…Mr McKillop stresses that credit unions are only an alternative to payday lenders, not a competitor. “The model of very short-term lending is not good as a form of financial help. So though many credit unions can make instant loans, they will look at your finances and see if this is a one-off, a way for you to get back on top of your money.”
Last June, Justin Welby, the archbishop of Canterbury, launched a scheme to promote credit unions in churches and train volunteers to give financial advice. Martin Groombridge, chief executive of London Capital Credit Union, said it “definitely raised our profile”. Piloted in London and Liverpool, the scheme is set to be introduced around the UK in about a year, potentially marketing credit unions to hundreds of thousands more people.
The Rev Paul Collier, vicar at Copleston church and community centre in Peckham, south London, said debt and payday loans came up as a big concern in his conversations with local organisations, schools and other faith communities. “The older members of our congregation were educated by their parents to avoid debt at all costs, but many have seen their children getting into deep trouble,” he said.