Latest Debt News
Anti loan shark scheme launched
18/10/2005 14:11:00
A scheme to help the poorest avoid loan sharks has been launched in Sheffield.
The Sheffield Investment Bond, launched on Monday, will use money given by individuals and employers to help those in severe money troubles. Any interest generated on invested cash will be used to services such as affordable loans and counselling schemes. Investors are promised their money back in five years.
The scheme is being run by the debt relief charity Citylife, which has run bonds in East London and Newcastle in the past. Funds will be used to help Moneyline Yorkshire, a not-for-profit company which helps low-income families who can not access low-interest rate credit.
Tim Jones, chief executive of Citylife, said: "Moneyline are highly successful in reaching 'hard to reach' families. But the demand is already overwhelming and there is a clear need to provide substantial funding to allow this work to expand in Sheffield.
"For instance, people wanting an interview for face-to-face money advice, prior to any loan offer, are currently facing a 12 week wait and they currently have no capacity for emergency cases."
Figures show that just under eight million people would be refused credit from conventional lenders, according to figures from Datamonitor.
© Adfero Ltd