Roger is concerned that people in Birmingham are turning to payday lenders for help when they run into financial difficulty or have a sudden expense, with the risk of running up massive fines and charges which can eclipse the size of the original loan. Roger would like to see an improved range of financial services become available, so people can access loans and other financial services from responsible providers whose business model is not based on exploitation.

Roger believes that credit unions, which are not motivated by profit alone, are an underused resource and a realistic alternative to payday loans and loan sharks. Roger says: “I am keen to promote access to local financial services, so that people are able to get help when they need it without having to pay astronomical interest rates. I support local credit unions and small banks, which invest local people’s savings back into Birmingham.”
Roger is hopeful that the Birmingham Fair Money campaign, which is part of Birmingham City Council’s Fair Brum campaign, will help to give people more credit and banking options. The campaign brings together organisations including Moneyline, a not-for-profit social enterprise that aims to provide access to affordable financial products for low-income families around the UK; local credit unions such as Citysave; and local not-for profit-finance companies including Aston Reinvestment Trust.
From 1 October, Birmingham Council will provide Citysave with a pop up Birmingham Fair Money shop opposite branches of Money Shop and Cash Generators in a key location on the high street. This shop will give financial advice to people in Birmingham in the run-up to Christmas, and will direct people who need loans to responsible local lenders such as Moneyline or Citysave. It will also direct people for whom a loan would not be a good idea to debt advice charities such as StepChange. Roger says: “I hope that this pilot scheme is successful, and helps to steer customers away from predatory high-cost lenders”.
Find your local credit union at:
http://www.findyourcreditunion.co.uk/home
http://www.abcul.org/credit-unions
There is also a helpline on 0161 832 3694, but you still need to check the rules to make sure you are eligible to be a member.

This article appeared in the August edition of Roger's newsletter 'Postcard from Parliament'