The Archbishop of Canterbury, Justin Welby, the spiritual leader of 85 million Anglicans, has declared war on the British companies payday loans, as part of its attempt to develop non-profit credit unions.
Justin Welby, who also sits on the British banking regulatory commission has already met with the director of one of the loan companies, Errol Damelin, head Wonga. “We had an interesting discussion and I told him quite frankly, “We are trying to compete with you for you to put the key under the door,” said Justin Welby in a published interview Wednesday in the Total Politics magazine. “It’s a businessman, so he has taken my comments,” he added.
Wonga is with Provident Financial, which specializes in the provision of very small loans (usually less than 1 100 euros) in the short term and whose deadline is the date of the next payday of the borrower. It offers interest rate equivalent to 5853% in annual terms.
Payday loan companies are already in the sights of the British authorities. The Competition Commission (CC) was notably responsible for the end of June to thoroughly investigate their practices. The payday loan market rose sharply in Britain since the financial crisis of 2008. It represents more than £ 2 billion per year (2.31 billion euros).
Usurers OF THE OLD TESTAMENT
“The archbishop is, without a doubt, an outstanding individual who has a sense of innovation, reacted Errol Damelin. There are of mutual benefit [us], differing opinions and convergent point on many issues. regarding competition, we welcome the new approaches that offer a more complete range of options to solve financial challenges, “he added.
The Archbishop of Canterbury, who took office earlier this year at the head of the Church of England, announced its intention to develop credit unions. Former executive of the oil sector formed at Eton and Cambridge, Justin Welby will therefore create a financial cooperative offering money at low interest rates.
He wishes to encourage members of the Church of England to work as volunteers in these organizations and has already set up a fund for priests and church workers. Small cooperatives could also be encouraged to use local 16,000 available to the Church.