A protest to “embarrass” money shops is expected to go ahead in Wood Green tomorrow.

The Haringey, Islington and City Credit Union is sick of seeing the high interest rates on offer at money shops and has called on its members to take action.

Members of the not for profit credit union believe it is time for the Government to act by capping the interest money shops can charge on loans.

The action is particularly targeting payday loans, which are sums handed out to working people in need of money before their next pay cheque.

However, the loan is often tied with high interest rates, and people can struggle to pay back the money.

The manager of the credit union, Martin Groombridge, said: “The main aim of the protest is to embarrass the payday loan shops and to make sure that the government caps its interest rates.

“Wood Green is particularly bad. It has a very high concentration of payday loan shops. It is only when you start to look that you begin to realise how many there are.”

Union members will stand outside a number of shops in Wood Green and inform people how much interest they would have to pay if they took out a loan.

The community-led credit union offers money advice to people in Haringey, Islington and the City of London while championing the benefits of saving money, rather than seeking loans.

However, the union, which is owned by its members, also offers people who live, work or study in Haringey low-cost loans by pooling the contributions of its savers when they are most in need.

Although most banks offer loans of £1,000 and over, the union can offer small cash loans, with the lowest payment made to date being £30.

More than 2,000 people from the borough alone have signed up to the union, which is part funded by Haringey Council, since in launched in Haringey last March.

At this stage, there is no limit on the amount of interest a money shop can charge its customers, with most offering loans with interest rates ranging between 1,500 per cent and 7,00 per cent.

However, the loans from the credit union are given with a 12 per cent interest rate. 1,500% and 7,000%apr.

Mr Groombridge said unlike betting shops, which he believes target the most deprived areas, money shops also pose a threat to more affluent parts of the borough.

Whereas bookmakers are open to all customers, payday loans are solely available to clients who can prove they are employed.

Mr Groombridge said although people seeking the loans are earning money, many of them are unaware of the high interest rates the shops offer and find it hard to pay the money back.

He said there has been a vast increase in the numbers of people applying for loans through the credit union since the start of the financial crisis in 2008.

He said: “There is an immense demand from people in Haringey, particularly from people in lower incomes because people need some where to save. They don’t trust banks and don’t want to leave it in their house.

“When the credit crunch hit, banks stopped loaning so they won’t extent people’s overdrafts when they need it, like when they come back from holiday.”

As part of the action, credit union members will also be encouraging people in the borough to sign up to the credit union to offer safer alternatives to the money shops.

The union launched in Islington 15 years ago and has approximately 4,000 active members.

The protest is expected to take place between 12.30pm and 1.30pm outside an array of Wood Green money shops, which are yet to be confirmed.