Extract from article in Yorkshire Evening Post, 21 April 2010

Credit Unions are a mutual cooperatives that offer straightforward savings products and affordable loans. As mutuals, their members 0wn them, and the profits are retained in the communities in which they operate. Credit Unions are benefiting from a surge in popularity as a result of the public’s disillusion with many of the big banks.

Although Credit Unions have a small but growing share of retail financial services in the UK, they are strong in other parts of the world. in Ireland, Credit Unions account for 50% of retail financial services. In the US and Canada, 30% of the population are members and any visitor to these countries will see their presence on almost every street corner.

Credit Unions are now regulated by the FSA and, like other financial institutions, deposits with Credit Unions are protected by the Financial Services Compensation scheme.

In recent years, community Credit Unions have made a valuable contribution by providing financial services and bank accounts to those ignored by high street banks. In particular, Credit Unions provide affordable credit at rates much lower than ‘doorstep lenders’. Credit Unions also offer credit on small amounts that the main banks are not interested in.

Chris Smyth, Chief Executive, Leeds City Credit Union