What are they? Credit Unions are financial co-operatives owned and controlled by their members. They offer savings and loans at affordable rates. They are local, ethical and, because they are owed by their members, know what their members want.

Above all, Credit Unions are run for the benefit of the community and not the loan sharks who prey on deprived communities offering unsecured loans at outrageous rates of interest, or for the shareholders of big commercial banks. That is why I am such a fan of them and visited Lambeth Savings and Credit Union on Brixton Hill (situated in the Streatham parliamentary constituency) to sign up myself to become a credit union member last weekend (I am pictured signing up at the LSCU).  I fully support what they do.

Lambeth Savings and Credit Union been serving Lambeth’s people since February 2006 and is supported by a broad alliance of voluntary organisations, community and faith groups and local government.

How do they work? Members of a credit unions pool their savings together. These savings then provide a pool of funds from which loans can be made at affordable rates. It is run by a volunteer Board of Directors, all of whom are members of the credit union, elected by the membership at an Annual General Meeting. All members of the credit union have one vote; regardless of the size of their savings. To find out more about Lambeth Savings and Credit Union, log on to their website - www.lscu.org.uk.