A new scheme is set to be launched in Sutton to stop people being ripped off by loan sharks.

The Credit Union aims to help members to save rather than borrow but it will also provide low cost loans at times of need.

It is hoped the Croydon Savers Credit Union, a not-for-profit organisation, will extend its services to Sutton once long-delayed legislation comes in at the end of this year.

Councillor Roger Thistle said: "The Credit Union is a brilliant idea and can provide a great range of services to the financially excluded.

“Credit Unions are also vital in the fight against doorstep lenders, who can cause misery for low income families by lending them money but then charging extortionate amounts of interest.”

The Financial Services Authority (FSA) has indicated Sutton’s application will be fast-tracked.

Credit Union members are encouraged to save a small amount of money every week or month to help them become more financially responsible.

Martin Groombridge, manager of the Croydon credit union, said: “Last year our members saved over £116,000 by borrowing from us rather than other high interest lenders.”

For more information visit sutton.gov.uk or call 020 8770 5421.