Invest in credit unions to stifle demand for payday loans, says Archbishop

The Archbishop of Wales has called upon parishioners to invest in credit unions in order to provide people with an alternative to payday loans.

Dr Barry Morgan said that if everyone put just £10 or £20 a month into a credit union account, they would no longer been seen as "poor people's banks" and the market for pay day loan companies would be stifled.

"We can only remove the market for pay day loans if an alternative is available to lend to people at a reasonable rate and this is where credit unions can play a vital part," he said.

"Sadly, credit unions are not part of the fabric of British society as they are in Ireland, Australia, America and Canada. In this country, they are seen as something that exists for poor people."

Dr Morgan has been a member of a credit union for many years and noted that others who follow suit will gain a half per cent return on their investment.

"More importantly, money could be lent at reasonable interest rates, to people who desperately need it. Likewise, if we too fell on hard times, we could borrow," he said.

The Archbishop is in talks with credit unions to see how church members can increase their support to them.

"This Church, along with other churches at the minute, runs youth clubs, visits the elderly, provides food and shelter for the homeless, and raises money for the poorest parts of our world," he said.

"Becoming involved in Credit Unions might be a further way of helping families in desperate financial circumstances, to access loans at more tolerable interest rates, and help transform lives."

Archbishop Morgan, who was addressing the Church's Governing Body, called for a wider public debate on debt, lending and economic justice.

He said: "Can it be right, for example, that 30 years ago whereas the chief executives of large companies used to earn twenty times more than their lowest employee, they now earn two hundred and eighty times the lowest salary? The gap between rich and poor in our society therefore becomes wider and wider."

News
Campaign aims to mobilise 500,000 Christians for Christmas outreach
Campaign aims to mobilise 500,000 Christians for Christmas outreach

Shine Your Light is aiming to mobilise half a million Christians to share the gospel with five million people across the UK this Christmas, with more than 2,000 churches already signed up, organisers say.

The Church of England should repent for previous calls to ban 'conversion therapy'
The Church of England should repent for previous calls to ban 'conversion therapy'

The Church of England's uneasiness about the government's ‘conversion practices’ bill is a perfect lesson in the old adage, 'be careful what you wish for,' writes Dr Martin Davie.

Leaked Home Office report links 'Christian extremism' to traditionalist beliefs and immigration concerns
Leaked Home Office report links 'Christian extremism' to traditionalist beliefs and immigration concerns

An internal Home Office report lists concerns about immigration, multiculturalism and changing social values among the characteristics associated with what it calls "Christian extremism", it has been reported.

Tearfund calls for COP31 funding to reach farmers struggling with climate change and food insecurity
Tearfund calls for COP31 funding to reach farmers struggling with climate change and food insecurity

Tearfund warns that worsening climate conditions are threatening food production and pushing more people towards hunger.