A campaign by housing bosses and Leeds City Credit Union (LCCU) to "bite back" against loan sharks and doorstep lenders has saved hundreds of families from crippling interest rates and charges.

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The Don't Feed the Sharks campaign has helped some of the city's poorest communities access affordable loans, bank accounts, bill payment services and savings accounts.

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Doorstep lenders and loan sharks targeting deprived communities in Leeds with sky high interest charges were recently highlighted by former Spice Girl Mel B.

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The campaign by East North East Homes Leeds (ENEHL) – one of three organisations that manage council homes – and the credit union has encouraged people to shun loan sharks in times of financial crisis in favour of a union loan.

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Janet Burr, Leeds City Credit Union deputy chief executive, said: "One of our recent cases was a mum who had got into arrears with a doorstep lender; she was also behind with her bills, rent and council tax. Her total debts were about £4,500.

"We consolidated a loan for her to pay off her debts and bring her bills up to date. We opened a budget account for her to pay her rent, water rates and council tax through. She is now in credit with these and can afford to buy presents for her children.

"We have numerous life changing case studies such as this which also benefits East North East Homes Leeds, as we help people to prioritise paying their rent through our budget account."

Angelena Fixter, ENEHL board chairman, said: "The tough economic climate has meant doorstep lenders profiting from people who are on low wages, benefits or who are vulnerable.

"Working with the Leeds City Credit Union we've taken a tough stance on doorstep lenders by making affordable, safe financial services and loans available from the LCCU branches in East North East Homes Leeds Board offices.

"More than 6,000 of our residents now have access to fair and affordable financial products that sends a clear message to doorstep lenders that we will not let them damage our communities."

The total of £6.5million has been calculated by taking the number of loan accounts opened at Leeds City Credit Union branches by residents in the ENEHL area, and calculating the amount doorstep lenders would have charged them for the same amount in loans.