Labour MP for Edinburgh North & Leith
Chair of the All-Party Parliamentary Group on Debt and Personal Finance
PRESS STATEMENT
For immediate release
EDINBURGH MP WELCOMES GOVERNMENT ACTION ON CREDIT UNIONS
Mark Lazarowicz MP, Member of Parliament for Edinburgh North & Leith, has welcomed the UK Government’s announcement that it is planning to make it easier for credit unions to expand their financial services.
In an announcement made to the All Party Parliamentary Group on Credit Unions, Treasury Minister Kitty Ussher MP announced that the Government plans to bring forward UK-wide legislation to enable local credit unions to attract new members and help more people borrow at affordable rates.
The Government is going to change the rules to help people to save more with credit unions by allowing them to offer ISAs and Child Trust Funds. Credit Unions will also be allowed to pay interest on members’ savings for the first time if they want to.
Local Credit Unions often lend money at a low interest rate to people who would otherwise have to borrow money from unregulated sources such as loan sharks or lenders who charge huge interest rates. This often puts people who can afford it least into even more serious financial difficulty. By allowing Credit Unions more freedom to expand the Government is ensuring financial inclusion for everyone in society and helping the most financially vulnerable people.
Mark said,
“I am glad the Government is making these changes and allowing more freedom for Credit unions to expand. Now more that ever, with families feeling the pinch due to tough conditions in the international economy, the Government wants to make sure people in areas such as Edinburgh and Leith can access affordable credit in their local area through Credit Unions rather than having to rely on more expensive lenders.
“As a Labour-Co-operative MP and Chair of the All-Party Group on Debt and Personal Finance, I take a keen interest in ensuring that we improve people’s access to financial products and services that are appropriate for them. Allowing for the expansion of Credit Unions means that if people do need to borrow money they can do so safely and reasonably without having to go to loan sharks. That can only be a good thing. “
Notes
• Credit Unions are financial co-operatives owned and controlled by their members. They often operate in communities were people can find it difficult to borrow from major lenders. They offer savings and great value loans plus they are local, ethical and know what their members want.
ENDS
For further comment and information please contact the office of Mark Lazarowicz MP on 020 7219 8222.
Website: www.marklazarowicz.org.uk
Constituency Office: 86-88 Brunswick St, Edinburgh EH7 5HU
Tel: 0131-557-0577 Fax: 0131-557-5759