AS the credit crunch bites, people are finding it increasingly difficult to secure money from high-street lenders. This leaves people with fewer options, the least palatable of which may be to resort to loan sharks.
It seems that the Government is concerned about this prospect and has sought to address it by relaxing the rules around credit unions.
Credit unions are financial co-operatives owned and controlled by their members. Membership is restricted to those who meet a requirement that provides a "common bond" based on criteria such as geographical area or workplace. They work as low-risk savings and loans providers, frequently for those effectively excluded from mainstream financial services.
