Credit Union cash windfall
Friday July 16, 2010
H&F Credit Union, the borough’s very own not-for-profit bank, has received a cheque for £31,500 as part of the council’s commitment to helping local organisations.
Found on North End Road, the Credit Union was launched in December 2008, with the support of the council and is different to a bank because it is the credit union account holders that actually own it.
The Union now has over 1,200 members, has issued over £320,000 in loans and has grown savings of over £360,000. It has proved particularly popular with local savers and borrowers keen to avoid eye-popping interest rates from 'door step' lenders or falling into debt with illegal money lenders.
News of the union's surging membership comes after a think tank found over 100,000 families in the UK have borrowed a total of £29million from loan sharks at exorbitant repayment rates.
Credit Union manager Cheryl Gale, said: ”We are absolutely thrilled that the council has awarded us such a large grant. The council has always provided us with magnificent support and it is that assistance that consolidates us in the borough. We are so grateful for their help.
"The Credit Union helps people save money which they can then spend on their families. People can then use that cash to avoid taking out another loan from an unscrupulous lender who may trap them into debt. Some of our members are people who withdraw their benefits from the Post Office and then end up spending all of their money. No matter who you are cash burns a hole in your pocket. We offer advice, a bit of re-education and ideas on how people can save or we will lend them money at a fair rate."
Leader of the Council, Cllr Stephen Greenhalgh was the first person to join H&F Credit Union. He said: " The council is delighted to award this most worthwhile of organisations a grant of £31,500. High levels of personal debt is one of the pathways to poverty for many people and is one of the most serious social problems facing us today. This council wants to encourage people to save rather than the prevailing 'buy now, pay later' credit card culture. The credit union is a fantastic place for savers and I am sure that it will go from strength to strength over the coming months and years.”
Anyone who lives or works in the borough can become a member of H&F Credit Union and benefit from a range of services it provides, such as saving schemes and affordable loans. All members’ money is guaranteed by the Financial Services Compensation Scheme so the credit union is a safe and ethical place to save and borrow.
In the UK, credit unions provide credit for only 1 per-cent of the population. And yet, there are more than 42,000 credit unions worldwide, with over 160 million members.
Anyone interested in finding out more can call 020 7471 2620 or log onto the credit union website www.hfcu.co.uk (opens new window).
