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Assistant treasurer Des Smith and acting manager Martin Groombridge |
Would you credit it? A ‘bank’ that prefers you to save... not borrow
Amid the financial gloom, members-owned co-op sees its numbers soar
THE offices of Islington and City Credit Union, a dilapidated community centre in Archway, are a far cry from the plush and enticing banks on our high streets.
But while the public’s trust in banks has been rocked by the financial crisis, interest in ICCU is steadily growing. Banks may still happily offer loans, but ICCU encourages customers to do something they may not have considered for a long time – save.
Acting manager Martin Groombridge said: “Just imagine saving a pound a day for a year. You’ve got £365 to spend on Christmas.”
Credit unions are inspired by the 28 working-class artisans who founded the Co-operative movement in Rochdale in the 19th century. They are guided by principles of sharing and equality, with respect for customers who become members.
Members are enthused by the fact that, along with four part-time workers, ICCU mobilises a team of 30 volunteers who help in the office, give advice or distribute leaflets. “You can take out a loan with us,” Mr Groombridge added. “We can give you up to £4,500 above what you have in savings. But you have to prove you will be able to pay it back. And you will pay interest.”
The ICCU is a member-owned, not-for-profit savings and loans co-operative. Members receive no interest on savings but customers normally get a dividend based on annual profit.
Established in 1997, ICCU was originally just for Islington Council employees. Last year it went public, and now has almost 1,000 members, with numbers said to be increasing.
Anyone living or working in Islington or the City of London can join, no matter how little money they have.
Mr Groombridge said. “Up to 17 per cent of people in the UK are excluded from opening a bank or building society account or from accessing financial services for various reasons, like unemployment or having huge debt.
“They often have to rely on loan sharks or pawn shops. Our objectives are to promote saving, and if necessary educate people about debt and money management.”
To join, you simply fill in a form and pay £1 (unwaged) or £5 membership fee.
Council employees can make a direct debit into the scheme, and soon staff at Whittington Hospital, the second largest employer in the borough, will be able to do the same.
Members can pay by direct debit or through banks and Paypoint facilities in shops.
Mr Groombridge added: “You can pay as little as £1 a month, which is 25 pence a week. We don’t penalise you if you have poor credit history or if you are unemployed.
“And if you do need help, we can refer you to specialist finance counselling.”
Islington and City Credit Union is on the first floor of Caxton House, in St John’s Way, Archway. It can be contacted on 7561 1786. |
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