Streetcred: so what went wrong?

Streetcred logo

In July 2005 Streetcred's Manager John Wilson joined other leading lights in the Credit Union movement on the steps of 10 Downing Street on their way to a reception addressed by the Prime Minister. In July 2007 John Wilson was suspended by Streetcred and sacked in October 2007.

The 2,962 listed on the Association of British Credit Unions Ltd (ABCUL) web site as members of Streetcred at its closure on 16 October 2007 have a particular right to know what went wrong.

But we all have a right to know.

Launched in 2001 with strong local support, particularly from the Council, it set out to offer an antidote to loan sharks and unhelpful banks by offering a savings facility alongside access to genuinely low interest loans with a central commitment to serve the borough's deprived areas.

By 2005 it had spent around £1.5M of public funds in supporting its Rochdale and Middleton Offices and was  in deficit. Rochdale Council, ABCUL and the Financial Services Agency remained supportive in spite of the deficit growing larger.

On his return from holiday in the summer of this year John Wilson was suspended with immediate effect. At the beginning of October he was sacked and on 16 October Streetcred ceased trading.

It is surely essential that a truly independent investigation is commissioned and conducted as a matter of urgency. In addition to the thousands who have been let down by this failure, there are lessons that need to be learned before the borough can again launch a project to provide financial services the less well off deserve and can afford.