Credit Union to help Bury residents

Plans to set up the borough’s first Credit Union are being closely examined by Bury Council and Six Town Housing.

The aim is to help individuals and families who are struggling with their budgets and are unable to use mainstream financial services.

Credit unions are not-for-profit co-operatives that are owned and controlled by the members who use their services. People save what they can into them, and only borrow what they can afford to repay. They can also offer a range of other financial products such as life insurance, financial advice and bill-paying services.

They have grown over the last decade and there are now more than 400 credit unions across the country, with almost one million members and assets approaching £900 million.

Under plans agreed by the council’s cabinet on Wednesday (11 April), the council and Six Town Housing will develop the proposals and identify the resources needed to set up a credit union.

Councillor Sandra Walmsley, cabinet member for community development, said: “The current economic climate, and increasing levels of debt relating to everyday expenses such as food and fuel, is adding to the financial exclusion felt by many, while around 20% of people do not have a bank account. The setting up of a credit union in Bury will promote responsible saving and borrowing. ”

And Cllr Tony Isherwood, cabinet member for finance and resources, said: “This should give people better access to financial services including affordable loans; reducing debt and promoting an ethos of saving and financial understanding; keep money within the local economy; remove barriers to work; and protect rent income following the recent benefit changes introduced by the Government.”

A feasibility study in Bury revealed widespread support for a credit union – more than 650 responses were received, with 86.7% saying they backed the idea. Some 63% of the responses came from STH tenants.

John Merrick, Director of Neighbourhoods for Six Town Housing, said:  “The current economic downturn continues to adversely affect people and is having a negative impact on many households. Discussions have been ongoing for some time on whether a Credit Union should be set up in Bury to help mitigate the challenges of the recession and support residents.

“It is really pleasing to announce that Six Town Housing and Bury Council are committed to exploring options to set up a credit union in the borough'. We are doing all we can to support residents during these difficult times and the development of a Credit Union is an important part of the jigsaw. Once developed, the Credit Union will be open to anyone who lives or works in the borough. It will enable local people to save with a trustworthy organisation and borrow money at affordable rates; something that is not available for many of Bury's residents. We hope to have the Credit Union up and running sometime this year.”

ENDS

Press release issued: 18 April 2013.