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MP forces Young Enterprise to end partnership with Money Shop 3

Finance | Vibeka Mair | 15 Feb 2012

Education charity Young Enterprise has ended its partnership with financial lender Money Shop and its parent Dollar Financial UK, as a result of public criticisms of the relationship from Labour MP Stella Creasy.

In a statement released yesterday, Young Enterprise said “a campaign of false allegations” by MP Creasy has “obliged” the charity to cancel its partnership with Money Shop and its parent group Dollar Financial UK.

At the start of the week Creasy had released a press statement heavily criticising Young Enterprise’s partnership with Money Shop:“I know many parents in Walthamstow who share my concerns about legal loan sharking and will be shocked to find a charity such as Young Enterprise letting these companies into our schools and so helping them to promote themselves as socially responsible,” she said.

“Until this industry is regulated properly through caps on the costs of credit they have no place in our education system – and I hope Young Enterprise will think again before allowing their good work to be associated with such firms.”

Last month, a press release from Dollar Financial UK announced the partnership. It said volunteer staff from Dollar Financial UK would be working with Young Enterprise to help pupils understand the link between education, training and employment.

During 2012 staff from Dollar Financial UK companies planned to visit schools in Nottingham, where the business has its UK headquarters; North West London; and other parts of the South East.

Young Enterprise: Creasy was 'hostile'

However, Creasy, who has been a staunch campaigner against short-term lenders, has forced an ending to the partnership after launching criticism online and to the press.

Young Enterprise has said that in its 50 years’ existence the charity has not faced such hostility from anyone.

Catherine Marchant, interim chief executive at Young Enterprise, said: “Young Enterprise is sad to have to potentially disappoint so many young people by cancelling the remaining part of our work with Dollar. But in the face of this barrage, disruption and alarm caused by Ms Creasy’s persistent, ill-informed claims we feel it is just too much to put children, parents and schools through.”

Marchant said the charity had tried unsuccessfully to speak to Creasy to correct errors they felt she made: “The claim that school pupils were given lessons in finance by Moneyshop is quite untrue…The programme was taught by a Young Enterprise manager, not the volunteers.”

Creasy has written a letter to Marchant in response, saying that the claim that Money Shop staff were giving “lessons in finance” came from Marchant’s own tweet on Twitter and a quote from Young Enterprise’s manager in Waltham Forest.

She continues: “I welcome the fact that you have cancelled your relationship with the Money Shop, but am deeply disappointed that you and your employees continue to attack my reputation instead of acknowledging your mistake or engage in a discussion about the relative merits of commercial partners for this kind of work.

“I’m surprised that you don’t appear to have an ethical partnership rubric or indeed acknowledge the importance of ensuring your charitable status is not used to promote companies or services which are not conducive to the public good.”

A Young Enterprise spokesman said that the charity was established in 1962 by a financier so it was not unusual that it developed relationships with financial institutions. He said that the charity had a clear policy on how it formed its relationships.

He added that the Creasy's claims were based on fundamental innacuracies, and the charity felt it had to end the partnership as it could not expose the children it works with to the situation.

Dollar Financial UK had given Young Enterprise £15,000 and released 30 volunteers to cover its partnership activity.

As a result of the partnership ending a 'Learn to Earn' session planned in Medway has been cancelled unless replacement volunteers are found.

A Dollar Financial UK spokesman said: "We understand Young Enterprise’s decision to cancel the one remaining session but are disappointed that students will now be missing out on such a valuable learning experience.”

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