The Bill – which aims to deliver a debt advice, debt management and debt relief service which is fairer to creditors and debtors alike – was passed with cross-party support at the end of a long process of consultation which Scotland’s credit unions have closely engaged with throughout.
Credit unions particularly welcome the adoption of a single common financial tool to calculate debtors’ contributions, the extension of money advice and financial education, and measures to curb the potential for unfair and inappropriate use of debt relief products.
The creation of a Financial Health Service to support people with debt problems and build financial capability across the country more widely has also been welcomed by Scotland’s credit unions.
ABCUL Scotland Policy and Relations Manager Frank McKillop said: “A credit union loan comes from other people’s savings, so the principle that people who can repay do repay is especially important to credit unions.
“We welcome the measures in this Bill which should ensure a fairer deal for creditors like credit unions, and we look forward to working with the new Financial Health Service to play our part as a safe place to save and an ethical source of affordable loans to help people from all walks of life keep in control of their finances.”