First Dorset Credit Union fights back against loan sharks

He was told of some of the worse excesses of unscrupulous lenders when he visited the First Dorset Credit Union in Dorchester.

The union offers affordable financial services, such as savings accounts and insurance but is also attractive to many for its low interest loans.

Mr Letwin, who has been a backer for a decade, called in to see how the union was faring and heard how credit unions were hoping to persuade the Government to target lenders preying on the poorest people.

He said: “I’ve been associated with the credit union since its foundation and I’m also an active member of it.

“I’ve frequently found it’s enormously useful when people arrive at my surgeries with problems.

“Sometimes they just can’t get hold of money or they’re going through a bad patch and normally the credit union can help them.

“It’s a wonderful institution, I’ve been working with them the last two or three years through the banking crisis and they’ve come out of that in very good shape.”

He added: “On my latest visit we talked about general issues they’ve been seeing as they go about business, which includes people paying 2,000 per cent to loan sharks.

“So I’ve taken that up now with the treasury, it seems to me we need to do something about it.”

Spokesman Brian Parkhurst said that the credit union told him of the worst practices going on.

“In some cases they take people’s rent books away and only return them when the loans are paid.

“It is absolutely wicked.

“These people are far worse than the ordinary doorstep lenders and charge 200 to 400 per cent.”

Now credit unions are joining forces for a submission on such lenders to present to the Government to urge it to take action. Mr Parkhurst said: “Mr Letwin has been a member for a decade and we have been grateful for all of his support.”

The Credit Union was set up 10 years ago by a dedicated steering group and was first housed in Dorchester’s United Church.

It is now based in High East Street, Dorchester.