1. Credit unions and advice agencies working together
Paul A Jones PhD
Research Unit for Financial Inclusion
Liverpool John Moores University

2. Two past projects The Connect Project (circa 2010)
An ABCUL / Citizens Advice project
Developing sustainable working relationships between CABs and credit unions
Supported multiple projects throughout the country
Funded by Barclays
Linking credit unions and money advice ( )
Blackfriars Advice Centre/Southwark Credit Union Ltd/Twinpier Debt Management Agency
Funded by Barclays and Friends Provident Foundation

3. BAC / SCU / TDMA Linking up money advice and credit union services
To tackle over-indebtedness and financial exclusion
A strategic and innovative development
A 12-month pilot project – based on mutual referrals
A part-time SCU debt support worker
SCU outreach sessions at BAC
SCU designated appointments at BAC
Capacity for SCU referrals to Twinpier
Access to credit union membership for BAC clients

4. CU referrals to Advice Agency
Issues that arose for Advice agencies
Credit union knowing when to refer
Credit union making appropriate referrals
Need for a filter system
Not every financial problem is a referral
Need for preparation and support
Efficiency and professionalism
Ongoing communication with the credit union

5. Advice agency referrals to CU
Differing approaches among advisers
Very cautious to proactive encouragement
Adviser concerns
Financial promotions legislation
Agency independence
Borrowing to get out of debt
Current, savings and loan accounts in one organisation

6. Advice agency referrals to CU
Some credit union concerns about Advice agency referrals
Supporting unrealistic client expectations
A lack of assessment of risk – not all clients can be granted a loan
Responsibility for loan decision must be the credit union’s
Understanding the nature of the credit union business
Managing loan default (when the client returns to the CAB)

7. Learning from the project
Seemingly common vision and purpose
Could mask important differences
Assumptions, beliefs, perspectives and interests vary
Differing expectations and concerns
Need for mutual recognition and acceptance between agencies
In the context of collaborative working
Success depended on:
getting the dynamics of the relationship right
external funding and support
linking up with money guidance and financial capability education
Building upon strategic and holistic approach

8. Further learning points from the project
Advice agency capacity
And credit union access to preferential appointments
Credit union administration
Embedding the debt support function
Not just debt advice and affordable loans
Income maximisation
Focus on range of CU products and services
Savings, current accounts, insurance
Necessity of a strategic focus and acknowledgement of contested issues
Commitment of board or trustees
Engagement of staff

9. ABCUL / Citizens Advice Connect
One example of project working (from Connect literature)
“Worksop Credit Union and Bassetlaw CAB. The two organisations have been working closely together since before the start of the Connect project and were used as one of the examples of good partnership working at the start of the project. The managers of both organisations are on the other’s Board. They have introduced a system of fast referrals and are currently looking at developing shared services”.
Worksop Credit Union now 2 Shires Credit Union Ltd

10. Shattering the myths (Connect)
The CAB “side of the story” provides the truth behind the myths:
The trigger figures are just made up
The trigger figures allow whatever the customer wants
I heard of someone that was allowed £70 per month just for their mobile
Apparently Sky TV can be seen as a “need to have”
The credit union “side of the story” provides the truth behind the myths:
Credit union loan rates are always set at 26.8%
Credit unions are all the same
Credit unions treat members in arrears unfairly
Credit unions are just like banks