This item was published during the term of a previous administration that ended in April 2007
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07/02/2006
The number of people in Scotland using credit unions to save and borrow has quadrupled in three years.
Figures out today show that around 179,000 adults are now members, with the total assets of the country's 131 credit unions at a record £185 million.
The Executive has today published a review of its plan to get more people using credit unions, the financial co-operatives which are owned, controlled and run for the benefit of members.
Deputy Communities Minister Johann Lamont said:
"Credit unions are owned by members and exist to serve their needs, so it's good to see a huge increase in people using them.
"Credit unions give everyone a fair deal and the people who already use them are getting financial security and a better way of life, not just for themselves but for their families. That's why we want to encourage people to become members and enjoy the benefits credit unions offer.
"We have already provided over £1 million for credit unions to enable them to promote their services, train staff and refurbish premises. In this way, we are helping to give more people the chance to save or borrow at affordable rates.
"The challenge for us is to get more people signed up, and ensure credit unions can offer a more diverse range of products to meet their customers' needs. We are doing this, and the actions we are taking will let credit unions continue to grow and develop."
Over four per cent of the Scottish adult population were members of credit union in September 2004, compared to just one per cent in 2001. That equates to 22 per cent of total credit union membership in Great Britain.
Other figures published today show that credit unions had increased the number of affordable loans made to members and that more people are gaining skills through volunteering in their local credit union.
John Kerr, President of the Scottish League of Credit Unions said:
"The last three years have witnessed a period of consolidation in the movement. Credit unions have extended their areas of operation to bring excellent services to places where people previously had no access to affordable, financial services and often had to deal with a doorstep lender charging interest rates of 200 per cent and more on small loans for basic household necessities.
"The support of the Scottish Executive, coupled with more positive media coverage, has greatly increased awareness of credit unions across all income groups and people have responded to that. A maximum loan interest rate of 1 per cent per month on the reducing balance, 12.6 per cent per annum, with no hidden charges, compares very favourably with credit and store card charges.
"Scots know what gives them value; the future looks good for them and their communities in the credit union movement."
The review of progress is against 'Unlocking the Potential: An Action Plan for Credit Unions' - published in 2001. The date for targets to be met in Unlocking the Potential is 2005.
The Executive's £1.1 million Credit Union Capacity Fund has made grants available to help credit unions expand or improve their services. Launched in 2004, this is due to end in April 2006, and will be replaced by a new way of helping credit unions meet their members' needs.