The National Consumer Council (NCC) has announced its delight at the news that a government scheme to combat illegal loans is being expanded.
Its deputy director approved of the government’s plans to roll out the scheme nationally following an earlier announcement that the initiative would be established in Liverpool, Sheffield and Leeds.
However, the spokesperson added that it was important for projects aiming to discourage people from using loan sharks to be accompanied by attempts to make credit more affordable for less wealthy people.
“It’s vital, though, that these new projects are supported by efforts to make more affordable credit widely accessible in poor communities,” remarked Claire Whyley.
The expert added that the programme helps free people from intimidation and also enables them to find ways to find loans with more affordable repayment rates.
As part of a consortium financed by the Joseph Rowntree Foundation, the NCC is engaged in finding ways to extend the provision of low-cost credit to less well-off people, who could then compare loans and select the best rate to suit their repayment capabilities.
The NCC receives more than 80 per cent of its income as grant-aid from the government, but maintains its independence through securing funding from other sources.
© Adfero Ltd