Chief Medical Officer: Credit unions can benefit Public Health
The Chief Medical Officer’s Annual Report, published recently, has acknowledged the health benefits of investing in financial inclusion initiatives citing Leeds City Council’s support for the city’s credit union.
The report says: “The link between inequalities in income and inequalities in health was recently highlighted by Sir Michael Marmot’s Health Inequalities Strategic Review Team and in books such as Richard Wilkinson and Kate Pickett’s The Spirit Level, which captured the attention of many media commentators and social policy researchers in 2009.
“Across Yorkshire and the Humber, partners in local authorities, the voluntary sector, primary care trusts and central government are working hard to promote financial inclusion and to eliminate the ‘poverty premium’ [...] including investing in credit unions so that people have an affordable alternative to doorstep lenders.”
ABCUL Chief Executive, Mark Lyonette, said: “The link between poverty and poor-health is well understood as is the link between poverty and financial exclusion.
“It is a very welcome acknowledgement for Government’s senior clinical spokesman to put two and two together and come out in support for something we’ve long suspected – lack of access to financial services has a great impact on quality of life and can exacerbate health problems.
“Credit unions across the country are working to ensure that everyone in their communities has access to inclusive financial services and the benefits of this cut right across social policy.”
Yoker's Flora McDermid nominated for community hero award
Flora McDermid, long-time credit union volunteer and activist with Yoker Credit Union in Glasgow, has been nominated for a Community Hero award run by the Daily Record newspaper.
Despite ill-health, Flora has worked tirelessly with Yoker and the wider credit union movement in Scotland for many years. She chairs ABCUL’s Scottish Chapter and Glasgow City Council’s Credit Union Strategy Group.
Flora says she is driven by a simple philosophy. "It's all about people helping people," she says.
John Mackin, manager of Transport Credit Union in Glasgow, nominated Flora. He said: "Her commitment to her people is second to none and she has phenomenal energy.
"She works tirelessly for the benefit of others and is such a believer in people.
"She is an extraordinary person and a credit to herself and the credit union movement."
09 Apr 10 -
First Dorset Credit Union go European
Recently, following coverage by the BBC’s regional news teams, First Dorset Credit Union had a visit from a TV crew from Normandy in Northern France.
They filmed a news item highlighting the good work the credit union does in the South of England and to potentially export the idea to mainland Europe.
Currently credit unions as they exist in Britain are only seen in a small selection of European countries – highlighted by the membership of the European Network of Credit Unions’ which represents the credit union movements of Britain, Ireland, Poland, Macedonia, Estonia and Romania.
Brian Pankhurst, Director of First Dorset Credit Union, said: “Basically, there are no credit unions in France - and there's no term which translates as 'credit union'. TV3 wanted to discover how credit unions operate in UK.”
The news crew interviewed credit union staff, volunteers and members.
29 Mar 10 -
Credit unions welcome Post Office link-up proposals
ABCUL has welcomed today’s response to the consultation on the future of financial services in the Post Office which sees the Post Office network as a natural distribution partner for credit union services.
Responding to the news on behalf of the credit union sector, Mark Lyonette, Chief Executive of ABCUL, said: “Credit unions are ideally placed to offer fair banking and affordable credit to people on low and modest incomes and a link up with the Post Office will bring these services within the grasp of many more people.”
The consultation response, published today by the Department for Business, Innovation and Skills proposes using a new community levy to be funded by retail banks to support a link between credit unions and Post Offices, allowing people to access credit union loans, current accounts and savings accounts throughout the Post Office’s 11,500 branches.
“Opening up the Post Office network to credit union services,” says Mark Lyonette, “will help to deliver a step change in the scale of credit unions in Britain, boosting access to their services for millions more people and raising awareness of credit unions as an ethical and sustainable banking alternative.”
In addition to savings accounts and affordable loans, credit unions offer a wide range of financial services including Child Trust Funds, Cash ISAs and Current Accounts which, thanks to today’s announcement, could soon be available through the Post Office network.
According to ABCUL, the Post Office link up would allow Post Office customers to join a credit union and existing credit union members to get easier access to their accounts, especially when away from home. Staff at a Post Office would be able to carry out transactions in real time, check account details and balances, pay out savings and give instant, pre-approved loans that are affordable and convenient.
Andy Burrows, postal expert at Consumer Focus said: “The emphasis on providing access to credit unions through the post office network, funded by levy on banks, would give people another trusted way to manage their money and get access to more affordable credit.”
Mark Lyonette of ABCUL concludes: “Credit unions across the country are keen to offer their services to many more people and the Post Office link up will help them achieve this.
“Today’s response is key to kick starting this exciting initiative which will contribute towards reducing financial exclusion and bringing fair and affordable banking services to many more communities – a real mutual and local alternative. We look forward to working with the next Government to bring these exciting plans to fruition.”
ABCUL Chief Executive, Mark Lyonette, has welcomed this week’s budget announcement of a roll out for Saving Gateway accounts in July but urged caution following the news of new rights to a basic bank account.
“Credit unions are very keen to be involved in the Saving Gateway,” he says, “Credit unions serve many people on benefits or in low-paid work and have an excellent track record of attracting savings. Saving Gateway will be an excellent means of getting more people into the savings habit and helping them to build some personal assets.”
Around 100 credit unions have so far expressed an interest in providing Saving Gateway and all of them have eagerly awaited confirmation of the scheme’s roll out. Preparations can now be made to ensure readiness for the first accounts to be opened come July.
Ian Burnett, General Manager of Blantyre & South Lanarkshire Credit Union, said: “I think Saving Gateway will be a fantastic scheme and we are hoping that, once introduced, it will continue for many years to come.
“Not only will it help to encourage many of our current members to go forward through saving and to build up their assets for the future but it will provide a valuable opportunity for credit unions to increase their membership still further.”
Also in the budget the Chancellor announced that the Government intends to consult on legislation to introduce a legal right to a basic bank account under certain conditions.
Mark Lyonette said: “Whilst I welcome the commitment to ensuring that everyone has a right to a basic bank account, I think it is important to point out that this measure alone will not solve all aspects of financial exclusion.
“One of the advantages of having a bank account is the ability to make savings on utility costs by using direct debit or standing order to pay bills. Many holders of basic bank accounts do not use these facilities for fear of having high charges levied if a bill payment becomes due before a payment has been received. And the sort of small, short term loans that people on lower incomes may need from time to time are not available through banks, so having an account with one won’t help people with the needs for affordable credit.
“Simply handing people a basic bank account is no substitute for the services that a credit union can provide. The Credit Union Current Account has been designed to overcome many of the disadvantages of basic bank accounts. Its transparent charging structure does not rely on high default charges to cover costs so members have more confidence to gain savings on utility bills by using direct debit. Credit union members also have access to safe savings accounts, financial education and affordable credit.” Mark concluded.
26 Mar 10 -
Kent Savers Credit Union Launched
This month saw Kent Savers Credit Union launch in the Garden of England. For many years, Kent has been one of the largest black-holes in credit union coverage in Britain but no longer.
Kent Savers will provide services to the 1.6 million people in Kent, the largest coverage for any UK credit union and will offer services to customers wanting an alternative to high interest loans or pay day loans, and ethical, easy-saving options, including payroll deduction schemes.
“Kent Savers will provide financial trust and support where it is needed most, while also offering a genuine alternative for people looking to invest their savings and apply for loans. We see this initiative as a vital resource for the county to help the people of Kent. I am particularly pleased that KCC has been able to help set up the credit union,” said Kevin Lynes, Kent County Council Cabinet Member for Regeneration and Economic Development.
John Fowler, Chief Officer at the Credit Union added: “Kent Savers is for everyone, we will have investment plans and loan rates which are competitive and we welcome people on low incomes. We have a responsibility to focus on people living in deprived areas where the benefits of the credit union can be most pronounced. For example if 100 borrowers used Kent Savers instead of a doorstep loan company the savings would be £34k per year. This is extra income which can either be saved or reinvested within the community.”
In partnership with York Council and its Cycling City project, North Yorkshire Credit Union is set to launch a low-interest loan initiative to help people finance the purchase of bicycles.
The scheme is designed to curb traffic congestion and contribute to cutting carbon emissions. Several bike retailers across the city are involved.
The scheme is evidence of how credit unions can contribute to helping the environment through providing affordable finance for carbon-cutting initiatives which often come with hefty, up-front price tags.
Blackpool, Fylde and Wyre Credit Union recently got involved with supporting the boiler Scrappage Scheme in the area. The credit union supplements the value of the £400 cash back voucher from Government with an interest free loan to cover the entire cost of a green, energy efficient boiler.
23 Mar 10 -
Latest Credit Union News Available Here
The March 2010 edition of Credit Union News has been published and is available to download below.
This edition includes a look at how employee credit unions are working with employers to provide inclusive financial services to all their staff ahead of up-coming legislation changes that will make this an option for many more credit unions. Also included is a pre-election look at how different political parties will support credit unions should they win power, analysis of the opportunities presented by the roll out of Saving Gateway, a look at how credit union legislation has evolved over the last 30 years and a report from the recent Northern Money Conference in Liverpool.
As always, there are also various stories of credit union activity around the country as well as a farewell to June Nightingale and Evelyn Mechan of Glasgow Credit Union who retire this month 20 years since founding the credit union.
ABCUL’s Annual Report for 2008/09 is now available to download below.
The report, Strength in Numbers, charts the Association and our members’ activity over the year in handy, bite-size statistics. The year to September 2009 saw a 15% increase in savings in credit unions illustrating the growing appeal of the ethical, mutual model in the wake of the financial crisis.
Catch up on everything’s that’s happened in another hectic year and read ABCUL President, Antony Macrow-Wood’s view on his first year in the job.
Last weekend (12th to 14th March 2010) saw ABCUL’s Annual Conference and AGM sweep into Blackpool for its tenth consecutive year in the famous seaside resort. Over 300 delegates took in the sea air and some lively debate in the largest annual credit union event of its kind in Britain.
The weekend opened with the welcome announcement that, after nearly 4 years of campaigning, the Legislative Reform Order set to make major changes to the Credit Unions Act has been laid before Parliament and is expected to come into force by 1st August. Not only that, but the Co-operative and Community Benefit Societies and Credit Unions Bill, containing further welcome changes to credit union legislation, has passed its final report stage and Third Reading in the House of Commons and should be enacted before the next election.
These welcome developments set the weekend up for an energetic and enthusiastic debate.
Many delegates arrived early for popular training sessions on Friday afternoon as delegates considered the finer points of debt collection, disaster recovery and financial planning.
Saturday morning’s Plenary session hosted Chris Hibben from the Financial Services Authority’s Policy Division and the head of the FSA’s Small Firm and Contact Division, Linda Woodall, to present the feedback so far on the FSA’s recently closed review of credit union regulation. In order for credit unions to make use of the legislative reforms, the FSA must first update its regulation and the presentations, whilst providing details of some areas for debate, set out the FSA’s aspiration to have their new regime in place by the 1st August.
Workshops took place throughout Saturday and Sunday morning covering topics as varied as serving businesses and corporate bodies, paying interest on deposits, building partnerships with employers and housing providers and proving credit unions’ economic value. Experts in each field presented their experience and were on hand to address delegates’ questions and concerns.
Delegates were entertained into the wee hours by Motown tribute acts and Salsa dancing ensuring the weekend was as much entertaining as it was informative.
18 Mar 10 -
Credit Union Acivist, Reverend Jack Pawsey, Dies
Life-long credit union activist and founder of one of the first British credit unions during the 1970s, Reverend Jack Pawsey died recently whilst on holiday with his family. ABCUL would like to pay tribute to his memory and offer our condolences to his family.
In the 1970’s when Jack was a curate at St Giles, Camberwell, he learnt of the difficulties the Afro-Caribbean community had accessing credit and any form of bank account. That led him to set up the Camberwell Credit Union which started in the crypt, later moving to St Giles Hall.
As well as being the prime mover of this initiative, one of the first credit unions to be set up in England, he also became involved with the national association and forerunner to ABCUL the Credit Union League of Great Britain.
Being on the national board, and having a legal background, he was well placed to assist in the drafting of the Credit Unions Act which was one of the last pieces of legislation passed by the Callaghan government in April 1979. This provided a legal framework and a regulatory regime under the Registry of Friendly Societies for credit unions in Great Britain.
Camberwell Credit Union was taken over by Southwark Employees Credit Union in 2002. Today Southwark Credit Union is one of the top 10 in the country, working closely in partnership with the council, housing associations and other agencies to provide an alternative and inclusive financial service across the London borough.
Jack Pawsey’s contribution to the credit union movement has been very significant – over 30 years ago he recognised the potential in credit unions, and for many years he committed himself to helping get them started.
18 Mar 10 -
Partners-ship!
On February 25, 2009, Partners Credit Union (PCU) in Liverpool and HEW Federal Credit Union (HEWFCU) from Virginia, USA entered into a partnership in an example of the credit union philosophy: “People Helping People”. Tracey Schuler, CEO of Partners, and Kathleen Geary, President/CEO of HEWFCU, have worked over the course of two years to solidify relations between the two organizations.
The credit unions agree on various key points including sharing ideas and initiatives and identifying mutual ways for each to grow and better serve their members. In addition, HEWFCU and Partners will be able to learn about credit unions in different parts of the world and strengthen cross-Atlantic ties.
“We are very excited about the international partnership with Partners Credit Union at HEWFCU,” remarked Kathleen Geary. “Our two credit unions share a great passion for the credit union movement and our common philosophy of ‘People Helping People.’ The Boards and Management of both credit unions look forward to working together to further our common goals in the future.”
Paul Hide, President of PCU Ltd stated, “I’m sure we will all work well together now and in the future, learning from each other and continuing in the spirit and ethos of this great thing we call a credit union movement. One that we’re all totally dedicated to and passionate about.”
05 Mar 10 -
Northern Money Conference 2010
Helen Goodman MP, Minister for Financial Inclusion at the Department for Work and Pensions, pictured, and Shadow Treasury Minister Mark Hoban MP travelled to Liverpool to address delegates at the Northern Money Conference on 1 March.
Supported by The Co-operative Bank and organised by ABCUL, in partnership with Liverpool John Moores University and Citizens Advice, the event was attended by over 250 delegates from a wide range of organisations including local authorities, consumer bodies, housing providers, money advice agencies and credit unions.
Helen Goodman congratulated delegates on their work to tackle financial exclusion. She wished ABCUL well in its aspirations to see credit unions supported by back office services and credit union services accessible through the Post Office Network.
She said “We are committed to ensuring people on low incomes have access to the financial services and advice many of us take for granted.
"The credit union movement plays a vital role in helping people get through difficult financial circumstances. It is changing the lives of those who were in debt by helping them to build and rely on their own savings rather than borrowing from unscrupulous lenders.”
Enterprise Credit Union, which ran a workshop at the conference, came in for particular praise from the Minister. She recounted the story of one Growth Fund recipient, who had previously paid over £2,500 to high cost lenders. A Growth Fund loan from Enterprise meant she could build up enough savings for the first time she didn’t have to borrow for Christmas.
Mark Hoban MP, Shadow Financial Secretary to the Treasury, told delegates: “Financial inclusion will matter to the next government. Unless we take financial inclusion seriously, families won't be able to put their finances back on the right track.
“We need to give people the support, including advice and guidance and strengthening credit unions, to enable them to make the best choices for their families.”
He went on to confirm that a future Conservative Government would support the roll out of the Moneymadeclear money guidance programme. As well as better access to information about credit and savings, and more transparency on credit agreements, he spoke about how behavioural economics can play a role in encouraging people to save.
Mark Lyonette concluded: “We are looking forward to the reform of credit union legislation later this year which will help modernise the whole credit union sector and remove many of the barriers which currently stop us delivering our services more widely.”
After the plenary session in the afternoon, workshops allowed delegates to focus on a range of issues including the future of credit unions, money guidance, the role of local authorities and housing associations, and encouraging savings.
Manchester Credit Union (MCU) today became the twenty-fourth credit union to join the growing ranks of Credit Union Current Account (CUCA) providers. Currently 26,000 accounts are open and operational with average balances of £3 million.
CUCA is run in conjunction between the 24 credit unions, ABCUL and the Co-opertaive Bank and was specially designed following research into creating a more-functional alternative to the basic bank account conducted by Liverpool John Moores University.
MCU will operate the account with a weekly fee of just £1, which guarantees customers a service with no hidden extra administrative costs. When the credit union has to pass along charges for things like unpaid Direct Debits, these will typically be lower than those at high street banks. Other benefits include access to low cost loans and telephone banking.
Christine Moore, Chief Executive of Manchester Credit Union, said: “We are delighted to be introducing this new Current Account to Manchester and we are looking forward to offering our services to people across the city.
“There are numerous people who do not have access to a high street bank for various reasons, and as credit unions exist to serve their members, we want to bring our services to more and more people in Manchester.”
Christine Moore added: “As a credit union it is important for all our members to have an honest service which has no financial surprises and by banking with Manchester Credit Union, your money is guaranteed to be in safe hands.”
Banking Services Manager at ABCUL, James Moran, said: “We are delighted to bring the Current Account to the people of Manchester. The expansion of the account is central to our vision for full-service credit unions.
“Last year, 3.7 million transactions went through CUCA – this reduces costs for the credit union and allows credit union members to manage their money in the way taken for granted by many.”
26 Feb 10 -
Financial Inclusion Forum Launched by Housing Body
The Chartered Institute of Housing (CIH) has launched a new online resource – the Financial Inclusion Network – which will help link housing professionals looking to improve financial inclusion within their tenancy and financial inclusion professionals to share best practice and explore potential collaborative and strategic working.
The network is supported by the FSA and Barclays Bank.
Credit unions are seen as a key provider in this area and ABCUL have been asked to provide expertise for the network.
Policy and Communications Manager at ABCUL, Abbie Shelton, said: ‘Evidence has shown repeatedly that tenants of social housing are a group extremely vulnerable to financial exclusion and we are keen for credit unions to work alongside housing providers to ensure that credit unions’ inclusive financial services are available to tenants.
‘This network is an excellent resource and has great potential for linking the efforts of housing providers and credit unions more effectively.’
Chris Pond, FSA Director for Financial Capability, commented: ‘We are very pleased to have supported this important project, and to have worked with the CIH since 2007. We believe that providing housing professionals with a primary source of information and networking ability through this new online financial inclusion network will enable them to take a real step forward in helping their tenants to manage their money.’
Vicky Williams, Income Management Team Leader at Brighton and Hove Council, said: ‘There are pockets of good work in financial inclusion and lots of small initiatives going on. A network is a way of bringing housing providers together to share what works as well as encouraging landlords to get involved in financial inclusion for the first time, by giving them a head start. A forum that allows people to network is very positive and the more joined up we can be with other landlords, advice services and providers such as credit unions, the better it is for tenants and for the local economy.’
If credit unions would like to join the network and contribute to the resource email: practicenetworks@cih.org and request access to the financial inclusion network.
26 Feb 10 -
Unify Credit Union Expand into Leigh
Unify Credit Union in Wigan has received the go-ahead from their local council to expand their presence into Leigh town centre with a new branch. The site will be located at 12 Market Street.
Founded in 2002 from the merger of 3 local credit unions and covering the whole of the Metropolitan Borough of Wigan, Unify’s expansion into Leigh is an important step forward in ensuring that all of those eligible to join the credit union have a branch in east reach.
Carol Isherwood, chair of Unify and a Leigh resident for more than 50 years said ‘It’s fantastic news that we are opening a main branch in Leigh. This is something we have wanted to do for some time and have secured funding from the Targeted Support Fund to enable us to realise our dream. Although we have had small collection points open for many years in and around Leigh, we knew that a full branch was needed to enable full access to the many services we provide.’
The new branch will open in March, once building works have been completed.
08 Feb 10 -
Martin Lewis: "Use your local Credit Union"
Money Saving Expert and consumer advocate, Martin Lewis, recently put his weight behind the Welsh Assembly Government’s (WAG) campaign to raise the profile of credit unions.
WAG recently announced a package of support for credit unions in Wales as a central feature of their Financial Inclusion Strategy and will soon publish their Credit Union Action Plan. The publicity campaign is central to this.
Martin said: “Credit unions are there to look after members of their community. You can save with them in the good times and borrow back from them in the bad times. It’s the perfect institution for doing just that.”
New social justice minister at WAG, Carl Sargeant, said: “Credit Unions [in Wales] recently passed the milestone of recruiting their 50,000th member and I congratulate them for that. Membership is still relatively low in Wales at 1.83% of the population, so there is plenty of work still to be done to convince people of the benefits or saving with or borrowing from credit unions.
“The Assembly Government has placed credit unions high on its social justice agenda over the past decade, largely due to the role they play as providers of accessible, affordable savings and low cost loan services. Our support has paid off in that there are now credit unions in every part of Wales and it is possible for anyone living or working in Wales to become a credit union member and we will continue to support the movement to grow and develop their services.”
08 Feb 10 -
Credit Union Helps House the Homeless
Scotwest credit union have joined forces with homeless charity, SeAscape (South Ayrshire Escape from Homelessness Ltd) to help in housing people who find themselves on the street.
Joining a growing band of credit unions around the country working with private landlords, Scotwest help out in the administration of direct-to-tenant payments of Local Housing Allowance (LHA). The credit union accept the payments and ensure that they reach landlords leaving up to £15 excess for the tenant to supplement their income.
The scheme has been a success around the country in preventing an unsustainable growth in arrears since the government moved to paying housing benefits direct to tenants of private landlords. Adapting the scheme to help in the fight against homelessness is a further welcome innovation.
In addition to helping get people housed, the involvement of a credit union has also been proven to help people begin to save and provide them with access to financial services that they have not had before.
Rod Ashley, chief executive of the credit union said: “This new scheme not only provides the landlords with the reassurance that they will receive their rent payments but it also provides the tenant with reassurance as they know that their rent is being paid on time.
“It is also helping us to reach out to more people. By becoming members the tenants also have the opportunity to use our other services, which will help to encourage them to look carefully at their finances and regularly save small amounts if possible. They will also be able to seek help and advice that perhaps they would not have been able to get access too previously.”
George Rose, landlord liaison officer at SeAscape said: “Our tenants are relieved that Seascape and Scotwest have provided them with a solution to manage their rent payments. It was particularly difficult for our more vulnerable tenants to deal with their rent before we set up this scheme. Our landlords are also now much more confident that their tenants will not fall into rent arrears in future.”
08 Feb 10 -
ABCUL President Urges Partnership Working
Adults and children who live or work in the South and South West of England are being urged to find out more about their local Credit Unions as an alternative source of ethical financial services.
At a recent Financial Capability Forum hosted by Coastal Credit Union in Bournemouth and attended by representatives of councils, Citizens Advice and regional organisations, Antony Macrow-Wood, President of ABCUL called for bonds and partnerships between credit unions, charities such as Citizens Advice Bureaux and Shelter, and organisations helping people in the community such as children’s centres, churches and housing associations.
He said: “In this time of financial uncertainty credit unions build wealth in the community, not debt. Credit unions empower people from all walks of life to increase their financial wellbeing. Each Credit Union works locally, and responds to local needs.
“But we cannot do this alone. We need individuals and organisations to join our movement and raise awareness of our services, our aims and most of all, our commitment to ethical financial management and willingness to help people help themselves.”
08 Feb 10 -
ABCUL Conferences Drawing Near - Book Your Place Now!
ABCUL hosts two major conferences this March – places are booking up fast so please get in touch soon to not be disappointed.
First, in conjunction with Liverpool John Moores University, Citizens Advice and the Co-operative Bank, the Northern Money Conference takes place in Liverpool’s Contemporary Urban Centre on Monday 1st March. Evolving from the Northern Financial Inclusion Conference, the event is the largest of its kind in Britain and provides an opportunity for all those with an interest in advancing financial services and support to all, to come together and discuss current policy and best practice.
Many leading practitioners and policy-makers will be in attendance to speak and take workshops amongst whom will be Work and Pensions Minister, Helen Goodman MP, and Shadow Financial Secretary, Mark Hoban MP.
Second, ABCUL’s Annual Conference and AGM takes place at the Hilton Hotel on Blackpool’s famous promenade from Friday 12th to Sunday 14th March. The weekend is the premier conference for credit union staff and volunteers in Britain involving training, workshops, informative plenary sessions and debates for three days of stimulating discussion.
Please note, accommodation is now no longer available at the Hilton Blackpool during the conference weekend. Rooms are still available at the nearby Imperial Hotel. Please contact Vicky on 01253 623 971 for more information.
Brochures for both events are available to download below.
Louis ‘Roy’ McLeod has been awarded an OBE in the New Year Honours List this year in recognition of his 25 year service to Southwark Credit Union.
When Roy became involved with the credit union it had only 237 members and £170,598 in assets. In March 2008 the credit union had 8,600 adult and 1,200 junior members with £7,623,545. Today the figures are even higher.
Roy has been instrumental in taking Southwark from a small ineffective organisation to being one of the leading lights in the British movement.
Roy said: ‘This award is a fantastic honor. I am very privileged and humbled by this recognition and am gratefully receiving it on behalf of the Southwark Credit Union, without whom it wouldn't have been possible.'
Elsewhere, Uel Adair of Waterside Credit Union in Northern Ireland was given an MBE for his contribution to the Financial Services Industry in Northern Ireland – Uel was President of the Irish League of Credit Unions from 2007 to 2009.
08 Jan 10 -
UN declares 2012 International Year of Cooperatives
The United Nations (UN) General Assembly has voted in favour of making 2012 the International Year of Cooperatives.
The decision recognises the part cooperatives of all types, including credit unions, play in strengthening and supporting global economic and social development. UN recognition also strengthens the global cooperative movement.
Pete Crear, President and CEO of the World Council of Credit Unions (WOCCU) said: ‘WOCCU has always been proud to be at the forefront of global credit union development, but the International Year of Cooperatives raises the stakes on the important role cooperatives play. By recognising the value cooperatives have in social development, the UN is honouring the work we’ve done. However, the declaration also poses a challenge to make cooperatives even more influential and effective in the work we will do in the future.’
WOCCU is the global credit union apex body to which ABCUL is a member.
17 Dec 09 -
Credit Unions receive funding from Government's Modernisation Fund
Nine credit unions have been awarded just over £80,000 by the Office for the Third Sector’s Modernisation Fund.
The fund, delivered through CapacityBuilders, supplies interest-free loans of up to £10,000 to make voluntary and community organisations more resilient and efficient during the recession. It helps strengthen organisations that provide services to those worst hit by the economic downturn by supporting them to collaborate with others, merge, or develop in other ways to respond to difficult times.
The credit unions that received funding were: Lincoln Credit Union Ltd, Nottingham Credit Union Limited, Hartlepool Credit Union, South Central Middlesbrough Credit Union, East Sussex Credit Union, Kerrier and The Fal Credit Union, West Country Savers Credit Union Ltd, Worcester Black Pear Credit Union Ltd, and Plough and Share Credit Union Ltd.
Nottingham Credit Union’s funding is being used to explore collaborative working with Housing Associations to advance the credit unions services to Housing Association tenants in a mutually beneficial way. They also intend to extend their services to all tenants of housing associations once legislative reforms currently underway allow this.
Clive Rix, director of NCU said: “The recession has meant that our members are more in need of the credit unions’ services than ever – this funding will ensure that the Nottingham credit union is in a position to help new and existing members through these tough times.”
17 Dec 09 -
Bristol Credit Union run TV Advert
Bristol Credit Union has recently launched a television advertising campaign supported by posters on public transport for their loans products in the run-up to Christmas.
The advert, which can be viewed at You Tube (see link below), ran for 3 weeks between 23rd November and 11th December in ITV1’s West region. It was shown 105 times in total and on catch-up TV at itv.com.
The credit union has seen a massive increase in enquiries since the advert was launched – hits to the BCU website are up by 1,000 – as have those credit unions in the surrounding areas of the South West.
James Berry, Chief Executive of BCU said: “Christmas can often be a tough time of the year for family finances. Bristol Credit Union can offer low-cost loans and savings which take the headache out of festivities and let people have an enjoyable Christmas. We hope the TV advert will ensure people know about the Credit Union and the help we can offer – we’ve already seen a dramatic increase in enquiries.”
ABCUL Annual Conference and AGM 2010, March 12 – 14, Blackpool
We are delighted to announce that the brochure for the 2010 ABCUL Annual Conference & AGM is now available for download. Printed copies will be distributed in the new year.
Due to popular demand the event will be returning to the Hilton Hotel in Blackpool for the 10th successive year.
A full and varied programme of training courses, workshops and discussions has been created, further details of which can be found in the conference brochure.
We have invited a range of guest speakers to contribute to the event and are particularly pleased to announce that Rt. Hon. Ian McCartney MP and Grzegorz Bierecki (National Association of Cooperative Savings and Credit Unions) will be joining us in Blackpool.
Please find attached the conference brochure and booking form.
Any questions should be directed to ABCUL Conferences:
Date for your Diary - Northern Money Conference, 2010
The Northern Money Conference is in its 4th Year having begun life in 2006 as the Northern Financial Inclusion Conference – last year it attracted 350 delegates making it the largest Financial Inclusion conference in Britain.
The Conference will take place on Monday 1st March at the Novas Scarman Contemporary Urban Centre, Liverpool.
The Northern Money Conference is jointly organised by the Research Unit for Financial Inclusion and ABCUL. It is sponsored by The Co-operative Bank.
The Conference is broadening its focus from the financial inclusion agenda alone to highlight the financial problems currently facing those on both low and moderate incomes.
The conference theme is: Developing affordable, transparent and responsible financial services in low and moderate income communities; access to financial services as central to the economic development of neighbourhoods, cities and regions.
We expect the conference to attract a variety of both policy-makers at local, regional and national level; practitioners in inclusive financial services, academics, researchers and educationalists.
The conference will be attended by Mark Hoban MP Shadow Financial Secretary to the Treasury. Helen Goodman MP Parliamentary Under-Secretary of State at the Department for Work and Pensions and Neville Richardson CEO, Co-operative Financial Services have been invited.
A full brochure and details of the programme outlining the workshops will be published in January. Should you require any more information before hand, please do not hesitate to contact Clare Atkinson at ABCUL .
Rates:
Concessionary Rate £40.00
Full Delegate Rate £90.00
Above rates include all workshops refreshments and lunch.
ABCUL has welcomed an announcement by the Office of Fair Trading about action it has taken against a number of loan brokerage companies operated by Post Net Ltd and its associates. This follows concern that consumers are being charged for what are often inappropriate referrals to credit unions.
The OFT has imposed requirements on the group of companies which trade under such names as Tenant Loans, Advantage Loans and Loanfinder UK, following an investigation into their practices.
One of a number of requirements placed on the company is that they ‘shall not refer consumers to a credit union when the consumer does not meet the criteria for that credit union.’
These companies, owned by ‘Secret Millionaire’ James Benamor provide details of prospective creditors to people looking for loans. They charge a fee in the region of £20 to £70 for this information. In credit unions’ experience this has seemed to amount to simply providing a consumer with a credit union’s contact details. ABCUL has received a number of reports from concerned credit unions reporting that individuals referred to them were not eligible for a loan and/or did not fit the credit union’s membership criteria.
ABCUL understands that Richmond Group has now temporarily removed all credit unions from the panel of lenders to which it refers its customers. The company has written to credit unions asking them to confirm their ‘acceptance criteria’. There is no mention of the OFT requirements in the correspondence.
ABCUL Chief Executive, Mark Lyonette, said: “We are delighted that the OFT has taken action against this company. For Richmond to continue referring people to credit unions they must be sure that the person is eligible to borrow from them. Credit unions which do not wish to receive referrals from these companies do not have to co-operate with Richmond Group’s requests for information.”
An investigation by the OFT found that Post Net was misleading customers by falsely guaranteeing access to credit. The company was also failing to properly refund fees to customers when it was unable to broker suitable credit.
Ray Watson, OFT Director of Consumer Credit, said: 'The OFT investigation gave rise to serious concerns with some of Post Net's business practices. We will monitor these requirements closely and will not hesitate to take further action if necessary.'
Calderdale Credit Union Saves Family From Repossesion
Calderdale Credit Union and Calderdale Council have successfully managed to prevent one of the first repossessions under the Government’s recently introduced initiative: The Mortgage Repossession Fund. Officers of both organisations were keen to put together the processes required as quickly as possible in order to prevent the eviction of a local family.
44 year old Bruce Dickinson and his wife have three children and a fourth child on the way. The timing couldn’t have been worse when Bruce was made redundant from the job he had been in for six years. After several missed mortgage payments the lender began legal action and a date was set for court. Bruce said, “The thought of losing your home is terrifying and I was convinced that would be the outcome of the hearing”.
Luckily for Bruce, he was made aware of the Repossession Prevention Fund and in what is believed to be one of the first cases to be instigated under the initiative, he was given a loan from the fund to prevent the repossession. This has allowed the family to stay in their own home, and enabled a renegotiation with the lender to more affordable terms.
The scheme is an enhancement to the ‘Mortgage Rescue Scheme’ already in place, and as announced by Government in this year’s budget. The extra funding is available for those who find themselves in mortgage arrears due to recession and are at the point of repossession.
Calderdale MBC and Calderdale Credit Union had already formed a very successful partnership to deliver interest free loans to owners of dwellings in need of repair; ‘The Essential Works Loan’ . The new scheme will be managed in a similar manner in that council staff will refer clients to the credit union who will administer the loan on their behalf.
The credit union and Calderdale Council aim to support many more families in this predicament and are urging local people to contact them as soon as possible.
Mark Thompson - Head of Housing and Environment Services at Calderdale Metropolitan Borough Council - is pictured with Calderdale Credit Union President, Frances Burns.
04 Dec 09 -
Capital funding for Welsh Credit Unions
Nineteen credit unions in Wales are to share £1 million pounds of capital funding from the Welsh Assembly Government, it has been announced. The money is intended to help credit unions buy their own properties and to carry out refurbishment and other work.
The announcement was made by Social Justice Minister, Dr Brian Gibbons on a visit to Dragonsavers Credit Union which will receive over £150,000. The money will go towards repaying their outstanding mortgage, an office refurbishment and new equipment.
Dr Gibbons said: “Credit unions play a very important role in our battle to combat financial exclusion, which is particularly important during this difficult economic time. Credit unions are here to help, to provide a safe haven for hard earned savings, or a fair and understanding hearing for a loan application.
“This funding will help to reduce credit unions’ overheads and provide them with a long term asset to strengthen their balance sheets. This will improve their stability and contribute to their long term sustainability.”
04 Dec 09 -
Scotwest Credit Union holds online AGM
Scotwest Credit Union successfully streamed its recent AGM live on the web.
In a great step forward for credit unions the meeting was shown on the Scotwest website, ensuring that members from across the west of Scotland could watch proceedings from the comfort of their own homes.
Deirdre Forsyth, Scotwest Chairperson, said: “As a Board we were keen to ensure that even if members were unable to attend the AGM itself, they could view the proceedings and even submit questions via our online query facility. In terms of the future success of Scotwest, as a Board we have to encourage our members to be more aware about how the Credit Union is run and ideally to become more involved. This seemed like an ideal opportunity for us to do that.”
Scotwest has over 23,000 members with a number of services available to them via the internet.
Rod Ashley, Scotwest Chief Executive, said: “Our website has, over the years, become one of the most popular methods of communication used by members to access and run their credit union accounts. As such, providing live streaming of the AGM was a natural extension to the services we already offer online to our
members.”
27 Nov 09 -
Investment inCredit Unions' among London Citizens' Demands
ABCUL Chief Executive, Mark Lyonette, spoke this week at a 2,000-strong meeting organised by the London Citizens coalition of faith groups, schools, trade unions, charities and community organisations.
London Citizens are campaigning for a number of initiatives which would help lessen the impact of the financial crisis on ordinary people. They are calling for an investment of 1% or the bank bail-out money in credit unions and other third sector lenders, a London Living Wage, and an upper-limit on interest charges.
Mark joined a number of high profile speakers and told the meeting how credit unions can contribute towards the aims of the coalition. The meeting demonstrated the breadth of support for affordable credit and inclusive financial services.
London Mayor, Boris Johnson, called on the banks and financial institutions to avoid the pitfalls of Dickens’ character Ebeneezer Scrooge this Christmas – Scrooge was a high-cost money-lender in Victorian Britain.
Conservative MP, Greg Hands, gave a commitment to consider means of curbing high-cost credit and ensuring affordable alternatives for all, Vince Cable MP stated he’d make the case for such proposals to be included in the Liberal Democrat Manifesto and Treasury Minister Stephen Timms MP committed to setting up a meeting on the subject between London Citizens and the OFT.
27 Nov 09 -
Welsh Consumer Groups call for Greater Support for Credit Unions
Two reports published recently in Wales have highlighted the benefits that credit unions can have for people’s financial well-being and call for extra support to help their continued development.
The Cost of Cash by Consumer Focus Wales and Paying the Price of Being Poor by the Bevan Foundation were launched last week and both acknowledge the benefits credit unions can bring to communities through providing inclusive financial services and affordable credit.
Last week (6th November) Ed Balls MP, Secretary of State for Children, Schools and Families, announced that Personal, Social, Health and Economic Education (PSHE) is to be made compulsory for school children from 2011. The move follows recommendations by the MacDonald review and a consultation to which ABCUL responded, stressing the importance of financial education and the work that credit unions are already doing in this area.
Across the country, credit unions greatly contribute to the PSHE curriculum by setting up collection points in schools and contributing towards financial education work both in the classroom and by accepting school parties for field trips.
Managing personal finances is a vital skill for children to learn and making PSHE compulsory will allow credit unions to expand partnerships and go further in their statutory responsibility for ‘the training and education of members in the wise use of money and in the management of their financial affairs’.
13 Nov 09 -
FSA consultation welcomed by ABCUL
ABCUL has welcomed the publication of a consultation from the Financial Services Authority (FSA) which proposes a number of changes to the way that credit unions are regulated in preparation for new legislation coming into force next year.
Changes to the credit unions sourcebook (CRED) will become necessary once changes to credit union legislation, expected in April 2010, are in place. The FSA is also taking the opportunity to review other aspects of credit union regulation after over 7 years experience of the sector. Changes proposed will increase the capital and liquidity requirements for credit unions. This will mean that the sector is better placed to take advantage of new powers such as the ability to provide services to organisations and offer guaranteed interest on savings.
ABCUL Chief Executive Mark Lyonette said: “We welcome this consultation document as an important step towards changes in legislation which will allow credit unions to reach out to new groups and provide a wider range of services to their growing number of members. We will be working with the FSA to make sure that they can create a proportionate regulatory regime which is fit for the new opportunities that law changes will bring to credit unions.”
The full consultation document can be accessed via the link below.
Scottish Parliament Discusses Debt Solutions and Credit Unions
The Cross-Party Group on Credit Unions met at the Scottish Parliament on Tuesday to discuss the range of debt solutions available in Scotland. Members heard how it is not only important that people with serious debt problems get the best advice and choose the most appropriate solution for their circumstances, but we also have to ensure that debt solutions are fair to ethical lenders like credit unions.
Presentations from Citizens Advice Scotland, the Accountant in Bankruptcy and NHS Credit Union gave a broad perspective on the issues involved and sparked an excellent discussion among the group’s members.
Frank McKillop, ABCUL’s Policy Officer for Scotland and Secretary of the Cross-Party Group, said: “This was a very positive meeting and I think there is a widespread feeling that more can be done to promote best practice among Insolvency Practitioners dealing with Trust Deeds and bankruptcies, and to ensure that credit unions’ capacity to lend to people in need is not undermined by borrowers perhaps being encouraged to pursue inappropriate debt solutions.”
Then on Thursday, the Scottish Parliament debated the issue of personal debt in light of the troubling statistics recently reported by Citizens Advice Scotland. The need to promote credit unions as providers of affordable credit was raised, with the Minister for Housing and Communities Alex Neil MSP saying: “Credit unions play a vital role in helping people not only to manage their finances but to avoid getting into debt in the first place. It is much better for people, particularly people on low incomes, to borrow money from a credit union.”
13 Nov 09 -
Welsh Credit Union Campaign Launched
Welsh Assembly Government Minister for Social Justice, Dr. Brian Gibbons, this week launched a campaign to raise awareness of the benefits of credit union membership.
The campaign follows the launch of credit union research into the future for the Welsh movement, launched in October, and will soon be accompanied by a Welsh Credit Union Action Plan as was committed to in the country’s financial inclusion strategy earlier in the year.
Brian was joined by members of Cardiff and Vale Credit Union in the city centre to unveil the new Credit Unions Cymru brand and talk to shoppers about the benefits of joining a Credit Union.
He said: “The Assembly Government has placed credit unions high on its social justice agenda over the past decade, largely due to the role they play as providers of accessible, affordable savings and low cost loan services.
“There are now credit unions in every part of Wales and its possible for anyone living or working in Wales to become a credit union member, though at the moment the market penetration is only 1.83%, compared to 5.58% in Scotland.
“The recruitment of new members is an on-going challenge. This campaign is aimed at increasing public awareness of credit unions, particularly to those on low incomes, but also to public, private and third sector organisations who can help raise awareness among their own staff and clients.
“I want to get across the message that credit unions are trustworthy and reliable; in the current economic climate they offer great value loans & can help customers manage their money; they are owned by their members rather than by external shareholders looking to make a profit and they are fully regulated by the Financial Services Compensation Scheme. They are certainly not just for people with little or no money and I would encourage everyone to join their local credit union,”
An all-Wales brand, Credit Unions Cymru, has been developed and there is a free phone number 0800 496 0865 and website www.wales.gov.uk/creditunions for further information.
13 Nov 09 -
Glasgow Saving Gateway workshop Announced
HMRC and DWP have announced a further Saving Gateway workshop for credit unions in Glasgow following massive demand for the Birmingham and Cardiff events.
Saving Gateway is a matched saving scheme whereby eligible account-holders have savings matched by the government 50p to the pound up to a maximum of £600 over two years. Those on a host of benefits and maximum tax credits will be eligible.
The Glasgow event will take place on the 2nd December at St. Andrews in the Square – 10.30 – 16.00.
For further information and to book see the attached invitation.
Three years after the collapse of Farepak, in which more than 150,000 customers lost their money, more and more people are choosing credit unions to help them save safely for Christmas.
Farepak customers lost an average of £400 each when the Swindon firm ceased trading in October 2006, with some families losing closer to £2,000, just two months before Christmas.
And now more and more individual credit unions are offering Christmas savings accounts which provide a safe and valuable way to save, helping people to manage their money ahead of the most expensive time of the year. 71% of credit unions said they offered a Christmas Savings Account in a recent survey, with a further 18% planning to offer the account in the future.
By making regular deposits into a Christmas savings account, members can relax knowing that they haven’t had to run up huge credit card bills or taken out an expensive personal loan to pay for Christmas. And members can spend the cash they’ve saved anywhere they want as they’re not tied to using vouchers in only certain stores.
Fiona Greer from Port Glasgow, works in the Housing Benefits Office for Inverclyde Council, and has been a member of Scotwest Credit Union since 2003. This is the third year Fiona has saved using a Christmas Savings Account with Scotwest, having switched to the credit union from another Christmas savings company.
She hopes this year to have saved around £600, which will allow her to have an enjoyable Christmas and buy presents for all her friends and family. The account runs until the middle of November 2009 and account holders, like Fiona, will receive a dividend on the savings they have accrued over the year.
She said: “Scotwest’s Christmas Savings Account is a fabulous idea. It allows me to put away small amounts of money each month throughout the year and I don’t miss it as it comes straight off my salary and goes into my savings.
“It also allows me to save my money securely, providing me with the money to ensure I can have an enjoyable Christmas. I would really encourage others to follow suit, especially if they have a tendency to spend money they don’t have during the festive period!”
Rod Ashley, Chief Executive of Scotwest Credit Union said: “Year in year out thousands of people succumb to the pressures of consumer spending and run up huge amounts of debts throughout the festive season. The Christmas Savings Account prevents people from getting into financial trouble and ensures they have a stress free and enjoyable festive period.”
05 Nov 09 -
Saving Gateway Event nearly Fully-Booked
The Saving Gateway Credit Union Workshop is taking place at Aston Villa Football Club in Birmingham on 12th November 2009.
The response to the event so far has been very encouraging and there are a limited number of places available.
Saving Gateway will launch in 2010 and this workshop provides the ideal opportunity for credit unions to learn more about the initiative and the potential business opportunities which are available. It will also cover account features and the requirements upon Saving Gateway account providers.
Further information regarding the Saving Gateway workshop, including details of how to reserve a place, can be found in the document below. Given the popularity of the workshop, if you wish to attend you are advised to book a place as soon as possible.
There is no charge for attending the workshop however please note that any other expenses incurred by attendees cannot be reimbursed.
Smart Money Credit Union celebrated its 20th anniversary last week (27th October) along with volunteer and founder-member Ken Chamberlain. Ken received an award in recognition of his service from Welsh Minister for Social Justice, Dr Brian Gibbons.
Ken was inspired to set up Smart Money following a family visit to Ireland and set up the Penyrheol and Trecenydd Credit Union. Now, twenty years on, the credit union has expanded to cover the Caerphilly and Blaenau Gwent local authority areas.
Dr Brian Gibbons said: “I congratulate both Smart Money and Mr Chamberlain on their 20th anniversaries.
“I have visited Smart Money a number of times and have always been impressed with the services it offers and the friendly welcome its customers receive. It is a prime example of a credit union run by the community for the community.
“Ken also sets an example that we all must aspire to. He has given much of himself and his time and his commitment to the credit union is unquestionable. His service to the community has enabled thousands of people to benefit from the credit union.
“The Welsh Assembly Government has made a number of One Wales commitments on credit unions. These include all-Wales coverage, which we achieved late last year, establishing access for secondary pupils and helping credit unions to offer more Child Trust Fund accounts. We are supporting these commitments with over £1 million this year. I hope that with our support and the commitment of volunteers like Ken, Smart Money and other credit unions in Wales will thrive and be able to help even more people.”
29 Oct 09 -
The Business Case for Financial Inclusion
This week saw pioneering research published into the economic case for financial inclusion intervention in Leeds.
Leeds City Council has Beacon status for financial inclusion from the Improvement and Development Agency (IDeA) for local government and represents a best-practice model for financial inclusion policy at local government level.
The research has found that financial inclusion initiatives have benefitted the regional economy to the tune of almost £26 million and ‘for every £1 spent on financial inclusion in Leeds, £8.40 is generated for the local economy.”
In particular the report found that the £312,000 invested in supporting the development of Leeds City Credit Union has benefitted the city’s economy by £3 million – a ten-fold return.
SNP Fringe marks end to successful conference season
The party conference season came to an end on Sunday 18th October with ABCUL holding a fringe meeting at the Scottish National Party conference in Inverness. John Wilson MSP, Vice-Convenor of the Scottish Parliament’s Cross-Party Group on Credit Unions, took the chair as Mark Lyonette, Chief Executive of ABCUL, spoke about the growth of credit unions and the opportunities for the sector to play an even greater role in the provision of financial services in Scotland.
The meeting attracted a big turnout from delegates who were keen to discuss a range of issues, including the role credit unions play in promoting financial inclusion and financial capability, new services such as current accounts, and the possibilities for credit unions to attract more members in the wake of the banking crisis.
Mark Lyonette said: “It was great to see the level of interest in credit unions from SNP delegates and to hear a lot of very supportive comments from the floor.
“Having established the All Party Parliamentary Group at Westminster and the Cross-Party Group at Holyrood in the past eighteen months, it’s been very encouraging to hear a lot of genuine warmth and enthusiasm for the sector from delegates, backbenchers and frontbenchers alike at all the party conferences this autumn. This breadth of support from across the political spectrum is essential for the continued development of the credit union movement in this country.”
23 Oct 09 -
Credit unions need TLC, say Lords
A wide ranging debate in the House of Lords on Tuesday (20 October) brought extensive, positive comments from peers of all political persuasions.
Labour Peer Lord Tomlinson, who secured the debate, told the House that “Billions of pounds have been spent from the public purse on preventing market forces from devastating our financial institutions. Credit unions do not need such a vast injection of cash, but they do need an atmosphere of tender, loving care from the Government—as do the hundreds of thousands of our citizens for whom they, through mutual self-help, provide a lifeline.”
He also called for a number of actions to enable credit unions to thrive, including promoting credit union services to public sector employees and making free payroll deduction facilities available. In addition, he called for organisations receiving grant funding to be encouraged to deposit some of their money in a credit union, once the law changes to allow this.
In a speech which praised the positive effects credit unions can have on communities, Conservative Peer Lord Sheikh said: “Credit unions have the potential to reach many more communities and customers than they do at present, but this will require extra effort on the part of the Government. I look forward to seeing the growth of these community-based unions.”
Both Liberal Democrat Peer Lord Newby and Labour Peer Lord Haskell called for banking staff to be encouraged to volunteer in credit unions. Lord Newby said: “I do not know about bankers without borders but getting bankers to be attached to nascent credit unions, as solicitors carry out pro bono work with law centres or other bodies, is an extremely good idea. I suspect that many middle-ranking bankers would quite like it. I hope that can be pursued.” Lord Haskell added: “It seems to me that a corps of idealistic young bankers from Britain, working in the emerging economies through credit unions, would not only be an important part of fighting poverty but would help to raise the positive profile of credit unions here in Britain and perhaps renew our faith in bankers.”
Long time co-operator and Labour Peer Lord Graham said: “…we have watched the situation, nationally and financially, go from bad to worse…the credit union movement stands tall and upright in its service to its members”.
Responding to Lord Graham’s quotation from Mark Hoban’s recent interview in Credit Union News, Baroness Noakes said: “It is the policy of my party to support consumer choice in financial services, and that requires diversity. Credit unions are clearly an important part of that diversity, as my noble friend Lord Sheikh so clearly explained. I am grateful to the noble Lord, Lord Graham, for reading out my honourable friend Mark Hoban's positive views on credit unions. I will be happy to tell him that he is endorsed by the noble Lord, Lord Graham.”
Responding for the Government, Treasury Minister Lord Myners thanked Lord Tomlinson for “bringing about such an important and timely debate” and updated the House on Government progress with legislative reform for credit unions. He committed to write to the British Bankers Association to raise the idea of bankers volunteering in credit unions which has been discussed in the debate.
He also backed up earlier calls for support for the sector: “I fully support the sentiments expressed by Mr Hoban and supported by the noble Baroness, Lady Noakes, that we would wish to do everything to encourage credit unions to become the alternative to banks. To do that, we clearly need to ensure that credit unions have contemporary structures and the ability to offer a contemporary suite of products and services to their members.”
MEPs Offer Support as European Network of Credit Unions Launches
Malcolm Harbour MEP, Chair of the European Parliament's influential Internal Market and Consumer Protection Committee was among 40 guests who joined credit union representatives last week for the official launch of the European Network of Credit Unions.
ABCUL along with the World Council of Credit Unions (WOCCU) and our Irish, Polish, Romanian, Macedonian and Estonian counterparts make up the European Network of Credit Unions. Hosted by MEPs Marian Harkin from Ireland, and Jacek Kurski from Poland, the breakfast meeting was attended by 14 MEPs, four members of the European Commission and three from the Council of Ministers.
Guests attending the meeting, on the subject of responsible lending, heard from Grzegorz Bierecki, second vice chairman of WOCCU and president of the National Association of Cooperative Savings & Credit Unions (NACSCU) in Poland, and Mick McAteer, director of the United Kingdom's Financial Inclusion Centre, who has recently been appointed to the FSA board.
Grzegorz Bierecki said: “In analyzing the causes of the financial crisis, it is clear one of the focal points has been the provision of unsustainable credit. Credit unions have not been involved in the subprime market in the European Union. Instead, credit unions have operated with sound regulatory and internal standards in place that guarantee responsible lending to members.”
Dave Grace, WOCCU’s Vice President of Association Services added: “For the past five years we have been working together to create a greater awareness of the contributions credit unions make to the European Union. This is an historic day for European credit unions because the network will strengthen the role credit unions play in providing important financial service alternatives to European citizens.”
The response to the session, as well as the network's launch, was positive among officials. “We welcome the launch of a new organization representing credit unions in Europe and look forward to working with them,” said Malcolm Harbour, chair of the European Parliament's Internal Market and Consumer Protection Committee. Wales MEP Kay Swinburne and Vicky Ford, MEP for the Eastern Region also attended the session.
The Network will provide a channel to ensure that the interests of European credit unions are properly accounted for at EU level. The six European organizations which make up the network represent more than 1,000 credit unions serving 5.5 million members.
Credit Union Day visit to East Sussex Credit Union
Under-Secretary of State for Work and Pensions, Helen Goodman MP, visited East Sussex Credit Union last week on the 15th October – International Credit Union Day.
The credit union was using the opportunity to launch their new initiative, Friends of the Credit Union. The scheme recognises organisations and individuals who have publicly committed to helping the credit union grow through direct support or by raising awareness of its services to their own members and networks.
The event marked the joining of the first two ‘Friends’: The Crowborough Partnership of church and welfare groups and Legal and General.
East Sussex Credit Union President Karl John said: “The credit union is a fantastic example of what can be achieved when people come together as a community. Because we are a co-operative largely run by volunteers, we provide access to affordable financial services for all members. But we can only thrive if we have the support from across the whole community, and too many people still don’t understand what a credit union is and what it can provide. We have had wonderful support from our existing partners, and now with the launch of the Friends, it is easier than ever for churches, trade unions, employers and other organisations and individuals to help us to spread the word.”
Helen Goodman added: “The East Sussex Credit Union is a shining example of the incredibly important role of credit unions in supporting people on low incomes with low-interest loans and financial advice. The Friends of the Credit Union means even more vulnerable people will receive the support they need to help them stay out of poverty and offers an alternative to loan sharks.”
23 Oct 09 -
International Link-Up on International Credit Union Day
Credit unions celebrated International Credit Union Day in true twenty-first century fashion on Saturday (17th October) as credit union activists across the country and around the world linked up online to share some words of inspiration.
ABCUL Chapters in London and the South East, Yorkshire, North East and Merseyside as well as a group in Scotland linked into ABCUL’s web portal to hear video messages from Mark Lyonette, ABCUL CEO, Pete Crear, President and CEO of WOCCU, Florin Simion of the Central Federation of Romanian Credit Unions and Con O’Brian of the Irish League.
The link-up was a great success and was enjoyed by all involved. Each host event around the country was given an opportunity to share words of wisdom.
Mark, Florin and Con’s videos can be viewed at ABCUL’s YouTube page: ‘creditunionsgb’.
16 Oct 09 -
Welsh Reserach Launches on International Credit Union Day
A review of the credit union movement in Wales and recommendations for its continued development was launched yesterday (15th October) in Cardiff by Deputy Minister for Regeneration, Leighton Andrews AM.
Realising the potential contains recommendations for the Welsh Assembly Government, for credit unions and their trade and support organisations and for local authorities and partners organisations such as housing providers.
The report will be used by staff at the Welsh Assembly Government’s Financial Inclusion Unit to develop an action plan for credit unions.
The key ambition detailed in the report is to raise credit union membership from 1.8% of the Welsh population to 6%.
Leighton Andrews said: “So far Credit Unions have responded positively to these challenges and are providing a wider, more flexible range of services to meet the developing needs of their customers. However they must continue to evolve to make sure they continue to provide relevant, viable and valuable financial services to their communities.
“The Welsh Assembly Government has worked very closely with credit unions over the last eight years and we are very proud of the achievements we have made together. There are, however, more improvements to be made, as the report identifies and continuing to work together is the best way to achieve this.”
The research was carried out by Cardiff Institute for Co-operative Studies with assistance from Liverpool John Moores University research Paul Jones. ABCUL provided a detailed analysis using the PEARLS financial monitoring system.
Welsh Assembly Ministers Promote Credit Union Membership to Public Servants
Welsh Assembly Ministers, led by Minister for Social Justice and Local Government Dr Brian Gibbons, have put their support behind promoting credit union services to the 319,000-strong, public sector workforce in Wales.
In the wake of the financial crisis, credit unions are increasingly seen as an alternative to the high-street banks for all – in a recent ABCUL survey, 66% of respondents reported an increase in demand for loans from those on a higher income and 62% reported an increase in large deposits.
Dr Gibbons said: “In order to deliver on our financial inclusion agenda credit unions must embrace all sections of society, offering competitive products and services that are attractive to everyone whether they are medium-high earners or on a low income.
“Many credit unions already have payroll deduction arrangements with Local Authorities and the NHS, but there is a great deal of potential to develop these partnerships throughout Wales. There is also considerable scope to promote credit union membership to trade unions and town councils, to name but a few. We are already leading the way in the Assembly Government by providing a payroll deduction facility and linking up regional offices with their local credit unions.
“I am delighted that my Cabinet colleagues have agreed to support this campaign and will be taking the opportunity to promote credit union and public sector partnerships in their own areas”.
16 Oct 09 -
Huw Lewis Pledges Support for Credit Unions
Labour and Co-op Party AM and Welsh Labour leadership candidate, Huw Lewis, has pledged support for credit unions as part of his bid to lead the Assembly.
Speaking to WalesOnline, he stated his intention to move credit unions “to the level of a national cause.”
He said: “There’s very little recognition of how they can help families. They’re not just for the worst off in society, they’re for everyone. I hope they’ll be helping small businesses across Wales as well. But unless we take the bull by the horns and explain to people what credit unions are, give them the investment they need to be able to be a political presence in every town and village in this country, then we’re never going to be able to get to the point where we can truly transform the fate of families that may be teetering on the brink. Because we’ll wait forever for the High Street banks to do this. We have to do it ourselves from community-based action.”
Today (15th October) sees the 61st annual International Credit Union Day and credit unions around Britain are celebrating their achievements.
Globally there are almost 54,000 credit unions in 97 countries serving 186 million members and holding $1.2 trillion in assets and via the World Council of Credit Unions (WOCCU) credit unions in the UK are playing their part in this continuing success story.
In the Scottish Parliament Johann Lamont MSP has tabled a motion to mark the day. The motion “notes the potential for credit unions to serve even more of the population with a full range of financial services; encourages support for more credit unions to offer new services such as current accounts, and believes that, as trusted co-operative enterprises, credit unions can play a valuable role in the future of Scotland’s financial services industry.”
Elsewhere, this weekend sees an online, web link-up take place between ICU Day celebrations across the country hosted by ABCUL’s regional chapters. WOCCU’s CEO and President, Pete Crear, will provide a message as well as ABCUL CEO Mark Lyonette and representatives from our Irish and Romanian counterparts.
Today also sees East Sussex Credit Union visited by Under-Secretary of State for Work and Pensions, Helen Goodman MP, as they use the opportunity to launch a new initiative named ‘Friends of the Credit Union’. Helen Goodman is in charge of DWP’s Financial Inclusion brief and manages the Financial Inclusion Growth Fund which has been supporting the extension of credit union services for the past few years.
Mark Lyonette said: “International Credit Union Day is a welcome chance to reflect on the enormous strides forward credit unions here and abroad make each year and for credit unions here in Britain to draw inspiration from our colleagues around the world.”
“Since the financial crisis affecting financial markets around the world, people are seeking an alternative and the not-for-profit, ethical and co-operative ethos of credit unions provides just that.”
15 Oct 09 -
NHS Credit Union Launched
A new credit union for all NHS staff and their families in Scotland and the North of England was launched on the 6th October by Scottish Government Minister for Health and Wellbeing, Nicola Sturgeon.
The credit union began life in 1998 serving NHS Employees in the West of Scotland and the new expansion marks the realisation of a long-held ambition. The credit unions services are now available to 400,000 NHS staff in Northern England and the 140,000 staff in Scotland.
At the launch the Minister said: “It is fantastic that we now have a credit union that is open to every member of NHS staff [in Scotland and Northern England] and that really does chime perfectly with the philosophy of a mutual NHS because a mutual NHS is about lots of things, it’s about a publicly owned, publicly delivered health service that values its staff and it is also about a sense of community and a sense of family.”
Robert Kelly, General Manager of the Credit Union, said: “Savers’ funds will be used to provide a pool of funds from which low rate loans can be made to fellow NHS colleagues. The interest paid on these loans will in turn be invested to pay a dividend to the savers. Everyone stands to benefit.”
“And as part our commitment to train future generations ... to use their money wisely, we’re offering junior saver accounts to family members of NHS staff. Even if they don’t follow in the career footsteps of their parents, we hope they will follow their example of wise, ethical banking.”
15 Oct 09 -
Knowsley Mutual Credit Union Opens its Doors
The 24th September saw Knowsley Mutual Credit Union open its doors.
Formerly Kirkby Credit Union, Knowsley Mutual now serves all of the Metropolitan Borough of Knowsley in Merseyside – they have recently begun supplying DWP Growth Fund loans to the Borough as a sub-contractor of Sefton Credit Union.
An innovative scheme sees the credit union team-up with a local Co-operative Electrical store so to help people in need of electrical and white-goods finance their purchase with a loan from the Knowsley Mutual.
The launch event saw many organisations and neighbouring credit unions attend to celebrate the successful expansion of the credit union and the extension of much-needed, inclusive financial services to an otherwise underserved area of the North West.
09 Oct 09 -
Conservatives all for Mutuals
Mark Hoban MP, Shadow Financial Secretary to the Treasury, addressed a fringe meeting at the Conservative Party Conference in Manchester this week, which examined the Government’s attitude towards mutuals following the recession.
At the meeting, which was organised by Mutuo, the Association of British Credit Unions (ABCUL), the Building Societies Association, the Association of Mutual Insurers, the Association of Friendly Societies, The Co-operative Financial Services and Which?, addressed the fact that the mutual sector, whilst not immune from the economic downturn, has proved its durability during the downturn.
As the UK begins to emerge from recession, and reputations of many great businesses and their leaders have been damaged, the mutual sector has been relatively unscathed, and its long-termism and clear business purpose has insulated the sector from the worst of the economic storm.
Commenting, Mark Hoban said: “In the past, the Conservative Party has perhaps not talked enough publicly about their support for the mutual sector but now there is a renewed interest in mutual organisations across the House of Commons.”
Mark Lyonette, Chief Executive of ABCUL, explained how credit unions, as community-owned and controlled organisations, offering local people a well-trusted financial solution, are playing a vital role in the economic downturn.
“Credit union services are in demand more than ever, both from people looking for affordable places to borrow and from people looking for a safe home for their money,” he said.
“Now that credit unions can offer a current account, many more people are leaving banks behind and having all of their wages or benefits paid into their credit union.
“Large numbers of credit unions have reported big increases in deposits – sometimes with members crossing the road clutching four figure sums they’ve just withdrawn from their bank.
“People are valuing local, mutual organisations that haven’t been embroiled in the international economic crisis.”
Mark Hoban added: “I have always thought that credit unions play an important role in providing an alternative to the banks and doorstep lenders, and they now have a tremendous opportunity to seize the moment and become the real alternative to the High Street banks.”
09 Oct 09 -
Saving Gateway - Credit Union Workshop - Birmingham 12th November
November 12th sees the perfect opportunity for credit unions to learn about providing the Saving Gateway. Organised in conjunction between HMRC, DWP and ABCUL, the workshop will be held at Birmingham’s Aston Villa Football Club.
This event will allow credit unions to find out more about the Saving Gateway, including how accounts will work, the requirements on account providers, and the potential benefits for credit unions.
Saving Gateway is a government-supported saving account which credit unions may choose to offer from 2010. Its objectives are to support financial inclusion and kick-start a saving habit among working age people on lower incomes.
Further information and a booking form are available to download below. The event is FREE for all credit unions.
Shelagh Barton, Chairperson of South Tyneside Credit Union, won the national enterprise network: NEFA’s Unsung Hero award on the 16th September in recognition of the valuable and dedicated work she has done in developing the credit union for the benefit of the local community.
The National Enterprise Awards were launched in 2007 to recognise excellence in the delivery of enterprise support by encouraging the exchange of good practice and the development of improved services and organisations.
Of Shelagh the panel said: “Shelagh Barton, who is employed by TEDCO as a highly-committed Business Adviser, has had a significant impact on grass-roots financial inclusion and enterprise and her belief in their positive impact extends way beyond her job description. Shelagh has given-up much personal time to both South Tyneside Credit Union and South Tyneside Citizen's Advice Bureau and played an important role in the award-winning financial inclusion partnership that also included her employer TEDCO and South Tyneside Council.”
30 Sep 09 -
Government pledge support at Labour Conference Fringe Meeting
ABCUL Chief Executive, Mark Lyonette, sat on the panel of Mutuo’s Labour Party conference fringe event – Financial Meltdown –Who Can You Trust? – in Brighton on Sunday along with Exchequer Secretary to the Treasury, Sarah McCarthy-Fry, Chief Executive of CFS, Neville Richardson, Martin Shaw of the Association of Friendly Societies, Doug Taylor from Which? and Adrian Coles of the Building Societies Association.
The event was a fantastic chance to illustrate the benefits of the mutual model in financial services in the wake of the catastrophic collapse of the banking sector a year ago – each speaker took the opportunity to emphasise the distinction and to set the stall for future government support for the sector.
Ms McCarthy-Fry once more took the opportunity to affirm her commitment to ensuring that credit unions were supported in innovating and extending their financial services to all – credit unions and other co-operative financial services, she noted, are key to ensuring a strong, diverse and competitive financial market and supporting shared services is one of the means government are considering to achieve this.
Mark walked the audience through the rapid expansion of credit unions over the last ten years, restated the case for impending legislative reform and made the case for central, shared services and their potential to transform the scale of the credit union services in Britain.
30 Sep 09 -
CUCA Operational Forum is a Great Success
Friday 25th September saw representatives from 19 Credit Union Current Account (CUCA) providers meet in Manchester for an Operational Forum. The day was an opportunity to learn and share current account best practice, compliance and technical expertise.
Covering areas such as Treating Customers Fairly, Fraud and Disputes, 50 delegates were put through their paces in a series of 8 workshops. Dotted across the UK, CUCA credit unions are leading the development of full-service credit unions and the Forum was a valuable chance to catch their breath and offer mutual support.
ABCUL’s Banking Services Team and the Co-op Bank’s CUCA support officers were on-hand to offer their expertise and insight throughout the day.
James Moran, Banking Services Manager at ABCUL, said: “The operational forum was about celebrating the great successes that CUCA has achieved so far and working together towards a bright future for the product.
“These credit unions represent the future for the British Movement – providing the services that people need in the ethical manner not supplied elsewhere.”
The delegates had a rewarding day and thanked both ABCUL and Co-op Staff for their support in running CUCA.
When asked what she valued most about the day, Karen Moss, of Leeds City Credit Union, said: “meeting the other credit unions and the helpline staff. The helpline have been great over the past couple of years.”
30 Sep 09 -
Credit Union for South East Northumberland extends Common Bond
The Credit Union for South East Northumberland (CUESN) recently received permission from the FSA to extend its common bond across the whole of Northumberland.
CUSEN began in the mid-90’s serving one ward of Ashington and has grown substantially over the past decade with support from DWP and the Local Authority.
With the help of over 30 volunteers operating out of 2 shop-front premises and 7 community collection points, CUSEN has seen a a 353% increase in membership and 168% increase in deposits since 2007. But with great demand coming from outside the previous common bond, and the arrival of the new Unitary Authority for the region, CUSEN took the decision to extend its services still further.
CUSEN operates as a host for ABCUL’s delivery of the MoneyMadeClear money guidance scheme and has begun a very successful savings club at a local high school.
In recognition of these achievements, CUSEN was recently nominated as Social Enterprise of the Year by a local business forum and, although just missing out on the prize, deserves all the acknowledgement they receive for their tireless hard work.
25 Sep 09 -
Treasury Minister Opens Pollok Credit Union's New Post Office Branch
Exchequer Secretary to the Treasury, Sarah McCarthy-Fry MP – in charge of the UK Government’s financial inclusion policy – was in attendance to cut the ribbon at the opening of the new Pollok Credit Union and Post Office joint-branch last Monday (14 September).
The Credit Union has taken over the management of the Post Office branch after it faced closure recently and it represents the first co-housed, credit union managed Post Office branch in the country. The credit union’s inclusive financial services perfectly complement the Post Office’s comprehensive and valued Universal Service Obligation.
The new branch is housed in Glasgow’s Silverburn Shopping Centre.
Ms McCarthy-Fry welcomed the partnership between the two organisations.
She said: “Both Post Office Ltd and Credit Unions have a vital role to play in extending financial inclusion to communities across the country. It is great to see a local Post Office and a Credit Union prospering in partnership and Pollok Credit Union are to be congratulated for taking on the running of the Post Office branch.
“I wish Pollok Credit Union and Post Office Ltd every success in running the branch from these wonderful new premises.”
Jim Garrity, Pollok Credit Union Manager, added: “Taking over running the Post Office branch has been a massive step forward in the development of the Credit Union. It allows us to grow and develop the Credit Union while also providing vital services on behalf of the Post Office.
“The new branch in the Silverburn Shopping Centre is tremendous, putting us in a convenient, high profile location and giving us the opportunity to attract new customers in addition to the thousands of people we already serve.”
25 Sep 09 -
Glasgow Credit Union Subway Advertising Causes a Splash
Glasgow Credit Union has launched a city-wide advertising campaign on the subway system.
The adverts are designed to emphasise the credit union difference and the excellent level of service that they provide.
Slogans include, “Like a bank but without the Bull”, “…without the Fights”, and “… without the Bonuses”.
25 Sep 09 -
WOCCU’s Pete Crear calls on G20 to consider Credit Union needs
WOCCU CEO and President, Pete Crear, has written to the G20 ahead of their meeting in Pittsburgh, Pennsylvania which begins today.
The G20 agenda is focused on the on-going reform of the global financial system in the wake of the financial crisis that rocked economies around the world. Whilst the meeting must spend much of its time addressing problems with the banks, Pete insists that credit union and mutual needs must not be forgotten.
Urging world leaders to take account of the movement’s interests, Pete wrote: “While we recognized the need for the G-20 governments to act rapidly over the past year, we have been disappointed by the lack of consultation in the process. We hope that greater consultation with all parts of the financial sector will occur as the reform process continues.”
Pete goes on to insist upon greater credit union access to liquidity, clearing and settlement systems and for tying bonuses and pay to long-term performance – credit unions, he argues, adopt the long-term approach as routine.
Finally Pete asks for proper timescales to be put in place for new regulations to be met. He writes: “as the implementation of regulatory reform proceeds, we favour a gradual process to allow sufficient time for changes to be communicated. This will help organizations and institutions work through the ongoing aftermath of the economic crisis.”
11 Sep 09 -
WOCCU’s Pete Crear helps celebrate Capital Credit Union’s 20th Year
President and Chief Executive of the World Council of Credit Unions (WOCCU), Pete Crear, was in attendance at Capital Credit Union’s 20th anniversary celebrations this week as guest of honour.
Over one hundred guests gathered to celebrate the milestone, in which time Capital has grown to become Scotland’s third largest credit union. With over 15,000 members and 16m in assets, Capital’s coverage sweeps out from Edinburgh to large swathes of South Eastern Scotland.
Pete Crear, said: “Successful credit unions don’t just happen; they take vision, leadership, good stewardship, hard work and dedication. All those connected with Capital can be rightly proud of the part they play in bringing non-exploitative financial services to the folk of Edinburgh, Lothians and the Scottish Borders”
Capital’s Chief Executive, Marlene Shiels added: “We are truly thrilled so many people who have helped us to get to our 20th anniversary were able to join us to celebrate the ongoing success of the credit union. Realising our vision of becoming a full service credit union in the first 20 years is just the beginning; now we have to ensure that more people are able to benefit from our mutuality and ethical way of doing business, especially in the current economic environment.”
11 Sep 09 -
Barclays and Transact launch Community Finance Fund
This week saw Barclays launch the Community Finance Fund that Peter Kelly, head of Financial Inclusion at the bank, announced at ABCUL’s recent reception in Westminster.
The fund, which stands at £250,000, will provide grant funding for up to 12 credit unions and CDFIs for a maximum of £50,000 and to pay for one-year projects. The money will be used either to build the capacity of existing community finance providers or to support fledgling providers in underserved areas. The fund is to be managed on Barclays’ behalf by the national financial inclusion organisation, Transact.
Exchequer Secretary to the Treasury and MP for Portsmouth North Sarah McCarthy-Fry visited Hampshire Credit Union (HCU) on last Thursday (20th August). The staff and board were in attendance to show the Minister around and to give her a flavour of life working in a credit union.
Founded in 2001, HCU has grown to service all 4 corners of the county and earlier this year launched the Credit Union Current Account so that cashier services in branches can be lessened allowing staff to focus on helping members with their finances and in making the most of their credit union’s services.
Sarah is a Co-op Party/Labour MP and is a strong supporter of credit unions; in her post as Exchequer Secretary she is leading on the legislative reforms the sector has successfully argued for. Of HCU, she said:
“Hampshire Credit Union provides a fantastic service to the people of this county. Providing affordable and inclusive financial services, HCU is on the vanguard of community finance as one of the growing number of Credit Union Current Account providers.
“I would like to thank HCU for showing me around and wish them well in continuing this south coast success story.”
21 Aug 09 -
Audit Commission report looks at Local Authorities and Credit Unions
When it Comes to the Crunch, a report from the Audit Commission into Local Authority reaction to the recession has demonstrated how supporting their local credit union is an excellent way of helping vulnerable families to steer a route through these troubled times.
According to their figures, 58% of local authorities have implemented support for credit unions both in funding and in kind and a further 18% plan to.
The report uses the example of North Yorkshire Credit Union and the support it has received from the County Council in expanding its common bond from its roots in York. Both providing funding and housing collection points in libraries across the county have allowed for the swift expansion of services in the predominantly rural and difficult to reach region.
The Audit Commission is a strong advocate for efficient, value-for-money public services and to receive their endorsement is a great boost. The recession has made the task for families struggling to make ends meet that much harder. Collaboration between councils and credit unions can make all the difference in ensuring inclusive access to affordable financial services.
05 Aug 09 -
Newry Credit Union launches the Credit Union Current Account
Northern Irish Credit Union, Newry, became the 22nd credit union to launch the CUCA last week and the first outside England, Scotland and Wales.
Newry credit union is the second largest in the North of Ireland with a membership of 16,000. The CUCA is the first current account service to be made available to credit union members in NI and it marks a watershed both for increased collaboration between the Irish and British movements and for a new level of service for the many credit union members in Northern Ireland.
Northern Irish Minister for Social Development, Margaret Ritchie, said: “It is a difficult and volatile time in financial services and it is all the more pleasing to see a community-based financial organisation leading the way with new, innovative product offerings. I wish you every success with the new current account.”
She went on to thank the Co-op Bank and ABCUL for their role in developing the CUCA.
30 Jul 09 -
Legislative Reform Order Published!
The publication of a Legislative Reform Order (LRO) by the Government to modernise the legal framework for credit unions in Britain has been warmly welcomed by ABCUL and its members.
“We’re very pleased that a draft Legislative Reform Order to update credit union legislation in Britain has now been published,” says Mark Lyonette, Chief Executive of ABCUL. “The proposed changes are essential if credit unions are to realise their full potential in this country and the publication of the LRO reaffirms the Government’s commitment to the sector.”
Important changes will give credit unions the flexibility to accept local community groups, companies and social enterprise into membership and allow existing credit unions to extend membership to new groups of people, such as housing association tenants and employees of nationwide companies. This will allow large numbers of people to benefit from credit union services for the first time.
Credit unions will also be able to choose to pay interest on savings instead of a dividend and develop new services to meet the needs of their members.
Mark Lyonette adds: “These vital changes will allow the credit union sector in Britain to scale up and deliver a wider range of services to many more people across the country.”
The LRO is expected to be laid in Parliament when MPs return to Westminster in October. The availability of the draft LRO means that the Financial Services Authority can now begin to consult on regulatory changes.
Director of the Small Firms and Contact Division at the Financial Services Authority, Lesley Titcomb joined credit union regulators from around the world in Barcelona this week for a closing panel discussion at the World Council of Credit Unions (WOCCU) Conference.
WOCCU brought the regulators together for a lively discussion on current regulatory trends and future possibilities for different types of oversight.
Several of the regulators cited advantages credit unions held during the crisis based on their size, the quality of their member deposit-based capital and other familiar credit union features. However, all regulators cautioned that the future of regulations would change based on hard lessons learned from the crisis.
Credit unions in the United Kingdom managed to avoid major losses due largely to their lack of involvement in the commercial market and minimal role in mortgage lending, according to Lesley, who joined the panel for the first time this year.
US Regulator George Reynolds urged credit unions to “Profit from the experiences of banks that didn't do it right so that you can get it right in the future.”
Opinions also differed as to whether the economy had bottomed out, a topic WOCCU President and CEO Pete Crear raised with the panellists.
“That's the trillion-dollar question,“ said Brandon Khoo, executive general manager for the Australian Regulatory Authority, who was joined at the session by Basel Committee on Banking Supervision's Karl Cordewene, Jan Engström, board member for the International Accounting Standards Board (IASB), Andy Poprawa, president and CEO of the Deposit Insurance Corp. of Ontario, Canada and George Reynolds, senior deputy commissioner for the Georgia Dept. of Banking and Finance in the United States.
ABCUL Vice-President Marlene Shiels Joins the WOCCU Board
Vice-President Marlene Shiels joined the World Council of Credit Unions (WOCCU) board this week. The move marks significant recognition of the progress the British movement has made in recent years in working towards WOCCU’s international standards.
Marlene joined the ABCUL board in 2008 having been in post as Chief Executive of Capital Credit Union, Edinburgh since 2001. Under Marlene’s stewardship Capital’s membership and assets have doubled in size and the extension of their common bond to include anyone living or working in Edinburgh, Lothian and Borders has seen it become the largest common bond in Britain.
Marlene’s other posts include being Chair of the Credit Union Foundation which provides financial capability education in communities, Founder and Director of the Development Education UK (DEUK) credit union development programme, and board member elect of the Chartered Institute of Bankers Scotland. She is a great advocate of credit union principles and values both domestically and internationally.
Marlene’s appointment comes as the WOCCU Annual Conference and AGM winds down after a very successful year in Barcelona. Keynote speaker Vincente Fox, former president of Mexico and WOCCU President and CEO, Pete Crear, put an emphasis on leadership during the economic gloom so that credit unions internationally might emerge an even stronger force into the future.
For all the information from Barcelona, see the link below.
Credit unions feature in recent White Papers published by both the Labour and Conservative parties. Reforming Financial Markets, published by HM Treasury, seeks views on what more can be done to encourage credit unions and other mutuals to thrive. From crisis to confidence: Plan for sound banking states that a Conservative Government would look at measures to enlarge the activities of credit unions.
The Labour White Paper sets out plans to strengthen regulatory institutions (including expanding the remit of the Financial Services Compensation Scheme (FSCS)). manage systemic risk, support and protect consumers and encourage and support alternative business models including mutuals. This follows a number of legislative changes for credit unions and other co-operatives which are making their way through parliament at the moment.
The Conservatives set out plans to abolish the FSA, move regulation of banks and other financial institutions (including credit unions) to the Bank of England and create a new Consumer Protection Agency that will bring together in one place the consumer powers currently split between the old FSA and the Office of Fair Trading. The White Paper also says that a Conservative Government would review whether legislative or regulatory reforms are required to encourage the creation of new building societies, banks, credit unions and community banks.
The Welsh Assembly Government (WAG) published its new Financial Inclusion Strategy for Wales on Wednesday (22nd July) which commits more funding and support to the Welsh credit union movement.
The strategy includes the commissioning of a research project set to inform the design of a new credit union action plan and sits alongside the recent announcement from WAG that it has secured European Union funding worth £750,000 that is to be spent strengthening the credit union network in Wales.
Such sustained and continued support is testament to the vital role that credit unions play in extending ethical and inclusive services to the people of Wales and is set to further increase the availability of credit unions services across the country. ‘All Wales’ common bond coverage of Wales was achieved last year.
ABCUL looks forward to working with WAG to ensure that the maximum benefit is had from this renewed and extended support.
Dr. Brian Gibbons, the Welsh Assembly Government’s Minister for Social Justice and Local Government, visited Wrexham Credit Union to discuss the implications of the Financial Inclusion Strategy for Wales on Wednesday (22nd July), before heading the Clwyd Coast Credit Union in Rhyl to launch the initiative.
Dr. Gibbons took the opportunity to discuss the issues affecting credit unions in Wales and their prominent billing in the Strategy with directors and staff at both credit unions. The Minister was particularly interested in credit unions’ strategy of partnership working with organisations like housing associations, the difference that the Credit Union Current Account is making to the quality of credit union service and the increasing engagement and appetite for involvement with schemes like ISA, Child Trust Fund and Saving Gateway.
At the launch Dr. Gibbons said: “By offering access to a variety of credit and savings products, credit unions are able to help many people who may be finding it increasingly difficult to manage their money. I am delighted that we have now reached the historic position of universal credit union coverage across Wales and would encourage everyone to use their local credit union.”
24 Jul 09 -
Autumn Conference Brochure - Out Now!
The line-up for this year’s Autumn Conference has now been finalised is now available to download.
To be held at the Forest of Arden, Mariott Hotel in Birmingham, the Conference is set to be a great event with a keynote speech from distinguished broadcast journalist and writer of several books on contemporary economics and the working class movement, Paul Mason. Paul’s analysis of the economic crisis, Meltdown: The End of the Age of Greed - was published in April
Legislative and regulatory changes will also take centre stage as we bring together an expert panel for a question time session on the opportunities and challenges facing the sector. Dave Grace Vice-President of WOCCU and Credit Union National Association (CUNA) economics expert Mike Schenk will be in attendance to share some of their considerable experience and expertise.
A stimulating program of seminars, workshops and training sessions are sure to inspire debate and learning for all.
Please download a copy of the conference brochure and program below and direct enquiries and bookings to Clare and Emma in the Events Team (conferences@abcul.org; 0161 819 6937).
The latest edition of Credit Union News is available to download below.
Features include an interview with Conservative MP Mark Hoban, Shadow Financial Secretary to the Treasury who challenges the credit union movement to expand in the wake of the impending legislative changes so that everyone has access to quality credit union services in the future.
Elsewhere we hear from Paul Jones as he charts the development of Rural credit unions; look at the Moneymadeclear pathfinders that are being conducted by ABCUL, Manchester and Enterprise Credit Union; and reveal some of the results from our recent member survey.
All this as well as the customary updates on the great work credit unions are doing across the country.
The World Council of Credit Unions (WOCCU) is making the final preparations for its annual conference in Barcelona next week (26-29th July). Following on from the great success of last year’s conference in Hong Kong, the event is set to be a huge success in a vibrant location.
Globally, WOCCU represents almost 50,000 credit unions in 96 different countries. With more than 177 million members, WOCCU’s members have loans worth $987 billion; manage savings of $847 billion and assets stand at more than $1.1 trillion.
This conference is an opportunity for a very significant global financial sector to come together, share experiences and look forward to the future growth of ethical, financial services for all.
This year’s keynote speaker is former Mexican President Vincente Fox who championed credit union development and the extension of financial services for all in his time as Mexican premier and the event has 5 key themes: helping members through the financial crisis; attracting new markets; extending services through new technologies; ‘greening’ credit unions in the financial crisis; and how credit unions and co-operative banks can learn from each other.
ABCUL is to be represented by President, Antony MacRow-Wood and Chief Executive, Mark Lyonette as well as many other representatives of the British movement.
20 Jul 09 -
LGA Recession Guide recommends Credit Unions
In a recession guide published recently by the Local Government Association (LGA), Global Slowdown: Local Solutions II, best practice case studies include recommendations for credit unions to be supported by local authorities in composing strategies to tackle the recession.
The case studies include: Stevenage, where credit unions have been supported by the local council in order in order to extend access to affordable credit; Liverpool where credit unions work in partnership with the council and advice agencies such as CABx; and Norfolk where the credit union is supported by the County Council in its strategy for tackling redundancies.
ABCUL Chief Executive, Mark Lyonette, said, “credit unions work in partnership with local authorities across the country to ensure that people have access to the financial services that they need and this is especially important during recession.”
“We are pleased to see credit unions featuring so prominently in this guide and hope that its recommendations are taken on board when local authorities are considering their strategies for tackling the recession.”
The funding from Barclays will enable ABCUL to help its members collaborate on key aspects of their operations; bring economies of scale to credit union operations, which will assist in achieving sustainability for many more credit unions and raise standards and improve quality through consistency in the delivery of key services to members.
Barclays and ABCUL have worked together since 2002, when the bank sponsored an ABCUL project to introduce the PEARLS financial monitoring system to British credit unions. This internationally recognised benchmarking system, developed by the World Council of Credit Unions, helps credit unions to improve both their financial performance and their social effectiveness.
Barclays has continued to assist ABCUL in the roll out of PEARLS, which has contributed to a number of valuable changes in the way credit unions work.
In 2007 Barclays also provided assistance to ABCUL to enable it to run a series of roadshows for credit unions and stakeholders to examine how credit unions can be helped to scale up and reach out to more people. This enabled the sector to contribute to the Scaling up the Sector discussions through the Financial Inclusion Task Force.
03 Jul 09 -
Commission for Rural Communities gives Credit Unions the Thumbs up
The Commission for Rural Communities (CRC) launched Rural Money Matters: A support guide to rural financial inclusion on Wednesday and credit unions feature heavily in its recommendations.
Around 1 million people live in rural areas with high levels of financial exclusion, but the financially excluded are less visible in rural areas compared to in towns and cities and it is more difficult to reach those who need help. Rural Money Matters is an important step forward both in raising awareness of and improving rural financial inclusion.
The rural context presents challenges for service providers in delivering equal services and Norfolk Credit Union (NCU) is held as an example of how credit unions can innovate to meet these challenges.
Working in partnership with the county council, DWP Growth Fund, social housing providers and charitable trusts, NCU has set up seven branches across the county, recruits volunteer representatives in villages and towns and has managed to doubled membership in the past year; savings rose 18% and loans 240%.
Efforts to help tenants in difficulties paying their rent have seen repayments for one district council rise above 80%.
Director, Alan Squirrel, said: “Long before the credit crunch, banks had lost touch with, and interest in, the people it used to serve. Local branches closed, free ATMs were withdrawn, because there aren’t the numbers in rural communities. Emergency loans of less than £1,000 aren’t worth the paperwork.”
“We will continue to offer loans to locals at old-style prices, using money deposited by their neighbours. Money stays in the community, vulnerable people are sheltered from loan sharks, and the default rates speak for themselves.”
ABCUL Chief Executive, Mark Lyonette, said: “ABCUL welcomes the support that the Commission for Rural Communities has given to rural credit unions; placing them as a central partner in rural financial services provision. We hope that local authorities and agencies serving rural communities will heed the Commission’s recommendations and form strong, powerful partnerships with credit unions across the country.”
03 Jul 09 -
Prime Minister meets North Yorkshire Credit Union
Gordon Brown took the opportunity to discuss rural financial inclusion initiatives yesterday (2nd July) with North Yorkshire Credit Union (NYCU).
Having recently extended their common bond to incorporate the entire county, North Yorkshire are setting a benchmark for rural financial inclusion in partnership with the county council. A full financial inclusion project supported by the council and DWP is to begin from 2010, spearheaded by NYCU.
The PM listened to NYCU’s opinions on their recently published Consumer Credit White Paper, rural financial inclusion, partnership working and the multi-use of libraries. The meeting took place in Sherburn-in-Elmet library and comes as NYCU prepare to roll-out their services in many the county’s libraries making them easily accessible and increasing the provision of services in libraries.
This is welcome recognition of the hard work and dedication that NYCU is putting into extending financial services to the people of the region.
19 Jun 09 -
WOCCU’s Brian Branch calls for Emphasis on Consumer Protection and Education
At a recent roundtable event with the Organisation for Economic Cooperation and Development (OECD), Brian Branch executive vice president of the World Council of Credit Unions (WOCCU) called for a greater emphasis on consumer protection and education. The event was attended by 250 leading policymakers and executives from leading organisations around the world.
Branch argued that this is approach is central to the fight to slow economic decline and the global recession and held credit unions as an example of how such a strategy can be a great success. He guided delegates through the criteria credit unions around the world use to define their purpose – education, integrity and an emphasis on meeting member needs; putting people before profits.
“Credit unions safeguard consumer interests in terms of quality, price and safety,“ Branch said. “Providing financial services in ways that do no harm and improve consumers' economic wellbeing and prosperity have helped credit unions, communities and even countries grow.“
Where institutions provide services that reach beyond the bare minimum of statutory requirements, integrity is key. Consumer demand for greater transparency, including fee and interest rate disclosures, will help drive greater ethical practices among financial institutions worldwide, a position Branch urged policymakers to implement within their own countries.
“Thanks to the Internet, there is greater access today to financial information, which creates the demand for greater transparency,“ Branch said. “However, an ongoing lack of financial literacy among consumers can increase household debt, which eventually puts a strain on financial providers and affects the markets they serve. Stronger efforts to educate and protect consumers will result in better conditions for all. “
“The fact that OECD called on WOCCU to lead the discussion in this area speaks to their understanding of the importance of the credit union model,“ Branch added. “The positive response received from roundtable participants indicates that more people have come to appreciate what financial cooperatives can do for members. “
19 Jun 09 -
Hull and East Yorkshire Credit Union is Ten
Hull and East Yorkshire Credit Union (HEYCU) celebrates its tenth anniversary this month.
HEYCU was set up in 1999 by a small group of council employees and now boasts over 6,000 members managing £3m in savings on their behalf. Over the past decade, HEYCU has made 13,500 loans at a value of £11m.
HEYCU is a great success story and an asset to the credit union movement.
John Smith, founder and HEYCU secretary, said, “Satisfied members tell their families, friends, work colleagues and neighbours about us and more and more people are joining every week.
"The credit crunch has also brought more people through our doors as they regard us as a trusted local alternative to high street lenders. They like the friendly service and the fact that we are working for them and not trying to make money out of them."
19 Jun 09 -
The Big Two Oh for Glasgow Credit Union
Set up in 1989, Glasgow Credit Union (GCU) celebrates 20 years serving the people of Glasgow today (19th June).
GCU has grown to be the largest credit union in the UK offering the full array of banking services including savings, personal loans, CUCA, insurance and mortgages. It recently launched Cash ISA and Child Trust Fund accounts.
June Nightingale, CEO and founder said: “The loyalty and retention of our members is the main reason for our success over the years, coupled with the dedication of our volunteer Board of Directors and friendly staff. As many members prefer to keep all their finances with the Credit Union, the membership can be recognised as the driving force behind our development and motivation to offer new services.”
On the recession she added, “With steadily growing assets of over £64 million and reserves of £10 million, we are defying the Credit Crunch. Last year saw a £7 million rise in unsecured lending and a thirty percent increase in mortgage applications. Additionally £6 million has been deposited by members to the savings balance. Our prudent management of funds over the years means that in the midst of the recession, we are in such a strong position as we celebrate our twentieth Anniversary and look forward to continued growth.”
19 Jun 09 -
Partners Credit Union Moves
Liverpool’s Partners Credit Union has moved into new premises in a prominent position on one of the main high streets in the city.
To celebrate the opening of the Dale Street premises, Partners plan an ‘Open Day’ between 3 and 5pm on Friday the 26th June. Staff will be giving tours and telling people about the fantastic services that they offer the people of Liverpool.
Tracey Schuler said, “This is going to be a great day for us as we officially launch our new facilities – I’m sure people will be impressed.”
02 Jun 09 -
Tiny Fraction of Complaints to Ombudsman About Credit Unions
Last week’s annual review published by the Financial Ombudsman Service (FOS) highlights the quality service that credit unions provide to their members. Only one out of every 46,000 complaints received related to a credit union during 2008/09 – a tiny fraction relative to credit unions’ market share.
Mark Lyonette, ABCUL Chief Executive, said: “This is evidence of the fantastic service that credit unions are providing to their members up and down the country. Credit unions are setting the standard for welcoming, helpful and beneficial financial services in tune with their members and receptive to their needs.”
“Such a stark contrast with our competitors is an affirmation of the strength of the credit union model.”
To read the FOS' full annual review, follow the link below.
The theme for this year’s International Credit Union Day has been announced by the World Council of Credit Unions.
The theme, Your Money, Your Choice, Your Credit Union, is set to remind people everywhere of the advantages that credit unions offer to their members in these difficult financial times - value, trust and service and fair access to affordable financial services.
The ICU day, to take place on 15th October, is a chance for people to celebrate the great strengths of our movement and to extend our welcome to more people across the world.
See the link below for access to promotional materials and details of how to get involved.
Credit unions feature in a money supplement published this month by Which? The Make your money work harder supplement contains a two page spread on credit unions, which says it is time to think again if you think there are no alternatives to the big banks.
“There is a little chink of light in the current economic gloom, “ the article states, “Until recently, community based credit unions may not have been the first place that cam to mind if you wanted to save or borrow, but some are now offering members savings that are better than anything you’ll find on the high streets.”
Using figures from Credit Union News, the article compares the cost of small loans and shows how competitive credit union rates can be. It also cites great savings rates from a number of credit unions include No.1 Copperpot’s 4.75% Cash ISA and Transport Credit Union which is paying 3.5% on its ordinary savings, 4.5% on its 30 day notice account and in Which?’s words “a massive 5.75%” on its 60 day notice account.
Thanks to Which? the article is available to download from here.
Report Encourages Local Authority Support for Credit Unions
A new report from the New Local Government Network has highlighted the roll that local authorities can play in supporting credit unions and increasing the supply of affordable credit union their communities. Circling the Loan Sharks - Predatory lending in the recession and the emerging role for local government points out that a combination of factors including the reduced availability of regulated ‘sub-prime’ credit is leading to a situation where many people may have little option but to borrow from illegal sources.
The report highlights a number of examples of local authority support for credit unions including in North Yorkshire, Lambeth, Manchester and Staffordshire. It also recommends a number of policy options local authorities should adopt to support credit unions including offering premises, sharing facilities and offering marketing support; offering adequate financial support to provide capital for affordable lending; establishing new credit unions and acting as a catalyst where third sector lending is insufficient.
The report also recognises that credit unions have benefits for the whole community, especially as many have lost confidence in the global banking system and recommends advocating credit unions as a sound and reliable facet of the banking industry.
In welcoming the report ABCUL Chief Executive Mark Lyonette said: -“Local authority support for credit unions, which should include advocating the use of credit unions by savers in the community, as well as for those on low incomes who need to borrow, is key in achieving sustainable growth in credit unions.
“We welcome the report from the New Local Government Network, which recognises the important role that local councils can play in supporting quality credit union services in their areas.”
The European Network of Credit Unions has launched a new website to promote credit unions with the European Union. ABCUL is one of the five founding trade association members of the Network which is working with the support of the World Council of Credit Unions to ensure appropriate and proportionate regulations for credit unions across Europe. The Network acts as an information exchange and enables credit union associations in Europe to speak with one voice as is carries out its work to: -
· Educate EU policymakers on what a credit union is, how it is structured and what services it provides
· Raise awareness of the social role credit unions play, both in European countries and worldwide
· Formulate positions on EU policies identified as highly important to the credit union movement
· Advocate these positions vis-à-vis EU decision-makers
· Engage in an open dialogue with policymakers and other stakeholders
The site also provides an overview of the credit union movement in Europe and worldwide and contains details of the work that the Network is doing to ensure the benefit of credit unions is recognised by European policy makers. Stories from credit union members in Glasgow and London are used on the site to illustrate the benefits to individuals of credit union services.
The other founding members of the group represent credit unions in Ireland, Macedonia, Poland and Romania.
Credit Unions in Scotland: House of Commons Report Welcomed by Sector
ABCUL has welcomed a new Parliamentary report which applauds the efforts of credit unions as responsible lenders and supports their valuable work for both communities and individuals. Credit Unions in Scotland, published today by the Scottish Affairs Committee, examines the current state of the sector and sets out proposals for its future development.
According to the report, the provision of low-cost, responsibly-lent finance is crucial to mitigating the debt crisis, and encouraging a saving’s habit is vital if we are to create a generation of financially responsible people. The credit crunch has led to a dearth of widely available credit for those on low incomes, so there has never been a better time for credit unions to build on their existing success and raise their public profile.
Mark Lyonette, Chief Executive of ABCUL, says: “Credit unions appreciate the wholehearted support for the sector spelt out in the report. Credit unions play a vital role in our communities and their services are popular and successful.”
The report calls on the Government to provide financial backing to enable more credit unions to offer current accounts and encourages credit unions and the Post Office to work together to establish the best way to provide bank account facilities to the financially excluded.
It recommends that consideration should be given by the Scottish Government to raising the level of ring-fenced credit union funding to ensure that credit unions are able to provide the services they offer to all those in need of them. But the report does acknowledge that credit unions can apply to a £42 million pot of funding for social enterprise, something that ABCUL is encouraging its members to do.
The publication proposes that the Government should introduce a requirement on local authorities to make premises they own available to credit unions if they are vacant, and that an appropriate percentage of commercial premises in busy locations is let to non-profit organisations at a suitable rate.
It also says that the Government should provide funding to promote credit unions across the UK to a wider public as an integral part of a comprehensive strategy of financial education.
Mohammed Sarwar, Labour MP for Glasgow Central and Chairman of the Committee, says: “Never has it been more important for credit unions to be seen as a genuine alternative to mainstream banks. Credit unions can provide a valuable service to individuals, entire communities, as well as helping to encourage a culture of responsible saving. But Government support must be in place to enable this to happen and we urge the Government to do more, and to do it now.”
York Credit Union opens its doors to the whole of North Yorkshire
From today, anyone living or working in North Yorkshire will be able to access the services of the new North Yorkshire Credit Union.
Resulting from the extension of York Credit Union’s common bond, the new service is the result of dedicated partnership working between the County Council, multiple district Councils, and three Housing Associations – together investing almost £350,000 – in addition to local businesses and building societies. North Yorkshire’s common bond now becomes one of the largest in Britain.
The service is to be rolled out first to Selby and Scarborough – two areas identified as having a chronic lack of affordable credit – with further branches to be opened across the county in the coming months.
A package of products are being considered alongside the new branches, including a fully functional online service and potential partnering with paypoint, in the concerted effort to extend services across the largely rural area.
Development Manager Mike Horncastle said: "We're delighted that we can now provide a service to the whole of North Yorkshire.
"We'll be developing additional services in the coming months, giving members a real alternative to the high street financial institutions currently experiencing a lack of public confidence."
15 May 09 -
Erewash Credit Union Praised by Prime Minister
Erewash Credit Union was praised by Gordon Brown in the House of Commons on Wednesday. In response to a question from Erewash MP and Credit Union All Party Parliamentary Group member Liz Blackman, who spoke about the £170,000 the credit union has saved local residents in interest payments through providing Growth Fund loans, the Prime Minister said: -
“In the Budget we added an extra £18.5 million to help the credit funds. More than 100 credit unions have already benefited from that fund, and more than 150,000 people are being helped. I know that the credit union in my hon. Friend's constituency is a shining example of what is possible, with 700 people obtaining affordable credit. It is making new investment to help people with housing, which is desperately needed in her area. I congratulate her credit union on doing a fantastic job. We want to support credit unions in every part of the country, with both more support and more legislative backing in future."
Representatives from Erewash Credit Union were among the guests at a local school where Gordon Brown and several members of his cabinet launched Labour’s local and European election campaign yesterday.
15 May 09 -
Birmingham’s Citysave Credit Union Embraces the Digital Age
Citysave credit union has announced plans to offer its services via a local, interactive, digital TV channel.
Linking with Digital Birmingham, residents across the city will be able to discover more about the credit union’s services and gain access to them from the comfort of their own home without the need for internet access. Plans are also in the pipeline to make the service available on people’s mobile phones.
Deputy Leader of Birmingham City Council, Paul Tilsley said: “Credit Unions are a great triumph for local democracy, and by making Citysave available through our local channel, we're adding to the extensive range of council and public services that residents can already find through their TV”
“Just as importantly, we're ensuring that people without a PC, or those who find it hard to get out and about like the elderly or those with disabilities, can still take advantage of the superb services of the credit union from the comfort of their own home.
"In the era of the credit crunch, this development couldn't be more timely or appropriate."
The TV Channel is available from all major digital television providers, and comes as more evidence of how credit unions are moving into the twenty-first century.
15 May 09 -
Camden Plus’ New Branch Opens its Doors
Friday 24th April saw Camden Plus Credit Union open the doors at its new branch in the heart of the area, just off Camden High Street. Council Leader Keith Moffitt and Deputy Leader Andrew Marshall did the honours in a milestone for the area.
Camden Plus opened in 2006, with council support, and the new premises offer great opportunities for the credit union to grow and extend its services to many more people.
Cllr Moffitt said, "Credit unions provide a valuable service for local people, that's why the Council committed funding to Camden Plus Credit Union as it got itself established. It's great news that these new premises mean they can continue to help local people. While we all need to make our own decisions as to where we put our money I have taken a personal decision to open up an account today."
Manager, James Richard added: “The new branch is a significant milestone in the credit union’s development. Our convenient location close to Camden High Street and Kentish Town will allow us to better serve our existing members and attract new members who are looking for friendly, personalised service.”
The opening marked the start of a weekend-long grand opening event and the beginning of a bright future for Camden Plus.
05 May 09 -
New Cross-Party Group on Credit Unions
The Scottish Parliament has officially approved a new Cross-Party Group on Credit Unions.
Following the successful launch of the All-Party Parliamentary Group on Credit Unions at Westminster last summer, this new group will ensure credit unions remain high on the agenda at Holyrood as well.
Members from the SNP, Scottish Labour, Scottish Conservatives and Scottish Liberal Democrats have registered to join the group which seeks to discuss issues, develop policy and promote the positive role of credit unions in Scotland.
Labour and Co-operative MSP Frank McAveety worked with ABCUL to initiate the group and will be the convener, and John Wilson MSP (SNP), Mary Scanlon MSP (Conservative) and Robert Brown MSP (Liberal Democrat) will be the vice-conveners. The treasurer is James Kelly MSP (Labour and Co-operative).
Over a quarter of a million Scots are members of credit unions, saving over £200m and borrowing £150m at much more affordable rates than many other lenders offer. In the wake of the banking crisis, even more Scots are joining credit unions, with some reporting a tripling of new membership applications from the same time last year.
ABCUL’s Policy Officer for Scotland Frank McKillop, who will be the group’s secretary, said: “This new Cross-Party Group means there will be a meeting specifically about credit unions at the Scottish Parliament every few months, and MSPs from all parties will have an opportunity to discuss the challenges and opportunities for the credit union movement in Scotland on a regular basis.
"We’re proud that credit unions enjoy genuine cross-party support in Scotland and we look forward to building upon that in the coming months and years.”
We're very sorry to announce that contrary to our earlier posting, the dates for the ABCUL Autumn Conference have had to be changed. We realise that this is likely to cause significant inconvenience and apologise for this.
The new dates are Friday October 30th – Sunday November 1st 2009.
The location is: Forest of Arden, A Marriott Hotel & Country Club, Birmingham.
Again, apologies for any inconvenience caused.
For further enquiries please contact Clare or Emma at ABCUL Head Office (conferences@abcul.org).
29 Apr 09 -
Malcolm Wicks’ Bill has Second Reading with Great Support for Credit Unions
On Friday 24th April, the Co-operative and Community Benefit Societies and Credit Unions Bill received its second reading and went on successfully to the committee stage. MPs from across the political divide took the opportunity to express their great support for the movement.
The Bill, which proposes to give secondary powers to parliament to enable modernisation of the Credit Union Act and make other change to Industrial and Provident Society legislation, passed through its second reading receiving great support and without a hitch.
Malcolm Wicks, in introducing the Bill, said: “Credit unions have also been prolific in supporting savings initiatives such as child trust funds and individual savings accounts. They have historically operated in areas of economic and social deprivation, often being the only means of engagement with the financial system for many who have been financially excluded. They offer an affordable alternative to unscrupulous doorstep lenders, some of whom have been known to charge annual percentage rates that exceed 200 per cent., contributing to increasing debt and misery for thousands of families.
“Credit unions are the decent alternative to both the high street banks, which often, sadly, offer little to low-income groups, and the foul loan sharks, charging extortionate interest rates, who stalk single mothers in our most deprived communities.”
Both the Liberal Democrats and Conservatives also came out in support of the Bill and credit unions.
Lib Dem, John Pugh said: “Credit unions address the issue of financial exclusion. They deal with people who cannot use banks or who are uncomfortable with using banks. I dare say that more people than ever are uncomfortable with using banks these days. Certainly it is best that such people avoid the loan sharks ... or the pawnbroker, with all the horrific consequences that they often entail... Credit unions often start in working-class areas and provide a method for the community to pull itself up by its own bootstraps, but an unstated and important aspect of their role, which is often missed, is informal financial education.”
Mark Hoban, Conservative Shadow Financial Secretary to the Treasury, commended the Bill’s provisions to modernise credit union legislation but added a note of caution following concerns expressed by ABCUL and our members: “It is important to ensure that we do not simply railroad the changes for building societies through wholesale in relation to credit unions as well. As the sector develops and strengthens, we need to ensure that the changes are made in consultation with the sector. We should not lose sight of the unique features of the credit unions; we must ensure that the law preserves them.”
The debate illustrates the overwhelming support and well-deserved political recognition for the credit union movement and the work it does. Changes to legislation are welcomed as far as they will help credit unions to carry out their difficult work, but their right to be consulted upon before any change in the law is enshrined in the Bill, also.
Coupled with the Legislative Reform Proposals published recently, the progression of Malcolm Wicks’ Bill marks another important step towards gaining the modern, flexible and progressive legislation that credit unions have been working towards for many years.
Ahead of the second reading of the Co-operative and Community Benefit Societies and Credit Unions Bill, Malcolm Wicks spoke at Croydon Savers Credit Union’s AGM on Monday 20th March.
He said: “Co-operatives have a long and distinguished history, but I believe their best days are yet to come. They owe no allegiance to shareholders, but rather to their own members. Co-op stores trade ethically and have a strong sense of social responsibility.
“Credit unions offer the great alternative to the banks. More critically, they offer a safe alternative to those wretched loan sharks that prey on too many vulnerable Croydon families. My Bill, which has all Party support, will put the law governing co-ops and credit unions on a firmer footing, so that they can flourish in the years to come.”
He now plans to join the credit union as he publicly announced in during the second reading debate of his Bill in the House of Commons on Friday.
Helen Mason, Director of Croydon Savers, had this to say: “As a credit union, Croydon Savers is unique amongst financial institutions in encouraging saving rather than borrowing, whilst at the same time providing low cost loans to local people at times of need.
“As a co- operative, the credit union shares its profits with its customers and is paying a dividend of 1% on savings at a time when banks are cutting interest rates. Borrowers from the credit union also benefit from a 1% rebate of interest paid on loans.”
Malcolm’s appearance and kind words of support, in addition to his pledge to join Croydon, go even further to cement his support for the movement after his welcome endorsement of the Bill.
29 Apr 09 -
Autumn Conference Dates Announced
This year's Autumn Conference is set to take place on the weekend of the 13th to the 15th November 2009 in Birmingham.
Keep this date free in your diaries!
Further details will follow when they are available but any provisional enquiries should be directed to Clare and Emma at ABCUL Head Office (clare.atkinson@abcul.org and emma.johnston@abcul.org).
29 Apr 09 -
East Kilbride Credit Union receives Volunteer Award
East Kilbride Credit Union has received the SoLVE Volunteer Centre Quality Standard Award recently in recognition of the support they give to their volunteers and the benefits that volunteers gain from the experience.
On receipt of the award Manager, John Lange said: “East Kilbride Credit Union could not operate so successfully without the volunteers offering their time and expertise to members of the public.
“I am extremely grateful for all their hard work and efforts.
“This award goes to show we are able to offer our volunteers a rewarding time when they come to offer their services.”
ABCUL has welcomed the Chancellor’s announcement in today’s Budget of an additional £18.75 million for the Growth Fund, which credit unions use to make affordable loans to people on low incomes. This will allow an extra 85,000 loans to be made over the next 2 years.
Mark Lyonette, Chief Executive of ABCUL says: “Our credit union members are thrilled by the Government’s commitment to greatly increase the amount of money that will be made available through credit unions to help those most in need of financial help, who may otherwise turn to loansharks and high cost doorstep lenders.
“The announcement in the Budget is a huge vote of confidence in the valuable work that credit unions are doing around Britain.”
Responding to a recent survey, 70% of ABCUL credit unions reported an increase in demand for loans from members on a low income over the last year, with 32% reporting that this increase was significant. These findings highlight the necessity of additional funding to help those who are being hardest hit by the recession.
Mark Lyonette adds: “We’re pleased to see the Government recognises that, whilst it is important to make sure people who are having trouble paying mortgages are given assistance, there is also a need to ensure that money is available for unsecured lending for people on low incomes.”
A £500 loan repaid weekly over a year from a doorstep lender could cost over £400 in interest. The same loan from a credit union would cost no more than £64 in interest, saving the borrower over £300 and keeping money in the community.
The Growth Fund, which was launched by the Government in December 2004 as one of a number of measures to promote financial inclusion, increases the availability of affordable personal loans through third sector lenders such as credit unions.
In March 2007 the Fund was increased by £6 million to £42 million and in December 2007 a further £38 million was allocated for the period 2008 to 2011. Total investment in the Growth Fund to date stands at £80 million.
15 Apr 09 -
Three Cheers for Legislation Reform Proposals
ABCUL has welcomed the publication of a Government response to last year’s proposals to introduce a Legislative Reform Order to update the legal framework which governs credit unions in Britain.
“It’s great news that, following a comprehensive consultation to which we and our members responded, the Government has now finalised proposals for a Legislative Reform Order to update credit union legislation in Britain,” says Mark Lyonette, Chief Executive of ABCUL. “This reaffirms the Government’s commitment to updating credit union legislation, which is badly needed by the sector if we are to fulfil our true potential in Britain.
“In particular, we are delighted that the Government has listened to our calls to increase the limit for a common bond (which determines who can join a credit union) to two million people for geographical common bonds only and not to impose a numerical limit on common bonds which only cover people with an employment or associational link. This will enable credit unions to meet the needs of many more people.
“We are also very happy that the Government has decided to allow credit unions to choose whether to offer ordinary shares or deferred shares to corporate bodies. This means that companies and social enterprises, as well as unincorporated bodies and partnerships, will be able to become full members of credit unions, allowing large numbers of organisations to benefit from credit union services for the first time.”
Mark Lyonette adds: “We are now looking forward to welcoming the early publication of the draft Legislative Reform Order and to credit unions making great use of the many opportunities that will be open to them.”
ABCUL and Manchester Credit Union are among the new providers for the Government’s Moneymadeclear service, launched today in the North West and North East of England.
The new service aims to help people tackle their money worries and make informed financial decisions with confidence, whether it’s avoiding debt problems, coping with a change in circumstances, or preparing for the future.
People can now access the service at www.moneymadeclear.fsa.gov.uk , via the Moneymadeclear helpline on 0300 500 5000 and face-to-face through regional partner organisations and charities, including credit unions.
ABCUL will be employing money guides to pilot a mobile money guide service to help credit union members across the North East of England to access face to face guidance. Members of Manchester Credit Union along with tenants of partner organisations will be able to access money guidance through a scheme run by the credit union across Manchester. The Police Credit Union, which has promoted Moneymadeclear online tools to its members since they launched, is also getting involved in promoting the new service.
Enterprise Credit Union has been providing the service since April and has had a good response from members for the new service.
Moneymadeclear will test the blueprint for a national ‘money guidance’ service recommended by the Thoresen Review of generic financial advice. The £12m pathfinder aims to reach up to 750,000 people in the North West and the North East of England by spring 2010 and is being delivered by the FSA in partnership with the Treasury.
09 Apr 09 -
Co-operative and Community Benefit Societies and Credit Unions Bill Published
A new Bill designed to allow legislation governing credit unions and Industrial and Provident societies to be more easily brought up to date has been published. The Co-operatives, Community Benefit Societies and Credit Unions Bill 2009 was introduced by Labour/Co-op MP Malcolm Wicks as a Private Members Bill and will be debated by MPs at its second reading on the 24th April.
The Bill has the support of Government and follows a review of co-operative and credit union legislation which was carried out in 2007. Amongst the changes that are being proposed in the Bill are a name change from “industrial and provident society” to either “co-operative” or “community benefit society”, giving HM Treasury powers to make certain changes to credit union legislation to bring it into line with that of building societies and to bring aspects of legislation for industrial and provident societies into line with that of companies.
The full Bill and accompanying notes are now available at www.parliament.uk
09 Apr 09 -
Is a not-for-profit home credit business feasible?
Research published by the Joseph Rowntree Foundation has shown that whilst there would be some cost savings for consumers using a not-for-profit home credit service, interest charges would still have to top 100% and would require significant subsidy.
Is a not-for-profit home credit business feasible?, carried out by a team of researchers including Elaine Kempson from the Personal Finance Research Centre and Paul Jones from Liverpool John Moores University demonstrates that home credit is an inherently high cost product and even with a not-for-profit model, will still mean people on lower incomes paying a much higher rate for small loans than they would through a product they can repay electronically or by visiting a branch.
Credit unions which took part in the research had little appetite for delivering such a service so the researchers considered that a stand alone provider would seem to offer the best delivery option.
The researchers calculated that with an £18 million subsidy, the APR on an average 56-week £288 loan from a stand alone, not-for-profit provider would be 123 per cent (compared with 183 per cent commercially), bringing customer savings of £50. But to achieve a reduction to a 100 per cent APR would require a £90 million subsidy. Customer savings would increase to £72 per loan (£170 yearly on an average annual loan frequency of 2.34). They concluded that this may be insufficient to attract good payers. Cross-subsidy would be required from other products such as insurance, savings and cheque-cashing.
The full report and a summary are available to download from the website of the Joseph Rowntree Foundation, which provided funding for the research
Greens Deputy Adrian Ramsey Calls for Support for Credit Unions
Green Party Deputy Leader Adrian Ramsay called on the Government to promote credit unions and ethical banking in his speech to the party’s Spring Conference in Blackpool earlier this month.
Mr Ramsay, who is a councillor and prospective parliamentary candidate in Norwich said: -
“Look at the financial institutions that are weathering this storm. They are the ethical banks – the banks that people trust with their money. They are the mutual societies and credit unions that share their profits among their members.
“Why are they doing so well? Could it be because they didn’t gamble people’s money in the global marketplace? While big commercial banks played Russian roulette with virtual dollars, ethical banks and mutuals invested in real projects, supporting local businesses and social enterprises.
“People have stuck with ethical banks and mutuals, not just because their money is safer, but because their profits don’t come at the price of human lives. Have you ever heard of a credit union investing in the international arms trade? Or an ethical bank that funds sweatshops and deforestation? “
When members of the Group of 20 (G-20) nations attend The London Summit 2009 on April 2, they will be armed with the knowledge that credit unions and financial cooperatives worldwide have contributed to the solution rather than cause of the struggling global economy. Communications from World Council of Credit Unions (WOCCU) delivered prior to the meeting alerted attendees to the role credit unions play in their countries, both in serving members and contributing to economic stability.
WOCCU originally made its voice heard last autumn in a formal letter submitted to G-20 countries attending the Nov. 15 summit in Washington, D.C. The letter, addressed to participating finance ministers, asked the group to acknowledge the strength and safety of credit unions and financial cooperatives and to not make cooperatives part of inappropriate legislation or regulations that may restrict the very practices that give member-owned institutions their capability to serve.
As a result of its November meeting, the G-20 established four working groups, one of which focuses on supervision, enhancing sound regulation and increasing and strengthening transparency. WOCCU sent a formal letter addressed to committee co-chairs Rakesh Mohan, deputy governor of the Reserve Bank of India, and Tiff Macklem, associate deputy minister of the Canadian Ministry of Finance, outlining the role of credit unions and their supervisory structures.
"We also have been in communication with the World Bank representative who sits on the committee," said DaveGrace. "He assured us that credit unions are not within the scope of the regulatory review."
Prior to the November G-20 meeting, a letter from Pete Crear, WOCCU president and CEO, requested that three distinct steps be taken during the autumn summit:
1. That any future financial rescue packages implemented at global or national levels be unbiased against cooperative financial institutions relative to the commercial banking sector.
2. That in any pronouncements emanating from the summit, cooperative financial institutions be recognized as secure, locally owned financial institutions that have presented safe and sound financial alternatives during the current crisis.
3. That future regulations or legislation that may result from this crisis clearly recognize that cooperative financial institutions have not been the source of these problems, have been significantly less affected by the economic fallout and should not be punished by inclusion in a series of new rules designed to correct a problem they have not caused.
"We believe strongly that cooperative financial institutions must be consulted prior to any regulatory actions that may affect them," Pete Crear wrote, "and we urge you to make this step a permanent part of your protocols."
Dave Grace added. "As seen from past financial crises at national levels, during this global crisis credit unions have performed better than many other financial institutions. We are unaware of any credit union in any market that has received capital infusions from government as a result of the current crisis."
26 Mar 09 -
Link-up for learning
ABCUL, through the Credit Union Foundation, has linked up with Home Retail Group to expand access to financial education and savings accounts for children and young people in schools.
Home Retail Group, whose brands include Argos and Homebase, has been working with ABCUL since 2004, when the Argos ‘A card’, which offers credit union members a discount on goods in Argos and Homebase stores, was introduced.
As a financial services provider as well as a retailer, Home Retail Group recognises a general need to build financial confidence amongst consumers – especially in these challenging economic times – and whilst they have an opportunity to influence this directly with their own customers they believe it is also important to contribute to this in a wider context.
The Group has decided to support a community based project which will help to enhance financial understanding and capability amongst children and young people, and this will become a key element of its Corporate Responsibility programme in 2009.
Cathryn Cotterill, Head of Regulatory Compliance for Home Retail Group Financial Services, says: "Given the growing importance of credit unions and our existing relationship with the credit union movement, ABCUL was the obvious place for us to go to explore ways to provide this support.
"After a number of discussions to identify potential areas where we could support ABCUL it became clear that a project to research and support the role of credit unions in schools would be an ideal project for us to undertake.
"We’re delighted to be working with ABCUL in this important area and we hope that the findings of this project will provide the foundations for credit unions to play an important role in the financial education of young people."
Annette Warne-Thomas, Head of Business Development at ABCUL, adds: "This project provides ABCUL and Home Retail Group with an important opportunity to work together on the development of financial education in schools with a particular emphasis on the importance of saving.
"The unique nature of credit unions allows them to not only work with schools on educational sessions on personal finance but for children to learn by doing, i.e. by actually starting a savings habit."
26 Mar 09 -
Antony MacRow-Wood Becomes New ABCUL President
Antony MacRow-Wood took over as the President of ABCUL at ABCUL’s AGM on the 14th March, as Mary Henderson’s term came to an end and she stepped down from the ABCUL board after 9 years of dedicated service to the Association.
Antony has been an ABCUL director for the South West region since 2002 and has served as ABCUL Treasurer since 2006 and as Deputy Treasurer for four years before that. He has been involved in credit unions since 1993, when he helped form the Parks and Walcott Credit Union. When Antony moved to Dorset, he helped enlarge the First Dorset Credit Union and then assisted in the merger of 3 credit unions in the Poole and Bournemouth area to form Coastal Credit Union, of which he is currently Vice-President. He is also leading a working group to establish an employee credit union for the Church of England.
Antony is currently a Team Rector in Poole and before becoming a priest, worked as a Chartered Accountant.
Antony said: -
“There are both great challenges and great opportunities for credit unions during the current economic turmoil. We need to help our members weather the storm but also be in a position to seize the opportunities which arise as people turn from the banks in search of a mutual ethical alternative”.
“I’m delighted to have been selected as ABCUL President and look forward to working with the ABCUL Board, the CEO Mark Lyonette and his staff team, to ensure that ABCUL continues to build on and develop the services that our credit union members need. I would like to thank Mary Henderson for her valued input to the work of ABCUL and while I wish her well for the future, I am sure that she will be no stranger to the credit union movement she has given so much to in the past.”
26 Mar 09 -
Credit Unions Thanked By PM
Representatives from credit unions across the country were guests at a Number Ten reception held last week to thank people working in front line advice agencies. Credit unions which have been delivering Growth Fund loans were at the event along with representatives from agencies which have been delivering face-to-face money advice with funding from the Financial Inclusion Fund.
Annette Warne-Thomas from ABCUL and credit union representatives from Bristol, Capital, Enterprise, Hampshire, Southwark, Waltham Forest Community, Weston Super Mare and District, Llandudno and Clockwise (Leicester) Credit Unions all enjoyed visiting Downing Street and meeting Gordon Brown. The Prime Minister took time to speak to guests and spoke about the value of the work credit unions and advice agencies are doing with support from the Financial Inclusion Fund.
The Prime Minister is pictured talking to Karen Bennett from Enterprise Credit Union along with Irene Dillon from Enterprise Credit Union and Kate Hanks from Bristol Credit Union.
17 Mar 09 -
Annual Conference and AGM a Resounding Success
This weekend saw ABCUL’s Annual Conference and AGM sweep through Hilton Blackpool.
The weekend was a great success and offered the delegates a chance to hear about the progress, and impending publication, of the Legislative Reform Order that is set to revolutionise the work that credit unions do and release the latent potential within many. Sue Lewis, Head of Savings and Investments at HM Treasury updated ABCUL members on progress with the legislation and Chris Hibben from the Financial Services Authority spoke about impending regulatory changes which the FSA will consult on in the next few months.
There were also opportunities to attend training courses and workshops on a range of subjects from credit union directorship, to the Savings Gateway; links with Housing Associations to Paul Jones’ Credit Unions: Ten Years On – a look back at the development of the movement a decade after his pioneering research project. Delegates went away with a host of new ideas and perspectives on taking their credit union forward and also benefited from getting together again and sharing experiences.
17 Mar 09 -
Credit Unions in the Scottish Economy - a Scottish Parliamentary Reception
On Wednesday 18th March, a Scottish Parliamentary Reception will be held to recognise the contribution the thriving credit union movement makes to the Scottish economy.
Hosted by Frank McAveety MSP and supported by the Co-operative Bank, the reception brings together MSPs from across the political spectrum and representatives from various agencies working alongside credit unions in Scotland.
Many representatives of the Scottish movement are also due to be in attendance in a fantastic opportunity to raise awareness within the Scottish Parliament and to demonstrate all the positives and potential that credit unions possess.
17 Mar 09 -
Latest Edition of Credit Union News Out Now
The latest edition of Credit Union News is now available to download. Features include a focus on just some of the great partnerships that our members are forming across the country to extend services to more people. ABCUL members featured include Pollok Credit Union, which has taken over the running of its local Post Office and Manchester Credit Union which has opened a new branch in offices owned by City South Manchester Housing Trust.
Also included in this edition is a feature on the cost of credit union loans compared to other lenders and news on national initiatives and local credit union achievements.
This year’s Annual Report has been published offering an overview of the last financial year.
The year saw the launch of the All-Party Parliamentary Group on Credit Unions, work towards important credit union legislative reform, the Credit Union Current Account really taking off and the development of strong codes of governance and credit union training courses to run alongside the Growth Fund support from the DWP.
For a refresher on all that has happened to the movement in another frantic year and to read Mary Henderson’s final President’s report you can download the report now.
Glasgow Council Promotes Cerdit Unions to Residents
Glasgow Council has this week launched a major advertising campaign to promote credit unions to its residents. The cucity.co.uk website provides information on credit unions across the city and the services they provide and is being promoted on TV and radio aswell as in local newspaper adverts and on buses.
With the strapline ‘ for loans and savings, the answer’s on your doorstep’ the campaign will continue throughout March.
Autumn Conference hosts help make life better for Mark and Gabriella
Donations from the joint hosts of the ABCUL Autumn Conference have helped 2 young children gain a better quality of life. The Police Credit Union and No 1 Copperpot Credit Union chose to donate the money they would usually have spent on gifts for delegates at the conference to Children Today, the official charity partner of Police Credit Union.
Along with this £1000 donation, a further £800 was raised through a collection at the conference and a raffle for which the credit unions and CUNA Mutual provided the main prizes. Children Today helps disabled children and young people live a life of greater freedom by providing grants for vital, life-changing equipment which are often not available through statutory funding. .
Kate Taverner, Bristol Branch Manager with Police Credit Union travelled to Mark Palmer’s school to present him with a specialised car seat to enable him to travel safely in the car, have easy access and see what’s going on around him. Mark, who has scoliosis, cerebral palsy and is partially sighted is pictured with Kate and his new seat.
Gabriella O’Reilly from Stockport also benefited from the donations and received a specialised car seat to make it easier for her to get in and out of the car. Gabriella has cerebral palsy which affects all her limbs. Caroline Domanski from No1 Copperpot Credit Union presented her with the car seat at the credit union’s head office in Cheadle.
ABCUL has welcomed new measures to tackle criminals illegally lending money which were announced this week by Consumer Affairs Minister Gareth Thomas.
A confidential national hotline to report illegal lenders is now up and running and gives consumers one single point of contact.
A new website has also been launched providing information on managing finances and how to borrow money safely. This provides information on alternative sources of credit, including credit unions.
The initiative was also welcomed by “money saving expert” Martin Lewis, who alerted the 3.2 million readers of his email bulletin to the new number and highlighted credit unions as an affordable alternative source of credit. The Stop Loan Sharks teams have successfully prosecuted more than 60 people with a further 90 prosecutions underway. This amounts to nearly 40 years of custodial sentences for illegal lending and associated crimes.
The teams have supported more than 7,000 victims of illegal money lenders. The first two pilot schemes were launched in September 2004 and then rolled out to every region of England, Wales and Scotland in 2007.Their work has meant around £14million has been saved for consumers who were locked in illegal deals with these money lenders.
Consumer Affairs Minister, Gareth Thomas, said: "Loan sharks fleece hard-earned cash from their victims causing great distress and anguish. "Calling this hotline gives victims the chance to talk in confidence. They get advice and support and the information provided helps the team to take action to stop illegal money lending. "The teams are having huge success in bringing these criminals to justice and are saving consumers significant amounts of money."
The national hotline - which is confidential - is: 0300 555 2222. And the website is: http://www.direct.gov.uk/stoploansharks Consumers can also text loan (space) shark (space) and your message to 60003.
05 Mar 09 -
The World Council of Credit Unions (WOCCU), announces online campaign at MatchSavings.org.
Although living in desperate poverty, people in the developing world often have no access to the savings facilities that would enable them to improve their situation without relying upon expensive credit. This campaign is an attempt to extend the availability of savings facilities to those most in need.
Via the website, MatchSavings.org, the general public has the opportunity to match the savings of those in the developing world and have a hand in the fight against global poverty. The first to benefit from the scheme are savers in the WOCCU credit unions of Mexico.
WOCCU Seeks Support for Victims of Australian Brushfires
The World Council of Credit Unions has established a fund to help victims of Australia's brushfires, many of whom are members of the country's credit unions. WOCCU is working in collaboration with Credit Union Foundation Australia (CUFA) to collect tax-deductable contributions that will be administered through the Red Cross Victorian Brushfire Appeal.
"The brushfires in Australia already have claimed close to 200 lives," said Brian Branch, WOCCU's executive vice president and chief operating officer. "In the true cooperative spirit, we're asking the global credit union movement to support Australian credit unions as they strive to serve their members during this crisis."
The brushfires have ravaged Victoria state, threatening several credit unions, their branches and many of their more than 250,000 members, according to reports. Police in Victoria believe the fire may have been the work of arsonists.
"We have a number of member organizations that have been directly impacted by the fires," said Karen Smith, spokesperson for Abacus Australian Mutuals, the Australian credit union trade organization and a WOCCU member. "At this stage we have no reports of staff lost, but many members have lost their homes and there is potential that some of them may have perished in the fires."
Much-needed cash contributions from credit unions and individuals worldwide will provide assistance to those whose lives have been devastated by the brushfires.
Donations may be made with a credit card online at www.woccu.org/give. Donations may also be sent by check to Valerie Breunig's attention at: Worldwide Foundation for Credit Unions, Inc., 5710 Mineral Point Road, Madison, WI 53705. In all cases, please indicate that your donation is designated for the Australian Brushfire Relief Fund.
To donate funds or for more information, contact Valerie Breunig, Worldwide Foundation for Credit Unions: vbreunig@woccu.org.
06 Feb 09 -
Survey by 17 Top London Housing Associations Reveals Shortfall in Banks’ Financial Inclusion Strategy
In an article appearing at 24Housing this week, Housing Associations in London have highlighted the lack of penetration of financial services for the tenants of social housing. Alarmingly, 24% remain without a bank account and those that do often withdraw their money preferring to keep it at home than in the bank.
This has given rise to calls for banks to do more to support credit unions to expand their services and further the financial inclusion agenda.
This groundswell of support, combined with ABCUL’s continued pressing for the liberalisation of credit union legislation, could mark the beginning of a bright future for collaboration between credit unions and housing associations.
ABCUL has welcomed the launch of the Scottish Government’s new £250,000 Third Sector Credit Union Fund.
The new fund forms part of the £12m Third Sector Enterprise Fund which aims to help third sector organisations to become more sustainable and increase their capacity and capability.
The Third Sector Credit Union Fund will support credit unions' organisational capacity development with awards of up to £25,000 for activities such as business planning, product development, service improvements, staff and volunteer training, marketing, advertising, IT upgrades and recruitment of student members.
Credit unions are also eligible to apply to the main Third Sector Enterprise Fund for larger investments of up to £100,000.
Frank McKillop, ABCUL Policy Officer for Scotland, says: “We’re pleased that the Scottish Government has recognised the strength of the credit union movement in Scotland by ring-fencing this portion of the Third Sector Enterprise Fund specifically for credit unions.
This represents a great opportunity for credit unions to demonstrate how this investment from the Scottish Government can be used to help build and develop the movement in Scotland, increasing our capacity to serve more of the public at a time when many face financial difficulties.”
The full details of the new fund, including the application form, frequently asked questions and guidance and help notes for applicants, are available below.
