New campaign against illegal loans as data reveals almost 20% of Harrogate residents to be financially vulnerable

Economic problems have not only seen a rise in food banks but created fertile ground for loan sharks to operate in, too, prompting a new campaign by Fair4All Finance.

The data from Fair4All Finance reflect the impact on the ground of the UK’s deepening cost of living crisis.

Economic problems have not only seen a rise in food banks but created fertile ground for loan sharks to operate in, too.

In response, Fair4All Finance has launched its first-ever national campaign to raise awareness of credit unions and community lenders as an alternative to payday and illegal lenders.

“Credit unions and community lenders have decades of experience in supporting households across the UK to save and borrow," said Lauren Peel of Fair4All Finance.

"They are experts in lending responsibly, whether that’s to people who are well off or to those in vulnerable circumstances."They will be a key sector as we go through a distressing cost-of-living crisis and lenders such as these could be vital resources as local people try to navigate this difficult time.”

For the 24,413 adults identified by Fair4All Finance to be struggling financially in Harrogate, being financially vulnerable means that due to personal circumstances such as poor health, experiencing negative life events, low financial resilience or low capability, they are unlikely to access mainstream finance.

Fair4All Finance is urging anyone worried about their finances to contact their local credit union or community lender, such as Leeds Credit Union – which also serves Harrogate - first, alongside making sure they are claiming the correct benefits to help with the cost of living crisis.

An alternative to high street banks, local credit unions are not-for-profit and act as an alternative to high street banks, local credit unions assist households to cover essential items or unexpected expenses.

They will only lend if it’s the right thing for an individual’s finances and help them to consider other options if a loan isn’t the right choice.

Fair4All Finance was founded in 2019 through the Department of Digital, Culture, Media and Sport.

For more information, visit www.fair4allfinance.org.uk/

If you are looking for a credit union near you, visit www.findyourcreditunion.co.uk/