London Capital Credit Union Limited is a not-for-profit member-owned financial co-operative, based in Archway and operating across London and the South East.
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| Founded | 1997 (Hornsey Co-operative 1964) |
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| Type | Industrial and Provident Society |
| Location |
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Key people | Helen Baron, President Martin Groombridge, Chief Executive |
| Website | credit-union.coop |
Founded in 1997, by 2024, the credit union had over 16,000 members. A small permanent staff are supported by a team of volunteers.
History
editIslington Council Employees Credit Union was originally established in 1997, to provide secure savings and low cost flexible loans for employees of Islington Council.[1] It became Islington and City Credit Union in 2007,[2] briefly Haringey, Islington and City Credit Union (with the support of Haringey Council) in 2011[3] and finally adopted the current name, broadening its catchment to include Barnet, Brent, Camden, City of London, Enfield, Hackney, Haringey, Islington & Waltham Forest .[4]
One of Britain's first registered credit unions,[5] Hornsey Co-operative Credit Union[6] and the neighbouring North West London Credit Union[7] transferred engagements in 2013,[8] followed by the smaller Radio Taxicabs Credit Union in 2014.[9]
David Lammy, Labour member of Parliament for Tottenham, was signed into membership in 2014,[10] followed by Dave Prentis, General Secretary of the public service trade union, UNISON (then President of Unity Trust Bank and a non-executive director of the Bank of England).[11] UNISON's registered charity, There for You, has been working in partnership with the credit union since 2013.[12]
In 2015, a merger with the small Rainbow Credit Union for Co-operative members and employees in London and the South East proved impractical;[13] it was placed into administration and ceased trading on 14 September.[14] Notable for being one of the first credit unions to lend money to businesses, the neighbouring North London Credit Union transferred engagements in 2023.
Activities
editThe credit union promotes thrift by the accumulation of savings, creating sources of credit at a fair and reasonable rate of interest by using savings for the mutual benefit. Its objects include the training and education of members in the wise use of money and in the management of their financial affairs.[15]
Credit unions form part of the wider international co-operative movement and can be found in 97 countries, with over 184 million members. In the UK there are currently 362 credit unions, offering an alternative to payday lenders to some 1.2 million members.[16] Membership of London Capital Credit Union is restricted by Common bond of association / common bond to individuals living or working in the London & the South East, members of the South East Region of The Co-operative Group and the Greater London & Eastern Region of Unite the Union or employees of over 100 of employers across the UK..[17]
Products
editLondon Capital Credit Union runs salary savings and loans schemes in conjunction with over 100 national and local employers. It also offers a Prize Saver Scheme with a monthly free prize draw for £5,000 as an incentive to save. The credit union is responsible for the operation of the salary scheme, with the employer facilitating monthly deductions from salary.[18]
Low cost Saver Loans allocate part of the repayment to a share account, which means that as members repay loans their savings continue to grow. The credit union also offer a range of other products, including short-term and home-owner loans; credit builder loans, designed to help people repair their credit rating; and security loans, to encourage members not to withdraw their savings. CredEcardplus is a reloadable prepaid card that works in a similar way to a High Street bank account. The credit union has a 94% approval rate for its saver loans.[19]
The credit union is an accredited London living wage employer.[20] In 2015, the Fairbanking Foundation awarded London Capital Credit Union five stars for personal loan products in its first Mark certifications.[21]
Dividends
editCredit unions do not pay a fixed rate of interest on savings balances. Instead, they distribute any trading surplus to members in the form of an annual dividend calculated on average savings or as a rebate of loan interest paid (2% in 2023).
A member of the Association of British Credit Unions Limited,[22] registered under the Industrial and Provident Societies Acts, London Capital Credit Union is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and PRA. Ultimately, like the banks and building societies, members' savings are protected against business failure by the Financial Services Compensation Scheme.[23]
See also
editReferences
edit- ^ About the Credit Union London Capital Credit Union (retrieved 1 November 2014)
- ^ Credit Union for Haringey Islington and City Credit Union, Newsletter Issue 4, Winter/ Spring 2010/11
- ^ Welcome to Haringey Haringey, Islington and City Credit Union, Newsletter Issue 5, Autumn/ Winter 2011/12
- ^ Barnet, Camden and Hackney London Capital Credit Union, Newsletter Issue 6, Summer/ Autumn 2012
- ^ Voinea, Anca ABCUL marks the 50th anniversary of the first credit union in Britain Co-operative News, 26 March 2014
- ^ Welcome to New Members in Hornsey London Capital Credit Union, Newsletter Issue 7, Winter/ Spring 2012/13
- ^ Expanding Your Credit Union London Capital Credit Union, Newsletter Issue 8, Summer/ Autumn 2012/13
- ^ Expanding Your Credit Union London Capital Credit Union, Newsletter Issue 9, Winter/ Spring 2013/14
- ^ Radio Taxi Cabs Credit Union Merger London Capital Credit Union, Newsletter Issue 11, Autumn/ Winter 2014
- ^ Campaign Against Payday Lenders London Capital Credit Union, Newsletter Issue 10, Spring/ Summer 2014
- ^ Member Number 11,000 London Capital Credit Union, Newsletter Issue 12, Spring 2015
- ^ UNISON launches credit union network UNISON—the Public Service Union, 18 September 2013
- ^ Keeping it Co-operative London Capital Credit Union, Newsletter Issue 15, Autumn/ Winter 2015
- ^ The Rainbow Credit Union declared in default Financial Services Compensation Scheme, 15 September 2015
- ^ Objects London Capital Credit Union, Rules (3), 2012
- ^ Acland, Olivia Forget payday lenders – there’s a much better way to borrow The Guardian, 24 October 2015
- ^ Common bond qualifications for membership London Capital Credit Union, Rules (7.1), 2012
- ^ Mutual Benefits for Employers and Employees London Capital Credit Union, 2013
- ^ 94% Approval Rate For Our ‘Saver Loans’ London Capital Credit Union, Newsletter Issue 13, Summer 2015
- ^ London Living Wage Campaign London Capital Credit Union, Newsletter Issue 15, Autumn/ Winter 2015
- ^ Jones, Rupert Financial firms praised for helping customers manage their money The Guardian, 21 October 2015
- ^ Credit unions in membership of ABCUL Archived 3 January 2015 at the Wayback Machine Association of British Credit Unions (retrieved 1 November 2014)
- ^ Credit Union Guide Financial Services Compensation Scheme (retrieved 2 April 2015)