“We are here for everybody – we don’t cherry pick our customers like the banks,” says Liam Carlisle, one of the founding members of the Lewisham + Bromley Credit Union..
Set up in 1992, the credit union (known as Lewisham Plus) “is a financial cooperative run by staff and volunteers as a not for profit social enterprise,” says Liam.
“We aim to promote the financial well being of people living in Lewisham and Bromley.”
With communities across London being hit hard by the cost of living squeeze, its a mission that has become ever more important.
After struggling with rising rents and mortgage payments, soaring fuel bills and squeezed wages, people have found it difficult to pay bills and are often overloaded with debt.
Some have turned to payday loans at ruinous interest rates. But growing numbers are now turning to credit unions.
They encourage members to pool their savings for the benefit of the whole community, offering different kinds of savings accounts as well as loans and a range of services including financial advice.
Members can pay into savings accounts through payroll deduction or through direct debits. They then receive a “dividend” on these accounts depending on how well the credit union performs in a particular year.
The credit union “is fundamentally a savings service … and there’s no worry about security,” says Liam. “Your money is protected by the Financial Services Compensation Scheme up to a limit of £85,000 per person – the same as any bank or building society.”
Credit unions offer loans tailored to an individual’s needs at interest rates they can afford because “they are focused on serving members’ needs, not maximising profits.”
They are able to sort out smaller, short-term loans that banks do not offer – and for which other lenders charge high interest rates.
Lewisham Plus offers a range of loans with interest rates ranging from 0.75 per cent to 3 per cent a month (an annual percentage rate of 9.4 per cent to 42.6 per cent).
Payday lenders charge eight times that amount. It is not uncommon for small loans from payday lenders to carry a 200-300 per cent APR and more.
Lewisham Plus, which now has around 17,000 members, was set up by 10 local churches for the benefit of the whole community after the 1985 Faith in the City report by a church commission blamed government policy for much of the spiritual and economic poverty of Britain’s inner cities.
The credit union which has branches in Bromley, Downham, Sydenham and New Cross now offers a full range of services to its members including a debit card, contactless payments, cashback and ATMs, ISAs, and online banking with an App.
You can join for a fee of £5.00 online or visit a branch. For more details see https://pluscu.co.uk/contact-us