Avoiding payday lenders and building up savings

london capital credit union headerLondon Capital Credit Union is a not for profit co-operative dedicated to promoting saving and dealing with debt. It provides secure savings and low cost loans for anyone living, working or studying in Barnet, Camden, City of London, Hackney, Haringey or Islington.

london credit union opening ceremony Because it is largely volunteer run and has no outside shareholders it can offer low cost and flexible loans to its members.

london credit union mapThe main objective of the credit union is to encourage people to save rather than borrow.

Savings form a pool of money, held in trust, and can be withdrawn within five working days on demand. Any member can apply to borrow from this pool of money.

In the year ending September 2014, London Capital had 10,062 members – a 47% increase. Members’ savings have increased by 59% to £6.6m and there has been a 62% increase in loans to members to £5.6m.

Martin Groombridge, chief executive of the union, said: “Our growth means that we are now helping over 10,000 people to keep clear of payday lenders and other high interest doorstep lenders . . .

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

radio taxes logoIn September, members of Radio Taxis Credit Union voted unanimously to merge with London Capital Credit Union, in a move that will create a new organization holding £7 million of assets. Read more in the Co-operative News: http://www.thenews.coop/91295/news/credit-unions/london-borrowers-look-to-credit-unions-as-payday-alternative/ and on the LCCU’s website: http://www.credit-union.coop/

All credit unions are regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Deposits in credit unions are protected by the Financial Services Compensation Scheme up to £85,000. This search facility may be used to find out where credit unions are located.

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