LEEDS, U.K.–Leeds City Credit Union is reporting it just had its biggest year ever by lending £3.2m to struggling families to help them cope with expenses related to the holidays.
The figure, according to the credit union, is a 10% increase on 2014. Leeds CU said its loans helped members to save up to £1.5m in interest payments last year compared to borrowing from “doorstep lenders.”
“I am extremely pleased that the credit union has been able to help families to save £1.5 million in interest charges in the run up to Christmas,” said CEO Chris Smyth. “We understand that many people have to borrow in the run up to Christmas but at least those that came to the credit union for a loan received extremely good value. Unfortunately those who borrowed from a high cost lender such as a money shop or payday loan company will be paying an excessive amount of interest for their loan and will be waking up to a real headache in the New Year.”
Leeds Credit Union has 37,000 members, triple the number it had a decade ago. It recently signed an agreement with the Leeds City Council as part of a long-term partnership in which the council has extended the repayment terms of a previous £1m loan to Leeds City Credit Union to 10 years, from the three years left on the current agreement.
The two organizations said they will also team up on a raft of new initiatives to help some of the city’s neediest families.