Kent Savers Credit Union Launch

4 March 2010

Savers Credit Union launches on 4 March at Little Pebbles Children’s Centre, Gravesend, Kent (10.00am). 

Kent Savers will provide services to the 1.6 million people in Kent, the largest coverage for any UK credit union and will offer services to customers wanting an alternative to high interest loans or pay day loans, and ethical, easy-saving options, including payroll deduction schemes.

The launch at the Little Pebbles Children’s Centre aims to show families on low incomes that there is an alternative to borrowing money from loan sharks or the easy availability of pay day loans.  Many pay day loan companies have sprung up on the Internet which, while regulated to a degree, legitimately offer same day loans at extortionate interest rates, often at a thousand plus percent.

“Kent Savers is duty bound, actually legally obliged, to promote thrift and sound financial education of its membership.  And like any membership organisation our members have a say in the way we run our business.  Unlike banks, our members have a vote which actually counts.” Ursula Wacher, Chair – Board of Directors, Kent Savers.

The formation of the credit union provides an alternative for customers who have lost trust in financial institutions due to the recession brought about by the banking system.  Because it is an independent cooperative, Kent Savers will not issue large bonuses to its staff but will reinvest profits within new loans schemes and ethical investment. All deposits are 100% protected by the Financial Services Compensation Scheme.

“Kent Savers is for everyone, we will have investment plans and loan rates which are competitive and we welcome people on low incomes. We have a responsibility to focus on people living in deprived areas where the benefits of the credit union can be most pronounced. For example if 100 borrowers used Kent Savers instead of a doorstep loan company the savings would be £34k per year.  This is extra income which can either be saved or reinvested within the community.” John Fowler, Chief Officer, Kent Savers. “Currently there are a large number of people who are financially excluded in Kent and we want to help address this.”

Initial funding of £250k for Kent Savers has been provided by Kent County Council with a further £500k coming from a number of partnerships and organisations.

“We are an independent cooperative but must thank KCC for its help and support in getting Kent Savers to where it is today.  Its help has been invaluable especially with convincing the Financial Services Authority (FSA) to authorise a credit union with such a wide common bond.” John Fowler continued.

Kent Savers will target 1.6 million people in Kent giving it the largest common bond in the UK.  The range of products Kent Savers will be able to offer looks set to increase under new regulations due in October 2010, opening the credit union to a range of interest bearing accounts, ISAs, Child Trust Funds and other instant or limited access accounts.

Kent Savers services will appeal broadly across the community by offering a return to the building society model of responsible lending and people focussed services. It aims to support the alternative economy and bring benefits to all. By linking loans to savings Kent Savers can help move people’s finances onto a more secure footing as they begin to save at the same time they borrow.

“Kent Savers will provide financial trust and support where it is needed most, while also offering a genuine alternative for people looking to invest their savings and apply for loans.  We see this initiative as a vital resource for the county to help the people of Kent. I am particularly pleased that KCC has been able to help set up the credit union.” Kevin Lynes, Kent County Council Cabinet Member for Regeneration and Economic Development.

Kent Savers launches and is open for business from 4 March operating out of its offices at The Old Town Hall, Gravesend.  For more information please call 0300 456 9990

Kent Savers Credit Union

Formed in February 2010, Kent Savers is an independent cooperative providing saving and loan schemes in Kent.  Supported by the Department of Work and Pensions growth fund, Kent County Council and a number of partnerships and organisations its primary goals are to offer low interest rate loans and provide structured saving schemes with accessibility to all income groups.