This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.guardian.co.uk/money/2013/jun/17/civitas-thinktank-credit-unions-rules
The article has changed 3 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| Civitas urges credit unions to loosen loan rules | Civitas urges credit unions to loosen loan rules |
| (4 months later) | |
| Credit unions must be given powers to charge more and take bigger deposits so they can become a real alternative to high-cost lenders such as payday firms, a thinktank has argued. | Credit unions must be given powers to charge more and take bigger deposits so they can become a real alternative to high-cost lenders such as payday firms, a thinktank has argued. |
| Civitas says the government should go further than recently announced plans to raise the cap on interest rates that credit unions are able to charge to borrowers, in order to help the sector grow. | Civitas says the government should go further than recently announced plans to raise the cap on interest rates that credit unions are able to charge to borrowers, in order to help the sector grow. |
| Legislation will increase the maximum interest rate credit unions can charge on loans from 2% to 3% a month, with effect from 1 April next year. | Legislation will increase the maximum interest rate credit unions can charge on loans from 2% to 3% a month, with effect from 1 April next year. |
| But Civitas says that the "burdensome" regulation should be lifted further, to let credit unions pass on their processing fees, which are typically £8, to the borrower in full. | But Civitas says that the "burdensome" regulation should be lifted further, to let credit unions pass on their processing fees, which are typically £8, to the borrower in full. |
| Even with the added cost, a short-term loan would remain much cheaper than the alternative options for consumers, it argues. | Even with the added cost, a short-term loan would remain much cheaper than the alternative options for consumers, it argues. |
| "Ultimately, credit unions cannot be expected to combat payday lenders if they are continually forced to make a negative or non-existent return on the same loans," it says in a report titled Credit Unions: A Solution to Poor Bank Lending? | "Ultimately, credit unions cannot be expected to combat payday lenders if they are continually forced to make a negative or non-existent return on the same loans," it says in a report titled Credit Unions: A Solution to Poor Bank Lending? |
| Our editors' picks for the day's top news and commentary delivered to your inbox each morning. |