Bradford credit union tackles debt problem with 0% loans
Interest-free loans are being offered to people affected by the coronavirus crisis, in a scheme designed to protect people against loan sharks.
Bradford District Credit Union has partnered with Bradford Council to offer people furloughed or waiting for benefits a £500 loan and grant package. Those eligible receive £50 to save with the credit union, and £450 to spend with a 0% interest rate. It comes amid warnings about the risks of increased illegal lending. More stories from around Yorkshire A recent inquiry from an All-Party Parliamentary Group (APPG) into lending and borrowing post-Covid found illegal lenders were using new methods to target people, including using Snapchat and WhatsApp to contact vulnerable people. Catherine Williams from the England Illegal Money Lending Team, said: "One of the issues we have with loan sharks is that people think they are their friend, or a friend of a friend, or someone they think is helping them out. They have no idea it's a criminal. "Because it's done through social media, by the nature of which people think it's friendly, people don't realise you need to be authorised to lend money in this way." Ian Brewer, from Bradford District Credit Union, said: "We realise that people are struggling financially and they just need a small leg up. "They need a small amount of money just to get them back on their feet while they are waiting for their benefits to come through or for their job to start. That is the stop-gap we are trying to achieve." The credit union is trying to target the most vulnerable in the community by sending out information about their services in family activity packs, provided by the organisation Artworks. Follow BBC Yorkshire on Facebook, Twitter and Instagram. Send your story ideas to yorkslincs.news@bbc.co.uk or send video here.