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Local credit union continues to go from strength to strength

Besi Besemar September 30, 2014

Savings deposited with East Sussex Credit Union (ESCU) top £2 million for the first time as Brighton based ‘not for profit’ savings and loans provider continues to develop strongly within the local community.

East Sussex Credit Union
East Sussex Credit Union

This latest achievement follows an excellent year for the credit union; membership continues to grow as local people turn to ethical alternatives for their savings and loans.

General Manager Ann Hickey said: “£2 million of savings is another important milestone for our business.”

“More and more local people are now saving regularly with us rather than investing their cash with mainstream banks and other High Street lenders. They understand that we might not always offer them the highest rate of return on their savings but they really value our security and the fact that their money will be used to help other local people who are seeking affordable loans.”

August was a record month for the credit union’s growing loans business with people across the county continuing to prefer a more ethical, local alternative when looking to borrow money.

Ann added: “We can offer a really affordable option for members and some competitive interest rates, particularly for larger loans. When you couple this with the fact that we do not charge introductory fees or exit charges, people feel more comfortable approaching us if they need to borrow. They also like the fact that we keep their money in the community and don’t lend without an agreement to save at the same time. This can give borrowers a nice lump sum at the end of the loan period.”

In its last financial year ESCU saved members £2 million by offering an alternative to payday and other high-interest lenders.

She continued: “It is very easy for people who are challenged financially to turn to these companies as they make it so easy to access cash. However, when the money isn’t paid back in time, customers are required to pay swingeing interest charges as their loan rolls over. We offer affordable loans and an opportunity to save for a rainy day alongside repaying their loans.”

The credit union aims to foster a saving culture in local communities to help avoid this situation but will also offer to consolidate high interest loans to help members extract themselves from costly deals and ensure repayments are more affordable.

Anne concluded: “This is a really important part of our work and another reason why we are so delighted that deposits with the credit union are reaching record levels. The more of people’s savings we can attract, the more local people we can help and support.”

 

 

 

 

 

 

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