Calderdale residents warned to avoid loan sharks and high-cost lenders as figures reveal nearly 60,000 in the borough are 'financially vulnerable'

As many as 1.1 million Brits may already be in the hands of illegal lenders, and a fifth of UK adults had less than £100 in savings even before the current financial crisis, with new data from Fair4All Finance showing that almost 60,000 people in Calderdale are in financially vulnerable circumstances.

Now, local credit unions including the Calderdale Credit Union, along with other community lenders, have been described as a “potential lifeline” by Fair4All Finance, the financial inclusion body which is supporting the community finance sector.

Credit Unions and other community finance providers currently help thousands of people in Calderdale to get credit to cover essential or unexpected expenses. Credit Unions also support members to put what money they can aside as savings, even whilst borrowing.

An alternative to high street banks, local Credit Unions assist households in a range of financial circumstances to afford essential items or cover unexpected expenses, as well as helping them to build their financial resilience.

They are not-for-profit and 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 is also urging the public to make sure they are claiming the correct benefits to help with the cost of living crisis by using online benefits calculators such as those recommended by the Government.

Benefits calculators can help households to discover if they are missing out on income to which they are entitled. The financial inclusion body Fair4All Finance says benefit calculators often help families increase their benefits income by hundreds of pounds a month, and that around £15bn of benefits go unclaimed in the UK each year.

Simone Armitage, General Manager at Calderdale Credit Union said: “We have 7,000 members across Calderdale and Kirklees, and want everyone in the area to feel reassured in knowing that organisations like us are here, ready to support more of you to take control of your finances and navigate these tricky times.

“We’d urge anyone who is already in receipt of benefits, or somebody who is unsure whether they can claim anything, to check whether they are missing out by using a benefits calculator.”

Cath Williams, LIASE Manager for the England Illegal Money Lending Team, which operates as Stop Loan Sharks in Calderdale, said: “We are proud to support the vital work of community lenders and Credit Unions across the country as they help build financial resilience in communities and increase access to fair and responsible finance, particularly for those excluded from mainstream services.

“If you are worried that you may have been targeted by a loan shark, we urge you to take action and contact our team for help. We'll give you confidential support and help you find a way out of your situation.”

The community finance sector has come together for the first time to raise awareness of Credit Unions and community lenders in a campaign co-ordinated by the financial inclusion body Fair4All Finance.

Lauren Peel from Fair4All Finance said: “Credit unions and community lenders have decades of experience in supporting households across the UK to save and borrow. They are experts in lending responsibly, whether that’s to people who are well off or to those in vulnerable circumstances.

"They are a key sector as we go through a distressing cost-of-living crisis.

"Lenders such as these, and the benefits calculators available online, could be vital resources as local people try to navigate this difficult time.”

There are other community lenders who are mostly not for profit, and who reinvest any surpluses into serving vulnerable customers, which can be found on FindingFinance.org.uk.