Credit unions in the North East are embracing the government’s announcement aimed at fostering their growth, pointing out that these institutions serve as a secure alternative to predatory lenders.
The government has committed £30 million to bolster credit unions, which are owned by their members and provide both savings accounts and loan options. Additionally, there are plans for legislative changes intended to facilitate the expansion of these organizations.
Brian Lindsay, a resident of Redcar and a patron of the Moneywise Credit Union in Stockton, expressed his appreciation for the staff, highlighting how they treat customers with genuine care. He noted, "In the bank you're just a number," emphasizing the more personal touch offered by credit unions.
Lee Williams, who serves as the chief executive of Moneywise Credit Union—with branches located in Stockton, Middlesbrough, and Byker in Newcastle—articulated the organization's mission to deliver affordable financial products while adopting a flexible service approach. However, he recognized a significant challenge: many people are not aware of the existence and benefits of credit unions.
"Our goal isn't to generate massive profits; instead, we focus on supporting our community and assisting individuals who struggle to find help elsewhere," Williams explained. He stressed the importance of credit unions, especially during times when rising living costs are pushing vulnerable members of society into dire financial situations.
"We have a serious issue with loan sharks operating in our area, and we collaborate closely with the illegal money lending team. The stories we hear from victims are often truly shocking," he remarked. In stark contrast, he pointed out that credit unions are highly regulated, providing a safe environment for their members.
Christine Shearer, a 74-year-old regular at the Stockton branch, shared her experience as a long-standing member of the credit union. Over the decades, she has relied on it for both saving and borrowing, particularly for significant purchases like washing machines. "Members receive care and respect here," she stated, reinforcing the community spirit of credit unions.
According to recent data from the Bank of England, approximately two million individuals in the UK are part of a credit union. Matt Bland, the head of the Association of British Credit Unions, noted that the UK still has a long way to go in terms of credit union membership compared to other countries with higher participation rates. He expressed optimism that the government’s investment of £30 million would facilitate greater outreach and access in this sector.
