Press release: Helping to beat the crunch – Council works with local credit unions

The County Council has teamed up with local credit unions – community savings and loans co-operatives – to help people during the credit crunch. The initiative is just one of a range of measures the Council is introducing to help residents and businesses cope with the effects of the recession.

Funding has already been provided by the County Council to the East Sussex Credit Union and to the Hastings and Rother Credit Union. The Council is also promoting the credit unions to its own staff as an alternative, ethical savings opportunity.

Council Leader Peter Jones says that the partnership will help people when they most need it. He said: “We’ve hit very tough economic times and it’s harder for some to get legitimate sources of credit. Unfortunately, this is exactly when the loan sharks start to circle, offering exorbitant rates that just plunge people into further debt. Our Trading Standards team is aiming to track the illegal money lenders down but we’ve also got to offer residents legitimate sources of credit and this is where the credit unions can help.”

The credit unions are not-for-profit community organisations. Credit union members pool their savings to lend to one another. The credit unions provide savings accounts and flexible loans.

Ann Hickey from the East Sussex Credit Union, said: “We are very pleased that the County Council has decided to form a partnership with us. We are getting more and more enquiries from people struggling in the recession so this support will enable us to provide additional help across the county.”

Richard Street from the Hastings and Rother Credit Union believes the partnership with the County Council is a welcome boost. He said: “The funding and support from the Council is extremely timely as the recession starts to bite with many people in the Hastings and Rother area feeling the pinch. The County Council is encouraging ethical savings amongst its own staff and helping us to process savings and loan applications more speedily. With the Council’s help we’ll be able to increase our service locally.”

People can contact the East Sussex Credit Union on 01273 234858 or visit the East Sussex Credit Union's website or the Hastings and Rother Credit Union on 01424 202651. For more financial help and advice from East Sussex County Council, visit our section on Your money – financial help and advice.

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