A CREDIT union has said its move into the former Rhyl premises of a controversial loan company has proved that “lenders are on the way out”.

Cambrian Credit Union, the member-owned cooperative that provides more affordable loan repayment schemes, opened its latest branch on Rhyl High Street on Thursday, October 15.

Any money that is saved with a credit union is lent responsibly to others in the community at low rates and without external shareholders.

The opening follows the closure of the Money Shop branch, one the UK’s largest credit loan companies.

“Not only does the new office help us expand affordable and ethical financial services to people in North Wales, but also gives a clear message that payday lenders are on the way out,” said Ann Francis, general manager.

“We know that Covid-19 has hit people’s finances hard, and credit unions are focussed on helping to keep money in our communities across Wales.”

It comes amid tighter Financial Conduct Authority regulations and compensation claims that has seen the demise of many high-cost rental stores.