Tag Archives: credit union

International recognition for Islington Council and London Capital Credit Union

Islington Council and London Capital Credit Union recognised

Islington Council’s work in support of its local credit union is to gain international recognition as it hosts a group of senior managers from Singapore this week.

Richard Watts from Islington Borough CouncilThe group from the Singapore National Co-operative Federation will be greeted by the Leader of Islington Council, Councillor Richard Watts, at Islington Town Hall, before visiting the offices of the credit union in Archway.

The delegation will meet with representatives from Islington Council and London Capital Credit Union at the Town Hall and will hear how the council has supported London Capital Credit Union to become the success it now is and how this benefits residents across the borough.

The group will then visit the credit union to speak directly with members and staff about the credit union’s mission and the way it encourages saving and responsible lending to residents in Islington and beyond.

Cllr Watts said: “These are difficult times for hard pressed families in Islington and beyond, as many people deal with the rising cost of living.

“Multiple loans from payday lenders are a pathway to deeper poverty, and the council has taken action to support residents to avoid getting into problem debt.

“Part of this work has been to support London Capital Credit Union, as an accessible and affordable way for people to deal with their finances.

“I am very pleased to be supporting this organisation and the excellent work it does in Islington, and I look forward to meeting our colleagues from Singapore.”

Islington Council supports The London Capital Credit Union Ltd with a one-off grant of £250,000 and annual revenue support funding of £25,000.

Martin Groombridge, Chief Executive of London Capital Credit Union, said: “Credit unions are an ethical alternative to banks and other high street lenders and their way of working is designed to benefit all members.

“We are always pleased to be able to share our knowledge with others around the world and we look forward to meeting the delegation from Singapore and welcoming them to London, and to Islington in particular.”

Credit unions in Britain have been growing consistently over the past few years as they become better known and they now have almost 1.3 million members across the country.

Added Martin Groombridge: “Over the last ten years, London Capital Credit Union has seen a huge 1,400% increase in members’ savings from £436,000 to over £6 million. And as a co-operative, we are proud that London Capital Credit Union is owned and controlled by its members – not outside shareholders.”

Find out more at www.credit-union.coop.

London Capital Credit Union commits to London Living Wage

One of London’s largest member-owned financial businesses has become a London Living Wage employer to demonstrate its commitment to its employees.

The London Living Wage award marks the continuing commitment by London Capital Credit Union in Archway, where, regardless of whether they are permanent employees, third-party contractors or suppliers, everyone receives a minimum hourly wage of £9.40 – significantly higher than the current national minimum wage of £6.70.

The London Living Wage is set annually by the Living Wage Foundation and calculated by the Greater London Authority. It covers all boroughs in Greater London. The UK Living Wage for outside of London is currently £8.25 per hour. The UK rate is set annually by the Living Wage Foundation and calculated by the Centre for Research in Social Policy at Loughborough University.

Felix Hebblethwaite, a director at London Capital Credit Union

Felix Hebblethwaite, is a director at London Capital Credit Union

Felix Hebblethwaite, a director at London Capital Credit Union, said: “A key principle of the co-operative movement – of which credit unions are a part – is to champion the sustainable development of the communities in which we operate. At LCCU we believe that paying our employees appropriately is an important step forward in achieving this objective.”

Employers choose to pay the Living Wage on a voluntary basis. The Living Wage enjoys cross party support, with public backing from the Prime Minister and the Leader of the Opposition.

Living Wage Foundation Director Sarah Vero said: “We are delighted to welcome London Capital Credit Union to the Living Wage movement as an accredited employer.

“The best employers are voluntarily signing up to pay the Living Wage now. The Living Wage is a robust calculation that reflects the real cost of living, rewarding a hard day’s work with a fair day’s pay.

Added Felix Hebblethwaite: “We are proud to be a London Living Wage employer and we would encourage other employers within London to do the same.”

Find out more about London Capital Credit Union at www.credit-union.coop. Find out more about the Living Wage at www.livingwage.org.uk.

Record year for London Capital Credit Union

London Capital Credit Union logoLondon Capital Credit Union has had a record year, with more and more people turning to them for help with low cost loans and secure savings.

The credit union has seen a 47% increase in membership in the year ending September 2014 to 10, 062 members. It has also seen a 62% increase in loans to members to £5.6 million, but at the same time has seen members’ savings increase by 59% to £6.6 million.

Martin Groombridge, Chief Executive of London Capital Credit Union, said: “Our growth means that we are now helping over 10,000 people keep clear of payday lenders and other high interest doorstep lenders. As a member-owned co-operative, we are driven to improve the financial well-being of our members.

“For too long people in our communities have been exploited by money lenders with a focus on profit and greed. Credit unions like London Capital are fighting back by offering fair and affordable loans and savings and we’re pleased to be helping record numbers of people.”

London Capital Credit Union is dedicated to promoting saving and helping people deal with debt. It provides secure savings and low cost loans for anyone living, working or studying in Barnet, Camden, City of London, Hackney, Haringey or Islington. As a locally owned and run co-operative, all the money saved in the credit union stays in the community.

Martin Groombridge said: “We estimate that our members will have saved £6.5 million in interest, charges and fees by switching their borrowing to us from payday lenders and other high interest lenders.”

A loan from a credit union such as London Capital Credit Union will result in lower repayments than from a payday lender or a doorstep loan.

“That’s where people taking our loans in London can really benefit,” explained Martin. “What’s more, our ‘Saver Loans’ are designed to help people get into the savings habit, without racking up high interest charges.”

A typical £1,000 loan from the credit union, paid back over one year, would cost a total of just £67 in interest. This is a tiny fraction of what it would cost to borrow from a payday lender, for instance.

“That extra money stays in the local economy,” says Martin, “which has to be good news for everyone.”

Find out more at www.credit-union.coop.

 

 

Radio Taxis Credit Union to merge with London Capital

Members of Radio Taxis (London) Credit Union have unanimously voted to merge their credit union with London Capital Credit Union.

London Capital Credit Union logoThe merger will see the formation of an enlarged organisation with some 11, 000 members and £7m of assets.

Speaking about the decision Gordon Brown of Radio Taxis Credit Union said: “There is a greater need than ever for a more ethical source of financial services. People are still paying too much for borrowing and being discouraged from saving. This merger will make a larger and stronger Credit Union that will better serve many more thousands of people in years to come.”

Martin Groombridge, Chief Executive at London Capital Credit Union welcomed the vote. “We are very pleased to be welcoming the members of Radio Taxis Credit Union to London Capital and we are already looking forward to offering their members the full range of our products including our full online service.”

Radio Taxis Credit Union was set up to help London taxi drivers and their families get access to affordable credit and secure savings. Says Martin: “As a member-owned financial co-operative we offer all our members affordable credit and advice to help reduce debts and we welcome the opportunity to offer this to our new members.”

Martin added: “Credit unions across the UK are dedicated to serving the needs of their members and we are proud to be offering an alternative to the High Street banks and rip off rates charged by payday lenders and many other finance providers across London.”

Find out more at www.credit-union.coop.

Donation to help offer affordable finance

London Capital Credit Union logoA donation of £10, 000 to London Capital Credit Union will help bring affordable loans to those in the shadow of the City of London’s financial centre.

Linklaters, a leading global law firm, has made the donation to help spread the word about credit unions and affordable credit. The donation is part of Linklaters’ commitment to making a positive impact on the neighbourhoods they operate in and providing business support to marginalised communities in areas around their offices.

Speaking about the donation, Martin Groombridge, Manager at London Capital Credit Union (LCCU), said: “As a community based financial organisation we are always keen to work with others to help bring our services to more people in need of debt advice and affordable credit.

“We will be using this donation to promote the credit union to many more people in the communities in which we operate, helping to bring affordable financial services to those who need them and keeping people out of the clutches of payday lenders and loan sharks.”

Matt Sparkes, Global Head of Corporate Responsibility at Linklaters, said: “As a Living Wage employer, we recognise the importance of ensuring all of our people can maintain a good quality of life. Our investment in LCCU strengthens this commitment by enabling them and others to borrow at fair rates and with a lender who is focused on their wellbeing. We would urge other businesses to also show that they want the best for local people and so invest in this important initiative.”

To find out more about becoming a member of London Capital Credit Union, please visit www.credit-union.coop.

MPs put their money where their mouth is

Parliamentary LMCU logostaff, including MPs, can pay into a credit union via payroll deduction, thanks to a new service launched on Monday 25th November.

Agreements with the Parliamentary authorities mean that anyone working in the Palace of Westminster can now join London Mutual Credit Union and save or repay loans direct from their wages.

The initiative was launched at an event in Parliament hosted by the All-Party Parliamentary Group on Credit Unions and London Mutual Credit Union. Money saving expert Martin Lewis spoke at the launch and also became a member of the credit union.

Credit union partnerships are a cost effective way for employers to enhance the financial well being of employees and payroll deduction makes saving and borrowing easy and convenient. The Parliamentary authorities are the latest in a long list of employers to offer this benefit to their employees. Staff working for the police force, public transport employers, British Airways and the NHS are just some of the people who already enjoy the convenience of payroll deduction.

Martin Lewis said: “With the growth scourge of payday lending across the UK – credit unions are a viable, cheaper, non-profit local alternative and should be encouraged. Therefore today I hope to be excited at the launch event to see senior MPs and even Government Ministers giving the London Mutual their backing by joining up and making use of the deduction facility. It’ll be interesting to see who puts their money where their mouth is.

“This extra income for the credit union can then be lent back out to the community as affordable loans, stopping the need for many to resort to the use of high-cost credit and demonstrating the benefit to both sides of the financial equation of becoming a member.”

Damian Hinds MP, Chair of the All-Party Parliamentary Group on Credit Unions, said: “I am delighted to see London Mutual Credit Union extend its services to all of those working in and around Parliament. Partnering with employers and payroll deduction arrangements can have enormous benefits for credit union development while providing a valuable financial service to workers and employers.”

Lord Kennedy of Southwark, a Vice Chair of the APPG on Credit Unions, said: “In extending to Parliamentarians and Parliamentary staff, London Mutual will ensure that even more people can benefit from their excellent, affordable and ethical services both in Parliament and in the wider community. And I hope that in making personal use of London Mutual, many more MPs will be persuaded of the great value that credit unions generate for their members and society.”

Lucky Chandrasekera, London Mutual Credit Union chief executive, said: “It is fantastic to be launching our Parliamentary service today which is a goal we set ourselves some years ago. We hope by launching this service for Parliament that we can demonstrate the value of credit union membership on a daily basis to MPs and the wider Parliamentary staff. We have a range of competitive products and services for Parliament to take advantage of.”

ABCUL Chief Executive Mark Lyonette said: “The value of payroll deduction is not to be underestimated for all parties concerned. This high profile addition to employers offering this service is very welcome. The vast majority of large employers in the US – including the White House, Congress and Senate – offer this facility to their staff and I hope that many more will follow this example and talk to their local credit union about how they can help their employees access convenient financial services through payroll.”

Credit unions are financial co-operatives, owned by their members, which provide safe savings, affordable loans and a range of other financial services to over a million people in Britain.

London Mutual Credit Union is the largest community credit union in London. It serves over 20,000 members in the London Boroughs of Southwark, Lambeth, Westminster and Camden. Members have access to a range of savings and loan products, including the Credit Union Current Account and a cash ISA offering 3% AER.