Falkirk East Labour MSP Cathy Peattie has welcomed news that the Scottish Executive will underwrite loans from local credit unions to Farepak customers. “The Farepak collapse hit hundreds of local hard-working families and Christmas will be tough enough without high interest borrowing on credit cards or loans from sharks,” said Cathy.
“The credit union loans of up to £400 are charged at significantly lower interest rates. I hope this will encourage those families who need help to use credit unions. Credit unions are already helping their members who were also Farepak customers but this announcement will enable them to do a lot more.”
Credit unions across Scotland will lend up to £400 to those who have lost out, charging standard credit union interest rates on repayments which are significantly below commercial rates. It is estimated that there could be up to 30,000 Farepak customers in Scotland. The underwriting facility will ensure credit unions can offer loans to individuals who have lost out but are not members as well as existing members.
A full current list of known credit unions in Scotland will be available at http://www.scotland.gov.uk/Topics/People/Social-Inclusion/17413/CU
Further details can be obtained from ABCUL and the Scottish League of Credit Unions.