Medway Citizens' Advice Bureau teams up with money lender Wonga
Debt advisors have teamed up with a
controversial money lender to tackle the Town’s growing money
With the average person seeking
help being £43,000 in the red – double last year’s figure –
Medway’s Citizen’s Advice Bureau (CAB) will survey thousands of
people in a bid to halt the spiralling problem.
In an unusual move, the research
will be carried out with the help of payday loan specialists Wonga.
The firm has been criticised for charging interest rates of 4,214%
APR and recently came under fire for offering payday loans to
Dan McDonald, chief executive of
Medway CAB, said: "On the surface this may seem an unusual
partnership, bearing in mind that Medway CAB has been at the
forefront of the campaign to highlight the risks associated with
payday loan lenders.
"I have had a number of open and
frank discussions with Wonga and have been impressed by their
commitment to this independent inquiry."
The survey will give thousands of
people the chance to give their views on various lending products,
ranging from bank and credit cards, to store cards and short-term
Medway CAB will then assess the
findings make recommendations to other bodies and help to introduce
The Medway branch of the CAB sees
£2.5 million worth of debt stories every week, with the average
person seeking help having amassed £43,000 in debt. Recently it met
a client who had a staggering 68 credit cards.
MP for Chatham, Tracey Crouch
(Con), who will chair the personal finance inquiry, said: "It is
essential we find ways of helping people to manage and understand
their personal finances and prevent people getting into debt.
"This independent inquiry will help
us scratch much deeper beneath the surface of Medway’s increasing
debt problem and consequently help local organisations target
support to those who need it."
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