Credit unions 'need more powers'

Credit unions must be given powers to charge more and take bigger deposits so they can become a real alternative to high-cost lenders such as payday firms, a think tank has argued.

Civitas is urging the Government to go further than its recently-announced plans to raise the cap on interest rates that credit unions are able to charge to borrowers in order to help the sector grow. New legislation will increase the maximum interest rate credit unions can charge on loans from 2% to 3% a month, with effect from April 1 next year.
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