Today the Government announced plans to introduce legislation in Autumn 2013 to raise the interest rate cap for Credit Unions. The proposed increase will allow Credit Unions, if they so choose, to charge 3% per month on loans (currently 2% maximum). The new, higher cap is planned to take effect on 1 April 2014.
The rise has caused much debate in the sector with many strongly for or against the rise. For more information please use the following link: https://www.gov.uk/government/news/government-to-increase-access-to-affordable-credit