A MATTER OF LIFE AND DEBT NEEDS YOU!
Do you remember the
very successful morning BBC series TV last autumn called ‘A Matter of Life and Debt’? This uplifting and
positive series highlighted the important work done by credit unions
up and down the country, as they helped people find loans to enrich or
change their lives.
Well, it is
returning to our screens in the autumn and the producers are looking for people
to take part. They
would love to hear from you if you have:
·
taken out a loan in the past when you were in desperate need
and wish to share your experience;
·
are planning on taking out a loan soon to bring about
a positive change in your life; or
·
managed to overcome your debt problems with
the help of the credit union and started saving as a result.
If you are
interested in taking part, please send your contact details and a brief
description of your story to the following email: lifeanddebt@curvemedia.com. Or call
the production team at Curve Media on 02920
329135. If you prefer, you
can speak to us here at the credit union and we can put you in touch.
KEN
FOSTER – ONE OF OUR FOUNDERS
We were sorry to
learn of the recent death of Ken Foster, one of the founders of North
Lincolnshire Credit Union. Our
Scunthorpe Branch activists have penned this tribute:
“Ken first became
involved with the world of credit unions when he responded to an advertisement
in the Scunthorpe Telegraph sponsored
by North Lincolnshire Council, appealing for people to set up a steering group
with a view to developing a Credit Union in Scunthorpe.
Ken was subsequently
elected Chairman of the steering group and was passionate about pushing forward
the development of a Credit Union as he could see the possible benefits for
local people. Everyone in the group
attended intensive training sessions provided by the Co-operative College and
Ken was enthusiastic about the training as it brought the dream closer.
European funding
allowed the purchase of the shop on Scunthorpe High Street and Ken spent many
hours utilising his skills as a retired builder in adapting the former
furniture shop to the requirements of the Credit Union: he liaised with
builders, building control and the fire service and ensured that the stringent
regulatory requirements were met.
In 2002, a small
community credit union – St George’s (Scunthorpe) – whose Board had joined the
steering group, changed its name to North Lincolnshire Credit Union (NLCU) and
extended its common bond to cover the whole county on a live or work basis,
allowing it to trade. Ken was in his element trying to attract members and
spent many hours and days sitting at the front desk, often alone, waiting for
people to come in.
At the inaugural AGM
of NLCU, Ken was elected Vice-President and he took his duties very seriously,
promoting the credit union vociferously whenever and wherever he could. As NLCU
grew, he always took his turn staffing the front desk, served on the credit and
marketing committees, interviewed volunteers and sat on the personnel committee
interviewing prospective staff.
As Ken’s health
declined, his presence at the Credit Union diminished but he still came in on 2
or 3 days a week to assess loans, and was always very particular to check the
person’s ability to repay.
Ken was fully behind
the merger of NLCU with HEYCU in 2015 and offered many insightful thoughts on
the way forward.
Sadly Ken’s health
declined further and for the last two years he was unable to play an active
part but he was always eager for news of the Credit Union and proud of the part
that he had played in its development.
After a long
illness, Ken died on 26 May and HEYCU and we here at the Scunthorpe branch have
lost a good friend. He will be greatly missed and our thoughts and condolences
go out to his family.”
WE WELCOME MOVES TO CAP HIGH COST CREDIT
As the Humber Region’s largest not-for-profit lender, we
welcome the Financial Conduct Authority (FCA)’s proposals to cap the cost of
borrowing from rent-to-own, doorstep and other high cost sources of credit. Here was my reaction to the news:
“We are totally opposed to lenders exploiting consumers by charging exorbitant rates for the credit that people need in order to afford their lives. Leading vulnerable people into unsustainable debt in order to maximise profits for shareholders is not an acceptable practice in today’s society. Credit Unions have had a legal cap on their interest rates since 1979 but because of our not-for-profit ethos, we have no desire to charge more than it costs to run our organisation. Any surplus we do make is returned to our members as a bonus on their savings.
“We are totally opposed to lenders exploiting consumers by charging exorbitant rates for the credit that people need in order to afford their lives. Leading vulnerable people into unsustainable debt in order to maximise profits for shareholders is not an acceptable practice in today’s society. Credit Unions have had a legal cap on their interest rates since 1979 but because of our not-for-profit ethos, we have no desire to charge more than it costs to run our organisation. Any surplus we do make is returned to our members as a bonus on their savings.
“Last year we were awarded a 5-star
Fairbanking Mark by the Fairbanking Foundation in recognition of the efforts we
make to support our members’ financial well-being. And in a recent study*,
Credit Union loans were found to have the least serious impact on mental health
whereas payday loans and unauthorised overdrafts had the worst.”
Since 1999 we estimate that we’ve saved our members
over £13 million in interest charges compared to what they would have paid by
taking similar credit from high cost providers.
The FCA has outlined a package of plans for
rent-to-own, doorstep lending and catalogue shopping and says rent-to-own shops
that sell appliances and furniture for small weekly repayments could face a
price cap similar to the limits on payday lenders. It quoted examples where
people have paid over £1,500 for essentials like an electric cooker which could
be bought on the High Street for less than £300. It believes the harm caused in
this market, used by three million people in the UK, is sufficient to justify
considering a price cap.
We would like to remind members that our website has a
link to the online Co-operative Electrical store which offers an
impressive range of domestic appliances, TV, audio, computers, games and
beds. When taken with a Credit Union
Loan the weekly payments are many times cheaper than those weekly payment
stores referred to by the FCA. Why not
take a look?
* Royal Society for Public Health Report – Life on Debt Row: https://www.rsph.org.uk/our-work/policy/wellbeing/life-on-debt-row.html
NEW DATA
PROTECTION REGULATIONS
Over the last couple
of months, you’ve probably been bombarded with messages from organisations that
you have signed up with (and probably some that you haven’t) telling you how
they plan to comply with the new data protection laws, known as the General Data Protection Regulation
(GDPR for short). So we won’t add to
the burden. But we do want to reassure
our members that it’s Credit Union policy to take great care of your personal
data, as you’d expect of an ethical member-owned organisation.
We’ve recently
updated our Privacy Policy (view here) and invited members to opt-in so that
they continue to hear about our products, services, special offers and so on. (Please note that, by law, we must send all
members notices of our AGM and other membership information whether you opt in
or not). But we try not to overload you
with contacts – one email newsletter per month is our usual practice. And, of course, we never sell or pass on your
personal data to other organisations for marketing purposes, because we know
that most members wouldn’t be happy with that.
Rest assured, if you wish to opt out of marketing at any time, you only
have to let us know and we will remove you from those lists.
VISITS TO
DWP WORK SITES
Recently, I spent a
day at the DWP Pension Centre at
Seaham on the North-East coast, meeting groups of staff. We’ve provided savings and loans by payroll
deduction to over 1,200 DWP colleagues for nearly two years now, but my visits help
to make more of them aware of this popular staff benefit and tie in well with
the financial element of their Health & Wellbeing at Work initiative.
The day’s agenda
included pre-arranged talks to groups of staff, who all seemed very interested
in what I had to say. Across lunch time,
we had a stall in the foyer to catch anyone passing by for a quick chat, when I
was accompanied by a colleague from the DWP Wellbeing Group, which helped to
draw people into conversation. The
feedback from the day was very positive and 20 more members signed up:
“I found the session
extremely informative and it gave me food for thought”
“John delivered the
session clearly, without jargon, and fully explained what the credit union is
about and what they can do for us”
“The fact that if
you choose to save with them it comes straight off your pay makes it very easy
to use”
“The loans they
offer are comparable to a lot of High Street offerings”.
If any other DWP
sites would like a visit, please contact info@hullandeycu.co.uk
STREET
GAMES CLUB MEMBERS “IN THE MONEY”
We’ve been working
with the Loan Sharks Team and a
group of Street Games sports groups
to give young people an opportunity to deposit money into a Junior Savers
account each time they attend a session.
For many youngsters it’s the first time they’ve had an account in their
own name and they love watching their savings grow.
At Andrew Marvell Youth Centre on Bilton
Grange the organiser, Margaret Montgomery, says the project has proved very
popular with both members and parents.
“As a group, the issue of Loan Sharks or Illegal
Moneylenders is explained to members. Because of all the media attention they
do know a little about it, and the effects it has on people’s lives.
“We currently have
over 20 regular savers and the response has been fantastic both from members
and parents. Parents say it’s great because it’s easy to pay in at
sessions.
“We encourage
members to save, not only for the initial 3 or 6 weeks but with a long term
goal in mind. Some for a school skiing
trip next year or family occasions and treats.
The £25 Loan Shark bonus is a great incentive to start savings accounts.
We have offered additional small incentives along the way if savings kept up. We found that even though they bring 50p/£1
for their cards, members often put in change or unspent refreshment money as
well.”
The £25 bonuses
offered by the Illegal Money Lending
Team are funded from Proceeds of Crime money confiscated from loan sharks,
so it is very satisfying to see it doing some good by going back into the
communities where the illegal lenders caused such misery.
NEWS FROM
DRIFFIELD
During this Volunteers Week 2018 we’d like to pay
tribute to two of our longest serving volunteers, upon their retirement. Edwin King and Billy Briggs joined our Driffield
branch shortly after its opening in 2005, and their enthusiasm, dedication, and
regular commitment over the years was undoubtedly a major factor in its growth
and development within the town. At a pleasant lunch held in the Original Keys
Hotel, I said “thank you” for the considerable contribution volunteers like
Edwin and Billy make to the success of our Credit Union.
LOAN SALE
2018 PROVES A BIG SUCCESS
Our Spring Loan Sale
has proved more popular than ever before and lots of members have commented on
how low our interest rates are compared with similar loans at the High Street
banks. As a result, our loan book is up
by over 30% compared with the same period a year ago, and our members are
benefiting from some great deals.
Looking for a loan
of £2000 to £7,500? Apply before 15
June to be sure of 15% off the rate! Find out more.
