CCCS: Credit unions may not work for everyone

While there have been a number of "helpful initiatives" undertaken by credit unions in recent times, they may not be a realistic alternative to payday loans for some people, according to a spokesperson for the Consumer Credit Counselling Service (CCCS).

Frances Walker said that while new changes to credit unions - including the addition of current accounts and the ability for people to borrow money without having to save first - have been positive, they may not "plug the gap for everybody".

"The problem is there have been various initiatives over the years to try and get credit unions really off the ground and I don't know if it is ever really going to happen," she explained.

Parliament heard the first reading of a new private members' bill that is set to update credit union and co-operative legislation last week.

Championed by Malcolm Wicks and supported by the Association of British Credit Unions, the legislation is said to allow credit unions and co-operatives to compete on a more even level with other financial firms.

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