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 - August

Well, the holiday season is in full swing here in East Yorkshire and Northern Lincolnshire but the weather hasn’t exactly got the message, as we have had some terrific downpours.  Still, it’s been good for the gardens and the vegetable plot at the CEO household is promising a bumper crop!

Whatever you are doing this summer, hope you’re enjoying yourself.

OUR LOAN SALE PROVES A HIT

Here at HEYCU we are delighted with the response to our Sizzling Summer Loan Sale.  This is the second year that we have run this campaign, featuring an amazing 3.5% APR rate on loans from £5,000 to £15,000, with repayment periods up to 7 years.    This year, our total lending is up 25% compared with last year, and that’s from new members as well as those who have been with us for some time.

If you have a major project such as home or garden improvements, a new car, family celebration or a  “holiday of a lifetime”, where it would make sense to spread the cost over a longer period, why not give us a try?    You don’t have to bank with us to qualify for a Credit Union Loan, so why bother with your bank when we have such an appealing offer?   Pop over to our website where there’s an easy-to-use Loan calculator showing some guideline quotations.

Remember, with a Credit Union Loan, there are no set up fees, no penalties if you want to settle early, and you only ever pay interest on the reducing balance.  What’s more we are one of only a few lenders in the UK to be awarded the 5-star Fairbanking Mark.

You’ll have to be quick, though, as the Loan Sale will definitely finish at the end of August.

OUT AND ABOUT

Recently, I took a tour round our branches and it was fantastic to see all the activity going on, with staff and volunteers not only busy serving our members but also helping with events to support the communities where we trade.

Goole Branch had a very successful Cupcake Day on 14 July which raised £100 for the Alzheimer’s Society.   When I arrived the branch counter was groaning under the weight of plates of delicious cupcakes, many donated by local bakeries, supermarkets and friends to support our event.   Penny the penny-wise Penguin was busy keeping visitors – young and old – entertained, and we even had a class from St Joseph’s RC Primary School, along with their teachers, drop in for a tasty treat.  We’re thrilled that they are going to open a Pennies2Pounds school bank there in September.

Withernsea Branch was next on my list, and even though I picked the rainiest day of the year for my seaside trip, the Shores Centre was bustling and my catch up with Mareth and Malcolm, our hard working volunteers, had to be squeezed in between serving members.  However, I did manage a chat with Jayne Nendick, the very pro-active Shores manager, who always seems to be hatching some new scheme to make life better for the residents of this friendly town.

I visited Driffield Branch with staff colleague Jamie-Leigh, on the day when our Local Members’ Group met, and we enjoyed a good discussion about the School Banks, which this branch pioneered as long ago as 2005.  With relatively new volunteers Audrey and Debbie now co-ordinating this work, we wanted to make sure the support from Central Office is as effective as possible.  Each school running a Pennies 2 Pounds club will therefore receive a termly newsletter and a list of resources they can order such as piggy banks, saver cards, “I saved today” stickers and certificates to mark savings milestones for handing out in school assemblies. 

Another Wednesday it was over to Howden to see how our latest contact point is doing.  The answer was “pretty well” as we’ve now been up and running in the large Co-op Store for eight weeks, and every week we’ve had some new residents signing up to become Credit Union Members.  It’s clearly a very co-operatively-minded town because many of the new members have commented how pleased they are to see the Credit Union coming to Howden, because it’s “not-for-profit” unlike any other bank.   What an interesting place it is; you only have to take a look at the local monthly magazine, Howden Matters (edited by one of our keen new members), it’s jam packed with news of events and happenings – and we are in the August edition!

CARNIVAL TIME

On 2^nd August our Scunthorpe branch colleagues Tracey and Sarah attended the Ongo Carnival to run a Credit Union promotional table and enjoyed meeting the families who came along, as well as the Ongo staff, many of whom save with us via popular payroll deduction.  They received quite a number of enquiries, especially about our Child Benefit Savings and Loan Plan, and gave out some loan quotations.  A competition to guess the amount of money saved in a piggy bank provided some fun for adults and children on the Westcliffe Estate and the two lucky winners received Say Shopping gift vouchers.

Carnival events are clearly a much loved feature of the English summer, for we were recently involved in another one, this time on the Greatfield Estate in Hull where we have a Wednesday contact point at Elmbridge Parade Co-op, supported by Greatfield Big Local project.  It was Greatfield’s 60^th Anniversary and to mark the occasion (some residents have lived there since the houses were built), a Carnival Parade wended its way from St Hilda’s Church to St Stephen’s Church, where an afternoon of fun took place.  The “battle” between Sid the Shark (our friendly mascot from the Stop Loan Sharks Team) and a giant Money Spider created by the children of a local primary school was a great piece of entertainment!

FREE BUDGET PLANNER

One outcome of the Barclays Credit Union Project that we took part in earlier this year was the production of a useful Budget Planner, now available free of charge from any of our branches. 

Money management is essential whether you’re in debt or just juggling your regular household budget.  The planner aims to help everyone to get an accurate picture of how much they spend each month, and how much they have coming in, so they can set goals for reducing spending, freeing up cash for unexpected expenses or coping well with credit without landing in unmanageable debt.

The Planner is full of money saving ideas and tips that everyone can put into practice to make them more money-savvy.  There’s also a list of useful organisations that can help anyone struggling to bring their household finances under control.  According to the Money Advice Service 1 in 3 households admit that they don’t set a budget to manage their regular bills.  52% of those that do budget say they do it for peace of mind.  And 32% budget to cope with the unexpected. 

ARTHUR’S ORGANICS

I am always looking around for other co-operative businesses that our members might like to buy from, knowing that many of you are very keen to support the wider co-operative movement.

Arthur Street Trading is a workers’ co-operative with social objectives and aims. It was established in West Hull in the mid-1990s to provide affordable, high quality organic foods. 

Sourcing organic fruit, vegetables, wholefoods and other groceries from local growers and national suppliers, they have provided an award winning box scheme throughout Hull and district since 1999. They feature foods that are free of artificial preservatives, colours, flavours, sweeteners, and hydrogenated fats, and food miles is always a priority - for many years they even used a solar powered milk float to make some deliveries!

Arthur’s  say: “We reinvest all profits back into the company to offer a fair price for our products so that they are more accessible for those on lower incomes, create jobs if we can, support local food projects, and support local growers. Buying from us means that you become a part of that positive energy.”    

To find out what’s available, or to place an order, visit www.arthursorganics.com

GOOLE MEMBERS’ GROUP

If you are one of our members who lives or works in Goole or Howdenshire (postcodes DN14, YO8 or HU15) we would love to see you at the launch of our Goole & District Local Members’ Group on Wednesday 13^th September. 

The venue is the wonderful Lowther Hotel, Aire Street, Goole and members can arrive from 6 pm onwards for a 6.30 pm start.   There’ll be refreshments and a Prize Draw, and we’ll be sharing news with you of your Credit Union’s progress and celebrating the first 8 years of our Goole Branch. 

As Credit Union members, you are our future.  Over the past 8 years we have grown our membership in the area to nearly 1,000 adult and junior savers and borrowers.  But we need your ideas and suggestions to help us make the next 8 years even more successful.   It will be an informal and friendly evening and we are looking forward to meeting our members.   Call 01405 854564 or email jevans@hullandeycu.co.uk to accept the invitation.

CREDIT UNIONS WELCOME FCA REVIEW OF HIGH COST CREDIT

The Financial Conduct Authority recently published the findings of its review of high-cost credit.  It looked at the payday lending cap and the wider high-cost credit market, including rent-to-own, home credit, catalogues, unarranged overdrafts and motor finance.  Matt Bland, Head of Policy and Compliance at ABCUL (the Association of British Credit Unions) talked about the positive steps made by this review:  “Given the role credit unions play in disrupting the activities of these kinds of lenders, and the many tales of credit unions helping consumers piece their lives back together after falling foul of unscrupulous lenders, ABCUL has consistently supported the payday lending cap.  We highlighted the positive effect it has had on reducing consumer harm, further suggesting that similar measures were needed in other high-cost credit markets.”

 “While there had been some speculation that the FCA was planning to water down the payday lending cap, we were very pleased to see it confirm that it …. plans on keeping it as it is until at least 2020. This is after receiving overwhelming evidence that it results in better outcomes for borrowers.

“We were also pleased to see that the FCA will be publishing proposals for tighter regulation of rent-to-own, home credit and unarranged overdrafts in 2018. Particularly interesting is the commitment from FCA to look at why more affordable alternatives, such as credit unions, are not better able to meet demand in these markets. This may create an opportunity to discuss some of the regulatory barriers that credit unions face in expanding services more quickly.”

Good news indeed.

31 July 2015

In praise of Hull and East Yorkshire

There's lots of reasons why I consider myself fortunate to live and work in our fine city of Kingston upon Hull and beautiful East Yorkshire, but two in particular come to mind as I write this piece:

Firstly, our wonderful Hull Trains service!  This week I was "up with the lark" to travel to London for a training event on workplace planning, to help us prepare for our Credit Union Transformation Programme.  On hearing that I had come down from Hull, a fellow delegate said, "That would be a long and difficult journey for you, I bet you had to change trains a few times".  I replied, "Not at all, we have our own train service, First Hull Trains, that runs direct into Kings Cross seven times a day and the customer service is fantastic!"  Both my journeys were on time, and without a hitch as far as I could tell.  In fact, the service is so good that they've come top for satisfaction out of all the country's train operators in the independent National Passenger Survey, with a score of 96%.  And now they've been shortlisted for Rail Operator of the Year.  Good luck to those very nice people from Hull Trains!

My second reason is that East Yorkshire is home to the Driffield Show.  On 22 July I joined the crowds descending on the market town of Driffield (Capital of the Wolds) to enjoy the Driffield Agricultural Society's 140th annual show.  With a terrific variety of exhibits ranging from cattle, sheep, pigs and dogs to food, flowers, handicrafts and trade stands, the Show seemed bigger and better than ever, fully justifying its growing reputation as the largest one day show in the country.  I was interested but not surprised to read in the programme that planning it takes a full year and, on show day, over 100 volunteers are on site helping everything to run smoothly.  It's a great day out for all the family, so let's hope its fine tradition carries on long into the future.

And now to Northern Lincolnshire, an area I am less familiar with personally, but one I am coming to know, now that our Credit Union extends its reach across the Humber.  On Monday, I was in Scunthorpe, starting with a briefing for the team at Crosby Employment Bureau (part of ongo), all about our new Business Start-up Loans facility.  Their advisors meet people who have plans to go self-employed or freelance, but who don't always find it easy to obtain a small bank loan to finance their start up needs, whether it's for equipment to start a hairdressing business, workshop tools, or shop fittings to open a cafe.  Now they can refer clients to our web page where the application process is all explained, together with sample documents such as a business plan and cash flow projection.

Later on, I nipped over to Winterton with Kate Pike (Credit Union Director) and David Martin (our North Lincs Business Development Officer), for a little ceremony to mark the launch of our partnership with Winterton 2022, the local residents group that's secured Big Lottery funding to regenerate the town.  The venue was the historic All Saints Church and, even as we arrived, the place was teeming with craftspeople, beavering away to recreate the ancient bell-ringing chamber.  The whole church is undergoing a full restoration and, while far from complete, it is shaping up very impressively and well worth a look.

Ongo Carnival

We'll be having a stall at this year's Ongo Carnival, which takes place on 12 August at Manor Park, Burringham Road, Scunthorpe, from 11 am to 3 pm.  With over 500 people expected at the park, the free event is set to be a day to remember with activities including a circus workshop, trampolines, zorb footballing and demonstrations of majorettes and martial arts.  For the youngsters there'll be a small animal farm, soft play area, bouncy castle and fun house.  Information stands and stalls from housing staff, the Police, Fire Service and Alzheimer's Society, plus of course our Credit Union, will be on hand too, and naturally there will be some tasty food options for visitors to enjoy.

Community Notice Boards

Walking around my home area this week, I was pleased to see some familiar posters in the Community Notice Board frames - advertising our not-for-profit Credit Union.  Thank you, Hull City Council, for making this facility available, to help us spread awareness among the residents of the City's Avenue, Bricknell and Newland Wards.

If you have a notice board in your community that could benefit from a colourful A5 size Credit Union poster, please let us know - we can get some posters out to you, with the relevant branch address in the footer so that people know where to find us.

Employee to Volunteer, via Retirement!

I'd like to welcome back our good friend, Richard, as a Credit Union Volunteer.  Richard worked for me for nine years before taking retirement earlier this year, but it seems his enthusiasm for the Credit Union movement just won't go away.  So, he's now volunteered to help us support our volunteer-run branches such as Driffield and Withernsea, an offer warmly welcomed by those colleagues, who enjoyed his training sessions and support before.

Credit Unions around the world

I've been reading a special edition of Co-operative News, devoted to credit union activities.  Did you know that the World Council of Credit Unions estimates that over 200 million people worldwide are now credit union members, with around 57,000 separate credit unions (like Hull & East Yorkshire) operating in 103 countries?  The United States is the jewel in the crown, with almost half the total members.  As in Canada, which also has a strong movement, more than 40% of the population are members.  Australia has a large credit union sector, with 4.5 million members, while in Africa credit unions (known more accurately there as SACCOs - Savings and Credit Co-operatives) play a key role in  countries like Kenya, Tanzania and Uganda.

However, I hadn't realised that there are large regions with strong co-operative traditions, still untouched by the credit union system, because history took them down a different route.  So, in Europe, only the UK, Ireland, Poland and some Eastern countries have credit union networks.  In Germany, France and Spain, the role of credit unions has traditionally been performed by savings banks, or co-operative banks such as Credit Agricole and Credit Mutuel instead.   In the UK less than 2% of the adult population are credit union members, but then we are catching up fast!

Holiday Time

During August some of our branches will have slightly different opening times, or close on certain days, due to unavoidable cover shortage, so do watch our website News page for full details.  Notices will be posted on the branch windows and staff will aim to tell regular visitors well in advance.

At this time of year, many of us face extra expenditure due to holidays or the need to buy school uniforms or equipment.  Could we help with a small loan?   Have a look at the Loan Calculator on the Loans page of our website or pop in to see us.

If you have yet to go on your summer holidays, we hope you have a great time!