Community groups and credit unions are supporting the ‘Responsible Lending, Responsible Spending’ campaign
The warnings have been sounded as community organisations in the city have banded together to champion responsible lending and spending.
Foyle Foodbank has warned that loan sharks and illegal money lenders, including those from loyalist and republican paramilitary groups are taking advantage of those who come to them for help.
Over the last few months Foyle Network Foundation, Community Restorative Justice, APEX, ASK Advice Service, Skeoge Community Hub, Derry, Waterside and Pennyburn Credit Unions, have all been working together on their concerns around illegal and high interest lenders.
Karen Mullan, the director of Foyle Network Foundation, said: “We have seen an increase in people who are struggling with rising household costs accessing loans from unreputable bodies and being charged extortionate high interest rates.
“This is pushing them further into debt and poverty.
The latest statistics show 35,000 emergency food parcels have been distributed across the North of Ireland.
The anti-poverty charity Trussell has called on the UK Government and NI Executive to take decisive action.
Those 35,000 parcels include 14,000 for children.
While the charity reports a 13% dip in number of parcels provided in the same period last year, it’s 93% higher than this time five years ago.
Foyle is the only area in Northern Ireland that has seen an increase in the percentage of parcels handed out when compared to last year, with 3,613 adults and children in need.
Across the North, the majority of food parcels were distributed to families with children, with 71% of parcels going to households with children aged 0–16 between April and September, the charity reports.
In addition, 7,400 people visited a food bank for the first time between April and September
Mayor of Derry and Strabane, Lilian Seenoi-Barr, along with community groups and credit unions who are supporting the ‘Responsible Lending, Responsible Spending’ campaign.
They said: “Food banks offer hope, dignity and relief to people facing hardship. Many need vital funds to provide services beyond distributing emergency food, such as advice and support that unlocks money someone should be getting and services aimed at helping people out of financial hardship.”
Trussell said the evidence is clear that hunger in Northern Ireland isn’t a food problem, it’s an income problem.
They added that people are being forced to turn to food banks because incomes from work and social security payments do not cover the cost of the essentials, such as food, bills, and toiletries.
“The UK Government must introduce a protected minimum floor in Universal Credit, to limit the amount of reductions that could be applied to a household’s Universal Credit,” the charity added.
“This would ensure, for the first time, that there would be a real safety net below which no one can fall. This would be a low cost but concrete step towards ensuring our social security system protects people from facing hunger and hardship.
“While the UK Government needs to take action now to fulfil its manifesto promise to reduce the need for emergency food, the Northern Ireland Executive has the opportunity to take decisive action.”
Joan Gallagher, CEO, Derry Credit Union added: “Derry Credit Union are delighted to be associated with the ‘Responsible Lending, Responsible Spending’ campaign.
“Our credit union can help you plan your Christmas spending, enjoy the festive season and ensure that the cost of Christmas 2024 is not a burden and an additional worry in the new year.”
Pennyburn Credit Union said it is proud to support the campaign and bring awareness to the risks of harmful money lending, especially into the holiday season, when financial pressures can be overwhelming.
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