A CREDIT company only lending available money has announced an influx of members as the economic crisis deepens.
With the country facing a possible recession, the Chester Credit Union has noticed a sudden influx of new members disappointed with some of the high street lenders and wishing to return to a safer way of saving.
One group of sisters opted to sign up to the Chester branch, based in Henry Place, Newtown, in 2005 and all six are glad they did.
The Moultons say being members has provided a safe haven for saving and offered low-interest loans at times of need such as Christmas.
The union works on not-for-profit and co-operative based principles, only lending money which is available and not stretching to ratios which may put members’ funds at risk.
Neil Jay, manager of the Chester Credit Union, added: “We are about to enter one of the most difficult times of the year for those seeking money to provide a satisfactory Christmas for their family and, with banks and building societies cutting back on lending, there is little option open to those seeking loans.
“We were horrified the other day to find that some companies are charging anything up to 2255% interest on loan.
“I would encourage all members of the public to take care before they sign up to any form of loan and never be pressured into signing without seeing the full amount you will repay and the interest rate associated with the loan.
“If you are not happy with the amounts, then seek further advice from a reputable source, such as Citizens Advice Bureau before agreeing to sign up.”
Credit unions are owned by their members, who save into a common fund, so do not need to meet the demands of external stakeholders.
Credit unions match members’ savings needs to other members’ credit needs, deriving earnings from the difference in the amount paid to members who put money into the credit union and the interest charged to those who take out a loan.
A £400 loan with Chester Credit Union would cost a maximum of £46 interest.
Anyone who lives or works within the district of Chester and Saltney can become a member.
To find out more on how to become a member, call 01244 399006 or visit www.chestercreditunion.com