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WE’RE IN CREDIT!
By Fiona Audley
 CASH-STRAPPED
and debt-ridden families in Britain could be saved by Irish-style credit
unions.
The call comes as one man looks to import the popular financial idea to
help those in this country suffering from the credit crunch.
According to Wexford-born Eugene Waters, Diaspora groups and those less
affluent society members looking to access loans are often forced into
a vicious circle of debt.
And all while a successful financial framework, enjoyed back home that
could help them avoid a life spent in the red, struggles to take hold
in England.
For 50 years credit unions have effectively provided ethical credit services
for people in Ireland, most importantly by providing realistic loans with
fair interest rates for members.
These unions are community-based financial co-operatives where members
share a common interest — ie they all live in the same area and
have a stake in the union.
All profits are also fed back to members and their interests are put first.
But while they do exist in this country their success is nothing like
that enjoyed in Ireland — where 50 per cent of the population is
a credit union member.
Eugene moved to London in 2003 to find he had little or no way of borrowing
small sums of cash with no credit history.
He has since decided to form an Irish-style credit union for his community
in Hammersmith and Fulham.
The 25-year-old, originally of Enniscorthy and who works for the Notting
Hill Housing Trust, said: “I came to London and was shocked at how
difficult it is to access mainstream credit until you have lived here
for a couple of years.
“I was also surprised by the lack of credit unions when back home
there is one in virtually every town.
“They are great for people needing to access small loans for cars,
holidays and education, yet, on arriving in England I found banks pushing
those people towards credit cards.
“It’s terrible those little things that occur unexpectedly
like funerals, a broken washing machine or trips back home would have
to be funded by credit cards or loans which many will never pay off.”
Fearful of this credit crisis, which may affect many Irish emigrants,
Eugene has been working hard to establish the Hammersmith and Fulham Credit
Union with the local authority and other community volunteer groups.
An application has been made to the Financial Service Authority and funds
have already been donated from groups such as the Guinness Trust.
He said: “We are in the final straights and expect to open two branches
for the area this year.
“We believe this is going to be a great benefit for the borough,
in particular our Irish community who know and trust the Credit Union
model and may just need a little help with their finances form time to
time, rather than massive loans with high interest rates.”
The Association of British Credit Unions - the main trade association
for credit unions in England, Scotland and Wales, also looks to Ireland’s
success as they attempt to further the movement.
Lucia Webster, Head of Membership Services at ABCUL, said: “Credit
unions in Ireland have been established much longer than in Britain and
our sector has learnt a lot from them.
“We co-operate closely with the Irish League of Credit Unions,
for example on European issues, and the two trade associations work well
together.” |
