Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

CU System
U.K. Proposes Tax On Payday Lenders To Fund CUs
LONDON (10/21/13)--A member of the British Parliament has unveiled plans to tax payday lenders and use the money to fund low-cost alternatives such as credit unions.

British Labor Leader Ed Miliband said his party aims to raise enough cash to double the US$20.8 million the government now provides each year to the fund to expand credit unions (Standard Oct. 17).

Credit unions are being touted as alternatives to the high-cost payday lenders by the Archbishop of Canterbury, who has waged war on payday lenders by forming a credit union during the summer for clergy and urging others to support credit unions.

Payday lenders in Great Britain have been widely criticized for exorbitant interest rates that can reach 5,000% a year. The party has already proposed a cap on credit.

Speaking at a credit union in South London on International Credit Union Day Thursday, Miliband said the prices families pay keep rising faster than wages they are paid. As a result, the payday loan market has doubled in the past four years. Nearly one-third of the loans are to cover gasoline and electricity bills, he said.


RSS print
News Now LiveWire
Terri Maloney, CEO, #CatholicUnitedFinancialCU, part of Minn. elder abuse guidance presser. See #NewsNow http://t.co/ywyANIY69w
19 minutes ago
Another state will probe the Experian data breach; learn more in tomorrow's edition of #NewsNow #CUNA #creditunions
17 hours ago
Canada's @Vancity to support phase 3 of @WOCCU's Build the Brand http://t.co/6IMSvA8LMZ
17 hours ago
Yesterday, #creditunions across the country encouraged members to #gogreen on #EarthDay http://t.co/boBamaLJoh #greenliving
20 hours ago
As ticket prices for sporting events soar, #creditunions are pitching in to drive down costs for members http://t.co/EgrrtkVlgt
22 hours ago