Local Council backs Kent Savers Credit Union with subordinated loan
21 Sep 18
Ashford Borough Council is to back Kent Savers Credit Union with a subordinated loan of £10,000 to help the credit union prevent people going to payday lenders in its community.
The Council's cabinet accepted a recommendation from its overview and scrutiny committee to grant the loan after reviewing a serious problem of homelessness in the borough, which can be viewed as a problem sourced by payday loans.
The loan will allow Kent Savers to increase the value of its loan book and to further help more people in the Ashford Borough.
Speaking about the importance of Kent Savers to its community, Deputy Leader of Ashford Council, Cllr Neil Bell, said: "Credit unions have an important part to play in allowing residents with a poor credit history to rebuild their credit scores. This, in turn, may allow them to regain access to the full range of financial services in the marketplace and all the associated benefits."
Back in 2017, a campaign was launched to warn of the dangers of illegal lenders after a man was jailed for fleecing over £200,000 out of families. Experts say there are no exact figures for how many loan sharks are operating in Kent, due to the lack of documentation they keep about those they lend money to. Kent Savers have been committed to helping combat the threat of loan sharks.
Since formed in 2012, Kent Savers has lent £316,000 to almost 4,000 members.