New credit union to help people avoid loan sharks

A new credit union has loan sharks in its sights as it becomes the first of its kind to launch in Stoke-on-Trent in more than a decade.

Businessman James Adams and the city council have set up Potters' Bank to help people who have had an unexpected bill - such as car or fridge freezer repairs - but do not have the cash to pay it.

Mr Adams said that his work with a local food bank had shown him first hand how many people were struggling financially, and turning to pay day lenders or illegal loan sharks as a result.

Government figures show Stoke-on-Trent has the highest number of individual insolvency cases in the country. In 2024, there were 957 cases recorded in the local authority area.

Credit unions are mutually-owned, locally-based organisations designed to provide - unlike some lenders - low-cost loans for those who are less comfortably off.

In recent years, an increasing number of credit unions have gone bust, but Mr Adams argues they now fill a gap in the market.