A Church taskforce has said that the use of payday loans has fallen because of a change in opinion of them by the public and those in politics.
The taskforce was led by Sir Hector Sants – a former regulator – for two years, and sought to promote responsible savings and credit. There has been a 13 per cent rise in the number of members of credit unions in the UK since 2013.
Since 2013, there has been a 68 per cent fall in payday lending, the report revealed.
The Church of England was involved in controversy with regards to payday loans, however. In 2013, payday loans company Wonga was told by the Archbishop of Canterbury that it would be forced out of business as the Church looked to help out credit unions, an alternative to payday loans.
But, it later emerged that Wonga had received an indirect investment of £75,000 from the Church, who announced in 2014 that ties between the two had been severed.
The report said: “Although there are many other influences beside the Church, the Archbishop of Canterbury’s intervention has undoubtedly helped to galvanise broader awareness of, and support for, credit unions from churches and wider society, and contributed to a sea change in public and political opinion around payday lending.”
