29th July ‘08 - Credit Union Changes May Assist Those Being Refused Secured Loans
In news that may of be interest to anyone trying to take out a secured loan in the UK, the government has said that it will ease restrictions on credit unions.
The move is expected to be of most benefit to those people hit hardest by the credit crunch such as low-income earners who are finding it difficult to obtain a secured loan. It is particularly hoped that the relaxed rules will prevent people trying to raise funds by dealing with loan sharks.
Kitty Usher, Economic Secretary to the Treasury, commented, “We want to make it easier for families to access the affordable credit on their doorstep that is offered by credit unions, rather than having to turn to more expensive schemes or, at the extreme end, illegal loan sharks.”
In the UK there are currently more than 600 credit unions. The government hopes to remove the “outdated and unnecessary” Common Bond rules so as to allow credit unions to offer their services to a broader ranger of people, including many who have been refused a secured loan.
To find out more about credit unions go to the Association of British Credit Unions.