Enterprise Credit Union Leads the Fight Against Loan Sharks

19/04/2024

Enterprise Credit Union featured on Good Morning Britain last month to warn the public of the dangers of loan sharks and how credit unions provide safe, reliable assistance to financially vulnerable individuals.

Enterprise Credit Union CEO, Karen Bennett MBE, explained that loan sharks are observably on the rise as the credit union sees more ‘random credit’ on members’ bank statements due to borrowing money from friends and colleagues. Oftentimes loan sharks are not always easy to identify – it can be somebody close to you and Karen explained it “may not be until their re-payments start doubling and people struggle that they realise it’s a loan shark”.

Furthermore, Karen explained members are increasingly using By Now Pay Later (BNPL) options for simple basics like food during the cost-of-living crisis. As reported two weeks ago by The Guardian, BNPL credit in the UK has quadrupled as consumers struggle increasingly to buy everyday essentials and campaigners and MPs are demanding regulation of the sector.

Credit unions offer a solution and Karen highlights that credit unions provide financial stability through “low-cost loans for all people in the community and also financial education”. A key emphasis within credit unions is building members’ financial resilience by offering savings accounts “for people to build up small savings to encourage them towards a long-term solution” said Karen.

To learn more about loan sharks, you can visit the England Illegal Money Lending Team’s website here and you can find a local credit union to become a member of here.