Press release
21st November 2011
Gloucestershire Credit Union pleased by cost of
borrowing in the spotlight
The UK now has one of the highest levels of personal debt in the world – in April this
year the British people owed over £1,460bn in private debt. Debt has become part
and parcel of everyday life – many of us owe money on a credit card, loan or
overdraft.
Irresponsible lending can cause debts to become unmanageable: some loan and
credit companies are charging annual interest rates equivalent to over 2500%
(despite the Bank of England base rate being just 0.5%). Therefore Gloucestershire
Credit Union is pleased that the national media are joining the campaign to cap the
interest rate made by payday loan companies.
An e petition has been set up on line and if 100,000 signatures are made before 26th
October 2012, the issue will be debated in the House of Commons.
Jo White, Chair of Gloucestershire Credit Union says " Despite the downturn in the
economy many companies are making big profits from lending money from those
who are the least well off in society. We are pleased that the National Press are
joining in the effort to expose these companies and to try and cap the maximum
amount anyone has to pay in interest"
If you are interested in signing the petition you can make your voice heard at
http://epetitions.direct.gov.uk/petitions/20219
ENDS
Contact:
Gloucestershire Credit Union
107 Barton Street
Gloucester
GL1 4HR
Tel:
Web:
01452 422712
www.gloscreditunion.org.uk
Press release
NOTES TO EDITORS
Gloucestershire Credit Union is a profit sharing, democratically run financial cooperative which offers convenient savings and low interest loans to its members. The
members own and manage their credit union themselves.
The three main aims of a Credit Union are:
 To encourage its members to save regularly.

To provide loans to members at very low rates of interest.

To provide members with help and support on managing their financial
affairs (if required).

The members make regular savings, as little or as much as they wish.

These savings then form a common pool of money from which loans are
made to members.

When members have been saving for a certain period of time (usually about
12 weeks) they can apply for a loan from the pool.

Interest on the loan is usually charged at only 1% per month on the monthly
reducing balance – this equates to 12.68% Annual Percentage Rate (APR).

The amount you will be able to borrow will depend on how much you need,
what you can afford to repay, and the credit union’s policies.