The government has announced the introduction of measures it says have been designed to bolster the efforts of credit unions.
Economic secretary to the Treasury Kitty Ussher has suggested that the struggles facing British families in becoming debt free mean that they need access to affordable credit more than ever.
With this in mind, Ms Ussher has proposed the introduction of a legislative reform order that would aim to do away with “outdated and unnecessary restrictions that are limiting mutuals from growing and competing”.
The changes would mean that groups could join a credit union and that membership criteria can undergo “liberalising” procedures more generally.
“We want to make it easier for families to access the affordable credit on their doorstep that is offered by credit unions, rather than having to turn to more expensive schemes, or at the extreme end, illegal loan sharks,” said Ms Ussher.
Chancellor Alistair Darling recently called for mortgage lenders in the UK to treat their customers fairly when it comes to the issue of relevant fees.
By Frank Charlton