Cardiff and Vale Credit Union is working with Stop Loan Sharks Wales to provide safer loans and savings amid the cost of living crisis
THE Credit Union service at Caerau and Ely Hub – which closed during the Covid pandemic – is to re-open in the new year amid a rise in loan-sharking.
With Christmas approaching, the Cardiff and Vale Credit Union (CVCU) is partnering with Stop Loan Sharks Wales to provide safer options for loans and savings.
“We’re trying to stop people from going to loan sharks or payday lenders,” said Emilie Brown of Cardiff and Vale Credit Union.
“We are not for profit so we can offer affordable loans because we don’t try to make a profit and we’re not trying to make money for shareholders.”
Stop Loan Sharks Wales – a government-funded agency which both investigates and prosecutes – estimates that there are 70,000 victims of illegal loans in Wales.
During the current cost-of-living crisis the organisation has seen an increase in victims of illegal money-lending, with the main reason changing from the payment of one-off expensess to buying everyday essentials, such as food or bills.
“If someone has borrowed money from a loan shark, or knows someone who has, please get in touch – the support we offer is safe and confidential, and we don’t want people to suffer in silence,” said Christine Sumner, client liaison officer for Stop Loan Sharks Wales.
The organisation warns that although loan sharks initially appear friendly they can become threatening, demand higher payments and even use violence as time goes on.
The CVCU information point is set to open in the new year as a part-time volunteer-run help desk but could become full-time in the future.
The Union works with 50 organisations around Cardiff and the Vale to provide residents with financial advice and support for any questions they have – and help people save money.
“That’s our mission really, just to improve financial wellbeing and making informed decisions especially coming up to Christmas,” said Miss Brown.
People can build up savings with them either by direct debit payments, or by having money taken straight from their wages.
The credit union currently has branches in Cardiff city centre and Barry as well as access points in community Hubs across Cardiff.
Stop Loan Sharks Wales urges anyone aware of illegal money lending to call them on 0300 123 3311 or visit their website.
