ABCUL welcomes Midlands ‘Save Xmas’ launch

ABCUL – the Association of British Credit Unions – has welcomed the launch of the Office of Fair Trading’s ‘Save Xmas’ scheme in the Midlands.

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. ABCUL is one of the partners helping to deliver the initiative.

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

“A lot of people might not realise that credit unions offer a great range of safe and easy savings schemes for all sorts of needs, including Christmas, as well as low cost loans. 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.

“You don’t have to build up bumper bills and dodgy debts to pay for Christmas – just putting a few pounds a week in a safe and easily accessible savings account could make a huge difference.”

Because credit unions are owned and controlled by their members, they only exist to serve their needs. Credit unions keep money within a community, because there are no outside shareholders to pay, and those who invest in a credit union know that the only people who are benefiting are their neighbours or colleagues.

A dividend is payable on members’ savings, and membership of the Financial Services Compensation Scheme means that, in event of a credit union failing, savers will be compensated. The FSCS will repay 100% of the first £35,000 in credit unions, which is the same as for banks and building societies.

The introduction of the Credit Union Current Account earlier this year is also helping many more people to access banking services for the first time and to manage their money better. Charges are upfront and transparent, and there are no overdraft facilities, meaning people are less likely to get into trouble financially.

To find out more about the Save Xmas campaign visit oft.gov.uk/savexmas.

To find out about credit unions in the Midlands call ABCUL visit abcul.coop.