Credit Unions of Wales Responds to Provident Announcement
After 141 years, Provident is closing its doorstep operations and that could help people in Wales avoid falling into unmanageable debt.
The high interest rates charged by Provident have seen people in our communities pay far more than for credit than they needed to, and so Credit Unions of Wales welcomes the news that the doorstep lending business is closing.
Ann Francis, General Manager of Cambrian Credit Union said: “At a time when many people in Wales are suffering financially, the closure of Provident’s doorstep lending means that people could avoid high cost credit, but only if they can find a more affordable alternative.
“There is a real danger that unregulated doorstep lenders – loansharks – could step into the void Provident leaves behind and so we urge people to go to their local community credit union to find out if they can offer them a better deal.
“Whenever you borrow money, check not just the amount repayable every week but also the interest rate, the total cost of the credit and how long it will take to pay it back.”
Provident follows now-defunct payday lenders such as Wonga, QuickQuid, Peachy and rent-to-own provider Brighthouse in facing mis-selling claims.