Hertfordshire Euro MP Richard Howitt has urged borrowers in need of short-term credit to look at a local not-for-profit alternative to the "pernicious" payday lenders.

The Labour MEP visited St Albans District Credit Union to mark International Credit Union Day.

This week Richard Howitt MEP set up a new all party group in the European Parliament to press the EU to bring in further measures to open up access to the use of debit cards, ATMs and other financial services for those with low or no regular income.

He will serve as vice chair of the new European Parliament Credit Union Interest Group.

St Albans District Credit Union is growing in size with savings of £440,000 from 1050 members, plus £50,000 from 480 juniors.

Last year it took over 250 people into membership as part of the Crisis Loan scheme, in partnership with the Herts Help scheme run by the County Council.

Labour’s Richard Howitt MEP said: "I’m campaigning in Europe for financial inclusion for those with low or no regular income.

"Despite recent action against pay day lenders there are still adverts currently on TV here in the UK enticing people to just tap on an app to borrow money and, in very small print on the screen, end up paying 1,971% APR. Other lenders can charge up to 5,835% a year.

"The payday lenders prey upon those on low incomes and suffering hardship with no real alternatives at present.

"St Albans District Credit Union is a not-for-profit financial co-operative that provides a safe place to save money and borrow at competitive rates.

"Community-based finance and money advice which often involves partnership with local churches, as with food banks, offers a better way but access to these services can be limited.

"St Albans District Credit Union represents a fight back against the payday lenders here and loosens their pernicious hold.

"The first credit unions were established in Germany in the mid nineteenth century and today these member-owned and not-for-profit cooperatives support thousands of communities and more than 7 million households with affordable financial services across Europe.

"I want to see European banking and finance regulations foster the further growth of credit unions to enable people to access responsible savings and affordable credit."