New Easterhouse Credit Union

New Easterhouse Credit Union …. A Brief History.

New Easterhouse Credit Union was created as a result of a merger between two existing credit unions, namely North Easterhouse & Central Easterhouse. Both Credit Unions were operating from remote locations serving only a small percentage of the community.

In 2002 it was realised that Central Easterhouse Credit Union was finding it difficult to continue operating due to several factors including increasing bad debt, board resignations, reducing membership levels and volunteer limitations .

Financial assistance was sought, a Development Manager was recruited to oversee all operational aspects, and alternative shop-front premises were acquired; in the centre of Easterhouse’s main shopping area….The rest is history!

In 2006 we hope to introduce new marketing ideas for Easterhouse such as an ‘Introduce a Friend’ campaign, a quarterly membership newsletter (already piloted), and a referral (discount) mechanism for members to use local retailers and receive a nominal discount, thus encouraging money to remain within the local community.

However our main marketing strategy is geared around a project which would be very innovative and pioneering. We are seeking funding from a national charity which would mean we could safely lend (Unsecured) above the current age restrictions imposed by CUNA Mutual Insurance, without any risk to the general membership in any way. i.e. Ring-Fencing of funds. We currently know of no financial organisations in the U.K. which do not place upper age limits on unsecured lending. If this concept materialises, New Easterhouse will be pleased to inform ABCUL of the mechanics of operating it, etc.

The ‘New’ Community Impact

The impact of NECU for the community has been significant. Particularly when you consider where it has come from in terms of scale and operationability, and the growth in membership, deposits held and loan book managed since opening in October 2004.

We have introduced a range of additional services out with those previously mentioned; including a standing order facility for added convenience, loan appointments for peak times (lunch hour consideration for employed members, etc), and a friendly drop-in approach when servicing our membership’s needs. The largest impact is the centrally located shop-front presence which links well with the shopping times of our members

New Easterhouse Credit Union helps to make up for the under-provision of financial service providers here in Easterhouse. There is currently only one Bank and a Post Office. However, there are several ‘predatory’ lenders with APR’s in excess of 35%. More and more members are making reference to this with comments such as “I wish I had known of you before ….. when I think what I’ve been paying all this time”. New Easterhouse works with the local money advice project and attends schools and financial literacy training courses to advise local people on the benefits of membership.