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quickly see a problem without a solution, after the initial relief of thinking their financial worries were being addressed. Quite how an interest


rate of 4,000 per cent helps anyone should be a key question asked of those who charge it. Credit unions are one possible solution to this crisis with interest rates capped by law at no more than 26 per cent. They, along with other organisations, are there to help people out of debt, not create more. Around four million people in Scotland already have access to a credit union so alternatives and solutions are readily available. Unfortunately there are


so many channels open to pay- day lenders to attract new customers with clever marketing and advertising on both TV and radio and it upsets me greatly to see a local, high- profile football club promoting one on its shirts. Social responsibility seems to have been cast aside in favour of sponsorship pounds.


The impact of pay-day lending is not just financial, but also social, affecting people’s health. Those who come to the credit union office are quite obviously under a great deal of stress with many claiming their financial worries


are affecting their work and general well-being. Pay-day lenders prey on


people in vulnerable situations and not just those who are considered to be in the low pay bracket. This is a problem that affects people across social boundaries and is likely to get worse given the current economic climate. The ability of many to


manage their monthly household budget is seriously impaired and, after ‘collecting’ a number of pay-day lenders, many are turning to Protected Trust Deeds (PTDs) as a solution. What they do not appreciate is that their credit rating will be in the gutter for six years thereafter. This may be the right solution for some but certainly not for the majority we come across. It is another factor to be considered in tackling the debt crisis engulfing Scotland.


There is no doubt that bold


action is required to stem the tide of pay-day lending and Dundee City Council’s stance in blocking staff from accessing pay-day lenders websites should be applauded. Our recommendations for the Scottish Government are as follows:


To take a stance similar to Dundee City Council by banning adverts for payday lenders on all digital media and SG premises. To encourage all


authorities to do the same.


To promote credit unions to staff, constituents and the wider Scottish Public as an ethical alternative source of borrowing saving.


and


For every elected politician to join and support their local credit union.


To consider, as part of the Bankruptcy and Diligence Act consultation, making Credit Unions preferred creditors.


To instruct schools to have financial education as part of their curriculum.


To promote a public awareness campaign on the implications of the high cost of credit to health, wealth and long term ability to borrow.


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