St Albans District Credit Union is authorised and regulated by the Financial Services Authority (FRN 213794)
Web site and design ©St Albans District Credit Union 2011
ST ALBANS DISTRICT
CREDIT UNION
135 Hatfield Road, St Albans, Herts. AL1 4JX :
Phone: 01727 859135 : Fax: 01727 859135
Email: office@stadcu.org
Web site and design ©St Albans District Credit Union 2011
Want to borrow money at 4000% interest?
A 58 per cent increase in demand for payday loans was recorded in May 2011, compared to the same period in April, according to a report in a national paper. Payday loans are a form of short-term borrowing aimed at struggling workers who need to bridge the gap until their next payday. When converted to an annual percentage rate (APR), interest can be as high as 2,000 per cent. Rates vary enormously but typically, anyone borrowing £1 00 will have to pay back around £125 with the loan term usually set at 31 days, so a £300 loan is likely to cost around £375.
If a loan application is successful, funds can be transferred into the borrower's bank account on the same day, increasing their popularity among those who are desperate for money to pay a bill or buy essential items. In addition, some internet-based loan companies offer the same sort of arrangement, ease and speed – but with APRs at an eye-watering 4000% or more!
The MAU regularly warns people about illegal loan sharks and promotes credit unions as an affordable, reliable, community-based alternative. Some of the companies offering commercial and totally legal loans at rates of 4000% APR may not lead to the threats and violence that loan sharks cause, but the effect on family finance can be just as devastating. Always seek alternatives to these lenders, and always seek debt advice from free, reputable organisations.
The MAU self-help fact sheet 'Dealing with Debt' is at www.hertsdirect.org/benefits
St Albans District Credit Union
St Albans District Credit Union is a well-established local alternative to extortionate `legitimate' lenders as well as illegal loan sharks. The Financial Services Authority has recently agreed that it can now provide a service across the whole of Hertfordshire.
It has a Consumer Credit Licence, is part of the Financial Services Compensation Scheme, does not charge set-up or arrangement fees, has no early repayment penalties and gives free life insurance on loans and savings (subject to age). It even has volunteers, such as retired bank managers, who are willing to visit people in their own homes at a mutually convenient time if they prefer.
For more information, see St Albans District Credit Union's website at www.stadcu.org or phone 01727 859135 or email “office@stadcu.org”
Extract: Herts Adviser Issue 9
PAY DAY LOANS
Extract from Herts Advice Money Advice Unit (MAU)September 2011)
St Albans District Credit Union is authorised and regulated by the Financial Services Authority (FRN 213794)
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