8:58am Thursday 11th September 2008
By Sarah Cosgrove
A CREDIT union which works to reduce debt and help people to escape from loan sharks and high interest lenders has criticised a company for advertising itself through a local school.
High interest lender Oakam advertises its connection with Norlington School for Boys in Leyton on its website.
The two parties work on community projects together.
But Waltham Forest Community Credit Union has called on the school to sever the connection, fearing hard-up parents will think it endorses the company.
Chairman of the credit union, Simon Wright, said: “Our biggest headaches are the companies that charge extortionate interest rates to people on low incomes, on benefits or with poor credit ratings who cannot access bank loans.
“Oakam, which has a shop on Walthamstow High Street, advertises an appalling 442 per cent APR interest on its "payday loan".
“Unfortunately, many people do not understand APR rates and find their debt getting out of control very quickly. Compare this with the 12.6 per cent that credit union members can get from us, even people who are turned down by banks and building societies.”
The credit union has called on the headteacher and governors of the school to end the relationship, and make parents aware of the dangers of borrowing from high interest lenders.
For more information about the Credit Union see wfccu.org, and for Oakam, visit oakam.com.
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