Bishop of Manchester stands side by side with Rochdale’s credit unions to promote ethical saving and lending

Bishop Mark Davies pledges to support one of Greater Manchester's Credit Unions

1 More Image(s) In Gallery

The Diocese of Manchester is lending its support to Credit Unions across Greater Manchester in 2014 encouraging residents to use these historic and trusted institutions to make more ethical and responsible borrowing and saving choices; choices that can keep families out of spiraling debt situations.

The directive was launched at Manchester Cathedral before Christmas when representatives from Greater Manchester’s many credit unions joined members of the Diocese to talk about the issues and commercial pressures on individuals and families during the festive period and encourage people to sign up to credit unions.

With the huge marketing budgets spent by payday lenders throughout the year reaching a large audience through TV advertising, these high interest lenders often seem like the only available option.

Sadly, some people even turn to illegal money lending- loan sharks have been arrested in Greater Manchester. These often start out being friendly but don’t provide proper paperwork, take passports, bank cards and other items as security and often use threats and intimidation.

What the Diocese - in conjunction with credit unions - aims to express is that there is a more responsible, ethical way of borrowing - and indeed saving - money that lies at the heart of most of the city’s communities.

The Rt Revd David Walker, Bishop of Manchester says: 
“The Diocese of Manchester is very keen to help promote the good work that credit unions do within communities to help and educate people on issues of borrowing and lending. Credit unions began in the region - indeed we are still home to the largest credit union in the UK with the Police’s Copperpot - and are part of an ethically-driven tradition that helps communities on a grass roots level.

“Credit unions are responsible, ethical and competitive which makes them the ideal consideration for people in the region looking to save or borrow money. But credit unions should be seen as more than just a response to predatory pay day lenders with exorbitant interest rates. They are a community-focused alternative way of managing your finances that as a region we should be proud to support.”

Chief Executive of Manchester Credit Union Christine Moore says:
 “The payday lending industry is having a detrimental effect on a huge number of people in Manchester, mainly those in work on low to middle incomes. Rising food and fuel prices are making it more and more difficult for them to manage on a day to day basis, and because of the easy access to payday loans, people are tempted to use them, not realising how quickly it can get out of control.

“Credit Unions offer a genuine alternative offering non-exploitative, competitive financial services to individuals from all walks of life, regardless of their social status and economic background. Our aim is to help and educate communities by encouraging responsible and ethical lending and saving that is far cheaper than a pay day lender could ever be.”

The genesis of credit unions in the UK began in 1844, with a group of weavers in Rochdale, who established the Rochdale Society of Equitable Pioneers. They sold shares to members to raise the capital necessary to buy goods at lower than retail prices, and then sold the goods at a savings to members. In doing so, they created a template that both co-operatives and credit unions have taken great influence from in subsequent years.

The movement then spread to Germany in 1850, Canada in 1901 and the United States in 1908. There are currently around 56,000 Credit Unions in 101 countries serving more than 200 million people. The places where Credit Unions are particularly dominant are: America, Canada, Australia, Ireland, Africa and Indonesia. More than 70% of people in Ireland are Credit Union members. 

It is easy to become a member of a credit union- they now cover all of Greater Manchester.



Rochdale Online has given local credit unions a free advert on the site. 

Credit Unions on Rochdale Online: www.rochdaleonline.co.uk/business/C/204/credit-unions