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.”
