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Money lenders to open in Wood Green in midst of controversy
A money lenders which charges more than 2,000 per cent annual interest on its loans will open in Wood Green on Saturday.
The store, called Cash Generator, will offer short-term loans for customers as well as operating as a pawnbroker and providing a cash for gold service.
Cash Generator, which already has 192 stores in the UK, charges 2,115.69 per cent interest on short term loans taken out for one year.
The new store, in High Road, will bring eight new jobs to the borough.
However, it comes to the borough in the middle of a political debate surrounding the interest rates charged by money lending shops.
Central Government rejected a proposal put forward on Tuesday to cap the interest rates the money lenders can charge, which can vary between 1,500 and 7,000 per cent.
Haringey Council cabinet member for finance, Labour councillor Joe Goldberg, criticised the Government’s failure to act.
Instead, he warned that “more and more” families will have to resort to taking out loans from money lenders as a consequence of tough economic times.
Martin Groombridge, who manages the credit union, London Capital Credit Union, said: “I am appalled at the increasing number of people using shops such as these.
“Local people are just paying outrageous amounts for what are often small loans, when they could borrow for a fraction of the cost from the credit union.
“With the banks lending less and less people are being forced into the hands of high cost lenders.”
The Haringey branch of the union offers people who live, work or study in the borough low-cost loans by pooling the contributions of its savers when they are most in need.
However, the new cash shop is determined to make their venture a success in the main shopping street of Wood Green.
The managing director of Cash Generator, Julian Urry, said: “We are delighted to be opening a new store in Wood Green.
"We see North London as an essential part of our expansion plans for 2012, increasing Cash Generator’s presence on the high streets across the capital.”