1. Affordable Credit Joy Wetherill Welfare Rights Unit Manager
Chris Smyth
Chief Executive Officer
Leeds City Credit Union

2. Welfare Rights Unit Manager
Joy Wetherill
Welfare Rights Unit Manager
Leeds City Council

3. One-Stop Centres LCC has 15 One-Stop Centres across city
Centres deal with all aspects of Customer Service
Decision made to remove cash counters
Great opportunity to integrate credit union services with those of LCC
Fulfilling the needs of mutual customers
Working together to the benefit of the community

4. Partnership Working
LCC helping credit union with issues around ID and providing appropriate documentation
LCC promoting credit union services to clients who are un-banked and need an account for their benefits
Post Office Card Account will NOT accept Local Housing Allowance

5. Partnership Working
LCCU offers accounts for tenants through which they can pay their rent and other bills
LCCU provides accounts for School Clothing Vouchers so people do not have to use cheque cashing shops
Bond Loan available from LCCU (bond and first month’s rent)
LCCU Handiloans for those unable to get credit elsewhere

6. Chief Executive Officer Leeds City Credit Union
Chris Smyth
Chief Executive Officer
Leeds City Credit Union

7. About LCCU Started in 1987 for employees of LCC
Expanded in 2001 to “Live or Work”
Merged with 6 small church and community CUs
Large as a Credit Union but small compared to Competitors
Head Office and 10 branches across the city

8. Our Partnerships Positive partnership with LCC
Utilising former cash offices in One-Stop Centres
Partnering with Customer Services to give holistic service
DWP, LCC, ALMOs, Charities

9. Financial Inclusion
Credit Union an important partner in LCC’s FI strategy and delivery
Research recognised the need for local face-to-face services for low income consumers
Also recognised the economic impact on the city’s prosperity of exclusion

10. Low Income Consumers
Deserve decent, appropriate and affordable services just as much as those who are better off
Use many services that are unsafe and/or expensive such as:
Hamper schemes e.g. Farepak
Coin meters e.g. Telebank
Doorstep credit with interest rates as
high as 800%

11. What do they need?
A face-to-face, one-to-one friendly and approachable service
Somewhere local to save a few pounds a week
Simple products, easy to understand
Help with basic budgeting and paying their bills
Affordable credit

12. The Growth Fund
£36m from the Financial Inclusion Task Force HM Treasury
Administered by DWP through contracts with third sector lenders – CUS and CDFIs
Provides the capital to make loans and the revenue to run the service
Continues to 2011

13. Affordable Credit £300 from doorstep lender:
£15 a week for 32 weeks - pay back £480 (APR 399.7%)
£300 from the credit union
£10 week for 33 weeks – pay back £325 (APR 26.8%)
Save £5 week - £165 extra to put away for a rainy day or spend

14. The Future Improved Credit Union Legislation Expected October
Changes to the Common Bond
Wider Range of Products and Terms
Ability to accept Funds from Bodies, e.g. clubs

15. Financial Inclusion Services (Yorkshire) Ltd
Eric Thompson
Financial Inclusion Services (Yorkshire) Ltd

16. Affordable Credit in Sheffield
3 organisations – One Vision
Financial Inclusion Services (Yorks) Ltd
- a registered charity
Moneyline Yorkshire (IPS) Ltd
- an ethical loan company
Sheffield Credit Union
- a savings and loans co-operative

17. What do we provide Instant loans at affordable rates
Access to cheaper loans when a repayment history has been established
Encouragement to save
Payment of benefits direct
Help with budgeting
Financial Capability

18. What have we achieved Over 5000 instant loans per year
Totalling over £1.5m
Saving over £2m on doorstep rates
10 Community Credit Unions merged
Over 5000 adult members
Over 2000 junior members
£813k savings, £739k ‘normal’ loans
91% of clients from Closing the Gap areas

19. Sheffield Investment Bond
Open to individuals and organisations
Championed by City Council’s CEO
Guaranteed repayment in 5 years
No interest
Capital lent to Places for People
Interest paid to Moneyline
£750k raised, £110k given to Moneyline

20. Partnerships Local Strategic Partnership
Financial Inclusion Consortium
Advice Consortium
Debt Support Unit
Sheffield City Council
Sheffield Homes & RSLs
University of Sheffield

21. Current developments Basic bank accounts Transaction banking
Pre paid debit card
Holistic delivery of services
Out reach provision
Possible South Yorkshire Credit Union
Financial Capability
Work with offenders & their families

22. Thank you
Any questions?

23. Contact Details Joy Wetherill Chris Smyth Eric Thompson
Tel:
Chris Smyth
Tel:
Eric Thompson
Tel:
Mobile: