Tenants to get advice on steering clear of loan sharks

Published on Friday 29 December 2006 13:31

TENANTS in Edinburgh are to receive advice on how to handle their finances and avoid loan sharks.

An Executive-backed project will tackle money worries faced by 300 tenants of five housing associations, with support from Communities Scotland.

The aim of the 130,000 scheme is to help reduce rent arrears or tenants' debt through consumer credit and household bills. Three money advice workers are being employed in the Capital, who will offer advice on benefits, debt, energy efficiency and energy bills, and the services of credit unions and other banking services.

One particular aim is to reduce the use of doorstep lenders and "loan sharks" and make tenants aware of the advantages of credit unions or bank accounts and insurance services that may be tailored to their needs.

Deputy Communities Minister Des McNulty said today: "I welcome this initiative by the five housing associations involved, supported by Communities Scotland, to improve the lives of many of their tenants.

"The Executive is committed to ensuring a fair deal for people and helping them gain financial security.

"Getting access to affordable credit, rather than having to use high interest doorstep lenders, or even worse loan sharks, is very important for those on a tight budget.

"Many families, particularly in the rented sector, still don't have home contents insurance and I hope this project will encourage more of them to consider the risks that brings."

Castle Rock Edinvar, Dunedin Canmore, Margaret Blackwood, Hillcrest and Port of Leith housing associations are working with two Citizens' Advice Bureaux to offer the service to tenants.

The money advice workers will be employed and supervised by the Edinburgh Central and Leith Citizens Advice Bureaux and their wider advice services.

Communities Scotland's area director for Fife, Borders and the Lothians, Pauline Innes, said: "This is an excellent example of housing associations, together with Citizens' Advice Bureaux, working for their tenants beyond their normal role of providing high-quality housing services.

"In addition to providing a quality home, their tenants will have the opportunity to live better lives, free from the fear of debt or the inability to pay their bills."