WALTHAMSTOW: 'Legal loan shark' teaches school pupils (From East London and West Essex Guardian Series)

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WALTHAMSTOW: 'Legal loan shark' teaches school pupils

12:12pm Monday 13th February 2012 in News By Daniel Binns

Walthamstow MP Stella Creasy has accused The Money Shop of being a "legal loan shark".

STAFF from a company described as a "legal loan shark" by Walthamstow MP Stella Creasy spent the day helping to teach school pupils about business and finance.

Six volunteers from The Money Shop visited Holy Family Technology College in Walthamstow last week as part of a scheme to teach youngsters about the world of work, personal budgets and the skills needed to get a job.

It came just days before Ms Creasy protested against The Money Shop outside one of its branches in Walthamstow High Street alongside London mayoral candidate Ken Livingstone.

The Labour MP is campaigning for a limit on the fees charged by payday loan firms, arguing they prey on the poor by providing quick cash but with extortionate charges and rates of interest.

Companies such as The Money Shop have always strongly denied her claims and say any cap will make people turn to unscrupulous illegal lenders instead.

The event was organised in partnership with the Young Enterprise charity. Its regional manager Helen Wedderburn said Money Shop staff had been very informative and were keen to work with other schools in the area.

She said: "They want to continue their work to help students with [education about] the world of work, the pitfalls of finance and getting into debt. They've been very supportive."

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A member of Ms Creasy's staff said he was not aware of Holy Family's involvement with the Money Shop. The Guardian is awaiting a comment from the MP.

But following the picket on Friday (February 10) she said: "The proliferation of payday lenders, pawnbrokers and home credit providers without effective regulation is leading to thousands of Londoners getting into severe debt problems."

The day-long event on Monday (February 6) at the school, in Shernhall Street, involved 180 year 9 pupils aged 13 and 14, and including activities such as mock interviews.

Assistant head Adele Klitou said in a statement that the 'Learn to Earn' scheme closely supported the curriculum.

She added: “It was really rewarding to see The Money Shop staff interacting with the teenagers.

“Through demonstrating real-life business challenges they really brought to life the kind of skills pupils will need when they leave school.”

A spokeswoman for The Money Shop previously told the Guardian: "The Money Shop is a professional short-term lender fully regulated by the Office of Fair trading.

“It is a founder member of the Consumer Finance Association, abiding by its code of practice, and only offers its payday loan product to those with a bank account and with an income."

The school is currently on holiday for half term and the Guardian has been unable to reach any staff for a comment.

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Comments(18)

Credit Union Claire says...
2:30pm Mon 13 Feb 12

I was very surprised and concerned to hear that a local school is working with the Money Shop as these kinds of lenders are growing in the area and set a terrible example for anyone, let alone children. Their interest rates, while legal, are shockingly high and claims that they only lend to people who demonstrate affordability are simply not borne out by our experiences. There is an excellent Credit Union in Waltham Forest so the scaremongering claims that people would have to turn to illegal lenders if payday loans weren't available is self-serving nonsense. All the High St banks are happy to work with schools and there is a good project called MyBnk which teaches all the skills young people need in an innovative and non-profit way. I would urge all schools to avoid allowing such lenders to trade on your good name.