Calls for loans help after E&S coverage
Dozens of people have called a credit union in the Black Country to get help with their finances after an Express & Star story about the perils of payday loans.
The Castle and Crystal Credit Union in Dudley now says it is planning to expand and open a branch in Stourbridge Library following a rise in the number of payday lenders in the town. It comes after the newspaper featured the story of a woman had run up debts of £1,200 from two payday lenders who she had been trying to pay off for six months.
There were 13 people who called on Monday morning saying they had seen the story either in last Saturday's newspaper or on the Express & Star website. Since then there has been around half a dozen each day
Since then credit union bosses say they have taken calls from other people, some of whom are struggling with money and need help.
Payday lenders charge very high interest on loans, which are intended to be paid back within a short space of time.
Borrowers who struggle to pay them off quickly find the debts can spiral out of control. Credit unions such as Castle and Crystal have been gaining in popularity as they offer low interest rates and are not for profit.
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Dharminder Dhaliwal, business and finance manager at the union, said: "We will be opening up in the library in Stourbridge from mid-September as there are several payday shops that have opened up there over the past two or so years.
"Our members will also be able to join online via our new website which is going live soon. We've taken at least 13 calls since the Express & Star story and Ian's campaign in the high street on Friday, including one from Surrey.
"We have had councillors and other people coming in to talk to us to find out what we do and we have had other people caught in the payday lending trap seek our help."
The branch in Stourbridge Library will open Tuesdays to Saturdays 10.30am to 2.30pm.
Dudley North MP Ian Austin has been campaigning to get payday lenders out of the town's high street and calling them 'legal loan sharks'.
Mr Austin said: "It is a fantastic result that so many people called so soon after reading about the campaign and it shows just how much families are struggling to make ends meet."
He said that he had spoken to people who had borrowed £100 through payday lenders but ended up £1,700 in debt two years later.
Readers who viewed the story via the newspaper's website also shared their experiences. One, calling himself Mr Indebt, said: "Every month I feel depressed and suicidal. I don't have a life any more."
