More credit unions offer festive option

November 19 2009

The Association of British Credit Unions has announced a big increase in the number of people using credit unions to save safely for Christmas following the collapse of the Farepak organisation three years ago, when more than 150,000 customers lost money.

Over the two years to 2008, ABCUL saw a 15 per cent increase in savings in their member credit unions and now more and more individual credit unions are offering festive savings accounts for a safe and valuable way to save, helping people to manage their money ahead of the most expensive time of the year.

Over 70 per cent of credit unions in membership of ABCUL said they offered a Christmas Savings Account, according to a recent survey, with a further 18 per cent planning to offer the account in the future.

Farepak customers lost an average of £400 each when the Swindon firm ceased trading in October 2006, with some families losing almost £2,000, just two months before Christmas.

ABCUL Chief Executive Mark Lyonette told the News: “As community-owned and controlled organisations, credit unions offer local people a well-trusted financial solution.

“By making regular deposits into a Christmas savings account, members can relax knowing that they haven’t had to run up huge credit card bills or taken out an expensive personal loan to pay for Christmas. And members can spend the cash they’ve saved anywhere they want as they’re not tied to using vouchers in only certain stores.”

To find out how your local credit union can help you save for Christmas, visit the website at www.abcul.coop or call ABCUL on 0161 832 3694.