JOHN’S BLOG – JANUARY/FEBRUARY 2019

Here are HEYCU we’ve now ‘resurfaced’ after the most hectic Christmas season ever!   We issued the highest ever number and value of loans as well as record pay outs of Christmas Savers - £806,000 in fact.    On top of all that we had our year-end accounts to put to bed and an AGM to arrange.  So a big well done to our staff and volunteer family for coping so well and keeping the ship on course.

Here’s a round-up of the past few months’ activity:

OUR AGM  

We were pleased to welcome over 80 members and guests to Hull’s splendid Guildhall on 11 December. A big part of what makes credit unions so different from banks is the ability of member-customers to take part in shaping our future by asking questions of the Directors and voting on the big decisions.   As well as an increased dividend on savings, members voted to disband the Credit Committee and to extend our field of membership to include more Government departments and all who live or work in postcode area YO (North Yorkshire).

Thank you to members attending for their great feedback: All had found attending a positive experience and we will ask for the chairs to be spread out a little more next time.

£100,000 SHARE OUT

Following our much improved financial results we posted a dividend of 1% to all members’ savings accounts the day after the AGM – based on the average daily savings in the year ended 30 September 2018 – that’s nearly £100,000 from the rewards of mutual trading going back into the pockets of our members.   If we were a commercial business, the money would most likely have been sucked out of our community, away to the City of London or even a foreign tax haven!

WHY DISBAND THE CREDIT COMMITTEE?

At the AGM it was explained that the growth of the credit union and changes to the way loans are processed had reduced the need for a members’ committee.  When we started 20 years ago, each and every loan was looked at individually by the Credit Committee, who met specially on a Thursday evening to go through them.   On Friday mornings our office phone was red hot as members called in to find out if their loan had been granted! 

Before long that was no longer practical, and we appointed staff loan officers with the professional knowledge to underwrite loans, following policies set by the Committee and Board.  Gradually the Credit Committee’s role moved on from making loan decisions to one of oversight – checking that its policies were working and tweaking them as necessary.  The Board of Directors became more involved in loan strategy too, as we made growing the loan book a key part of our annual business plan, recognising that it is a major driver of our future sustainability. 

As in many credit unions of our size the need for a Credit Committee had passed and the AGM agreed to disband it (in line with the Rules), with a big “thank you” to all members who had served it so diligently over the years.

AIMING HIGHER 

A nice touch at the AGM was the presentation of £735 to our Charity of the Year, Aim Higher.  The funds raised by staff and members during 2018 will make a difference to the charity, which supports families challenged by mental health, autism and learning difficulties. It was my pleasure to meet some of them at their monthly drop in session at 171 High Street, Hull on 9 January, when I explained the different ways that we help families to make the most of their money, for instance Christmas saving, junior savings accounts and our Child Benefit Loans.

We are currently consulting with staff, volunteers and our local member groups to select our 2019 Charity of the Year, so watch this space!

REFER A FRIEND PRIZE DRAW

  

In the run up to Christmas we encouraged members who were happy with our services to ‘refer a friend’ and many did so.  Our computer randomly selected two lucky members – Simone Priestman of Greatfield, Hull and Helen Harper of Newport, Brough – to each win a £50 shopping voucher.  Just in time for those New Year Sales!

BUSY WINTER IN WINTERTON 

The start of 2019 has seen a big increase in credit union activity in Winterton, North Lincolnshire where we have a weekly contact point in the Co-op Store, supported by Winterton 2022 Big Local project.  On 16 January we relaunched the Pennies 2 Pounds school bank at the Infants School which now takes place every Wednesday at the end of the school day.  Penny our pennywise penguin waddled into the opening session, much to the delight of the children, who received a piggy bank and £1 to start their savings off.  Patrick, our man in Winterton, is also presenting some money information sessions at the Hub and the Cornerstone Café on alternate weeks for the benefit of local residents.

WITHERNSEA NEXT!  

Last time we mentioned our ambitious plans to make Withernsea a Credit Union Town.  We’ve now received approval from the funding body, Big Local, to recruit a Development Worker to spearhead our expansion project.  As I write the closing date for the role has passed and we hope an appointment will soon be made.  We know the local community is very enthusiastic about it; as usual we are taking a different approach to the big banks who are retreating from such towns at an ever faster pace.

LINCOLNSHIRE CO-OP SUPPORT FAIR FINANCE 

We are most grateful to our friends at Lincolnshire Co-op for including HEYCU in their current Community Champions.  The scheme is their way of giving back to local communities.  Since it launched in 2013 they’ve helped hundreds of local charities and groups, raising amounts from £200 to over £200,000.  Every time a Co-op member shops in their branches they make a donation to a good cause, chosen by their staff and members for a three month period.  The theme, from December 2018 to March 2019, is financial well-being and we are to benefit from donations made at Crowle, Bransholme and Molescroft Co-ops.  If in an area served by Lincolnshire Co-op, please support their stores – they are one of the UK’s leading Co-operative businesses.

OUR MEMBERS’ LOTTERY 

One way that our own members can support our ongoing development is by joining our Members’ Lottery.  For just £1 a ticket, deducted monthly from your savings account, you get the chance to share in a monthly prize fund of around £600.  The top prize is usually £250, with several others ranging from £75 to £10.  At Christmas time there are triple prizes to win!   60% of the ticket proceeds are paid out, with the rest supporting our training and development activities.  We are grateful to the Hull Branch of UNISON, the public service union, for kindly sponsoring some prizes again throughout 2019.

ENGAGE ACCOUNT RELAUNCH 

With the coming of the Universal Credit benefit system to Hull and East Yorkshire, many more people are needing a transactional banking facility, to help them manage their monthly benefit payments, and some would clearly prefer to bank with their local credit union.  Although we can no longer offer our own Current Account, we work with a partner called Engage to provide a VISA card, exclusive to credit union members, with many useful features.   We’ve recently relaunched this account, with a lower monthly fee of £2.99.  Find out more here.

BIG ANNIVERSARY YEAR  

2019 is a very special year for our Credit Union – on 10^th June it will be  20 years since we were founded.  We are looking forward to celebrating this special anniversary with our members old and new.  If you have any bright ideas for ways that we might mark the occasion, please let us know!  We’ll keep you updated with our plans as the year unfolds.

WHAT’S IN A NAME? 

Our credit union has come a long way in 20 years and its shape and size is nothing like it was when formed, covering not only the entire Humber Region but also the work family of national employers like the DWP.  We hope we haven’t lost any of the personal touch or friendliness of those early days.

However, we have reached the point where we need to think about our trading identity and how relevant it is to all our members.  Our official name is, and will remain Hull & East Yorkshire Credit Union.  But perhaps it’s time to consider a different trading name – one that: is relevant and acceptable across all parts of our common bond; is short and simple to fit easily on to shop fronts, posters and leaflets; but pays due regard to our proud heritage (ie where we first began).

We have therefore started to experiment with using HEY Credit Union in our communications, and would be interested to have your feedback on this.  One member called it a “cool name”, saying it acknowledges our roots but in a modern way.   Changing a trading name is not to be done lightly – as lots of businesses have found to their cost – especially when we’ve worked hard to build up a respected brand.  But, this is your credit union, and we’d really welcome your views as we approach our 20^th anniversary.

Keep an eye on our Facebook and Twitter pages to stay up to date with our news, offers and events.

JOHN’S BLOG – SEPTEMBER 2018

A lot has been going on here at HEYCU over the summer, so let’s have a catch up with our news:

Lanarkshire Credit Union Visit

We were delighted when Myra and Carolann of Lanarkshire Credit Union paid us a visit, and showed us the wonderful Savvy Savers game that they have developed to get children of all ages interested in good habits with money.  Jo Evans, our Goole Development Officer, is very excited about testing out the game with our Pennies 2 Pounds schools this autumn and has promised to give feedback to our friends in Lanarkshire.  Who said money management has to be dull?

Goole & District Members’ Group

On 20 July the Group arranged a Cupcake Day in the local branch to raise funds for HEYCU’s Charity of the Year, Aim Higher.  It created a lot of interest in the local community and raised over £100 from the sale of cupcakes and draw tickets.  A special “thank you” to our amazing credit union members and their friends who kindly baked cakes and buns to support the venture!

 

The Group’s next meeting on Wednesday 26 September from 6 pm returns to the Lowther Hotel in Aire Street for a fun evening including a chance to play Savvy Savers, a prize draw and an update on the branch improvements project.  All HEYCU members in the Goole & Howdenshire area are most welcome to come along.

Northern Lincolnshire Members to benefit from data merger

On 27 July we closed all branches earlier than usual to complete a data upgrade, which merged the Northern Lincolnshire and Hull & East Yorkshire parts of the organisation on to a common platform. NLCU members now have 24,000 added to their Member Number (so for example, NL member 1,080 becomes 25,080 in the enlarged credit union).   This means they can register on the HEYCU website to view their overnight balance and recent transactions, and they can use any HEYCU branch to make deposits and withdrawals with ease.  

Ongo Carnival

Once again our Credit Union had a stand at the Ongo Carnival which took place in brilliant weather in August.  Tracey and Sarah from our High Street, Scunthorpe branch were there to meet the crowds and explain how our safe savings and affordable loans help everyone make the most of their money.  It was a day out to remember.

Credit Unions now serve nearly 2 million people

The latest data published by the Bank of England, for the financial year 2017, illustrates the rapid of growth of the British credit union movement in the last decade. Since 2008, membership has increased from just over 650,000 members to just under 2 million, and they now have assets worth over £3.1 billion.

Credit unions in England now serve over 800,000 members, with £730 million in savings and over £500 million out on loan. Scotland’s credit unions serve almost 400,000 members, or 7.4% of the population. Credit unions particularly thrive in Glasgow where 25% of residents are members of their local credit union. Scottish members now have £520 million in savings and total assets of over £600 million.   Welsh credit unions are serving almost 80,000 people, who have £40 million in savings and are currently borrowing £22 million.

Meanwhile, figures published by the World Council of Credit Unions (WOCCU) echo this growth on the global stage. In 2006 46,000 credit unions served 172 million people worldwide across 97 countries. However, the most recent WOCCU statistics show that by 2006 68,000 credit unions were serving over 235 million people in 109 countries. 

Clearly, credit unions are becoming more popular than ever. With nearly 2 million members in the UK it shows that more and more people from all walks of life trust credit unions as a place to save, as well as a great option for loans and other financial services.

“By the seaside, beside the sea…”

We have been working on exciting plans to expand HEYCU’s presence in Withernsea, with support from the Withernsea Big Local Steering Group.  Once approval is obtained from Big Local headquarters, they will be making a social investment in our credit union as part of their aim to improve the financial well-being of Withernsea residents over the next three years. 

I was pleased to be invited to speak at Withernsea Big Local’s annual public meeting in the Shores on 13 September when I outlined our vision for Withernsea to become a Credit Union Town, where local people can easily access responsible not-for-profit savings and loans, making it a “no go area” for “rip-off credit” such as doorstep lenders, payday lenders, weekly payment stores and loan sharks.  We’ll have a local development worker to build up business, support our volunteers and work with the community; wider opening hours and new school banks.  Those present were very supportive of the idea, and we can’t wait to get started!

Meanwhile, up the road at Hornsea, a group of residents and the Town Council asked us to consider opening there, after the town lost its last High Street bank.  We ran a consultation in Hornsea Community News over the summer to find out more about their needs, and it appears there would be some support for a weekly volunteer-run branch there.  Watch this space!

Goodbye Wonga

The end of the “payday lender” Wonga in August didn’t come as a total surprise, after it collapsed under the weight of complaints and compensation payouts relating to its activities before the Financial Conduct Authority (FCA) clamped down in 2014 with an interest rate cap and other expectations about affordability assessments. 

Responding to the news, ABCUL Head of Policy & Communications, Matt Bland, said: “Few will shed a tear over the demise of Wonga, whose high-profile marketing and sports sponsorship at their peak made them by far the best-known payday lending brand.  But the closure of Wonga should not be confused with the end of high-cost lending.   While the FCA’s consumer credit regime produced some improvements in practices, lenders continue to grow and lend to people who find difficulty accessing mainstream credit.”

Personally, I have never warmed to the idea of so-called payday lending.  I believe it to be just a slick marketing term, invented by Wonga and others, to make a disreputable practice sound respectable.   What sounds like a great idea – just borrowing until next payday – was all too often a hook to lure people into a spiral of uncontrollable debt.  If you can’t manage until this pay day, what chance have you next time when, on top of all your usual bills, you’ve a high-cost payday loan to settle?  Hence the frequent need to roll-the debt over, and before you know it you’re saddled with a near permanent debt at 1000%+ APR.

Far better the credit union alternative, which has people’s financial well-being, not the lender’s profit at its heart.  We lend the smaller sums that banks won’t consider, but at reasonable rates of interest, and over sensible periods.  We also encourage people to save, which is the only long-term route out of a cycle of debt. 

Lord Mayor of Hull’s Centenary Plaque

We’re very honoured to have one of the Lord Mayor’s Centenary Plaques on our Hull Central branch building.  It commemorates Lord James Peddie, who was a leading figure in the co-operative movement from the 1930s to the 1960s.  As we are a co-operative, the Lord Mayor thought we would be a fitting location for his plaque.

The Lord Mayor’s Centenary Plaques were established to mark the 100 year anniversary of the creation of the role of Lord Mayor in Hull.  They recognise one hundred pioneers from our city that have achieved great distinction in their various fields, from scientists to explorers, ground breakers and campaigners who have made a difference on a local, national and international level but have their roots in Hull.    You can download an app, available FREE from Apple Store and Google Play and use it to find plaque locations and discover more about the Hull 100.

FitBit Prize Draw – hurry to get in the Prize Draw!

If you work for one of our payroll partners, there’s just a couple of weeks left to get yourself included in the Prize Draw to win a FitBit Alta Activity and Sleep Wristband (worth £99).  All you have to do is:

·        if you’re not a member already, join our Credit Union, and set up a payroll deduction for regular saving; or

·        if you are, refer a work colleague to do so.  We’ll pop you (and them) in the draw for each new member who joins on your referral.

But don’t delay, the offer closes at the end of September.

It’s that time again!

 

We are sorry to mention it but Christmas is on its way.  If you need some extra support to cope with the pressure on your purse or wallet that the festive season usually brings, look no further than your own Credit Union.  A Credit Union Christmas Loan is far cheaper than other small loan options including doorstep credit:

Lender	Loan £ over 52 weeks	Repayments per week £	Interest %APR	Total to repay £
Morses Club*	£400	£14.00	272.2%	£728.00
Provident*	£400	£14.40	299.3%	£748.80
Credit Union*	£400	£9.20	42.6%	£477.54

*information taken from websites, correct as at 17.9.18

Remember, we have a 5-star Fairbanking Mark for our Credit Union Loans, and you can save with us alongside your loan repayment, helping you to build up a handy sum for the future.   We also have a Child Benefit Loan & Savings Plan option, which is an ideal way for families to stretch their money further.

To find out more, click here or call our friendly team on 01482 778753 (M-F).

JOHN’S BLOG – JUNE 2018

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.

“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.