Bath law firm Stone King has begun advising on a national loans scheme project to help people break the damaging cycle of high-cost debt, made up of several credit unions and financial institutions.
The Affordable Loans portal – a partnership between private and social sector bodies – will make it easier for people with poor or no credit rating to access affordable loans from responsible lenders, saving them hundreds of pounds in the process.
The lenders are several credit unions and community development financial institutions supported by Responsible Finance.
Stone King’s corporate and commercial team handled all the legal aspects of establishing the new partnership which included creating a joint venture vehicle for the project, as well as settling legal documents for the arrangements between the different parties involved.
Tamsin Eastwood, who is a consultant in Stone King’s corporate and commercial team, said: “Millions of people are trapped in a cycle of high-rate borrowing which can cause untold misery and stress for the individuals and families involved.
“We are extremely proud to be working with these community lenders and to be the legal advisers for this important national project that will help people to break free from this damaging spiral of debt and to take back control of their financial situation.”
Affordable Loans has gained the support of national companies including leading supermarket chain ASDA, which is directing customers to the portal via its website, and the backing of the Cabinet Office.
Leeds Credit Union is currently piloting the portal before the Affordable Loans project is rolled out nationally in 2017.
