You
will have seen the Archbishop of Canterbury's recent comments on
Credit Unions and the positive difference they can make in people's
lives. He is asking churches to use their assets: buildings, people
and financial investments to actively support community credit
unions.
Below
is a copy of his message.
“Dear
friends,
A
large and growing number of people rely on short-term loans at very
high interest rates to make ends meet, and can easily end up in a
crippling spiral of debt. One million families are taking out payday
loans every month as they struggle with rising living costs.
I
have seen this myself in the communities where I have lived and
worked, and it is devastating. But people often have little choice,
especially in deprived areas of the country.
Our
faith in Christ calls us to love the poor and vulnerable with our
actions. That is why the Church must be actively involved in
supporting the development of real lending alternatives, such as
credit unions. This is not an optional activity, but a fundamental
part of our witness and service to all God’s people.
We
must help credit unions to become bigger, better known and easier to
access if we want them to compete effectively with high interest
lenders.
We
have a unique opportunity to make a difference. We can begin simply
by saving some money with our local credit union, using their
services and encouraging others to do the same. Some churches are
already doing this, so we know the difference it can make to the
local community.
Please
take this opportunity to consider how you and your church could serve
your community in this way. I pray that together we can make a
difference to some of those who are most in need.
With
every blessing,
+
Justin Cantaur”
A
credit union is similar to a bank, but unlike a high street bank it
is run and owned by its members and serves the community rather than
working purely for profit. Credit unions need a broad range of
members in order to thrive. So, by taking an active part in a credit
union
you’re helping it to help people in financial need to borrow and
save responsibly.
Membership
of a credit union is based on a Common Bond. This can be working for
a particular employer, in a particular industry, living, working or
worshipping in a specific geographical area.
Credit
Unions are authorised and regulated by the Prudential Regulation
Authority and the Financial Conduct Authority. As with a bank, your
savings are protected by the Financial Services Compensation Scheme
for up to £85,000.
The
credit union in Sandwell is 6Towns Credit Union and their head office is in West
Bromwich. They offer a large range of services.
Savings
Accounts – Instant Access Account, Christmas Account, Holiday
Account, ISA's. (Dividend 3.29% past 5 years)
Loans
– Short Term Loans, Long Term Loans, Payday Loans, Home
Improvement Loans (Interest 26.8% to 48% APR)
Current
Account – This is a fully transactional account and open to
everyone no matter of Credit Rating or history and has the ability
to 'ring fence' payments to Landlords, Councils and Utilities.
Organisation
accounts – Saving Accounts and Current Accounts are coming
Soon
6
Towns is keen to ensure their services are open to anyone
in Sandwell and they aim to provide more than just Savings and Loans.
They work a range of organisations and currently support Collection
and promotion points across the whole borough, including Primary
Schools, Youth Clubs, Children’s Centres and Churches. They
support financial capability initiatives and as part of their ‘up
skilling’ of volunteers and partners they are in the process of
building a ‘Budget Training’ to enable those that deal directly
with those at risk which will support and enhance the provision of an
holistic approach.
What
can you do to support our local credit union in the work?
Open
a Savings Account and become a member.
Encourage
your Church to open an account, a savings account and perhaps in
time a current account.
If
you need a loan, you may want to consider the credit union.
Consider
setting up a Collection or Savings Point at your regular community
activity such as your Coffee Morning, Place of Welcome, Youth Group
or Carer and Toddler Group and after your Sunday Services.
Incorporate
the Credit Union in any Financial Capability or Money Management
training and Debt Advice provision.
6Towns
Credit Union contact details:-
Tel
No: 0121 553
3110
Address:
6Towns Credit Union, 382 High St, West Bromwich, West Midlands B70
9LB
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