‘Fair for You was created to combat financial exclusion, specifically as a response to what we saw as the lack of regulated, ethical and affordable credit providers in the UK beyond the existing credit union sector,’ Goodwin says. ‘Millions of people in the UK are turned away by mainstream lenders each year, people who can’t afford not to have access to credit if their washing machine or fridge breaks down.’
The non-profit company was founded on the belief that nobody should be penalised for being on a low income. ‘So Fair for You was established to give families access to those essentials without the burden and dangers of unfair and illegal credit.’
The UK’s financial regulator, the FCA, oversees the company to ensure that the loans it provides are affordable. ‘We’re very proud that some of our lending products are zero percent,’ says Goodwin. ‘That includes our Food Club which partners with Iceland Foods to help spread the cost of groceries for parents whose children are off school and not getting free school meals . It helps people do bigger shops and spread the cost of those on an interest-free basis.’
This year, Fair for You helped its 100,000th customer and clocked up £100 million in loans. ‘It’s a real success story but obviously we have ambition to do a lot more,’ says Goodwin. Independent social impact reports show that nearly half of the 30,000 people who used the food club were better able to cope with cost-of-living pressure. ‘There was a reduction in using interest bearing credit sources, particularly illegal loan sharks. And people who had fallen behind with rent and mortgage payments were able to catch up and stop using food banks.’
Fair for You classifies itself as a micro-lender. ‘So it’s small amounts of money. The average loan will be £350 and most of our loan terms are 12 months or less.’ But those small amounts can make a huge difference to people in difficulties. ‘Financial stress causes an immense amount of challenges from a mental health perspective,’ says Goodwin. ‘We offer a lifeline for people. That’s the theme that comes through in customer feedback – I didn’t know what to do until I found Fair for You. People feel safe and supported with us.’
