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Banks should follow credit unions and provide short-term credit

16 October 2014

On International Credit Union Day, Citizens Advice has warned about the lack of choice in short-term credit.  The national charity has said credit unions are “part of the answer” but so too are high-street banks who need to start offering alternatives to payday loans.

Chief Executive of Citizens Advice, Gillian Guy, said:

“People are still faced with a stark lack of choice in short-term credit. The experience of thousands of Citizens Advice clients seeking our help with payday loan debts, shows the urgent need to put in place a variety of affordable credit options for people who are struggling to make ends meet. Credit unions can be a part of the answer, along with high street banks doing more to offer responsible short-term loans.

“All lenders must treat borrowers fairly and sympathetically. At a time when so many people are unable to cope with their bills, high interest and harsh practices by lenders can send people over the edge.”

Notes to editors:

  1. The Citizens Advice service comprises a network of local bureaux, all of which are independent charities, the Citizens Advice consumer service and national charity Citizens Advice. Together we help people resolve their money, legal and other problems by providing information and advice and by influencing policymakers. For more see the Citizens Advice website.
  2. The advice provided by the Citizens Advice service is free, independent, confidential, and impartial, and available to everyone regardless of race, gender, disability, sexual orientation, religion, age or nationality.
  3. To find your local bureau in England and Wales, visit citizensadvice.org.uk. You can also get advice online at adviceguide.org.uk
  4. You can get consumer advice from the Citizens Advice consumer service on 03454 04 05 06 or 03454 04 05 05 for Welsh language speakers
  5. Citizens Advice Bureaux in England and Wales advised 2.3 million clients on 5.4 million problems from October 2013 to September 2014. For full 2013/2014  service statistics see our quarterly publication Advice trends
  6. Citizens Advice service staff are supported by more than 21,000 trained volunteers, working at over 3,000 service outlets across England and Wales.