Councils to set up credit union

A credit union is being created by local authorities in Surrey to help people experiencing difficulties during the economic downturn.

The Surrey Save Credit Union facility will be available to residents in Guildford, Woking and Mole Valley.

Credit unions are small-scale savings and loan co-operatives that typically serve people on low incomes.

Guildford Borough Council said a task force had been set up to put the plans into action.

'Economic uncertainty'

Councillor David Wright, of the Surrey Save Credit Union Steering Group, said: "The plans for our community bank are particularly timely given the current period of economic uncertainty.

"A growing number of people, especially those who have had a recent personal crisis or those on lower incomes find it difficult to access mainstream financial products.

"As a result they find it difficult to save, to get insurance cover and when they try to borrow they try to find themselves paying the very high interest rates charged by loan sharks, home credit companies, money shops and pawn brokers."

The credit union is also being supported by Woking Borough Council, Mole Valley Borough, Mole Valley Housing Association, the Co-operative Fund and voluntary organisations.

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