A credit union is a community based savings and loans organisation that is owned, run and controlled by its members.
Often set up by neighbours or workmates, credit unions welcome savers and borrowers. They believe in a sense of community spirit and in keeping money within the local economy, with everyone working, saving and sharing together.
Their work benefits local people by:
- providing an ethical investment alternative
- making safe, affordable loans available to local people – taking into account their financial history
- specialising in smaller, short-term loans that most high street lenders may not offer
- reducing the number of people who need to approach less scrupulous lenders.
The more members save, the more the credit unions can afford to lend to local people, who are currently only able to borrow at very high interest rates.
There are two credit unions covering East Sussex and they are both regulated by the Financial Services Authority (FSA) and covered by the Financial Services Compensation Scheme (FSCS), so you can be confident that your money is safe.