London Capital Credit Union Steps in to Support Community in Danger from Loan Sharks
Residents across east London breathed a sigh of relief as London Capital Credit Union stepped in to offer support following the closure of the smaller London Community credit union that had operated in the area. Whilst savings with that credit union will be refunded in full by the Financial Services Compensation Scheme, the closure may have left hundreds of thousands of people without a secure home for their savings and access to low-cost credit.
Following the news that the Tower Hamlets based credit union was facing insolvency London Capital Credit Union immediately stepped in to offer to work with local authorities to make sure residents know that credit unions services are still available.
Martin Groombridge, CEO of London Capital Credit Union said: “It is always sad to see smaller credit unions close, but overall our sector is growing stronger than ever, with fewer, stronger credit unions providing an competition to High Street banks and, crucially, providing an important alternative to borrowers who might otherwise be reliant upon pay day lenders and loan sharks. We will step in to help the people across East London who are looking for ethical financial services.”
Credit unions are not for profit savings co-operatives that encourage people to save as an alternative to using credit, but also provide low-cost loans at times of need.
- London Capital Credit Union
- Fast growing not for profit co-operative
- 23,000 member owners
- £21m in savings
- Over £19m out in low-cost loans
