Church plans to compete with loans company Wonga - could this end the benefit gloom?

Pic Source: The Week.
It has emerged today that the Church is planning to compete with payday loans company Wonga.

The Most Reverend Justin Welby, former financier, stated he had met with Wonga's Chief Executive Errol Damelin and told him 'we're not in the business of trying to legislate you out of existence, we're trying to compete you out of existence' (Source: Total Politics magazine) which is honesty at it's finest!
Archbishop Welby wants to encourage the Church to become a more integral part of the community - lending would run alongside the use of the Church for 'libraries, shops and post offices'. He stresses the importance of keeping the Church relevant to peoples lives.

Payday loans companies have recently been under fire due to the insanely high interest rates, especially as these are aimed at those with low incomes, or in desperate situations. Welby aims to create a low interest system (As seen by Credit Unions) which can enable the church to offer their buildings and advice to loan seekers. 

We know that many of the candidates we see daily do struggle with income, some not daring to work over the 16 hour cap that the Job Center impose before benefits are cut, in case they are no longer needed (temp jobs especially!) perhaps the reassurance of low income loans could help, acting as a safety net between benefits and income. 

Have you ever been in a similar position? How do you feel about the Church taking over loan control? - let us know your opinions.