Ethos Public Relations Manchester

New powers allow credit unions to offer more services to many more people

by Ethos public relations

From 8 January 2012, people living in England, Scotland and Wales will begin to benefit from new credit union powers to deliver more services to more members and communities.

The new powers are the result of legal changes which give credit unions more flexibility to choose who can access their services. Credit unions will now be able to extend membership to more than one group of people, no matter where they live or work. For the first time, credit unions will be able to pay interest on deposits, instead of a dividend, and businesses and community organisations will be able to join a credit union and use the services it provides.

The changes will help individuals, businesses and other organisations access fair and affordable financial services in their communities and allow credit unions to provide a more effective alternative to high street banks on the one hand and high cost lenders and loan sharks on the other.

Up until now, credit unions have been hampered by outdated restrictions which meant all of their members had to have something in common – such as living in the same geographical area or working for the same employer – only individuals were able to become members, not organisations themselves, and credit unions could not pay interest on savings, only a retrospective dividend.

Credit unions no longer need to prove that all the eligible members have something in common, which will mean that credit union services can be extended to new groups much more easily. For instance, a credit union providing services to anyone living or working in Hull will now be able to serve all the employees of a company too, even if they do not live or work in Hull.

Credit unions will be able to begin to pay interest on savings, which will mean that people will be able to more easily compare the rates of return with other savings providers and it will help credit unions attract more savers.

The new rules also mean that organisations themselves can join a credit union (up to a maximum of 10% of the members) and use the financial services it provides. A community group, housing association or local employer, for example, may now be able to use a credit union to manage its money, with the added advantage that the money is kept in the community.

“These changes are a major breakthrough in the delivery of credit union services to communities around Britain,” said Mark Lyonette, Chief Executive of ABCUL – the Association of British Credit Unions.

“The new rules mean credit unions can now compete more effectively with banks and other lenders to provide fair and affordable financial services. Credit unions will be able to reach many more people, helping them to develop a savings habit, which can only be good for communities.”

As financial co-operatives, owned and controlled by their members, credit unions have no outside shareholders to pay and any profit they make stays in the community and is used to develop the credit union and provide a return to savers.

Credit unions offer a range of services including savings accounts with payroll deduction, the Credit Union Current Account, the Credit Union Prepaid Card and an affordable source of credit.

For more information about the new credit union powers, the services provided by credit unions and who can benefit visit www.abcul.coop.

To make contact with a local credit union visit www.findyourcreditunion.co.uk or call ABCUL on 0161 832 3694.

To read other news from ABCUL click here.

Posted at 3^rd January 2012

House of Commons Fair and Reception showcases credit unions

by Ethos public relations

Credit unions and partners showcased their work to MPs and policy makers at an event at the House of Commons on Wednesday 23 November. The Credit Union Fair and Reception was organised by the All Party Parliamentary Group on Credit Unions and sponsored by Santander.

Credit unions from across the country attended the event to show how they work with partners including housing providers, employers, schools and prisons to bring financial services, including convenient savings accounts, affordable credit and current accounts, to their members.

Alan Eagle from the Santander Foundation explained how the Foundation changed its policies a few years ago specifically to allow credit unions to benefit from its grants.

One of the Foundation’s most recent awards was to Clockwise Credit Union, one of the exhibitors at the event, allowing it to move into new, central premises in Leicester, helping to increase accessibility and grow membership.

Santander itself recently made a contribution to ABCUL’s back office project, enabling ABCUL – the Association of British Credit Unions, to develop tools to help credit unions more efficiently consider loan applications from members.

Chair of the All Party Parliamentary Group on Credit Unions, Damian Hinds MP, said: “Today’s event is testament to the excellent work credit unions are doing across the country with a wide range of partner organisations in order to bring ethical and affordable financial services to those that are most in need. Now that the Legislative Reform Order is in place, this type of partnership working will become much easier to expand to the great benefit of many across the country. It was particularly heartening to hear the cross-party support that credit unions enjoy in the Westminster Hall debate on Credit Unions and Financial Inclusion which took place alongside today’s Fair.”

Antony Macrow-Wood, ABCUL President, thanked attendees for their contribution to the legislative changes which were recently secured for the sector.

”Working together with successive Governments, parliamentarians, regulators and the rest of the co-operative sector, we have secured changes to legislation which will help credit unions build on the partnerships that are in evidence today, and enable many more people to benefit from credit union services.”

To read other news from ABCUL click here.

Posted at 25^th November 2011

Parliament approves credit union legislation changes

by Ethos public relations

Credit unions across Britain have welcomed news that Parliament has today (8th November) approved changes to legislation which will free up credit unions to reach many more members, including community groups and businesses.

A Legislative Reform Order (LRO), which makes changes to the Credit Unions Act 1979, has been approved by Parliament and new rules that enable credit unions to compete more effectively with banks and other lenders will be in place by January 2012.

Mark Lyonette, Chief Executive of ABCUL – the Association of British Credit Unions, said: “Credit unions in Britain are delighted that legislative reforms have been agreed by Parliament which free up the sector to compete on a more level playing field. ABCUL has campaigned long and hard for these changes so we’re happy that credit unions will be able to use the new powers from the New Year.”

Chair of the All Party Parliamentary Group on Credit Unions, Damian Hinds MP said: “I’m very pleased that the LRO has now been made. It opens up so many new possibilities for the sector to evolve, innovate and grow. The regulatory changes will help credit unions work more effectively with partners including housing providers and employers, and encourage more people to develop a savings habit.”

The credit union sector in Britain is small compared to other countries such as the United States and Canada, where over 40% of the populations belong to a credit union. Credit unions in Britain have, up to now, been hampered by outdated restrictions which limit who can join, what services they offer and which places they operate in.

The Order makes a number of changes, including allowing credit unions to provide services to community groups, attract investment from local businesses and extend services to new groups, including housing association tenants and employees. Credit unions will also be able to pay interest on savings, instead of a dividend, so people will more easily be able to compare rates.

Credit unions are financial co-operatives owned and controlled by their members. They have no outside shareholders to pay and any profit they make stays in the community and is used to develop the credit union and provide a return to savers.

For more information about ABCUL please visit www.abcul.coop.

To read other news from ABCUL click here.

Posted at 8^th November 2011

ABCUL calls for credit union alternative to NS&I at Post Offices

by Ethos public relations

Following the announcement that people will no longer be able to use Post Office branches to manage their National Savings and Investments (NS&I) savings products, ABCUL – the Association of British Credit Unions Ltd – has called for credit union services to be made available through the Post Office network.

ABCUL Chief Executive Mark Lyonette said: “Many people rely on their local Post Office for simple cash based savings products that they have valued for many years. The prospect of a big reduction in such products available through the Post Office network leaves a big gap which credit unions would be very well placed to fill.

“Credit unions offer simple, safe savings products to nearly a million people across Britain, but access in many areas to these services is limited. With the potential investment in the sector that the Government is currently considering, credit union savings and affordable loan products could be made available through the Post Office network.

“This could make local and mutual financial services accessible to millions more people and ensure that the Post Office remains a valued provider of the products people need.”

The Government announced in March 2011 – www.dwp.gov.uk/newsroom/press-releases/2011/mar-2011/dwp025-11.shtml – that it would invest up to £73 million in the expansion and modernisation of credit unions. A feasibility study for the programme has recently been submitted to the Project Steering Committee and a decision on the investment is expected by the end of 2011. More information is available here: www.dwp.gov.uk/other-specialists/the-growth-fund/latest-news.

To read other news from ABCUL click here.

Posted at 4^th November 2011

Credit Union Current Account gives customers full ATM access, even if banks won’t…

by Ethos public relations

Another one of the high street banks may have announced that it is restricting access to cash machines for nearly a million of its customers, but the Credit Union Current Account provides a fair and affordable alternative with full ATM access.

News that RBS is to stop its basic bank account holders getting their money out of other banks’ cash machines is the latest example of the limited services available to people on lower incomes from the high street banks. However, credit unions are stepping in to fill the gap with their own current account.

Credit Union Current Account customers can use over 40,000 free to access ATMs around the country, as well as getting cash back in stores. The Credit Union Current Account provides a VISA debit card, free same day access to credit union savings, and the opportunity to set up direct debits, standing orders, funds transfers and bill payments. Account holders can also have their salaries, pensions or benefits paid in directly, and can use their card for online purchases and Chip and PIN transactions in stores.

“When people say their bank is treating them unfairly, we point out that there could be a credit union alternative waiting for them locally,” says Abbie Shelton, Policy and Communications Manager at ABCUL – the Association of British Credit Unions. “The Credit Union Current Account provides the perfect answer for anyone who wants to access their money from as wide a network of ATMs as possible, as well as a wide range of other benefits which set it apart from high street banks’ basic accounts.”

The Credit Union Current Account is currently available from 25 credit unions around the UK, with more working towards offering it, and there are now over 31,000 credit union members with an account. Credit unions are financial co-operatives owned and controlled by their members. As they are managed locally and have no outside shareholders to pay, credit union members are happy to know that their money stays within their community.

To find your local credit union visit www.findyourcreditunion.co.uk. To find out which credit unions offer the Credit Union Current Account visit www.abcul.coop/about/productsservices/cuca.

To read other news from ABCUL click here.

Posted at 18^th August 2011

Gordon Brown calls on credit unions to ‘set the agenda’

by Ethos public relations

Gordon Brown has praised credit unions for their work to tackle inequality and called on them to set the agenda for the financial system based on the principles of fairness and responsibility.

The former Prime Minister was speaking at the World Credit Union Conference in Glasgow to an audience of 1,400 people from over 50 countries.

Gordon Brown said: “We have seen the biggest financial crisis of our history which was caused by the banks forgetting the basic values of fairness and responsibility which we all adhere to as a matter of course in our personal and professional lives. Credit unions, which have already seen fantastic growth in recent years, are faced with enormous opportunities because they are based on fundamental values of fairness and responsibility...

“We should build the financial system of the future based on principles of fairness and responsibility that have always been at the heart of the credit union movement.  So there is a big agenda ahead and, from Glasgow this week, I hope that you can set that agenda.”

Mr Brown also remarked on the growth of credit unions in Britain which now provide services to over 900,000 people, including 5,000 in his own constituency. He observed how this has been helped by the Growth Fund, introduced by the last Labour Government, which provided over 400,000 affordable loans to the value of £175 million, mainly through credit unions, and saved borrowers a similar amount in interest payments.

Association of British Credit Unions Limited (ABCUL) Chief Executive Mark Lyonette said: “I know that the credit union representatives around the world will have been very pleased to hear Gordon Brown express such respect and faith in both their work and their potential. Credit unions in Britain have benefitted greatly from Government investment in recent years and it is testament to the success of the Growth Fund and credit unions’ ability to change lives that the current Government is carrying out feasibility studies to examine the best way to carry forward this investment and continue growing the credit union sector.”

To read other news from ABCUL click here.

Posted at 25^th July 2011

Credit unions welcome changes to legislation

by Ethos public relations

ABCUL – the Association of British Credit Unions – has welcomed steps taken in Parliament this week which will see increased access to safe and ethical financial services in communities and workplaces across the country. A Legislative Reform Order, which will make changes to the Credit Unions Act 1979, was re-laid before Parliament on Tuesday (19 July).

The Order will make a number of changes to the Act including allowing credit unions to provide services to community groups, attract investment from local businesses and extend services to new groups, including housing association tenants and employees. Credit unions will also be able to pay interest on savings, instead of a dividend, making saving in a credit union more attractive.

Subject to scrutiny by Parliamentary Committees, the changes should be in place early in 2012.

Chief Executive of ABCUL Mark Lyonette said: “Credit unions around the country along with their partners have been eagerly awaiting these changes, and so I’m delighted that they are on track to be in force by next year.

“In campaigning for these changes we’ve taken a great deal of inspiration and received much assistance from our international colleagues. The timing of this announcement couldn’t be better as we will be able to share this news with them when they arrive in Glasgow this weekend (22nd July) for the World Credit Union Conference.”

To read other news from ABCUL click here.

Posted at 20^th July 2011

Collaboration is key to success for credit unions

by Ethos public relations

New research launched today, reveals that credit unions must work together and in partnership with a wide range of public and private sector organisations in order to fulfil their potential and reach all those who need their help.

Community finance for London - scaling up the credit union and social finance sector, is a major new strategic piece of research which examines how to develop affordable financial services in Greater London. The report was developed by Paul Jones of the Research Unit for Financial Inclusion at Liverpool John Moores University with Anna Ellison of Policis, and was funded by Santander. It is designed as a blueprint for the credit union and social finance sector and it demonstrates the important role of credit unions in enhancing the social and economic cohesion of communities.

Speaking at the launch in the Houses of Parliament, Paul Jones said: “The credit union sector needs to modernise and to achieve sufficient scale in order to offer affordable financial services to a wide range of households on low and modest incomes. However, it also needs to maintain the community finance ethos and vision that defines and differentiates it from the mainstream.

“The report explores the fit between the need for affordable financial services and the capacity of community finance in London. It investigates the nature of the challenges facing the sector in scaling up to meet demand and it reveals how credit unions are strengthening the social and economic cohesion of local neighbourhoods and communities.”

Rob Hailey, Senior Public Policy Manager at Santander UK plc, said: “We are delighted to support this important piece of research into the community finance sector. Though focused on London, many of its recommendations will be relevant for credit unions and others across the country. We hope it will contribute to the strengthening of the sector and ultimately to reducing financial exclusion.”

The report describes a vision of credit unions and social lenders working in partnership with central government, local authorities, social housing providers, money advice agencies and other locally-based organisations, to provide quality and competitive financial services at affordable rates whilst actively contributing to local social and economic development.

Credit union membership in London has grown by over 90 per cent since 2005. Now, everyone who lives or works in 27 out of the 33 London boroughs can join a credit union, and there are plans to expand into two more boroughs in the near future. However, despite this success, credit unions and the social finance sector in general, still lack the capacity and the reach to extend their services to the many more low and moderate income Londoners who could stand to benefit from access to affordable financial services.

Mark Lyonette, Chief Executive of ABCUL, said: “This timely report sets out a route map for the development of the credit union sector in Britain.

“Credit unions in this country are on the threshold of a major expansion, with new legislation in the coming months freeing up the sector to serve more people with a wider range of services. However, as this study shows, for credit unions to really fulfil their potential and reach all those in need of their help they must work together and with other agencies to achieve the scale and quality of services required.”

The study was funded by Santander as part of its work to support the community finance sector. The bank is also providing a £100,000 investment into a new credit assessment system for credit unions, being planned by the Association of British Credit Unions Ltd in partnership with Experian. The new system will play an important part in the development of credit union back office services in Britain.

To download the report go to: www.abcul.coop/media-and-research/research/london-community-finance-report.

To read other news from ABCUL click here.

Posted at 12^th July 2011

Credit union merger brings big benefits

by Ethos public relations

One of the biggest credit union mergers ever to take place in Britain sees the official launch of North Wales Credit Union today (11 July). Five successful credit unions have merged from a position of strength to offer more services to even more people.

Far from being forced into merger out of necessity, which is often the perception of mergers, these credit unions saw a huge opportunity to expand their services by working together.

“The formation of North Wales Credit Union is a landmark for the credit union sector in Britain,” said Mark Lyonette, Chief Executive of ABCUL – the Association of British Credit Unions. “The merger demonstrates the importance of credit unions working together to deliver a wider range of services and provide the consistently high quality of service necessary to attract a mix of members.”

Credit unions around the world have shown that, to be successful, they need to serve as broad a range of consumers as possible – not just those on the lowest incomes – and to achieve this they must collaborate.

The merger will enable the new credit union to deliver improved levels of service, with a wider network of offices and collection points, improved opening hours, higher savings limits and larger loans. In addition, it will be able to offer a broader range of services, such as insurance, budgeting and financial planning, as well as extending access to the Credit Union Current Account.

The new credit union has received the backing of the Welsh Government, as they believe it will enable many more people to access local financial services.

Speaking at the launch, Carl Sargeant AM, Minister for Local Government and Communities, said: “Tackling poverty and social exclusion where it persists in our communities is one of my key priorities over the next five years. Credit unions are ideally placed to help achieve this.

“To do so, credit unions need to be financially viable and sustainable in their own right. Greater collaboration between credit unions has clear advantages – to the credit unions themselves, their members and the wider communities. Where appropriate, merger between credit unions should be encouraged.

“The experience here in North Wales is a positive one and shows how a merger can work well.”

According to the Board of North Wales Credit Union (NWCU), the merger will create a strong, viable credit union which supports both existing and potential new members, providing them with a safe home for their savings.

Chair of NWCU John Killion said: “This exciting union not only builds on the strong foundations laid by all the merging credit unions, but heralds a new range of products and services for members.”

The Department for Work and Pensions at Westminster recently announced a £73 million fund to support suitable credit unions to expand and become financially sustainable – helping up to one million more people access clearer and fairer credit.

For more information about North Wales Credit Union visit www.northwalescu.co.uk. To find your local credit union visit www.findyourcreditunion.co.uk.

To read other news from ABCUL click here.

Posted at 11^th July 2011

Credit unions must collaborate to fulfil their potential

by Ethos public relations

Delegates and guests at the summer reception of the All Party Parliamentary Group on Credit Unions at Westminster Abbey heard how the credit union sector must collaborate to fulfil its potential in Britain.

Rt Hon Iain Duncan Smith MP, Secretary of State for Work and Pensions, and Deanna Oppenheimer, Vice-Chair Barclays Global Retail Bank and Chief Executive UK Retail Bank & Western Europe, joined representatives and supporters of the British credit union movement at the event organised by the Association of British Credit Unions (ABCUL) and supported by Barclays.

Credit unions around the world have shown that, to be successful, they need to serve a broad range of consumers and not just those on the lowest incomes. To achieve this, in many parts of the world credit unions collaborate to deliver a wider range of services and provide the consistently high quality of services necessary to attract a mix of members.

Thanks to funding announced by Barclays two years ago, ABCUL has been able to pilot a number of back office services between credit unions, to demonstrate a business case for greater collaboration in the sector.

Secretary of State for Work and Pensions Iain Duncan Smith said: "This country lacks a savings culture and it lacks the strong institutions that people on low incomes rely on for fair credit. We know that debt is a key driver of poverty and can make it difficult for people to hold down jobs or build stable homes. And for far too long doorstep lenders and dishonest operators have been plaguing the homes of vulnerable people, who often have no other way to get cash when they need it most.

"This is exactly why we need credit unions to be supported and strengthened. We’re making a £73 million fund available that will support suitable credit unions to expand and become financially sustainable, helping up to one million more people access clearer and fairer credit. People need to have a local, trusted organisation to turn to when they are in financial need, not high cost lenders or local loan sharks, so we are doing everything possible to make sure they have that opportunity."

Deanna Oppenheimer added: “Credit unions provide an important range of financial products and play a vital role in tackling financial exclusion in the UK. Barclays is committed to supporting credit unions to build scale and capacity to help the sector grow and reach more people access financial products.” Deanna Oppenheimer recently took up the position of Chair of the Project Steering Committee, which is leading a Department for Work and Pensions feasibility study on future funding for the credit union sector.

“Here in Britain we need to make sure our offer to potential members is accessible and attractive enough for a wider range of people to join,” explained ABCUL President Antony Macrow-Wood. “Collaboration is about more than using a common banking platform, although we do need that. It’s about a change of culture; it’s about looking for benefits in collaborating in all areas of operations.”

There are now over 130 members of the All Party Parliamentary Group (APPG) on Credit Unions. Damian Hinds MP, Chair of the Group, said: “We are using our collective voice to help ensure that credit unions get the legislative environment they need, so that the collaborative approach we are calling for can make a real difference to the millions of people on low and moderate incomes in Britain.”

The Barclays Community Finance Fund award winners were announced at the reception. The successful recipients were Clockwise Credit Union, London Mutual Credit Union, Women’s Enterprise, Employment and Training Unit (WEETU), London Rebuilding Society and South Tyneside Credit Union.

The reception marked part of the credit union sector’s contribution to the Co-operatives Fortnight celebrations which run from 25 June to 9 July.

To read Iain Duncan Smith’s speech in full, visit the DWP website: http://www.dwp.gov.uk/newsroom/ministers-speeches/2011/28-06-11.shtml.

To read other news from ABCUL click here.

Posted at 30^th June 2011

Credit unions welcome crackdown on unscrupulous loan brokers

by Ethos public relations

ABCUL – the Association of British Credit Unions – has welcomed the new measures announced by the Office of Fair Trading (OFT) to tackle the unscrupulous practices of some credit brokerage companies.

The action follows a super-complaint from Citizens Advice which highlighted the upfront fees some credit brokers charge customers for sourcing an unsecured loan – only for no loan to be arranged.

In response, the OFT is publishing new guidance on the standards it expects of credit brokers and of debt management companies, and it is also asking the Government to consider new legislation to address problems in the sub-prime unsecured credit brokerage market, including a possible ban on upfront fees.

Many credit unions have reported enquiries from people who paid fees between £50 and £70 or more to such brokers for the referral – even though no credit union has any relationship with such companies and these enquiries are treated no differently from applications from new members who got the credit union’s contact details from freely available sources.

Mark Lyonette, Chief Executive of ABCUL, said: “We’re very pleased to see the OFT taking action against some of the most unscrupulous practices in the credit brokerage industry.

“In recent years, there seems to have been an explosion in the number of businesses specifically targeting people in difficult financial circumstances and generating profits from outrageous fees and charges.

“Credit unions have been inundated with enquiries from people referred to them by credit brokerage companies, and are rightly angered that financially vulnerable people have been persuaded to pay such brokers a hefty fee for what is essentially no more than a note of the credit union’s contact details.

“Anyone looking for a local credit union can find the information freely available at www.findyourcreditunion.co.uk, or call ABCUL on 0161 832 3694.”

To read other news from ABCUL click here.

Posted at 1^st June 2011

Turn your ash into cash with help from your local credit union and WeQuit.co.uk

by Ethos public relations

Smokers who need that extra push to quit could do so with the help of their local credit union and www.WeQuit.co.uk.

According to the charity “No Smoking Day” (March 9th), 60% of smokers say they would like to stop, but lack the motivation to do so or think it will be too hard. When they do give up for a short while, the money they are saving is not obvious because it gets absorbed in ordinary household bills and quitters cannot see the full benefit of the money they have saved.

Quitter Val, 60, says: “I realised that by not smoking I was saving money – at 200 cigs a week that was £60 a week, £240 a month I wasn’t spending on smoking, but I didn’t seem to have any extra money because I was spending it without noticing. So now I send a regular payment to my credit union account every month and am saving up for a holiday next year. On the rare occasions I feel like a cigarette, I think of the fun I’ll have on my holiday instead!”

Other quitters will put the money in a jar each time they would have bought a pack of cigarettes, and take the cash they’ve accumulated down to their credit union, to keep the money “out of sight, out of mind” until they need it. One lady commented that the money she saved represented “guilt free shopping” trips with her friends.

Mark Lyonette, Chief Executive of ABCUL – the Association of British Credit Unions, said: "Credit unions offer a safe and convenient place to put the money you save from quitting smoking. You can save as much or as little as you like, which means the cash that used to go on cigarettes can go towards something special instead, such as a holiday or Christmas. Many credit unions offer payroll deduction too, so savings come out of your wages before you get them and you don't end up spending the money on something else."

Vishnee Sauntoo from the No Smoking Day charity added: “Quitting smoking is the single best thing you can do for your health and you can save loads of money too! If you are a 20-a-day smoker, you can save £2,300 in a year if you give up smoking. You could put that money towards a new kitchen, a family holiday or even save it through your local credit union.

“No Smoking Day – 9th March – is the ideal day to quit smoking with millions of others trying too. For more tips and advice go to our online hub www.WeQuit.co.uk which includes an online forum with thousands of quit buddies. They’ll also put you in touch with your local NHS stop smoking services through their ‘how to quit’ page.”

To find your local credit union visit: www.findyourcreditunion.co.uk or call ABCUL on 0161 832 3694.

To read other news from ABCUL click here.

Posted at 9^th March 2011

Credit union delight at £73 million Government boost

by Ethos public relations

Mark Lyonette, Chief Executive of ABCUL – the Association of British Credit Unions, has welcomed today’s announcement that the Government is investing up to £73 million in credit unions over the next four years, and that the Post Office could play a central role in delivering credit union services.

"We are delighted to learn that the Government is going to make up to £73 million available to continue the expansion and modernisation of credit unions over the next four years. We also welcome the Government’s commitment to providing access to credit union accounts through the Post Office network.

“Credit unions have achieved great things in recent years working with the support of the Department for Work and Pensions through the previous Growth Fund, so we are especially pleased to learn today that new funding is being made available.

“Credit unions have shown they can provide the financial products and services that people on lower incomes need – and want – but often struggle to get elsewhere.

“By linking up with the Post Office, credit unions will be able to reach many more families, making access to credit union services – such as bank accounts, bill payments, safe savings and low cost credit – that much easier.”

To read other news from ABCUL click here.

Posted at 3^rd March 2011

ABCUL report encourages saving in secondary schools

by Ethos public relations

A new research report commissioned by ABCUL – the Association of British Credit Unions – looks at ways of encouraging saving in secondary schools.

The new report, ‘Encouraging saving in secondary schools’, sets out recommendations for creating successful and sustainable partnerships that allow young people to build their financial skills through practical experience of money management and examines the benefits of credit unions working with secondary schools to achieve this.

The research, which was carried out by ECOTEC Research and Consulting, showed that credit union projects are both viable and worthwhile in secondary schools, with promising evidence of positive outcomes of pupils’ money management, confidence and communication skills.

Speaking at the launch of the report, at a reception of the All-Party Parliamentary Group (APPG) on Credit Unions, Minister for Pensions Steve Webb MP said: "The Government is working hard to reinvigorate credit unions in Britain, but we recognise that a number of groups have a role to play in expanding credit union services including banks, the private sector, charities and organisations such as ABCUL. As Pensions Minister I have a natural interest in encouraging saving, and this research out today is a welcome addition to this debate."

Damian Hinds MP, Chair of the APPG on Credit Unions, added: “The research highlights the valuable role that credit unions can play in teaching secondary school children the importance of money management. This demonstrates how community organisations such as credit unions can actively help people take control of their lives.”

The report was sponsored by Home Retail Group as part of their ongoing programme to support the local and national communities in which they operate.

Cathryn Cotterill, Head of Regulatory Compliance, Home Retail Group, said: “We are excited by the possibilities of giving young people an opportunity to ‘learn through doing’, making real decisions about managing their finances. We hope that this report will encourage credit unions to form successful partnerships with secondary schools so that pupils can benefit from active participation in such schemes.”

Mark Lyonette, Chief Executive of ABCUL, added: “There is a growing interest amongst credit unions to work with secondary schools, which reflects new opportunities in the curriculum. Our research showed that credit unions, with their ethical and co operative credentials, are particularly welcomed by school staff as an alternative to the role of high street banks in supporting financial education within the curriculum.”

A copy of the report is available for download at:
http://www.abcul.coop/media-and-research/research/creditunionsandschoolsreport.

Posted at 16^th December 2010

Now there’s an easier way to find your local credit union

by Ethos public relations

Those searching for affordable loans and a safe home for their savings need look no further than a brand new website from ABCUL – the Association of British Credit Unions. www.findyourcreditunion.co.uk is an easy way for people to find their local credit union.

Around 80% of people in England, Scotland and Wales can join a credit union because of where they live, work or the organisations they’re members of, and this is growing all the time. Now there’s one place where they can find out about the credit unions they can use.

“Whether you want to save or borrow, chances are there’s a credit union near you,” explains Mark Lyonette, Chief Executive of ABCUL. “Now, for the first time, all of the 450 plus credit unions in Britain will be able to add their details to one website, making it easier to find a credit union – wherever you live or work.”

Credit unions are independent financial co-operatives, owned and controlled by their members and regulated by the Financial Services Authority. Almost one million people use a credit union in Britain.

Visitors to the new website can search for a credit union using their postcode, their employer’s name or details of any associations they belong to – such as trade unions or religious groups.

ABCUL is also relaunching its own website – www.abcul.coop – at the same time, with lots more news and information about credit unions.

Key to driving towards a successful launch was the design and development expertise of ABCUL’s newly chosen web supplier, netXtra. As specialists in the development of websites for membership and not-for-profit organisations, netXtra’s knowledge, experience and ongoing advice has been fundamental in getting both sites developed and launched on time and to the high standards expected by our members.

Posted at 29^th November 2010

Credit unions welcome Post Office plans

by Ethos public relations

ABCUL – the Association of British Credit Unions – has welcomed today’s policy statement from The Department for Business, Innovation and Skills (BIS) on its plans to secure the long term future of the Post Office. In particular, ABCUL is pleased to see a commitment to expand affordable and accessible financial services through Post Offices, for example by working with credit unions.

Mark Lyonette, Chief Executive of ABCUL, said: “We would like to congratulate the Government for recognising the importance of credit unions by firmly supporting a stronger link up between credit unions and the Post Office network. More needs to be done to ensure this happens and we welcome the support from Minister Ed Davey for the work we are doing.”

Making credit union services available through Post Offices would dramatically increase access to affordable credit, safe savings and other financial services for millions more people.

Mark adds: “It is good to see that the proposals received support from both sides of the House and we look forward to continuing to work with the Government on how best to achieve the link up.”

*Photo courtesy of Freedigitalphotos.net - Simon Howden

Posted at 9^th November 2010

Credit unions can help increase diversity in financial services

by Ethos public relations

Credit unions, according to Mark Lyonette, Chief Executive of ABCUL – the Association of British Credit Unions – are in an ideal position to help the Government achieve its aim of increasing diversity in financial services.

Speaking at a fringe event at the Conservative Party Conference, Mark Lyonette explained how credit unions now serve nearly a million people in England, Scotland and Wales and sought reassurance from Financial Services Secretary Mark Hoban that the Coalition Government would support the sector to expand and serve more people.

“Once new legislation is in place – and we sincerely hope that any further delays can be avoided – many more individuals, as well as local community groups and businesses,  will be able to access credit union services.  We are confident that everyone in Britain will soon be able to join a credit union and have the option of a mutual and local home for their money.

“I look forward to seeing how the Government’s aims of fostering diversity and promoting mutuals will translate into action to support the growth of the credit union sector.”

Financial Secretary to the Treasury Mark Hoban MP, who also spoke at the fringe meeting, said: “The Government supports credit unions as part of its policy commitment to foster diversity in financial services, promote mutuals and create a more competitive banking industry.

“I believe that strong credit unions, as part of a diverse financial services sector, will greatly enrich British society. It is in our interest, therefore, that the credit union movement should prosper and we are determined to help credit unions grow and expand into the future.”

Posted at 7^th October 2010

Avoid exorbitant overdraft charges with a Credit Union Current Account

by Ethos public relations

News that unauthorised current account overdrafts can result in exorbitant charges (up to 167% APR, on average) might have been a shock to many people – but not to those with a Credit Union Current Account.

The account – which is currently available from 25 credit unions around the UK, with more coming on stream all the time – offers a fair and affordable alternative and a greater degree of choice than currently provided by the high street banks. As there’s no overdraft facility, account holders are able to manage their money better – without the stress and uncertainty that many bank accounts bring.

“Credit unions aim to help their current account customers by not letting them go overdrawn. To achieve this, they deliberately do not offer overdrafts, which can cause so much misery if people unexpectedly run up huge charges,” says James Moran, Banking Services Manager at ABCUL – the Association of British Credit Unions.

“If there are not enough funds in your account to pay direct debits or standing orders, there is generally a small charge or fee when these are returned.

“Credit unions work with their members to help them manage their money rather than slapping huge charges on them when they go into the red.”

James adds that the Credit Union Current Account provides a fair and affordable alternative to the traditional bank account.

“When people say there’s not enough choice and the banks are treating them unfairly, more often than not there’s a credit union solution waiting for them locally. The Credit Union Current Account provides the perfect answer for anyone wishing to avoid overdraft charges.”

Credit unions are financial co-operatives owned and controlled by their members. To find a credit union near you visit www.abcul.coop.

Posted at 19^th July 2010

Minister sets out Government support for credit unions and mutuals

by Ethos public relations

Financial Secretary to the Treasury, Mark Hoban MP, yesterday confirmed the new Coalition Government’s commitment to credit unions and mutuals at a House of Commons reception organised by the All-Party Parliamentary Group on Credit Unions.

Mark Hoban explained the lessons that are being learnt from the recent past in the financial sector and set out the Government’s plans for supporting credit unions as part of its policy commitment to foster diversity in financial services, promote mutuals and create a more competitive banking industry.

“We are determined to help credit unions grow and expand into the future. But growth and expansion must be established on the basis of credibility – credibility that can only come as credit unions build sustainability. And it is in the interests of credit unions, the members of credit unions and the movement as a whole that sustainability is built.

“This Government believes that strong credit unions will greatly enrich British society, so it is in our interest to do whatever we can to help the credit union movement to prosper.”

Damian Hinds MP, the new chair of the All-Party Parliamentary Group on Credit Unions, said: “This is set to be an exciting time for the credit union movement with the new opportunities afforded by the Legislative Reform Order, partnership potential with the Post Office, and of course a much sharpened focus on debt as an issue at all levels. I am delighted the All-Party Group on Credit Unions has now been re-formed with very broad support, and I am sure we can play a helpful role in that agenda.”

Reverend Antony Macrow-Wood, President of ABCUL – the Association of British Credit Unions, said: “It is good news that the Government will support the valuable work of credit unions and we hope that the new legislation, which will make such a difference to the sector, will complete its passage through Parliament as quickly as possible.

“We look forward to working with the Minister, the new Chair of the APPG and its members, in the coming months and years, to create a credit union sector to be proud of.

“New legislation will help credit unions reach out to many more people. The work we are doing to develop a back office and extend our services through the Post Office will also make credit unions more accessible and convenient and we need to work together to achieve this.”

The reception was organised in conjunction with ABCUL – the Association of British Credit Unions – and supported by The Co-operative Bank, which has a long history of backing credit unions through preferential banking services and research. It was attended by credit union staff and volunteers, supportive MPs and Peers, and relevant stakeholders from across the consumer affairs, financial inclusion and financial services industries.

Other speakers included Debbie Wheeler, Head of Charity and Social Enterprise Banking at The Co-operative Bank. Commenting at the event, Debbie Wheeler said: “As a long standing supporter of the credit union movement, we are pleased that the new Government has made this commitment to develop the sector.

“Credit unions can play an important role in a diverse financial services market and, in particular, in helping to tackle financial exclusion.”

The reception also marked part of the credit union sector’s contribution to the Co operatives Fortnight celebrations which run from 19 June to 3 July.

Posted at 1^st July 2010

Credit union disappointment at Government decision to scrap Saving Gateway

by Ethos public relations

ABCUL - the Association of British Credit Unions – has expressed its disappointment at the decision announced by the Government in today’s Emergency Budget to scrap Saving Gateway.

Speaking on behalf of the sector, Mark Lyonette, Chief Executive of ABCUL, said: “Over 100 credit unions had already put in place plans so that they could start delivering the new savings product next month. They were looking forward to helping more low income consumers get the saving habit. It is disappointing that the Government should cancel this at the last minute.

“Credit unions will of course continue to work to encourage savings in their communities. They do this by providing easy ways to save and crucially by reducing the very high cost of credit for those on low incomes. This means people have more money in their pocket to start a savings habit. In the last four years credit unions have already helped nearly a quarter of a million people to save hundreds of pounds each in interest payments on small loans. We hope that the Government will continue to support credit unions in reducing the debt burden for low income consumers as a valuable way to encourage saving.”

Posted at 22^nd June 2010