The recent negative news coverage of the doorstep lender Provident has brought into sharp focus just how much borrowers on the doorstep are paying for small loans, whilst highlighting the enormous amounts of money the boss of Provident has been making from families around the country.
At this point we have to point out the affordable loans that PCCU offer to the local community. For over 35 years we have provided an ethical alternative to the door step lenders who operate in Burnley and Pendle. As a not-for-profit co-operative PCCU only operates for the benefit of this community, any money we make through our affordable loans is kept in the community – it is used to allow the credit union to operate and any surplus after paying for the running expenses is returned to account holders in the form of a dividend.
According to the BBC the share price of Provident collapsed last week by 66%. The company has some 2.5 million customers, many of whom would not qualify for a standard bank loan. Nationwide many of these customers would benefit from opening an account at their local credit union to save or borrow.
Whilst the company’s poor performance hit the news over the past week, the eye watering income of Provident’s outgoing Chief Executive over the last 10 years Peter Crook was also in the spotlight. Alex Hawkes wrote in the Mail on Sunday that Mr Crook had ‘raked off £40 million in salary, shares and perks’ during his time in charge. This is in direct contrast to the credit union movement across the UK where profit is distributed equally amongst account holders.
His wealth is in stark contrast to the circumstances of many of his customers, who pay annual interest rates of more than 1,500 per cent to borrow £100 for 13 weeks.
A voice of reason regarding affordable borrowing came from Molly Scott Cato, a Green MEP, when discussing the possible collapse of Provident and how it could affect those who are charged through the roof to borrow from door step lender
Fortunately, many will also have access to a credit union in the community that can fill this gap – with a fairer and more empowered form of credit. It has always been a scandal that the poor have paid the most for credit, with the profits been siphoned up to the richest
The one message that PCCU would like to come out from the news is – there is an alternative, if you would like to discuss affordable borrowing or building savings to protect against unexpected expenses that arise, contact your local credit union today.
Contact PCCU today
If you would like to discuss affordable loans or ethical savings accountContact Us