Following the announcement of the launch of Churches Mutual Credit Union study group earlier this month, the Church of England has announced further support for Credit Unions.
The Archbishop of Canterbury has publically criticised pay-day lenders such as Wonga and promoted the use of Credit Unions. Archbishop Welby, is a former financier who sits on the Parliamentary Commission on Banking Standards. The Archbishop went on to lay out plans to help 500 financial co-operatives to expand by using Church premises. The Church of Scotland has also given its backing and is looking to work with the Church of England in a joint Credit Union plan. The Church of Scotland’s annual General Assembly has also previously called for the setting of a maximum interest rate (initially 40%) for all kinds of consumer credit.
Alexander Sloan work with a large number of both Churches and Credit Unions and we welcome this news. The use of Church premises has the potential to allow many Credit Unions to reach more people. In addition, high profile support from both churches can help boost the Credit Union message and encourage more people to join.