to start an MN credit union?

[ICBINEG]

because I would lend a couple of hundred quid to another MNer for free if it got them out of the wonga loop....and I suspect I am not the only one?

Sorry but you only have to look at the amount of begging threads on MN that start around November, to realise some people scour the internet looking for soft touches.

Unless you're a millionaire, you'd be broke within a month of word getting around.

I think this is a really interesting idea

Kim, I was going to say the same. Credit Unions do go bust from time to time.

Never lend more than you can afford to give away for free.

kim do you have any data on the default rates between mothers and the rest of the population? I thought I saw somewhere that with micro lending mothers where the most dependable repayers? although i can't remember where.

I totally agree about sensible lending and encouraging saving. Wonga do a lot of data analysis and profiling to whom they lend to, including small details like their browser type and so on. It's not just the arbitrary credit scores they use.

I am sure you could recreate that intelligence in a cu and aim to have the same level of default rates.

sorry ICBINEG what did you have in mind if not a cu? just the loans part?

Like I say, very kind of you. You're lovely.
But we already have the sob stories hinting for a collection, so much so that mnhq had to come up with that standard statement.
Can you imagine if word got out that mners were lending cash to strangers?

Every other thread would be tales of financial woe.

And, hand on heart, how many of us would truly be ok with getting ripped off?
It would leave a bad taste in the mouth, I think.

What were you trying to give away, btw?

On paper it sounds like a good idea. But what if people don't pay you back. And you sound far to nice and kind to send 'heavies' round. But I hope something is done about those shark pay day lenders.

Better to support your local, or even not so local, existing credit union.

I am with this organisation www.ansarfinance.com/#!how-it-works/c1ger

They do not charge interest on loans but of course have procedures in place where they ensure that people are able to pay back loans. Don't know if this will help someone, but for what its worth, I have been with this company for a number of years and donate £10 a month which goes towards lending out money for small loans interest free.

They also used to have a similar home finance scheme but unfortunately that is at a standstill at the moment as there isn't enough investment to keep that one going. Hope the link helps someone.

sorry - posted that on the wrong thread!

And also, how long would the applicant have had to be an MNetter?

What about new people who have not long signed up? Especially once word gets round.

What a lovely warm person you are, op. :)

God, no... you must be mad (lovely though)

Some people would deliberately rip you off, and some just wouldn't be able to pay.

But yes, what a lovely thought, bless you

Gah - I am really not that lovely as many regulars will tell you!

hec It was on the food poverty thread...I was trying to put together a list of things you could get as a one off for someone that would make their future shopping more efficient...but there were no takers...

kim yes I 100% agree - I want to fix poverty and I don't know how...it seems to big and, basically, doing something anything through MN would make it seem a smaller thing to try, and with more support. But I know it can't really be. As everyone says, whether it was emergency supplies, food, or loans as soon as word got out that MNers are supporting each other there would be chaos.

The world sucks. I guess I go back to supporting my local food bank but really there must be something to get people that little step up so they aren't living hand to mouth...I HATE IT.

I think it's a very good idea actually, and would require only a tiny input from everyone to form a reasonable sized fund. Obviously if all the money was then lost, it would be a large loss overall, but only a tiny loss to each individual. And yes, the data on micro-loans to women in developing countries (not what we're talking about here, but someone asked) do suggest that mothers are the most reliable repayers.

I lend through lendwithcare, but these loans are to business people in developing countries that have a business plan to pay back the loan. I don't think I'd want to loan to someone without in a more developed country without clear understanding of how they would pay it back.

It's a lovely thought but I think this is a bigger project than you are reckoning for.

Would it be a charity or a not for profit organisation of some sort? Who would administrate it?

You can't just set up a bank account and ask people to put money and others to message you with their bank a/c details when their a bit short.

Also it won't solve poverty. Poverty is political and much bigger than all the charities in the uk together can solve.