High cost lenders are exploiting NHS workers, Shropshire credit union warns
A major warning that NHS staff and other key workers remain in danger of exploitation by high cost lenders was issued today by Shropshire’s savings and loans co-operative.
Just Credit Union says it was the reason that earlier in the pandemic it took a critical decision that it was important to take action to assist all key workers in the county, and in particular all care workers and NHS staff.
The credit union introduced a new preferential loan to key workers which it said had been ‘hugely successful'.
The savings co-operative can also offer affordable and ethical loans to people who live or work in Shropshire and Telford & Wrekin.
Just Credit Union points to a recent study that shows thousands of mainly lower paid workers are relying on loans charging up to 1,333 per cent interest to survive.
The study by the University of Edinburgh Business School examined the finances of almost 10,000 mainly lower paid and younger NHS workers.
It found that almost a third were using five or more loan providers, many of whom were high-cost, such as payday and short-term loan firms.
The research also indicated that many of these lower paid and younger workers would struggle to meet an unexpected bill of £100 in a month without going into – or increasing – their overdraft.
Ethical
Steve Barras, business development manager at Just Credit Union, said: “The research shows that thousands of NHS workers have been left heavily reliant on several high-cost loans.
“Just Credit Union were themselves previously aware of this danger and as coronavirus arrived in the UK we introduced a new and imaginative preferential loan to key workers.
“We offer affordable and ethical loans to people who live or work in Shropshire and Telford & Wrekin, but we made the decision that it was important to do something to assist all the key workers in the county and particularly all of our care workers and NHS staff.
“It is one less problem for them to worry abut and we will continue to offer this preferential service. Key workers can rest assured they can apply and sign for a loan digitally and at a time that suits them.”
Steve said Just Credit Union also offers payroll savings schemes and has arrangements in place with many of the county’s employers, including NHS trusts and care providers.
He added: “Introducing a payroll savings scheme is a great way for employers to help workers stretched to save and improve their financial resilience.
"We are happy to talk to any employer about introducing a scheme for their staff.”
Details of payroll savings schemes and preferential key workers loans can be found at justcreditunion.org
