Cambrian Credit Union calls on FCA to go further with rent-to-own cap

Cambrian Credit Union has welcomed a decision by the Financial Conduct Authority (FCA) to reduce the cap on rent-to-own interest rates, but says the regulatory body should go further.

The credit union staged a protest in Rhyl earlier this month warning shoppers of the high interest rates charged by rent-to-own companies.

General manager of Cambrian Credit Union said: “We welcome the news of a reduction in the cap on rent-to-own providers, but 100 per cent is still a very significant interest rate and far more than anyone would pay with their local credit union.”

On November 2, Cambrian took to the streets of Rhyl with Vale of Clwyd AM Ann Jones and MP Chris Ruane to highlight the interest charges being applied by rent-to-own companies.

“The interest rates and administration charges mount up over an extended period, and people end up paying several times the initial cost of buying the item outright,” Ann added.

“As financial co-operatives we don’t have the expensive premises or marketing budgets of the rent-to-own, payday loan and high cost credit providers. However, we do offer modern services that are responsive to our members’ needs, such as same day or next day loan decisions, online and telephone services.”

Cambrian Credit Union is owned by its members – the savers and borrowers who use its services. It offers savings and loans to people who live or work in North and Mid Wales.

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