KHT Chief Executive calls for bank support » Housing » 24dash.com

THE head of one of Britain’s largest housing associations has called for more support from banks and money lenders for poorer communities.

Bob Taylor, Chief Executive of Knowsley Housing Trust (KHT), said people living in poorer parts of the country were being denied affordable financial help.

“This prevents them from investing in their futures; in their homes, their skills, and their enterprises,” he said.

“Low income households are being driven further into debt, and increasing amounts of time and money and resources are spent supporting them.”

Since November 2009 KHT in conjunction with Citizens Advice Bureau have received 40 referrals from its customers, with a total debt amounting to over £48,126.

Last week KHT – which owns around 13,000 homes – signed up to the Better Banking Campaign.

Campaigners are calling on the Government to ensure that their fair and affordable finance is available to the least well off communities.

“The campaign supports the same principles of our Financial Inclusion Strategy, which is a valued part of the work we are doing with our residents,” said Bob Taylor.

“We are committed to protecting our customers against the dangers of excessive and unmanageable debt and will back any campaign that will help ensure their money goes further.”

The Better Banking Campaign was launched after it was discovered families were being crippled by high interest loans offered by doorstep operators and payday lenders because they were unable to access affordable credit.

“It is time for fundamental reform to sort the problem out,” said Bob Taylor.

“We would like to see the system fixed to ensure thriving, sustainable communities and economies.”

The Better Banking Campaign has four broad aims:

1. To encourage financial institutions to be more transparent about who they lend to.
2. To encourage them to lend to underserved communities, both demographic and geographical.
3. To lend responsibly, so as not to charge high interest or demand immediate repayments from newly disadvantaged customers.
4. To help reinvigorate communities by becoming more involved in local life.

Bob Taylor added: “We need financial institutions to be more transparent in how they lend to ensure there is fair and safe access to credit.

“We support the campaign’s call for a cap on unfair interest rates for people who cannot afford them.”

For more information on the campaign go to www.betterbanking.org.uk.