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A few years, ago I was working on a job in one the local housing estates and saw “Loan Sharking “first hand.
Let me tell you it’s not nice.
So when they set-up a credit union in the town, myself and the company supported it by opening up accounts and keeping a high amount with them.
I made most of my staff open up saving accounts too.
One of my trainees, about 18 years old asked for loan of £600 to buy a car. He had been saving with them for the last 2 years and not made any withdraws from this account. He lives at home, works and makes about £190 net.
They refused the loan.
Now I have just spent the last hour talking to them, and found out that there short of money and would only help people with a better credit record.
“If you can get credit from a bank, you not need a Credit Union” I told the volunteer, seem not to care like “nice”(lol) pb.
I put him thought our company credit check and could see no problem with him.
After talking to him, I got the feeling unless you’re in a council house with 3 kids and a single parent, there no point in asking for a loan.
But I always thought the point of the Credit Unions were to help people with bad credit on low incomes or benefits, seems I was wrong.
Is this a case of the local councils setting up Credit Unions so they can use the money?
Has for me, I will just do what most people would do, lend the kid the money, take it out of this wages at £7 per week and close all accounts with them.
I don’t really know about credit unions but I know that if someone has a bad credit rating then it’s probably not wise to lend them money. Even with credit unions, they probably have to assess each person’s circumstances before granting them a loan. It’s not just about where you live, how long you’ve lived there and how much you earn. They also take into account a person’s credit activity over a certain period e.g. any missed payments, any defaults, CCJs, etc. So, maybe your trainee hasn’t been handling his finances well? Or maybe somebody else in his house has financial problems. Sometimes a person’s credit record includes other people at the address.
what if this kid leaves your employment?
I we credit scored him and we got a score of 478, which will normal get you a credit card of a bank loan.
They must use the same systems has us for this, there’s not that any around, (about 4).
But dd think that the point of a credit union was to help those who could not be helped my banks.
The selling point for was that they would offer lost cost loans to people on low incomes or welfare, that’s why I supported them in the past.
Its now seems they are run by “volunteers” with there own view on how the money should be spent or loaned.
I do understand that here are people out there who will take the ” p i ss” with this kind of program and I understand the need for credit scoring, but if you can get money from a bank why would you we need credit union?
When I sign up and support this program, they told me it would help stop the “loan sharks” and there 2000% apr, people on low incomes should be better off.
Why else did you think I keep’t money in account at 3% when I could get 8% in the high street banks? I hope it would help people who had run into problems and need a hand, I was wrong and have spent today closing accounts with them and moving the money to a better account.
You know this has really p iss me off.
And pasta, no one leaves a trainning program where they can drive a van like a “bumper car” and get paid for doing nothing all day.
If I am going to sack someone its normal in the first 2 years, not when they are starting to look usefull.
Yes – I hope that they get their money back !!!
mmmmmmmmmmmmm……………….. Geoff they all do has there told if they work for me or I tell there wife’s how much they really get paid each month.
If you would like to know more about credit unions see:
http://www.fsa.gov.uk/consumer/04_CREDIT_DEBT/mn_credit_union.html
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