UCATT warning over short term loan product
Construction union UCATT is warning construction workers to be extremely cautious before taking out a new short term loan product.
The loans are being offered by the company SubMe and are primarily aimed at construction workers who are paid via the Construction Industry Scheme (CIS) and are officially self-employed or who are paid via umbrella companies.
Workers can borrow up to £5,000 and loans are due to be paid back within three months. However the APR interest rate is a staggering 383%.
Brian Rye, National Secretary of UCATT, said: “Construction workers need to be very cautious before taking out these loans. They might look like a quick and easy way to get credit but you will end up paying back far more than you borrow.”
SubMe is part of the OBK Group which also includes payroll/umbrella company Sprite, Boss projects and OBK tax.
UCATT members have previously expressed concerns about the flat rate VAT scheme the company operates which has resulted in them being chased for VAT payments and facing fines for non-compliance.
Mr Rye, added: “When taking out loans or being introduced to new financial schemes, workers should think that if something seems too good to be true there may well be a catch and to always read the small print first.”