East Sussex Credit Union receives loan from East Sussex County Council
02 Feb 18
ESCU has a current membership of over 6,300, savings of over £2.8 million and have lent out more than £2 million. 35% of ESCU’s lending in the last year is to people who are most in need. When compared against interest rates offered by doorstep lenders and payday loans, it is estimated that ESCU has saved East Sussex residents £330,000 in interest in the past year.
Cllr Keith Glazier, East Sussex County Council leader, said: “The roll-out of Universal Credit in the county may impact on residents who have to wait to switch over to the new system or who are currently not able to obtain a bank account. East Sussex Credit Union does a fantastic job in helping people on low incomes to manage their finances and avoid falling into the trap of high-interest loans, so they have more money to spend in the local economy or to save for the future.
“This loan represents an excellent investment in helping the Credit Union to do even more to support some of the county’s most financially vulnerable residents and contributes towards our priority of helping people to help themselves.”
Ann Hickey, CEO of East Sussex Credit Union says: “At a time when households having minimal savings, increasing debt and squeezed incomes as well as the roll-out of Universal Credit, the services of a credit union are even more vital as we offer safe savings, affordable loans and help on managing money. People, who are managing to save, borrow sensibly and manage their loan repayments are less likely Join East Sussex Credit Union to need advice and support from the Council and other public services to deal with their financial and other issues.
“ESCU offers a long term solution to help people get into a savings habit – even whilst borrowing, with our Saver Loans – to build their credit history with affordable loans, and gain access to other services such as prepaid VISA cards, with a basic bank account that don’t require a credit check.”
The loan will help ESCU’s work with district and borough councils to support some of the most financially vulnerable residents in the county. It will help the local authorities that work in preventing members of the community going to doorstep lenders that have limited resources to prevent these issues.