A NEW credit union has been launched in Droitwich to give residents easy and affordable access to loans and financial services.
Reach CIC and 6 Towns Credit Union have joined forces to set up a weekly credit union drop in from the WANDS Children’s Centre in Westlands, after being approached by Wychavon District Council.
The venture was officially unveiled on May 16 and will operate between 9.30am and 12.30pm every Tuesday for the next 13 weeks to give as many people as possible the chance to use it.
Credit unions offer a safer alternative to loan sharks and pay day lenders.
they operate like a bank, have no shareholders and are regulated by the Financial Services Authority.
Schemes can be tailored to what their users need, whatever their income and for those unable to find the right help.
Any cash made is reinvested back into the community for the benefit of the credit union members.
Among the many services available are savings accounts, junior saving accounts, Christmas accounts and priority accounts which can be used to ensure key bills like rent and utilities are always paid.
Funds are loaned in an ethical way, without extortionate interest rates. For example, for borrowing £100, £2.01 would be paid over one month on the loan, rather than £36.85 which is what a pay day lender would charge.
Credit unions are particularly useful for those who struggle to manage money or are unable to access mainstream financial sources.
Liz Williams, REACH CIC’s director, said: “We are really pleased to offer credit union services to Westlands.
“We are sure that everyone can benefit from this service and the support that we offer.”
And David Manning, Wychavon District Council’s community programmes manager, added that Reach CIC and 6 Towns had a good track record of delivering credit unions in vulnerable areas and communities to combat pay day lenders and loan sharks.
“A credit union provides a safe way of borrowing and saving money which won’t leave you having to pay extortionate interest fees or put your home, possessions or even yourself at risk.”
