On the day a report says millions of Britons are likely to take out a high-interest loan in the next six months to last them until payday, Suffolk’s local credit union reminds people we are the affordable alternative.

R3, which represents "professionals working with financially troubled individuals and businesses", bases its claim on interviews with 2,000 people and Chris Mole, General Manager at the Ipswich and Suffolk Credit Union says “We see the price people pay every day when they have borrowed from pay-day and door-step lenders, but because we are owned and run by our members we offer more affordable credit.

“We offer loans to our members based on their ability to meet the repayments from their income and as a not-for-profit organisation we are not interested in exploiting people in difficult circumstances.

“We know people need credit. Our loan book has doubled from this time last year with 171 people taking out loans totalling £102,690 compared with 70 people taking out loans totalling £48,950 this time in 2010.

“Whilst pay-day and door-step lenders can charge hundreds and sometimes thousands of per cent interest (APR) for loans, credit union interest rates are capped by law to a maximum APR of 26.8%.

“We welcome savers who want to support our ability to provide affordable loans to the community, we don’t pay interest, but we can pay an annual dividend to depositors”

ENDS

Notes for editors:

• Source: http://www.bbc.co.uk/news/uk-16063271

• ISCU is authorised and regulated by the Financial Services Authority and deposits are protected by the Financial Services Compensation Scheme.

• We currently offer services that include: savings and loans, cheque cashing, wages and benefits processing, loan and life insurance and a Christmas savings club. We operate a rent deposit scheme in partnership with housing authorities and can lend small “urgent” welfare loans.