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Credit Union helping in pay day loans fight
Bradford District Credit Union is moving into new city centre premises as pressure grows against using pay day lenders.
The BDCU has reported a 20 per cent increase in its lending from this time last year from £843,107 in August 2012 to more than £1 million last month.
As well as opening new premises in Cheapside at the end of October, BDCU is also now a member of the Credit Union Expansion Project – a group of 82 unions across the UK that can access £38m of Government cash to compete against high-interest lenders.
The cash will pay for new stores, budget accounts, online account management and 24-hour telephone banking which will be introduced by different credit unions, including the BDCU, within the next year.
Andrew Bowker, the chief executive of BDCU, said that it offered 26 per cent APR compared to 4,000 per cent APR offered by loan sharks and pay day lenders.
He said the new premises, which it was renting from social housing group Incommunities, would give it a much greater presence in the city centre.
Dave Dickens, director of Incommunities Income Management said: “We are delighted that Bradford District Credit Union is opening a base adjacent to our neighbourhood office in Cheapside.
“This move will provide a further convenient base for existing members of the credit union who are Incommunities tenants and hopefully also attract more members.
“We are keen to encourage more customers to be part of Bradford District Credit Union. Since July 2010, nearly 460 of our customers have opened savings accounts with the credit union – many encouraged by our offer of a £10 savings start.
“We are working with the credit union to offer a new form of budgeting account to customers. We are also providing assistance to help residents manage their finances such as running drop-in sessions to open basic bank accounts.”