PAYDAY loan companies were labelled “glorified loan sharks” at a protest held in Bury.

Bury Labour Women’s Forum campaigned in the town centre last Thursday, and were visited by Walthamstow Labour MP Stella Creasy, who has spoken out against the rise in the number of payday loan firms.

Activists handed out leaflets on The Rock and called on a borough-wide credit union to be established, a cap on the number of payday loan companies on high streets, and a national cap on interest rates.

Ms Creasy said: “We have had a recession with prices increasing, and that is why it has been a boom time for loan sharks.

“These are not people who are borrowing for luxury; they are having to borrow for emergencies and basics such as food and electricity.”

Bury is the only borough in Greater Manchester without a credit union, and council plans are already being developed to introduce a union in September. Credit unions are designed to offer safe and affordable access to finances, in comparison to payday loan companies which often offer a high cost, short term alternative.

Leader of the Council, Cllr Mike Connolly said: “They are preying on vulnerable people —these companies are just glorified loan sharks.

“We hope the credit union will be up and running shortly in September. It is long overdue and we have worked hard with our colleagues at Six Town Housing to achieve this.” Six Town Housing will help develop the union and contribute between £70,000 and £90,000 from its reserves towards the project over the first three years. Plans were approved at a cabinet meeting in April for Bury Council to offer ‘in-kind’ contributions, including accommodation for the credit union and facilities to collect or withdraw cash.

The Labour Women’s forum says the issue has been of great concern to residents, with more payday loan companies setting up in many towns.

Cllr Elizabeth Fitzgerald, a member of the women's forum, said: “This is a major issue especially in a market town like Bury, which relies on our High Street.”

Ms Creasy later spoke at a demonstration held in Bolton town centre, where protesters campaigned against Bolton Wanderers’ new sponsorship deal with pay day loan company QuickQuid.