Today credit union members around the world are celebrating International Credit Union Day. With more than 208 million members worldwide, credit unions are offering a real alternative to banks on the one hand and high interest lenders on the other.

In Britain, London Capital Credit Union (LCCU) is leading the way in the fight back against loan sharks and payday lenders by encouraging more people to use their services. By joining a credit union, not only are people gaining access to fair and affordable loans and savings but, by keeping their money in the community, they are helping others too.

LCCU has seen a 47 per cent increase in membership in the year ending September 2014 to 10,062.

Chief executive Martin Groombridge says: “For too long people in our communities have been exploited by moneylenders with a focus on profit and greed. Credit unions need to raise their game as co-operatives and encourage more people to become members and strengthen the movement.”

He adds: “We are now helping over 10,000 people keep clear of payday lenders and other high interest doorstep lenders. As a member-owned co-operative, we are driven to improve the financial well-being of our members.”

London Capital Credit Union is dedicated to promoting saving and helping people deal with debt. It provides secure savings and low-cost loans for anyone living, working or studying in Barnet, Camden, the City of London, Hackney, Haringey or Islington. 

Over the past year, it has seen a 62 per cent increase in loans to members but at the same time has seen members’ savings increase by 59 per cent to £6.6 million.

According to the credit union, people who have taken out loans with LCCU in the last 12 months have together saved millions of pounds in interest payments and other charges. 

Groombridge says: “We estimate that our members will have saved £6.5 million in interest, charges and fees by switching their borrowing to us from payday lenders and other high interest lenders.”

A loan from a credit union will result in lower repayments than from a payday lender or a doorstep loan. 

“That’s where people taking our loans in London can really benefit,” explains Broombridge. “What’s more, our saver loans are designed to help people get into the savings habit without racking up high interest charges.”

A typical £1,000 loan from the credit union, paid back over one year, would cost a total of just £67 in interest. This is a tiny fraction of what it would cost to borrow from a payday lender, for instance.

“That extra money stays in the local economy,” says Groombridge, “which has to be good news for everyone.”

He adds: “Credit unions across Britain are dedicated to serving the needs of their members and we are proud to be offering an alternative to the high street banks and rip off rates charged by payday lenders and many other finance providers across London.”

For more information visit www.credit-union.coop