ABCUL welcomes pilot ‘Save Xmas’ campaign

The Association of British Credit Unions (ABCUL), has welcomed the launch of the Office of Fair Trading’s ‘Save Xmas’ pilot scheme in Scotland.

The scheme aims to help consumers decide how best to make sure that they can afford to pay for Christmas, following the collapse of the Farepak Hamper company last year.

Mark Lyonette, Chief Executive of ABCUL said, “I welcome the introduction of this initiative in Scotland and I am sure it will help people to better understand their options for saving for Christmas.

“Credit unions, for example, offer easy and safe savings schemes for all sorts of needs, including Christmas. Like banks and building societies, they offer the back up of the Financial Services Compensation Scheme and, with an ABCUL credit union, life insurance cover is included at no cost.”

He continues, “In a credit union there are no penalties for repaying a loan back early and borrowers only pay interest for the amount of time they’ve had the money.

“Most credit union loans cost no more than 1% a month on the reducing balance of the loan (an APR of 12.7%). What this means, for example, is that a £1,000 loan over one year would result in a repayment of no more than £1,067 in total.”

Radio and poster advertising will support the OFT’s campaign over the next few month along with educational materials aimed at consumers.

A copy of the ‘Save Xmas’ leaflet can be downloaded at oft.gov.uk.