Agenda item

A presentation from John McClay and James Boyd (West Lothian Credit Union).

7.1     Jim Boyd and John McClay of Caledonian Credit Union (previously West Lothian Credit Union/WLCU) gave an informative presentation on the background to credit unions, specifically the work of West Lothian Credit Union with a view to its expansion into the Borders region under the rebranded Caledonian Credit Union (CCU).  Credit Unions were worldwide predominantly in the USA and Australia.  Ireland had the biggest concentration in Western Europe and Scotland had a relatively small number (only 7% of the population).  Caledonian Credit Union (CCU) was a community credit union.  It had over £3m in assets, with a potential £2m available for lending and a loan book of £1.4m.  The Scottish Borders was currently served by Capital Credit Union, an industrial union concerned mainly with recruiting commercial/employee members. The operating model of the CCU, a community union with approximately 3,000 adult members, had fundamentally altered in response to the Covid-19 pandemic and had moved from their in-person Livingston premises to a solely digital/telephone-based service.   In August 2021, WLCU/CCU had extended beyond the West Lothian Council area to cover most of east central Scotland, and now covered the KY, FK, G, ML, TD and some EH postcodes.  This allowed both Borders residents and those working in the Borders to become members, apply for loans and open savings accounts.  CCU was a preventive financial co-operative that offered savings plans with the caveat that members were to be savers before a loan would be agreed.  It was not an emergency loan company but did signpost individuals as appropriate. CCU had neither raised loan interest rates nor tightened lending criteria as other institutions had.  Members were given more time to repay, interest had been suspended and reduced repayments were arranged to support borrowers through financial challenges.  A Working Group had been formed of CCU, Citizen’s Advice Bureau Peebles, Peebles Foodbank and Councillor Tatler to take plans forward. 

7.2     Deposits were made online or via the app and through standing orders; both regular and ad-hoc payments could be set up.  Access to daily funds was achieved through the Engage card (a pre-paid card for those without a bank account) that could be set up to make funds available daily to meet the cost of living.  It was confirmed that a partnership between CAB Peebles and Peebles Foodbank would provide support to applicants unable to access the service digitally.  A dividend was paid at the end of the financial year, agreed by the Board and dependent on the amount of surplus. Any outstanding loans were repaid by CCU at the time of a member’s death up to the age of 80.  A death benefit grant (again up to the age of 80) of 50% of total savings and up to £2,500 was available for next of kin.  Access to savings was assured under regulation and strict governance by the Financial Conduct Authority and the Bank of England for deposits of up to £85,000.  

7.3     An effective PR and marketing strategy that encapsulated a Borders identity was required in the promotion of the Credit Union’s services going forward alongside a targeted campaign on the benefits of credit unions with employers e.g. SBC, NHS and the RSLs.  In the meantime, WLCU/CCU’s website was available to promote to the Borders area.  It was hoped that the relaunch of the WLCU/CCU in the Borders would coincide with both the 25^th anniversary of the Credit Union and Challenge Poverty Week 2-8 October 2023.  A proposed development worker was to coordinate activity in the Scottish Borders to target specific employers, expand the network of contacts and work with schools to promote financial education and benefits of the Credit Union.  Any further queries on the matter were to be directed to Kenny Harrow.  Juliana Amaral (BCA) and John McClay were to engage in further discussion concerning a series of Third Sector networking events.  The potential role of a dedicated Development Officer was discussed. Members welcomed the presentation and voiced support for the work of the credit union.

DECISION

NOTED the presentation.