Issuu on Google+

Neil Jay Manager


West Cheshire Credit Union is a community based not for profit saving and loan co-operative serving those who either live, work, study or volunteer in the Cheshire West and Cheshire East Council boundaries


West Cheshire Credit Union – The Story So Far • Established as Chester Credit Union in 2004 • Since launch loaned out over £1.3 million pounds to local people • 3500 members and growing by at least 600 new members per year • Hold £700,000 in members savings • £380,000 currently out on loan to members • One full time and five part time staff supported by volunteers • Forged many partner links with social landlords and commercial businesses


Some Shocking Statistics - 2013 282 people are declared insolvent or bankrupt every day (based on Q2 2013 trends). This is equivalent to one person every 5 minutes 7 seconds. Outstanding personal debt stood at £1.426 trillion at the end of July 2013. This is up from £1.421 trillion at the end of July 2012. Average household debt in the UK (excluding mortgages) was £6,005 in July. This is up from a revised £5,931 in June. Based on July 2013 trends, the UK's total interest repayments on personal debt over a 12 month period would have been £59.9 billion. This is equivalent to £164 million per day. This means that UK households would have paid an average of £2,272 in annual interest repayments. Source Credit Action – September 2013


Payday Loans – Impact on Employees The number of people getting into trouble with payday loans has soared: charity Step Change helped 36,413 people with such debts in 2012, a rise of 20,000 from 2011. The average amount owed increased to £1,657, with wider bankruptcy figures also on the rise in recent years. The Office of Fair Trading estimates that the number of payday loans taken out grew by between 7.4 and 8.2 million in the four years to 2012. Charles Cotton, CIPD reward adviser, warns that staff with debt problems can easily end up bringing their problems to work. “When people are struggling with debts it affects their productivity. When we did the research for our guide, Workplace financial education, we heard examples of employees who’d been chased by loan companies for repayments and were so worried they didn’t even want to pick the phone up at work. Chartered Institute of Personnel and Development – June 2013


Cost of Credit to Those Who Face Financial Difficulties Doorstep lending company:

£500 loan £17.50 pw repayment over 52 weeks 272.2% APR Representative

£910 total repayable..! Source Provident Financial – September 2013


Cost of Credit With West Cheshire Credit Union West Cheshire Credit Union:

£500 loan £10.99 pw repayment over 52 weeks 26.8% APR Representative

£571 total repayable..! That’s a saving of £339 over a doorstep lender


West Cheshire Credit Union Has a Major Role to Play in Economic Well-being of Citizens of Cheshire West and Chester • Supporting the local economy • Encouraging greater financial literacy opportunities • Affordable loans provided to members • School Bank initiative supporting young savers • Helping break the cycle of debt • People before profit philosophy • Creating greater awareness regarding the benefits of saving


Challenges Facing West Cheshire Credit Union • Greater awareness of the services offered to the public • Shop front premises will contribute towards enhanced growth • Volunteer recruitment opportunities • Resources to deliver higher volumes of work • Marketing services to the general public


Solutions To Overcome Challenges

• Support with marketing and ‘spreading the word’ about WCCU • Help secure shop front premises in Ellesmere Port and Chester • Encourage volunteers to get involved with key projects or roles • Business support to help with marketing

By working together we can provide a cost effective solution to loan sharks, doorstep lenders and Payday Loan companies


Payroll Saving –Support Your Employees


How Can Members of West Cheshire & North Wales Chamber of Commerce Help WCCU We would welcome help in securing further support toward our aims from organisations across Cheshire West and Chester, including:

Setting up Payroll Saving Schemes Help ‘spread the word’ about WCCU Support via marketing services to staff Volunteer support Or you may wish to help in other ways?


Thank you for your time and should you wish to contact West Cheshire Credit Union for further information or to pop along for a visit you can contact me on: Neil Jay 01244 399006 Neil.jay@wccu.co.uk Web: www.wccu.co.uk


West Cheshire Credit Union Business Social Presentation