Don’t let the coldest months drive you into the arms of loan sharks, urges Manchester Credit Union.
The team at Manchester Credit Union, which supports over 30,000 members, has issued an urgent warning to Greater Manchester residents, urging them not to be tempted by loan sharks as the financial stress of the winter takes its toll on many.
Mandy Wilcock, chief executive of Manchester Credit Union, said: “January is a long and challenging month, and February is often the coldest month of the year. Many people are struggling to make ends meet and pay for food and heating, especially after the expense of Christmas. The promise of quick and easy access to money can be very tempting – but using a loan shark will only worsen the situation.
“People often think December is when illegal lenders are most rife, but any month when money is tight, such as the new year and the school holidays, tends to make them more active in local communities.”’
Manchester Credit Union says there are five easy ways to spot when someone might be a loan shark.
- Quite often, loan sharks are well known in a local community, which can make people feel like they can be trusted
- They typically deal in cash rather than bank transfers – which can make the idea of ‘cash now’ tempting
- They don’t have paperwork to support the loans they offer
- They are often reluctant to give information about the terms of the loan – such as how much you’ll have to pay back and over what period
- Sometimes, they withhold people’s passports and other important documents as security.
Mandy Wilcock added: “No matter how tempting it might seem, loan sharks are not to be trusted and often use violence to get people to pay. We’d urge anyone struggling to consider using a credit union like ours for a loan. It’s a safe, affordable and quick way to borrow money.”
As all loan customers of Manchester Credit Union also have to save a minimum of £1 per month, it’s an excellent way for people to start building savings to help with future expenses.
The warning comes as Manchester Credit Union delivers financial literacy workshops with primary schools across Greater Manchester. So far, more than 100 children in Baguley, Wythenshawe and Openshaw have learned about good financial habits by participating in a fairytale with a twist.
The fairytale involves many well-known characters who need money and are tempted by a loan shark before discovering safer ways to save and borrow.
Manchester Credit Union is a financial co-operative, owned and controlled by its members, and has been in business for 30 years. It exists solely for the benefit of its members, and any surplus generated is returned to members in the form of a dividend on savings or used to improve services for members. Dedicated to helping people in Greater Manchester free themselves from a cycle of costly and stress-inducing debt, Manchester Credit Union operates from three physical branches in Manchester City Centre, Rochdale, and. Wythenshawe. MCU is open to anyone who lives or works in the City of Manchester, Bury, Rochdale, Stockport, Tameside, Trafford and the High Peak.
