A credit union predicted
to be one of the largest in the country will be launched in
Coventry within a few weeks.
The Millennium Credit
Union is expected to attract several thousand members to take
advantage of its financial services.
Credit unions are
community or work-based savings and loans schemes that are owned
by their members. Membership is open
to all those who live or work within the boundaries of the
credit union including those who do not have a bank account or
who are considered a credit risk.
Members demonstrate that
they are a good risk by saving as much or little as they can
afford regularly over 12 weeks. They can then apply for a loan,
based on their savings, to be paid back over one or two years.
Mike Hoyland, Credit
Union Development Worker, who is playing a leading role in its
"We expect to be
open for business in August when formal clearance arrives from
the regulatory body, the Financial Services Authority.
"We are in the
process of being registered by the FSA and I see this new
credit union as providing a major boost for the other credit
unions in the city."
Bret Willers, Area Co-ordinator
South West Coventry, said:
"Groups of local
people from Tile Hill, Canley, Earlsdon and Spon End are
working together and forming a credit union which covers a
much larger area with the opportunity to generate greater
"We think that
the Millennium Credit Union has the potential to become one of
the largest in the country.
"It is for
everyone, whether they have high or low incomes. It will help
local people who cannot afford the high rates of interest
charged by some loan companies and who may fall prey to loan
can help to promote the Millennium Credit Union as a service
to their employees, who can save through their company payroll
without even having to leave the building."
Councillor Joe Clifford
"There are lots
of us who take for granted the use of everyday banking
facilities without realising they are not available to a large
section of the community.
"One of the
benefits of a credit union is to bring those sort of
facilities within range of a lot of people who do not have
them now. A lot of volunteers have worked hard to get the
Millennium Credit Union off the ground and I am grateful to
them for that. It really is a smashing idea which will help
people in Coventry."