25.07.2013
The Archbishop of Canterbury has warned payday lender Wonga that the Church of England plans to force it out of business – by competing against it.
The Most Rev Justin Welby told Wonga boss Errol Damelin the Church planned to do this by expanding credit unions as an alternative to payday lenders.
CDFA chief Ben Hughes commented,
“It’s great that the church is putting its weight behind community-based lenders to tackle the menace of payday loans. Archbishop Welby mustn’t forget that it’s not just credit unions that are providing fair and affordable alternatives. Our members, CDFIs, are doing the same. They are socially-driven, make loans to people and small businesses that can afford to repay, provide advice and support, and are helping people out of debt spirals. Unlike credit unions you don’t have to be a member to access credit. Many CDFIs and credit unions work together to provide a package of services.”
“We welcome the opportunity to join the church in providing real competition to payday lenders. We want to work in partnership with the church and government to create a financial services industry that provides access to fair and affordable finance for all.”