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Stave off the recession with East Hampshire’s Credit Union

Monday 23rd of March 2009

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To help residents avoid loan sharks and unscrupulous banking practices East Hampshire District Council has put £100,000 behind a new Credit Union branch in Bordon.

Councillor Julie Butler, Lead Councillor for Debt, explains: "The recession has increased the number of people in debt, and Citizens Advice Bureaux say that debt is now the single biggest issue it handles.

"Credit Unions offer many of the same services as banks but they are not-for profit organisations that lend responsibly and help their customers stay out of debt.

"We at East Hampshire District Council have made tackling financial exclusion a priority and I believe a Credit Union will play crucial role in this work."

Leader of the Council Ferris Cowper, strongly supports the initiative that will offer affordable loans, current accounts and debit cards to its users.

He said: "Of all the new schemes that we are running this is the one that will deliver most to help people facing difficulties as a result of the recession, particularly in the poorer sections of our community.

"We know that in these times even the most prudent may find themselves in financial difficulty. This cleverly-conceived scheme could save East Hampshire families who might otherwise be destroyed by debt."

The £100,000 grant will fund the start-up costs to enable Hampshire Credit Union to establish a branch in East Hampshire, to be known as East Hampshire Savers.

Amanda Winkworth, Chief Executive of Hampshire Credit Union Ltd, said: "I am delighted that East Hampshire District Council has provided this grant funding. I am looking forward to working with the council on this exciting project."

It is hoped that within three years the branch will have enough savers and borrowers for it to be well established and self financing.

The council is also seeking support from external partners and the government to reduce its outlay or to fund additional services like a mobile office.