Credit unions bank new law

Click to follow
The Independent Online
The Government is being urged to bring in legislation to make it easier to establish credit unions in its forthcoming shake-up of financial regulation. In a report out today the New Economics Foundation, an independent think tank, says that up to a quarter of adults in Britain do not have access to basic financial services like a bank account. This excludes people from work, as most salaries are now paid into a bank account, and exposes poor households to loan sharks because they cannot take out bank loans.

The report argues that there is a strong case for a new law encouraging the small but fast-growing credit union movement. There are now almost 600 of these local deposit-taking bodies, up from under 50 ten years ago. They serve people whom themajor banks are unwilling or unable to take on.