Anne McTaggart MSP has thrown her support behind the recently announced credit union expansion project.
Ms McTaggart was speaking in a members’ debate on the credit union expansion project.
The Association of British Credit Unions Ltd (ABCUL) is the leading trade association for credit unions in England and Scotland; it represents around 70% of credit unions who in turn provide services to 85% of the British credit union membership. ABCUL has been awarded a contract of £38 million to modernise and grow the credit union industry to discourage reliance on non-standard form of credit such as payday loans.
In addition to the expansion project, Ms McTaggart has welcomed the decision made by Glasgow City Council to establish a credit union account with an initial deposit of £10 for every first-year pupil in the city. This long-term strategy will assist young people and educate them on how to properly manage finances and furthermore catalyze the gradual revival of community credit unions.
Ms McTaggart has also been working closely with the Glasgow Debtbusters campaign which has spotlighted the reality that companies offering payday loans have increased their market share by more than 400 per cent in the past three years by subjecting low income families and vulnerable people to exploitative short-term loans that charge up to 6,000 per cent interest.
Anne McTaggart MSP said:
“Glasgow City Council’s refusal to let any of its commercial property to payday loan companies further illustrates Scottish Labour’s commitment to stopping the exploitation of vulnerable people and its determination to promote credit unions as a workable and realistic alternative on which local communities can rely.”
“The credit union expansion project will have a positive effect for people on low incomes, and as such I am delighted to show my full support for the project.”