credit Union, call 0845 224 1215.
