Credit Unions - an alternative to payday loans / accurate at 22.09.2015

[maroondevo52]

Well i must admit after reading all your posts and looking at the Credit Unions as i have this last week.

I clearly must join one.I know where my local one is.

 

The sooner the better, let us know how you get on

[Tawnyowl]

Well i went to the Credit Union.

Took photos and had a quick chat.

A tale to be told as i usually do these days.

Will tell the tale when time allows this week.

But was very impressed is all i will say for now

Tawnyowl.

[Ford]

an oldish article, the govt urging membership of credit unions

http://www.telegraph.co.uk/finance/personalfinance/savings/10564255/Forget-banks-and-join-credit-unions-middle-classes-urged.html

 

yet now, re post #12, 'they' want to curtail them!

 

ABCUL response to BoE. encouragements re the review, as well as concerns.

http://www.abcul.org/media-and-research/news/view/603

http://www.abcul.coop/media-and-research/consultations/pra-creds-reform

[Ford]

'A RENFREWSHIRE credit union has hit high-interest payday lenders in the wallet – to the tune of more than £50,000. A new report by Paisley based Renfrewshire Wide Credit Union, says its hard-up customers are saving thousands of pounds in high interest payments by choosing them over payday loan companies such as Wonga.

Since January, the credit union estimates that its 111 Salary Stretcher loan customers have saved a massive £54,000 in interest payments alone by opting for its product, instead of taking out a short-term payday loan..........Renfrewshire Council has backed the success of Renfrewshire Wide Credit Union and believes it can form part of its strategy to tackle poverty. Councillor Mike Holmes, Renfrewshire Council’s depute leader, said: “Our investment in local credit unions is part of our two-fold fight against payday lenders and poverty........'

http://www.dailyrecord.co.uk/in-your-area/paisley-credit-union-hits-payday-6693004

[Tawnyowl]

I posted a while ago and put a local credit union link on by mistake.

What i meant to put on was how to join your Credit Union nationally.

So here you are,you know now it makes sense to join your local friendly Credit Union wherever you live.

 

http://www.findyourcreditunion.co.uk/home

 

Mutual Financial Services

 

Ethical Savings

 

Credit unions offer a range of savings accounts that allow you to save as little or as much as you can afford

 

Unlike other saving schemes you can save as much or as little as you like, weekly, monthly or as often as you wish. Deposit savings at: convenient branches, local shops, collection points, by direct debit or directly from your wages. Credit unions aim to pay a dividend on savings once a year to all it's members. Dependent upon performance this can be as much as 8% of the total amount that people have saved. Credit Unions serve the community, so when you invest in your local credit union you know that the people who are benefiting are your neighbours or colleagues and not outside shareholders.

 

All money saved in a credit union is protected by the Financial Services Compensation Scheme

 

Affordable Loans

 

Credit unions offer a range of savings accounts that allow you to save as little or as much as you can afford

 

Some credit unions loans will cost you no more than 1% a month on the reducing balance of the loan (an APR of 12.7%). For example if you borrowed £1000 over 1 year, you would repay no more than £1067 in total. Many credit unions charge less, some may charge more but by law this cannot be more than 3% a month on the reducing balance (an APR of 42.6%).Link.

http://www.findyourcreditunion.co.uk/about

 

Ford.

'A RENFREWSHIRE credit union has hit high-interest payday lendersicon in the wallet – to the tune of more than £50,000. A new report by Paisley based Renfrewshire Wide Credit Union, says its hard-up customers are saving thousands of pounds in high interest payments by choosing them over payday loan companies such as Wonga.

Since January, the credit union estimates that its 111 Salary Stretcher loan customers have saved a massive £54,000 in interest payments alone by opting for its product, instead of taking out a short-term payday loan....'

http://www.dailyrecord.co.uk/in-your...payday-6693004

 

Such good news on a Sunday morning.

 

Here is my Credit Union that i flew into.

They did not need lights in the office.

The lady who met me had a smile that lit up the room.That could have melted the Polar Ice caps.

And was the friendliest person i have ever met in the financial world.

Have you ever had a few pounds and the bank manager says come into my private suite.

Well not in the Credit Union.

They are not trying to draw you into their products.

Just want to help you.

Here it is my local Credit Union.I was there outside,ready to burst through the doors.

Have you a picture of yours.

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[maroondevo52]

Tawny, that looks quite posh compared to mine

[Tawnyowl]

Yes i suppose it is.

I believe the council helped them move.

If any of you out there are not happy with where your credit union is ask the council to help them.

Why not it would perhaps help many local people and businesses, increase membership if more prominent and benefit your town.

[Mr.P]

Another service popped up in Sheffield recently: https://sheffieldmoney.co.uk/

 

From: http://www.localgov.co.uk/One-stop-finance-shop-opened-by-Sheffield-Council/39197

Sheffield City Council has become the first in the country to open a one-stop-money shop to help residents avoid payday and high interest lenders.

 

Sheffield Money opened its doors today, having been set up by city leaders who joined forces to provide people with a new way to access affordable credit, with lower cost loans and finance.

 

The project is the outcome of Sheffield Fairness Commission’s plans to help the city’s 50,000 residents who are borrowing an average of £800 each at extremely high interest rates (sometimes thousands of percent APR), sometimes causing debts to spiral out of control.

 

Operating as a broker service, the not-for-profit business brings together a range of responsible companies providing access to loans, credit for white goods, savings and bank accounts together with independent money and debt advice, all under the Sheffield Money brand. This allows residents access to a range of products that might have otherwise not been available to them.

[Ford]

seems interesting, at first sight. 'We are a Community Benefit Society registered under the Cooperative and Community Benefit Societies Act 2014 with an asset lock which means that we operate on a not for profit basis....'

Current loan providers; Five Lamps?, Sheffield Credit Union, TransaveUK Credit Union. apr range 13 - 90 %

they do get commission from their 'partners', and offer shares.

https://sheffieldmoney.co.uk/about-sheffield-money

[citizenB]

I rather think that top end apr is very expensive and yes I know that PDLs charge much more, but asking someone to pay back almost double what they borrow is what got most people into debt in the first place !

[Ford]

Five Lamps re #34

rep eg apr 90 - 120 % depending on circs and amount/term borrowed. Loan fee of 5% (up to 25£) may apply.

http://www.fivelamps.org.uk/general/

[Ford]

'CASH-strapped people in the borough are to be given a “safe and affordable” alternative to payday loans and doorstep lending.

Cheshire West and Chester Council, Cheshire & Wirral Partnership, Muir Housing, Plus Dane Group, Sanctuary group and Weaver Vale Housing Trust have commissioned West Cheshire Credit Union to provide practical saving and affordable lending facilities to residents and workers. West Cheshire Credit Union is a not for profit, financial co-operative providing credit union services across Cheshire West and Chester. Established in 2004, the business has continued to grow with more than 3,500 members. They have so far lent more than £2.4 million to local people in small to medium sized loans. ...'

http://www.chesterstandard.co.uk/news/155203/west-cheshire-credit-union-s-affordable-alternative-to-payday-loans.aspx

[Ford]

'More people are turning their backs on pay day loan offers and instead going to credit unions for money. Your Credit Union in Kensington says it has seen an increase of 25% in borrowing this Christmas in the wake of government price caps on controversial pay day companies. Chief executive William Rhodes said: “This time last year some people were paying up to 5,000% interest on cash they borrowed to buy Christmas presents . Many were unable to sustain ruinous repayments and the New Year could mean a visit from the bailiffs..“I’m delighted to say we are now seeing more people looking to credit unions as an alternative to pay day lenders.”.....

http://www.getwestlondon.co.uk/news/west-london-news/borrowers-turning-backs-pay-day-10625581

[honeybee13]

That's good to hear, Ford. Thank you for the link.

 

HB

[citizenB]

This is very good news indeed, thanks for the link, Ford

[Ford]

ABCUL 'welcomes' recent new FCA clarification re Credit Unions

'The Financial Conduct Authority has published a new clarification of its guidance for credit unions on consumer credit regulation. ....'

http://abcul.org/media-and-research/news/view/634

 

other news there;

'Darlington Credit Union has enjoyed an upsurge in membership since opening new high street premises'

NHS Credit Union '....smashed through the million pound barrier for the first time in the organisation’s 17-year history.'

ABCUL conference in march, 'The Chairman of the Financial Conduct Authority (FCA) will address ABCUL’s 2016 Annual Conference in March....ABCUL’s Annual Conference will see a number of new initiatives and the unveiling of new and improved services for members, including the Association’s new training offering.'

[maroondevo52]

Noticed my credit union has just had a name change to CASTLE COMMUNITY BANK and for the first time anyone with an EH postcode can join.

[Ford]

Loyds helping the Credit Union sector!

 

'Lloyds Banking Group is awarding £1 million to 21 credit unions across the country as part of its second tranche of funding to be released from its £4 million four-year commitment.

Lloyds said that from 2014 until 2017 the investment should enable the credit union sector to lend an additional £20 million to its customers. The awards are selected by an independent grants committee in partnership with the Credit Union Foundation...'

 

http://www.mortgagefinancegazette.com/general-news/lloyds-banking-group-awards-1-million-to-credit-unions

[Ford]

'THE amount of money loaned to members of a Bradford credit union has more than trebled as membership figures continue to grow, it can be revealed.Loan balances at Bradford District Credit Union increased by 73 per cent, well above the credit union average of about seven per cent...'

http://www.thetelegraphandargus.co.uk/news/14260228.Lending_soars_at_Bradford_District_Credit_Union_as_membership_continues_to_rise/

 

some bad apples though (union members money safe though);

 

'Kingdom Credit Union was defrauded by former staff member Margaret Bond who took out loan after loan over the course of a year. Bond was jailed for 16 months after being convicted of embezzling £79,120. However, the union told members it had lost more than £200,000...

http://www.thecourier.co.uk/news/local/fife/credit-union-members-told-funds-are-safe-after-fife-woman-s-79-000-embezzlement-1.921302

[Ford]

'The vital role of credit unions in providing access to low-cost finance. With millions of Britons excluded from mainstream finance, credit unions can help. So what can be done to support the (credit union) sector?...

 

So what can be done to raise awareness and help the sector grow? That question was posed to a panel of experts at a recent Guardian seminar, supported by Lloyds Banking Group, which was attended by an audience drawn from the credit union sector..Panel member David Haigh, finance capability director at the Money Advice Service, explained why there was such a need for credit unions..'

http://www.theguardian.com/public-leaders-network/2016/mar/16/savings-credit-unions-debt-crisis

[honeybee13]

I agree, Ford, I think credit unions are vital. The more people who use them the better.

 

Thank you for mentioning them again.

 

HB

[Ford]

welcome honey

surprised, or maybe not (maybe it was part of their bail out to be more socially responsible?) to see loyds having such an input in credit unions.

[maroondevo52]

My work's credit union reports to the CRA'S my local one has not in the past 20 years but they have just merged with a larger Credit Union and are going on-line, I've a feeling they will start reporting also.

[Ford]

Credit Unions are modernising..'There is a lot of activity going on in the UK’s credit union space, as the participants realise they have no choice but to modernise... the Association of British Credit Unions (Abcul), is implementing a shared platform for its members. Around 40 entities have already signed up for it.....The Abcul project is supported by the UK government, as part of the Department of Work and Pensions’ Credit Union Expansion Programme. The overall programme is valued at £38 million, with the technology portion believed to be around £8 million....'

http://www.bankingtech.com/463612/uk-credit-unions-busy-with-tech-modernisation/

[Ford]

'ABOUT 250 people a week are joining credit unions in Scotland as a growing number of savers and borrowers look for alternatives to mainstream lenders....Membership of credit unions has grown 4 per cent in Scotland over the last year..' http://www.heraldscotland.com/business/14431725.Scotland_gains_on_Poland_in_European_credit_union_rankings_as_membership_grows/

 

 

not all good news though, but money is safe and those members can join Wolves Union

 

'The Whitmore Reans Credit Union had been dragged down by a series of bad debts, which left it unable to repay the deposits of the 981 members. They will get their money back through the UK's banking compensation fund...'

http://www.expressandstar.com/news/2016/03/25/1000-caught-up-in-wolverhampton-credit-union-collapse/