KEETCH WELCOMES CREDIT UNION FACILITIES TO HEREFORD

2.42.40pm GMT Tue 8th Jul 2003

Paul Keetch, Liberal Democrat MP for Hereford, has welcomed the news that the credit union, firstly formed in Leominster in 1997, called 'Money Box', is set to expand to South Wye, Hereford.

"Credit Unions are good news and I am delighted to learn that the facilities at South Wye in my constituency will be the first collection point within the city as the credit union is hoping to expand County wide," said Mr Keetch.

Credit unions are growing in Great Britain with 500,000 members - worldwide they have 112 million members.

"You may ask 'What is a credit union?'" Mr Keetch continued. "It is a financial co-operative that offers a convenient, local way of saving with a low interest loans service available to its members. In the House of Commons I have signed an Early Day Motion calling on the Government to offer new credit unions support since they provide invaluable help for many excluded families who would otherwise incur high-cost loans or fall prey to loan sharks.

"Members can save as little as they want and after regularly saving for at least 10 weeks anyone aged over 18 can apply for a small loan - up to twice their savings or a maximum of £200. Members who have saved longer or have repaid previous loans can borrow larger amounts. Interest on all loans is charged at 1%," Mr Keetch explained.

Credit Unions are regulated in the same way as banks and building societies but keep the costs down by being run by the members themselves. The Credit Unions are therefore keen to hear from anyone who would like to help. Training is given so no experience is necessary. Alternatively you may simply be interested in just becoming a member.

Further enquiries can be made by contacting any of the following - Lucy Hurds (Director) 01544 319005, Laurence Hughes (Director & Treasurer) 01568 614216, Sara Burch (Community finance & Enterprise officer) 01432 383030 or Penny Harding (Healthy Living Community Co-ordinator) 01432 383236.

Notes to Editors:

Text of EDM 1173 AND EDM 1173A1:

EDM 1173

CREDIT UNIONS 12.05.03

That this House welcomes the growing number of credit unions throughout the country; notes that credit unions offer invaluable help for many excluded families who would otherwise incur high-cost loans or fall prey to loan sharks; further notes that newly formed credit unions have difficulty in covering their running costs, particularly in areas where office rents are high; and calls upon the Government to offer new credit unions practical help and support with initiatives such as business rate relief.

EDM 1173A1

CREDIT UNIONS Amdt. line 6: 19.05.03

Line 6, at end add ' and the facilitation of advisory links between new credit unions and those which are more established whether in the United Kingdom or other EU countries'.