More than 30 credit unions have teamed up to offer an alternative to payday lenders in a "landmark" expansion drive which will save consumers up to £1 billion in loan interest repayments.

The Government has previously agreed to invest £35.6 million to transform the sector and help it to double its membership to two million over the next five years. It wants to see people on low incomes use the unions instead of expensive credit providers such as payday lenders. Estimates have found that the plans will save borrowers up to £1 billion in loan interest repayments by March 2019, compared with the amounts they would have been charged if they had gone to a high-cost lender instead. The initiative is being managed by the Association of British Credit Unions (Abcul), which confirmed today that a first wave of 31 credit unions have joined the scheme, with more expected to follow. The expansion project will allow credit unions to broaden out their appeal by pooling their resources to offer more "fast and efficient" services and give people more consistency.....Read more here