Shropshire credit union continuing to offer loans during coronavirus pandemic
A credit union in Shropshire is reassuring people they can still apply for affordable loans during the coronavirus crisis.
Just Credit Union, the county's not-for-profit savings and loans co-operative, says it is offering loans and secure accessible savings.
Steve Barras, the credit union's business development officer, said: “We appreciate that even during the current coronavirus situation people may still need to replace critical white goods.
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"People can still apply for a loan from Just Credit Union online at our website www.justcreditunion.org and many online white goods retailers are still able to deliver with changes to their services to accommodate social distancing.”
It comes after rent-to-own retailer BrightHouse has collapsed into administration.
Rent-to-own let customers buy household items, such as a washing machine, in exchange for small weekly payments.
However, critics said these can quickly add up to hundreds of pounds more than the same items cost on the high street.
In 2018, the Financial Conduct Authority (FCA) proposed there should be a price cap on what companies like BrightHouse can charge, in a bid to protect vulnerable customers.
The watchdog said that some customers had paid up to four times the average retail price for their items due to sky-high interest rates.
A year earlier, BrightHouse had paid out nearly £15 million in redress to almost 250,000 customers after the FCA found it had not acted as a responsible lender.
Mr Barras said: “BrightHouse lets customers pay for household items such as washing machines and televisions on a weekly basis, but it has been heavily criticised for the way it operates.
“The FCA found that customers ended up paying more than £1,500 for ovens that sell in other high street shops for less than £300.
“Many people feel they have no other options available to them when it comes to replacing essential items such as cookers. However, for people who live or work in Shropshire and Telford & Wrekin, Just Credit Union provides ethical small affordable loans.
“We will make sure the loan is affordable and then people are free to shop around for the best deal available on the items they need. There is no pressure to buy expensive warranties or insurance.”
