Northumberland Community Bank is urging the North East to be vigilant to the risks of money lenders in the lead-up to Christmas.

With less than a week until the festive season, the bank has expressed concern over the vulnerability of individuals to illegal money lenders, such as loan sharks.

Given the current cost of living crisis, many are at risk of getting entangled in an escalating cycle of financial issues.

Launched in April 2017, Northumberland Community Bank (NCB) aims to promote the welfare of people in Northumberland by offering a sustainable source of lending for individuals and micro-businesses.

Unlike traditional banks, NCB operates as a financial co-operative owned by its members, with no external shareholders.

Scott Wilson-Laing, recently appointed as the CEO of NCB, said: "The festive season is upon us, which is a time of uncertainty for many people, which can tempt people to get embroiled with high interest lenders."

In the past year, NCB lent over £1.1m in small loans and charged about £150,000 interest.

Mr Wilson-Laing emphasised that these borrowers are often in financial distress and at risk.

He noted: "In comparison, a legal but high-cost lender would charge around 2-300 per cent or £1.5m in interest.

"With a loan shark having rates of up to 1000 per cent or more, extorting up to £5m for the same loans."

Hexham Courant: The bank has expressed concern over the vulnerability of individuals to illegal money lenders, such

Having roots in Northumberland, particularly in Ashington, NCB is now planning to expand across the North East.

The bank supports its members by providing a flexible, personalised service without early repayment penalties.

Mr Wilson-Laing continues: "Northumberland Community Bank provides a willingness to work with our members to overcome short term problems, all while charging a fraction of the cost of other lenders"

NCB operates with its community's best interests at heart, working with key partners such as Bernicia, Northumberland County Council, Northumbria Water, and several businesses to assist individuals in need.

The bank generates funds from deposits made by members, allowing lending to locals, specifically targeting those vulnerable to high-interest loans.

Its commitment to a people-first approach has earned the bank a reputation in the local community.