Since 1999, Credit Union has provided it’s members with a safe and handy way to save, access to affordable credit and a range of value for money financial services. Whether it’s a new washer you need or even a full kitchen, we can help you spread the cost with a range of loans from £100 to £15,000 at competitive rates and repayment periods for up to 10 years. The rate that we offer you will depend on the amount that you are applying for, your credit history and whether you would like to pledge any savings.
Credit Union available daily, please call in for further information.
News Release from Credit Union – June 2018
Credit Union welcomes moves to cap high cost credit.
Hull & East Yorkshire Credit Union (HEYCU), the region’s largest not-for-profit lender, welcomes today’s Financial Conduct Authority (FCA)’s proposals to cap the cost of borrowing from rent-to-own, doorstep and other high cost sources of credit.
The Credit Union, which is a financial co-operative owned and used by over 12,000 members, was formed in 1999 to provide a fair, affordable and responsible savings and loans alternative for people across the Humber Region.
John Smith, HEYCU’s Chief Executive, said:
“We are totally opposed to lenders exploiting consumers by charging exorbitant rates for the credit that people need in order to afford their lives. Leading vulnerable people into unsustainable debt in order to maximise profits for shareholders is not an acceptable practice in today’s society. Credit Unions have had a legal cap on their interest rates since 1979 but because of our not-for-profit ethos, we have no desire to charge more than it costs to run our organisation. Any surplus we do make is returned to our members as a bonus on their savings.
“Last year we were awarded a 5-star Fairbanking Mark by the Fairbanking Foundation in recognition of the efforts we make to support our members’ financial well-being. And in a recent Royal Society for Public Health study, Credit Union loans were found to have the least serious impact on mental health whereas payday loans and unauthorised overdrafts had the worst.”
HEYCU provides over £4 million of consumer credit to its members every year in amounts from £100 to £20,000 and since 1999 reckons to have saved them over £13 million in interest charges compared to what they would have paid by taking similar credit from high cost providers. .
The FCA has outlined a package of plans for rent-to-own, doorstep lending and catalogue shopping and says rent-to-own shops that sell appliances and furniture for small weekly repayments could face a price cap similar to the limits on payday lenders. It has seen examples where people have paid over £1,500 for essentials like an electric cooker which could be bought on the High Street for less than £300. It believes the harm caused in this market, used by three million people in the UK, is sufficient to justify considering a price cap. Any cap would not come into force before April 2019.