A LOCAL credit union has seen an influx of new customers by offering a financial lifeline in the face of harsh economic times.
The Castle and Minster Credit Union in Kirklees has reported an increase of 29% in the past 12 months, boosting its member numbers to more than 6,000.
With the credit crunch well and truly upon us, the scheme helps those who are struggling with the current financial crisis by offering support where they have previously been turned away.
The scheme features a current account without overdraft facility, to cut out nasty interest charges, a healthy savings rate and borrowing facility.
Clr Ken Sims, Kirklees cabinet member for regeneration, said: “At a time when it is becoming increasingly difficult for people to get credit and loans, credit unions are offering financial support and throwing people a lifeline.”
Covered by the government’s compensation scheme, the service is authorised and regulated by the Financial Services Authority just like any other bank or building society, but without the threat of hefty interest rates and charges.
Geoff Brown, chief executive of Castle and Minster, said: “Our service isn’t restricted to those in financial difficulty.
“We want to offer a better level of service to everyone. As all our members live or work in Kirklees, we can also help to prevent money being drained from the local community.”
The union is planning to branch out further and key into the education curriculum in order to teach children about the importance of financial planning and how to budget. It is hoped that educating youngsters will help stem the huge debt problem in the future.
