Andy Reed MP Welcomes Government Action on Credit Unions

Andy Reed MP has today welcomed a government announcement that it is planning to make it easier for credit unions, like the one operating locally in Loughborough to expand.

In an announcement made to the All Party Parliamentary Group on Credit Unions, Treasury Minister Kitty Ussher MP announced that the Government plans to bring forward legislation to enable local credit unions to attract new members and help more people borrow at affordable rates.

The Government is going to change the rules to help people to save more with credit unions by allowing them to offer ISAs and Child Trust Funds. Credit Unions will also be allowed to pay interest on members’ savings for the first time if they want to.

Local Credit Unions often lend money at a low interest rate to people who would otherwise have to borrow money from unregulated sources such as loan sharks or lenders who charge huge interest rates. This often puts people who can afford it least into even more serious financial difficulty. By allowing Credit Unions more freedom to expand the Government is ensuring financial inclusion for everyone in society and helping the most financially vulnerable people. Credit Unions are financial co-operatives owned and controlled by their members.

Andy Reed MP, a long supporter of credit unions said,

“I am glad the Government is making these changes and allowing more freedom for Credit unions to expand. Now more that ever, with families feeling the pinch due to tough conditions in the international economy, the Government wants to make sure people in Loughborough, in this local area can access affordable credit in their local area through Credit Unions rather than having to rely on more expensive lenders.

“Allowing for the expansion of Credit Unions means that if people do need to borrow money they can do so safely and reasonably without having to go to loan sharks. That can only be a good thing. I want to see our credit union in Loughborough expand so that it can help more people.”