North East Sharkstoppers launch a campaign with teeth to combat legal loan sharks

date: 21 February 2013

embargo: for immediate release

North East Sharkstoppers launch a campaign with teeth to combat legal loan sharks

This Sunday (24^th February) will see the regional Sharkstoppers campaign begin in earnest with a high profile event at Grey's Monument in Newcastle. Concerned local people from a range of organisations including the TUC, trade unions, the Citizens Advice Bureau, Credit Unions, advice agencies and Housing Associations will be gathering at the Monument at 11.30am-1.30pm to highlight the impact of high cost money lenders and their practices.

The event will also focus on canvassing people's views about high cost credit, finding out what's important to them and informing them about local services who can help with money advice and the alternatives available, such as Credit Unions.

The 'payday loans' sector's estimated value is around £8.5 billion and growing, thanks to the increasing number of lenders and ease of access with high street stores, doorstep selling and online lenders often offering instant cash. In the North East, where incomes are on average 10% lower than the rest of the UK, Ramsdens and Wonga now sponsor local football teams.

At the end of 2012 the government accepted the need to cap the cost of credit, marking the culmination of months of organising across the country around the unregulated practices of high-cost credit companies.

Kevin Rowan, Northern TUC Regional Secretary said: 'The North East is being hit hard by the Coalition's austerity measures. This region has the lowest household incomes in the UK. With one in four workers employed in the public sector our whole regional economy has been shaken by cuts, redundancies and pay freezes. We have the highest unemployment rate in the UK but even those that are in work are increasingly struggling to make their wages last the month.

'It is no co-incidence that Wonga have come here to sponsor Newcastle United and not chosen a club like Chelsea. Legal loan sharks are cynically trying to prey on the most vulnerable people but trade unions and other groups are campaigning hard to expose them and promote credit unions as the affordable alternative. We need to regulate this sector and put a sensible cap on the currently exorbitant rates some pay day loan lenders charge.'

Alison Baxter, Regional Manager of FINCAN (Financial Inclusion and Capability North East), said:'FINCAN supports Sharkstoppers because it is about campaigning for fairness for consumers who need to borrow money but can't get it from somewhere like a bank. If your income is already being squeezed, using high cost credit will squeeze your budget tighter but that is the only choice for a lot of people in our communities. We want to see better choices on offer. But Sharkstoppers is also about letting people know they can get help from places such as CAB and Credit Unions. We want this to be the first of many events which will help raise awareness and influence change.'

NOTES TO EDITORS:

- Northern TUC press releases www.tuc.org.uk/northern national releases www.tuc.org.uk and www.twitter.com/tucnews

- Register for the TUC's press extranet: a service exclusive to journalists wanting to access pre-embargo releases and reports www.tuc.org.uk/pressextranet

- For TUC advice and information on the world of work www.workSMART.org.uk

Media contacts:

Neil Foster, Policy & Campaigns Officer T: 0191 227 5554 M: 07786717972

E: nfoster@tuc.org.uk

Alison Baxter, Regional Director, FINCAN T: 07870749349 E: alsionbaxter14@gmail.com

Kate Talbot, Community Organiser, Movement for Change E: kate.talbot@movementforchange.org.uk