Sheffield City council takes the battle to payday lenders – by offering loans of its

[Legal Beagles]

The city of Sheffield will, on Monday, launch a range of loans for hard-up residents in a fightback against high-interest deals from Provident Financial, Brighthouse and Wonga. The move, it claims, will save its poorest residents £20m in one year alone. The new financial services brand, called Sheffield Money, is supported by the city council... Read more »
Read More -> Sheffield City council takes the battle to payday lenders – by offering loans of its own


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[Amethyst]

Re: Sheffield City council takes the battle to payday lenders – by offering loans of

hmmmmm

http://sheffieldmoney.co.uk/about-sheffield-money

We are a Community Benefit Society registered under the Cooperative and Community Benefit Societies Act 2014 with an asset lock which means that we operate on a not for profit basis.

We chose to structure Finance for Sheffield in this way because it accurately reflects what we are doing – working for the benefit of Sheffield residents though not with the intention of generating a profit.

Sheffield Money is a authorised and regulated by the Financial Conduct Authority. Registered office: The St Botolph Building, 138 Houndsditch, London EC3A 7AR

*Representative APR 12.67%. APRs range from 12.67% - 89.9% subject to status.

How you can help

Sheffield Money is here for the benefit of the residents of Sheffield to give fairer access to loans and other financial products. Finance for Sheffield (trading as Sheffield Money) is a Community Benefits Society registered under the Co-operative and Community Benefit Societies act 2014. Finance for Sheffield has an asset lock which means that it operates on a not for profit basis. We are regulated as a credit broker by the Financial Conduct Authority.

[Kati]

Re: Sheffield City council takes the battle to payday lenders – by offering loans of

We are a Community Benefit Society registered under the Cooperative and Community Benefit Societies Act 2014 with an asset lock which means that we operate on a not for profit basis.

yep ... and an apr of between 12.67 and 89.9%

They might be cheaper than Provident etc... but they're still a rip off

[Berniethebolt]

Re: Sheffield City council takes the battle to payday lenders – by offering loans of

While it may be a worry that they are charging such interest rates surely it is a good idea that the council are backing the provision of short term loans to people that are outside main stream credit

[nemesis45]

Re: Sheffield City council takes the battle to payday lenders – by offering loans of

yep ... and an apr of between 12.67 and 89.9%

They might be cheaper than Provident etc... but they're still a rip off

For a family in financial meltdown I seriously doubt the will get any where near the quoted 12.6% quoted always the upper end I suspect!

A rip off as @Kati says!!

nem

[Amethyst]

Re: Sheffield City council takes the battle to payday lenders – by offering loans of

I'm also not sure where the loan money comes from - as Sheffield Money are only registered as credit brokers, not lenders.... are they, in essence facilitating lending from 'shareholders' to customers? Needs some looking into I think. There is some bits on the site about how 'share purchases' isn't covered in the way a deposit into a credit union is.

What the % rate on Credit union loans now ? 27.8% ? Personally I don't see any need to go higher than that.

It is good that all staff are salaried and not on commission, and it is good it is a not for profit, but think it will be interesting how it actually plays out in practice.

[Berniethebolt]

Re: Sheffield City council takes the battle to payday lenders – by offering loans of

If they are quoting a typical APR don't they have to demonstrate that 51% achieve that . I think it is a move in the right direction but as Amethyst says needs looking at more closely

[FlamingParrot]

Re: Sheffield City council takes the battle to payday lenders – by offering loans of

yep ... and an apr of between 12.67 and 89.9%

They might be cheaper than Provident etc... but they're still a rip off

While it may be a worry that they are charging such interest rates surely it is a good idea that the council are backing the provision of short term loans to people that are outside main stream credit

Not brilliant but definitely a baby step in the right direction. When you compare it with what you see advertised on TV, it's not that bad. :mmph: