The most active high interest lenders, both nationally and locally, are the 'doorstep lending' companies Provident and Greenwoods. As the description implies their agents call door-to-door lending and collecting. Between them they employ 19,000 agents nationally and are reputed to have £3,000,000 out on loan in West Cumbria at an APR of 272%.
Some doorstep lenders charge so much interest that a £500 loan will cost another £410 in interest. Use our loan sliders to see how much you could save by taking a loan from a credit union loan.
There has recently been a rapid increase in 'Pay-day loan' providers, both on the High St and via the internet. These companies (e.g. 'Wonga') typically charge 2,000% APR, although the local CAB has come across an example at 6,000% APR.
Furthermore there are an increasing number of retailers such as 'BrightHouse' that offer finance for their goods on weekly repayments with high APRs that can significantly increase the cost of the original item.
The YES scheme provides an affordable alternative to high street weekly payment stores, high cost doorstep lenders and payday lenders. Find out more here
By 1st January 2014 Allerdale Credit Union had approximately £370,000 out on loan locally, generating £6,000 in monthly interest. Had this amount been lent by a 'doorstep lender' the monthly cost in interest would be £25,000.
The Allerdale Credit Union is currently saving local households £19,000 a month - or £230,000 per annum. This is £19,000 a month that is kept within the local economy, supporting local traders, businesses and employment opportunities.