Tory MP praises Brent Council’s credit union initiative

Credit unions offer residents a low interest loans

Credit unions offer residents a low interest loans - Credit: Archant

Grand Shapps gives town hall project the thumbs up

Grant Shapps with Simon Marcus, Conservative parliamentary candidate for Hampstead & Kilburn (Pictue

Grant Shapps with Simon Marcus, Conservative parliamentary candidate for Hampstead & Kilburn (Pictue: Polly Hancock) - Credit: Archant

Conservative party chairman Grant Shapps has praised a council initiative to encourage people to use credit unions.

In a bid to tackle the amount of people using high interest cash loan companies, Brent Council recently launched a drive to encourage people to sign up for the service which Mr Shapps said he “whole heartedly condoned”.

He told the Times: “Credit Unions are a fantastic and sensible service; I am a member of my own local branch and would encourage people to sign up.”

credit unions are a member owned organisation which claim to serve people ahead of profit.

They offer a range of services including fixed interest loans and also support community development.

A credit union’s policies around interest rates are set by a volunteer Board of Directors elected by members.

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Some high street cash loan companies, which have seen a marked increase across the borough, charge up to 4,000 per cent interest on borrowing and it is claimed they pray in deprived areas.

Mr Shapps added: “It’s a great way of getting people out of the slip of using loan sharks and rouge money lenders and I would encourage anyone to use them.

“I applaud Brent for their efforts on this.”