"His unlikely day trip aimed to highlight the City watchdog's role in opening the way to a doubling of the size of the mutuals sector a Labour manifesto pledge. Among these customer- or worker-owned organisations, including huge companies such as John Lewis and Nationwide building society, are the 350 credit unions. These are locally based lenders whose interest rates are capped by law and whose clients tend to include the low-income consumers left behind by the big banks."
"Holding assets of 4.9bn between them, the UK's credit unions serve about 2 million members. Their US counterparts have more than 143 million. The FCA's new report, which Rathi was in Rochdale to launch, included a series of recommendations aimed at encouraging credit unions to expand, and to offer more services. The Treasury has already promised to review the common bond the legal promise that governs each credit union, for example specifying the area it serves"
A visit to the Pioneers Museum highlighted the FCA's role in enabling a potential doubling of the mutuals sector, including customer- or worker-owned organisations such as John Lewis and Nationwide. The UK has 350 credit unions, holding 4.9bn in assets and serving about 2 million members, compared with far larger membership in the US. The FCA report recommends measures to help credit unions expand and offer more services. The Treasury will review the common bond and has allocated 30m for modernisation, including IT. Campaigners warn that loan sharks still prey on cash-strapped customers.
Read at www.theguardian.com
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