London Capital Credit Union
 | |
| Founded | 1997 (Hornsey Co-operative 1964) |
|---|---|
| Type | Industrial and Provident Society |
| Location |
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Key people | Helen Baron, President Martin Groombridge, Chief Executive |
| Website | credit-union.coop |
London Capital Credit Union Limited is a not-for-profit member-owned financial co-operative, based in Archway and operating in the City of London and north London boroughs of Barnet, Camden, Hackney, Haringey and Islington.
Founded in 1997, by 2014, the credit union had over 11,000 members and assets in excess of £7m.[1] A small permanent staff are supported by a team of volunteer Member Services Assistants.
History
Islington Council Employees Credit Union was originally established in 1997, to provide secure savings and low cost flexible loans for employees of Islington Council.[2] It became Islington and City Credit Union in 2007,[3] briefly Haringey, Islington and City Credit Union (with the support of Haringey Council) in 2011[4] and finally adopted the current name, broadening its catchment to include Barnet, Camden and Hackney, in 2012.[5]
Hornsey Co-operative Credit Union,[6] one of Britain's first registered credit unions,[7] and North West London Credit Union[8] transferred engagements to London Capital in 2013,[9] followed by the smaller Radio Taxicabs Credit Union in 2014.[10]
David Lammy, Labour member of Parliament for Tottenham, was signed into membership in 2014,[11] followed by Dave Prentis, General Secretary of the public service trade union, UNISON (the President of Unity Trust Bank and a non-executive director of the Bank of England).[12] UNISON's registered charity, There for You, has been working in partnership with the credit union since 2013.[13]
In 2015, a merger with the small Rainbow Credit Union for Co-operative members and employees in London and the South East proved impractical;[14] it was placed into administration and ceased trading on 14 September.[15]
Activities
The 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.[16]
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.[17] Membership of London Capital Credit Union is restricted by common bond to individuals living or working in the City of London and London boroughs of Barnet, Camden, Hackney, Haringey and Islington, members of the South East Region of The Co-operative Group and the Greater London Region of Unite the Union or employees of a number of organisations, including Veolia Environmental Services and Circle Housing Group, nationally.[18]
As part of Lloyds Banking Group's Helping Britain Prosper Plan, branches of Lloyds Bank and Halifax in the common bond area work with the credit union to ensure customers are signposted towards financial solutions that best meet their needs. This compliments a similar referral scheme run in conjunction with Barclays Bank.[19] Similar referral arrangements are in place with branches of Barclays.
Products
London Capital Credit Union runs a payroll deduction savings and loans scheme in conjunction with most major local employers. The credit union is responsible for the operation of the scheme, with the employer facilitating monthly deductions from salary.[20] A payment card, accepted at Post Office and PayPoint outlets, can also be issued to members on request.
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.[21]
The credit union is an accredited London living wage employer.[22] In 2015, the Fairbanking Foundation awarded London Capital Credit Union five stars for personal loan products in its first Mark certifications.[23]
Dividends
Credit 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. Recent dividends are shown below:
| Year | Dividend |
|---|---|
| 2012 | 2% |
| 2013 | 1% |
| 2014 | 1% |
| 2015 | 1.2% |
| 2016 | 0.75% (savings) 1% (loans) |
A member of the Association of British Credit Unions Limited,[24] 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.[25]
See also
References
- ^ Record year for London Capital CU Association of British Credit Unions, News, 13 October 2014
- ^ 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
- ^ Welcome to New Members in Hornsey London Capital Credit Union, Newsletter Issue 7, Winter/ Spring 2012/13
- ^ Voinea, Anca ABCUL marks the 50th anniversary of the first credit union in Britain Co-operative News, 26 March 2014
- ^ 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
- ^ Lloyds Banking Group Grant London Capital Credit Union, Newsletter Issue 14, Summer/ Autumn 2015
- ^ 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 Association of British Credit Unions (retrieved 1 November 2014)
- ^ Credit Union Guide Financial Services Compensation Scheme (retrieved 2 April 2015)