A credit union has opened a new branch in Hackney, offering low cost loans to members of the community.
The London Community Credit Union in Mare Street aims to provide financial services in an area where 40% of residents are considered to be ‘financially excluded’ and is at risk of getting involved with usury.
Last month, Hackney Council passed a motion condemning unscrupulous money lending in the borough.
LCCU, previously called Tower Hamlets Credit Union, was established to offer affordable low cost loans and financial services. It has successfully grown over ten years serving more than 10,000 members in Tower Hamlets. It currently has four branches and its latest branch sees it services extending to other areas in East London.
Ian Mosley, President of LCCU, thinks that the service will benefit people in Hackney.
“With the opening of the Hackney branch we are not only signaling our commitment to the East London community, but also providing wider access to financial services, which is vital in our current economy”, he said.
“LCCU aims to help move such lenders out of the borough by offering accessible and fair financial services,” he added.
The union runs on a membership basis, where community members pool their savings in the form of shares. The money saved is used as a common fund from which members can apply for low cost loans.
Councillor Jonathan McShane, Hackney Council Cabinet Member for community services is enthusiastic about the opening of a LCCU branch in Hackney.
“The introduction of a new credit union in Hackney is a really positive step. Not only will a credit union help those who are unable to open accounts with the main street banks, it will hopefully steer people away from unscrupulous money lenders,” he said.