Loans and saving made available to all in Monmouthshire

The Welsh Assembly Minister for Social Justice and Local Government visited an organisation that is helping to battle the credit crunch in Monmouthshire last week (16.10.08).

Dr Brian Gibbons AM opened the Gateway Credit Union, Monmouthshire's first collection point in Monmouthshire, at the Communities First Resource Centre, in Abergavenny.

He said

"In these difficult economic times, it is understandable that confidence in mainstream financial service providers is low. Credit unions operate by members saving into a common fund. This fund can be then used to make low interest loans to the credit union's members. Any surplus made from the granting of loans is reinvested in the credit union or re-distributed to the members in the form of a dividend and as result nothing leaves the community.

"Due to the way in which they operate, credit unions can and do help to combat financial exclusion and rebuild consumer confidence. This is why the Assembly Government continues to support the movement, helping credit unions to develop and grow, to realise their full potential as social enterprises and a focus in their communities."

A credit union works like a bank by lending money and helping people save, however, it is a cooperative and is owned by those who use it.

Simon Davies, Communities First Development Worker, said:

"Gateway welcomes everybody - even people who may have difficulty using banks and building societies because they are not homeowners, aren't currently working, or have a poor credit history.

"Gateway runs a Christmas savings account as well as regular savings and loans, and many of the new members joining in Abergavenny are choosing to use this service.

"Bringing Gateway to Abergavenny has been a success story of the Communities First team for North Abergavenny. "

Gateway Credit Union has been given a grant of £14,000 from Monmouthshire County Council's community and economic development scheme to provide financial inclusion and credit union development in Monmouthshire.

The savings and loans co-operative has almost 2000 members in Torfaen and has recently expanded its Common Bond to be able to also welcome members who live or work in Monmouthshire.

The new collection point will operate on Tuesdays, 12-2pm for cash deposits, but information is available from the office, in 29 Hillcrest Road.

Gateway Union was originally set up by church members concerned at the misery caused by loan sharks in their community.

Monmouthshire County Councillor for the Lansdown Ward, James George, said:

"We know too many people in this community who are paying huge amounts of interest to door-to-door loan companies. Now people have a low-cost alternative.  This can only be good for the people of Abergavenny, and I hope the local community take advantage of the opportunity."

Now that Gateway is able to welcome members from anywhere in Monmouthshire, Credit Union Manager John Richards is keen to hear from other community venues which would like to add a credit union service to their activities, and from people who would like to get involved.

Credit unions are run largely by volunteers. For more information contact: Gateway on 01495 750020; look on the website, www.gatewaycu.co.uk

contact Communities First on 01873 853623; or pop in to 29 Hillcrest Road.