The Unite union has launched a new credit union service, in a bid it says ‘to take on payday lenders, encourage saving and offer members finance without fear’. The service has been expressly launched at a time of falling real incomes which makes Unite’s members and their families more susceptible to ‘pay day loans’ which give immediate access to cash but at the cost of interest rates that are many thousands of per cent. (Ref. 130705)
Unite is particularly angered by the profits made out of its members’ poverty by the likes of Wonga, Pounds-to-Pockets and QuickQuid. Independent research has shown that the disposable income of Unite members has fallen by £129 (€154) a month, with households being forced to borrow an average of £660 (€786) over the same period.
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