Helping the poor

I was in our local shop today. While I was waiting to pay for my items, I could see a person in front was having issues paying. They were trying to use a shopping card (bit like a store gift card, but it can be used in a range of shops), but it wouldn't work, even though the store accepted that card.

It became evident this person had used a Christmas saving scheme to put aside a wee bit every month. That was on this card. The staff were great. They were going to put her stuff aside, so she could get in touch with the issuer of the card to find out what the sketch was. But the person was trying to pay in cash. That cash was probably destined for something else and as for the money on the card? Who knows. I hope it all gets sorted and the person took the advice of the shop staff.

So, 6 years on from the Farepak collapse and nothing has really changed. Those in the lowest incomes are still saving in similar schemes to the one Farepak ran. If the company collapses, these people are left high and dry. If they do get money back, it's mush less than the amount they invested and can take years. The Farepak customers were awarded 50p in the £1 this year, almost 6 years after the collapse.

The people this affects find accessing banks harder, due to financial and social pressures. On low incomes, banks (especially in less salubrious areas) aren't interested and don't want to give debit cards. People on low incomes may be reluctant to get debit cards, in case they over spend. Also, they may have friends, neighbours or relatives who are agents for the Christmas savings companies, so feel they are supporting their loved one, partly a social pressure to do this. It's also saving with someone they trust, so perhaps see the transaction as more trustworthy than in a bank?

If Farepak had affected the Eton educated, wealthy upper classes, the legislation governing these savings schemes would have been changed, pulling them under the authority of the FSA. That hasn't happened. Why? Because those on low incomes are less likely to vote and, if they do, are not seen by those in power as worth looking after (grrr).

So, what has the church done? Not necessarily as a collective body. I know the Church of Scotland has written various reports on tackling poverty and access to financial services for the poor, but what practical things can the church do? After all, we are called to look after the poor and be a servant of many.

I think one thing is to help set up credit unions. The church could provide the driving force and premises (at least initially). Then (and I know I am maybe being really naive about this) those like the person I encountered yesterday could save in a more secure way than Savings clubs, but there still be the trust factor as the credit union is run for and by the people who are members (and they'd get a wee bit of interest on the savings too). That, I think, could be a first step in helping pull people out of poverty, which I believe the church is called to do.