Nick Raynsford joined Labour councilor Denise Hyland in November to attend the launch of Greenwich Credit Union. 

Credit Union is a member-owned co-operative which provides low-cost loans and savings to people living in the London borough of Greenwich. Previously known as Timeline Credit Union, it has been operating since 1998 and now has over 4,000 members with a total of more than £2 million in savings. In the past decade, it has lent over £12 million to its members in the form of cheap, flexible loans.

People who live or work in Greenwich and Woolwich who are not already members can now take advantage of this low-risk opportunity to save responsibly and borrow safely with an organisation that has no external shareholders or highly-paid executives. Greenwich Credit Union, in partnership with Greenwich Council, is run solely for the benefit of its members and the local community.

Members simply make a regular saving each week or month. An application for a loan can be made after three months of saving. The amount a member can borrow depends on how much they have saved and their savings method. When a member takes out a loan they continue saving, which builds up their savings and enables the Credit Union to make loans to other members. All loans are charged at 1% per month on the reducing balance.

Nick says: ‘I am delighted to be here today at the launch of Greenwich Credit Union. It’s a great way for people to build up their savings and have access to low-cost, responsible lending. Borrowing money is something most of us do at some stage in our lives. However, I receive a worryingly high number of calls from constituents who, unable to get credit or in debt already, have turned to credit cards and dodgy lenders as a quick fix. Loan sharks should be avoided at all costs as they often charge extortionate rates of interes  and can sometimes turn nasty when people cannot keep up with their payments.

It might appear there are no alternatives to loan sharks - but there are, and Greenwich Credit Union is an excellent example. The Labour Government has worked harder to introduce legislate to make it easier for credit unions to operate, encourage responsible lending and encourage people to save.

That is why I today welcome the launch of ‘peoples bank’ Greenwich Credit Union. Protected by the Financial Services Compensation Scheme, your money is safe and secure, money lending is responsible with low interest rates, and all surplus income is returned to members as an annual dividend. I urge everyone interested to call Greenwich Credit Line today on 0208 855 4344 or visit greenwichcreditunion.co.uk’.