Tel: 0118 958 5803

20 May 2013
News

New Article

Great news to share!

A dividend of 1.2% as approved at the CSL AGM has now been paid to members.
This dividend covers the period 1st October 2011 to 30th September 2012.

CSL AGM 17th April 2013

Your Invitation To The CSL AGM 17th April 2013 6.30pm for 7pm

This letter is your invitation to our AGM (Annual General Meeting) on Wednesday 17th April 2013 at 6.30pm at the RISC Café Conference Room, 35-39 London Street, Reading, RG1 4PS opposite the CSL Reading office.

At the AGM, as a member of Community Savings & Loans, you will;

• Vote on the proposed dividend
• Elect Directors and Officers who run the Credit Union
• Be able to ask any questions about the Credit Union

Please click the documents below to view.

ClickDownload AGM Invite 2013 (293kb)
ClickDownload AGM Information Leaflet 2013 (829.2kb)
ClickDownload Committee Member Nomination Form (197.3kb)
ClickDownload Director and Committee Member (470.1kb)
ClickDownload Director Nomination Form (194.9kb)
ClickDownload Report of The Committee Of Management (134kb)
ClickDownload AGM 2012 (263.1kb)

 

 

New Article

CSL Welcomes its 1700th Memember!

I am delighted to announce that we have 1700 members.

 

New Article

New CSL Branch - Cippenham Library , Slough

I am delighted to announce that wef 1 March we have a new branch in the Slough area.

We are open each Friday from 11am to 1pm at Cippenham LIbrary, Elmshott Ln, Slough, SL1 5RB.

New Article

New CSL Branch

The West Berkshire Community Savings and Loans (CSL) Credit Union is extending its services in the district by opening an additional facility in Lambourn.

CSL can be of particular benefit for people who are struggling and are unable to get help from high street banks and may be forced into considering companies who offer very high rates of interest.

From Friday 1 February, there will be an advisor on hand at the Lambourn Pharmacy in the Broadway, Lambourn every Friday between 11 and 2pm.

The scheme already operates from the West Berkshire Council offices in Market Street Newbury on Tuesday's 10am to midday,the South Newbury Children's Centre in Greenham on Wednesday's 10am - 1pm and from the Sovereign Housing offices in Bartholomew Street, Newbury on Thursdays, 10am - midday.

Jayne Parsons, Manager at CSL said: People are increasingly subject to financial constraints these days and every day problems can have a big effect on family finances. If an essential item such as the washing machine or the car breaks down people may be driven to taking out loans at very high rates of interest and paying back a great deal more than they borrowed. CSL offers an ethical savings alternative, where money is used to help the local community rather than fund banking bonuses.We actively encourage people to save before taking out loans.”

Councillor Hilary Cole West Berkshire's Executive Councillor for Public Protection said: “ It is good news that CSL are expanding in West Berkshire. They play an important role in the community by providing a real alternative to the doorstep lender and loan shark organisations. The Council shares a common objective with CSL to help local people to have long term financial control and peace of mind.

CSL welcomes it’s 1600new member!

I am delighted to announce that we now have just over 1600 members.

We are volunteer run, there are no hidden charges, and there is no small print, just old fashioned, direct personal service, with no premium rate phone charges, and we are a not for profit organisation. We also very much welcome those who just want to save and so help others in the community
CSL exists to help people avoid extortionate rate lenders, and gain long term financial control and peace of mind.

CSL can be of particular benefit for people who are finding it difficult financially, are unable to get help from high street banks and may be forced into considering companies who charge very high rates of interest.

 

New Article

Petitioning House of Lords regarding an interest cap on payday loans

It's important. Will you sign it too?


www.change.org/en-GB/petitions/members-of-the-house-of-lords-support-an-interest-cap-on-pay-day-loans

New Article

We are closed from 4.00pm Friday 21 December and will reopen 10.00am

Wednesday 2 January 2013.

We wish all our members a Merry Christmas and a prosperous New Year.

New Article

Trading Standards warn: don't get sharked this Christmas

Concern that loan sharks could prey upon hard-pressed residents this Christmas has prompted a warning from Buckinghamshire County Council Trading standards officers to avoid illegal money lenders.

Buckinghamshire may not be a hotbed for bully-boy loan sharks charging soaraway interest, says Terry Carter, Trading Standards Manager, but people should beware of informal loans from a friend or colleague operating an apparently innocuous money-making scheme without a consumer credit licence.

'People struggle financially around Christmas and New Year, and we're particularly concerned this year as our belt-tightening economic climate takes its toll on household budgets,' said Mr Carter.

Nationally, 20% of victims in past cases said they had borrowed money originally to pay for festivities, according to the England Illegal Money Lending Team, with which Buckinghamshire Trading Standards works to crack down on loan sharks.

Mr Carter said in most cases victims were introduced to the lender either through a friend, work colleague, family member or someone known on the grapevine.

'It could initially appear quite innocent,' he said. 'But vulnerable victims short of cash can easily become trapped in a vicious cycle, owing someone far more than they can afford. It's the kind of situation that is very difficult for us to detect - hence our warning.'

Last month (November) the Illegal Money Lending Team working with Buckinghamshire Trading Standards brought a successful prosecution against an illegal money lender who made loans to work colleagues.

Martin Phillips, Cabinet Member for Community Engagement, said no matter how desperate people were, illegal money lenders were never the answer.

'There's no need for our residents to be victims to loan sharks,' said Mr Phillips. 'Most of Buckinghamshire is served by Credit Unions, which can provide our residents with legal loans at reasonable interest rates.'


To report a loan shark:
Call the confidential hotline 0300 555 2222
Text loan shark + your message to 60003
E-mail reportaloanshark@stoploansharks.gov.uk
Private message on www.facebook.com/stoploansharksproject

Note

Nationally, Trading Standards Teams have secured 218 prosecutions for illegal money lending and related activity, leading to almost 140 years-worth of custodial sentences. They have written off almost £40 million worth of illegal debt and helped more than 19,000 victims.

 

 

facebook & Twitter Accounts

We have facebook & Twitter Accounts at

http://www.facebook.com/pages/CSL-Berkshire/236854756405010?ref=hl

https://twitter.com/BerkshireCU

HOT OFF THE PRESS!

FSA has increased the limit for savers from £10,000 to £15,000.

Community Savings and Loans receives funding support from The Berkshire Community Foundation

In the current recession increasing numbers of people are facing financial difficulties.  For many people living or working in Berkshire, their real standard of living is falling as a result of current wage and benefit freezes and rising prices.   Community Savings and Loans (CSL) provides affordable loans to those who may find it difficult to get support from the high street providers because of low income or limited assets. 
The Berkshire Community Foundation (BCF) has recognised the work being done by CSL by awarding a grant to help raise awareness of the services available.

“We have been described as Berkshires best kept secret; with the valuable support of BCF we can increase our visibility with the people we are trying to reach.  If we are going to help people avoid the clutches of doorstep lenders, loan sharks and high cost providers we need to get our message across before it is too late and this funding will help us make a difference.” Said Jim Coghill, Charman of CSL.

Andrew Middleton, Chief Executive, Berkshire Community Foundation, said  “We are delighted to support this very important project. Whilst we are perceived as an affluent county, many people are struggling in these difficult economic times which makes this project even more essential.”

 

Greenham Residents get access to low cost financial services at Childrens’ Centre

With the valuable support of West Berkshire Council, Community Savings & Loans Berkshire (CSL) is raising its profile in Greenham allowing it further opportunities to offer its services much more easily available to local residents.
CSL can be of particular benefit for people who are finding it difficult financially, are unable to get help from high street banks and may be forced into considering companies who charge very high rates of interest.
Jim Coghill, Chairman said that “Across Berkshire and in the Nightingales area of Greenham people normally manage their money without too many problems but those unexpected moments when the washing machine or the car breaks down can cause real worry and make people take out loans at very high rates of interest, paying back a great deal more than they borrowed.”
“At CSL we encourage people to become a member, start saving whatever they can afford, and once they have, we are normally able to offer loans at affordable rates.  We sit down and explain how we work, look at a person’s income and expenditure and then decide if we can offer a loan – but we will not offer loans to people who cannot afford them.
We are very pleased to be able to provide loan charges that are a small fraction of what could be paid to a payday lender, a door step lender or a loan shark, so we can save borrowers hundreds of pounds.  We are also an excellent alternative to weekly payment stores.  In addition, we match the banks for loans up to £3,000. 
We are volunteer run, there are no hidden charges, and there is no small print, just old fashioned, direct personal service, with no premium rate phone charges, and we are a not for profit organisation.  We also very much welcome those who just want to save and so help others in the community
CSL exists to help people avoid extortionate rate lenders, and gain long term financial control and peace of mind.
“We are very grateful to The Children's Centre for supporting our mission and in particular for allowing us use their offices.” 
From Wednesday May 23rd CSL will operate every Wednesday from The South Newbury Children's Centre, The Nightingales, Pyle Hill, Greenham, between 10 and 2 for customers to discuss services with volunteers.
Graham Jones Leader of West Berkshire Council said: “CSL can play an important role in the community.  They provide a real alternative to the loan shark organisations that prey on sections of our community and we share a common desire to see our residents treated fairly. As a volunteer run organisation, they rely on local residents and organisations to help them deliver their services and we are proud to be part of that network.  We would encourage anyone who would like to support CSL to consider by becoming a volunteer. Anyone who has concerns about unlawful or unfair lending should contact the Council’s Trading Standards service.”

From left to right: Maria White - CSL Customer Service volunteer, Lisa Gliddon - Children's Centre Manager, Adrian Edwards - Chairman, West Berks Council, and Jayne Parsons - CSL Customer Services Manager.

Credit Union now in Town Hall

Article in 'Your Community' - the RBWN newsletter

Affordable Loans, ethical savings and financial advice

The Credit Union is now open for business in the Town Hall every Thursday to help local people with their finances.

Run by volunteers and an important element of Big Society in the Borough, the credit union:

- offers financial services to help put people back in control of their money and steer them away from loan sharks and others who can charge very high interest rates

- provides savings opportunities for people who want their money to be used ethically to help those in the local community who need financial support.

Cllr Richard Kellaway, cabinet member for finance said The credit union can be a lifeline for people who, for various reasons, can't get loans at all or can't afford the interest rates. This is a breeding ground for loan sharks and organisations that charge extortionate interest rates which can lead to even more misery.

For the full article see Page 34 at http://www.rbwm.gov.uk/public/news_atrb_spring2012_pages18-36.pdf


Fo the full article see Page 34 http://www.rbwm.gov.uk/public/news_atrb_spring2012_pages18-36.pdf

A Brighter Alternative to BrightHouse

“Life can be very expensive if you don’t have much money” said Jim Coghill, Chairman of Community Savings and Loans on the opening of a new BrightHouse store in Newbury.
Recent comments by respected commentators such as The Daily Mail and Barnardo’s warn that shoppers are being ripped off by the way these shops disguise their products making price comparisons difficult and they criticise the optional extras that BrightHouse provide at the checkout.

“This approach to the real price is compounded by the way they portray the affordability” he continued “shoppers are further misled into believing that by paying weekly the store is making that purchase affordable to households on a tight budget.  In fact by highlighting the weekly repayment figure there is a real risk that the total amount of interest and extras, over the repayment period is not clear.

Community Saving and Loan standard rate is 18% compared to the 29.9% that these stores charge. In real terms the shopper pays around £157 interest on a £300 item from BrightHouse whereas the Community Savings and Loans only charges £90. 

In addition, it's easily possible to find an almost identical item to that on sale in  BrightHouse at a much lower price and pay for it using a loan from Community Savings and Loans.   Using one of our loans means, there is no need to take out the BrightHouse Optional Service Cover or the Damage Liability Cover, which can add hundreds of pounds to the cost. 

People on a tight budget do not need higher costs wrapped up as weekly affordability, they need real personal support and financial help, and that is what Community Savings and Loans exists to provide.

For more comment on the BrigtHouse sales methods see the following http://www.dailymail.co.uk/money/news/article-2103039/Stores-great-hidden-price-hike-How-opaque-product-details-add-ons-affect-purchases.html

http://www.barnardos.org.uk/a_vicious_cycle_executive_summary_online.pdf
Rent-to-own credit sector morally bankrupt, http://www.bbc.co.uk/news/business-16348405

 

New Loans Deal

Newbury Sound Tuesday 20th March 2012

A gathering today at Newbury's Shaw House has been looking at the issue of illegal money lending - and a new way in West Berkshire for people to save money - but also to take out loans without having to go to loan sharks.

We asked Jim Coghill at today's event, who's the Chairman of the new facility, what the main benefits ARE for residents in Newbury, Thatcham and Hungerford of using the new Savings and Loans - rather than the ones they see on the telly - or dodgy money-men knocking at the door: Our interest charges are a fraction of payday lenders and door-step lenders and other places that sell, for example HP type shops. We also offer confidential personal private service.  We treat people as individuals, but it's important to remember we don't loan to people who can't pay back

For the full story http://www.newburysound.co.uk/new-loans-deal-i-12588.php

Loan sharks and high rate lenders in West Berkshire

Meeting hears of loan sharks and high rate lenders in West Berkshire

Wednesday, 21st Mar 2012
Reporter: Eddie van der Walt, Reporter for Newbury News


PEOPLE in West Berkshire may be paying far too much for loans, a meeting of key players at Shaw House heard yesterday (Tuesday).

The meeting, arranged by West Berkshire Council’s trading standards department, which discussed the trappings of easy but expensive credit available from payday loan companies also heard that the district was not immune to loan sharks.

Speaking at the meeting was Jim Coghill of Community Savings and Loans (CSL), Berkshire’s Credit Union and Wendy Loades of the Illegal Money Lending Team.

Mrs Loades told the assembled guests, which included West Berkshire district councillors and other key players in the local community, that although the area is generally affluent, it does not mean that illegal lenders or loan sharks are not operating here.

She said: “ People across the country are affected, and it often happens in areas where you least expect it.

“The people most likely to be targeted are females, aged 30 to 40, who are on benefits, but the problem is not limited to people in this category.”

She said that as many as 310,000 households across the country may owe loan sharks a combined £120m.

Those listening, including West Berkshire councillors Hilary Cole (Con, Chieveley) and David Rendel (Lib Dem, Thatcham Central) said these statistics were appalling.

Mr Coghill said that his organisation provided an alternative.

The CSL operates from various offices, including at West Berkshire Council’s offices in Market Street, and Mr Coghill said that they were willing to lend to people who posed a higher risk than most high street banks, thereby taking these people out of the reach of loan sharks.

But Mr Coghill also warned against what he termed ‘legal loan sharks’, lenders who charge extortionately high rates, sometimes several thousand percent, despite the fact that they are governed by the Financial Services Authority.

If you were know of a loan shark acting locally, contact the Illegal Money Lending Team on 0300 555 2222 or visit www.direct.gov.uk/stoploansharks, or contact Eddie van der Walt at the Newbury Weekly News on 01635 564 601.

To contact the CSL, visit www.cslberks.org.

for the full article see http://www.newburytoday.co.uk/2012/meeting-hears-of-loan-sharks-and-high-rate-lenders-in-west-berkshire

CSL applauds OFT investigation into Payday lenders

Community Savings and Loans, Berkshire’s Credit Union applauds the news that the OFT will be reviewing the activities of Payday lenders.
Said Jim Coghill, Chairman of CSL “It has always been a concern of ours that pay day loan companies are driven by the profit motive and prey on people’s emotions.  In these difficult times its easy to target those who have an immediate financial need.  Their attitude to the individual is disgraceful.  They play on the speed and convenience of getting the money and do their best to hide the cost.  It’s almost as if they want their borrowers to get deeper into debt.  They encourage people to take out loans and never ask whether they can repay them.”
 “At CSL we take the opposite position.  Our first concern is to make sure that we provide the right financial support.  We want to understand the individual and their circumstances so that we can provide a loan that is affordable.  The last thing we want to do is make matters worse. We can only hope that this investigation will raise awareness and will make people think of the alternative sources of finance – the responsible companies that put the interests of their customers before their own profit motive.” He continued.

 

Thinking of shopping at Brighthouse? Think again

Extract from The Mail online, This is Money section

For the full article go to http://blogs.thisismoney.co.uk/2012/02/thinking-of-shopping-at-brighthouse-stop-dont.html

One shopping chain that is thriving in recession-hit Britain is Brighthouse, the hire-purchase firm selling TVs, furniture and white goods through its 243 stores and online.
It already has over 200,000 customers paying for goods by weekly instalments - and it reckons it can reach five million more.
My advice is to steer clear.
Brighthouse is highly profitable for a number of reasons, and here are just a few:

- Brighthouse uses a unique product-coding system which makes it almost impossible for customers to compare prices with those of rival retailers.
- In at least some cases, Brighthouse appears to be selling electrical goods at extremely high and uncompetitive cash prices.
- Brighthouse sells a high proportion of 'exclusive' products - ie products which vary slightly from standard models supplied to other retailers, making them impossible to compare on price.
- Brighthouse makes it compulsory for customers to have insurance, and sells its own enormously expensive cover.
- Brighthouse encourages customers to buy warranty-type service agreements which can almost double the overall cost of a product.
- Brighthouse lends customers the money to pay for all the above at a rate of 30% APR.

DWP supports Credit Unions

In a recent Daily Mail article on the recent study undertaken by Netmum, a spokeswoman for the Department for Work and Pensions said: 'Our welfare reforms will have a dynamic impact on some of the poorest families and will lift over one million people out of poverty.

'We continue to support low income families and put £6.5billion a year into financial support for lone parents, but we know that debt remains a real driver of poverty.

'This is why we need credit unions to be supported and strengthened to ensure that illegal loan sharks can't plague the homes of vulnerable people and offer a real alternative to doorstep and payday lenders. We are working on the best ways to help credit unions expand and modernise so that more families can have access to affordable credit.'

Read the full story at http://www.dailymail.co.uk/money/cardsloans/article-2102015/Families-edge-70-battle-make-ends-meet-say-Netmums.html

GROUP OF BERKS VOLUNTEERS BRING INTEGRITY BACK TO BANKING

Interview with TIME106.6 fm
for the full story visit http://www.time1066.com/index.php?filename=local-news&article=2184

If the idea of a bank with morals sounds like a fantasy to you, one group in Maidenhead would beg to differ. The Community Savings and Loans Company (CSL) is run by volunteers, and is set on helping out its members, instead of making its managers rich.

The group have moved into the town hall in Maidenhead today (26/1), offering loans and saving for people who have been refused by other banks.

'WE HELP PEOPLE'

Their Chairman, Jim Coghill, say they are trying to bring integrity back to banking. He told Time 106.6: People who are not aware of us go to extortionate sources of finance, and when they find out about us they're absolutely delighted...because we help people, that's what we're here for.

Cllr Richard Kellaway, cabinet member for finance, welcomed CSL to the Town Hall and said: “Growing numbers of people are being hit hard by the very difficult global economic situation and there are those who, for various reasons, can’t get loans at all or can’t afford the interest rates. Thankfully CSL can often provide a lifeline and, through a personal financial service, offer loans at affordable rates, even to people with a poor credit rating, and can provide help on money management.”

The credit union will be open every Thursday in the Town Hall from 10am to 4pm. No appointment is necessary – just drop in. However, appointments can be obtained by calling             01189 585803       (10am – 4pm Monday to Friday).

Personal Debt Doubles Locally

Newbury News. Report by Mark Taylor

As the Citizens Advice Bureau reports that there has been an unprecidented rise in personal debt, Mark Taylor reports as follows
A new not-for-profit credit union that can help people financially, Community Savings and Loans (CSL), in conjunction with Sovereign Housing, has expanded its services in Newbury to cope with the demand and has this week again advised those facing debt worries to act early and seek advice.
A spokesman for CSL, Geoff Round, said that the ease in which unsecured high interest loans were obtainable was dragging many people into the mire.
They (doorstep lenders and pay day loan firms) prey on people who can't get anything from the banks, he said.  We all have to pay for Christmas, there is no point in getting yourself into further trouble. People are paying thousands of pounds in fees and getting themselves into real difficulties

CSL is proud to be playing its part by reducung its loan rates to help relieve the burden in these difficult times.

 

Richard Benyon MP adds his support

We were delighted when Richard Benyon called in to see us on 3rd January
Following the discussion with Jim Coghill, CSL Chairman, Richard pledged his support to our cause and has follwed up on the commitment in his January Newsletter.  The item is as follows

Richard Benyon MP - January 2012 Newsletter
Community Savings and Loans (CSL)

If you are a saver and someone who wants to help those in need, you can save with our local Credit Union - and be helping those in need at the same time. This mutual idea lends money to those who are facing real difficulties across Berkshire.

I get people coming to my surgeries who could really benefit from this organisation. Take Sue, a nurse who took time off to raise her family but now wants to get back into nursing. She couldn’t afford to do the course necessary to be re-registered. A loan from CSL would allow her to get back to doing a much needed job and to become economically self-sufficient. Take Jane, a single mum on benefits, with young children. She needs a few hundred pounds to equip herself with a fridge and other vital household items. A loan from CSL keeps her out of the hands of loan sharks and her debts are managed.

I have given my full support to CSL (www.cslberks.org) who now have a base in West Berkshire Council’s Market Street offices or can be contacted on 0118 9585803      .
 

Loan Shark Warning on Newbury Sound

Jim Coghill interview on Tuesday 3rd January 2012.
The following is a partial transcript of the interview as it appears on the Newbury Sound website

Loan Shark Warning

If you're starting to panic about paying back the cost of Christmas, a West Berkshire credit union is warning you not to turn to a loan shark for a quick fix.

The message comes from Community Savings and Loans, an organisation which uses local members' savings to help people who need to borrow money but can't turn to the bank.

It's run almost entirely by volunteers and currently has around 1200 members across Berkshire, but they're expecting more people to turn to them in January when Christmas credit card bills arrive.

Jim Coghill, who's the Chairman of Community Savings and Loans, says anyone who does take money from a loan shark will pay a high price: I've heard stories about violence, threats and threats made to family members.

I heard one story from the loan shark team.  They told me about one individual in Norfolk who borrowed £250 and 17 years later he was still paying it back.

He had paid back £91,000 and they were still chasing him for more money.

These people have got no principles at all.  Their objective is to get as much money out of you as they can.

You can listen to the full interview with Jim by going to http://www.newburysound.co.uk/pages/extranet/loan-shark-warning-i-11901.php

Credit union expanding services with support from housing association

Newbury advertiser
A CREDIT union that can help people financially is expanding its services in Newbury.

Community Savings and Loans,Berkshire, which can help people who are unable to get help from high street banks, is expanding its services with support from Sovereign South+West.

CSL chairman Jim Coghill said that while most people across Berkshire and in Newbury managed with their finances, it was unexpected moments such as a washing machine breaking down, or a car issue that caused problems.

He said: That is what drives people to taking out loans from doorstep lenders at very high rates of interest and paying back a great deal more than they borrowed. We encourage people to start saving, and once they have started saving we are normally able to offer loans at affordable rates.

Divisional director of Sovereign South+West, Jim Holah, said CSL played an important role in the community, adding that the housing association shared a common desire to see its tenants get on top of their finances.

CSL has been operating in Newbury from Broadway House, but within the next few weeks, it is set to expand its services to operate every Thursday from Sovereign Housing’s offices in Bartholemew Street.

The service will operate between 10am and noon.

The pitfalls of online payday loans

By Jim Reed Newsbeat reporter

Some loan companies have iPhone or Android apps for users to request loans
Borrowing at short notice used to mean a pleading phone call to the bank. Now though, many new online loan companies promise cash in minutes at the click of a mouse.
I was a bit short on a Friday night. I wanted to go out with the boys and needed money for my car, said Craig Hart, 21, from Buckinghamshire.
He first borrowed £100 from online loan company Wonga, and 19 days later paid back £125, including fees and interest.
'So easy'
The first time it looks like a good deal but the next month I ran out of money even more quickly, he said.
I ended up borrowing again, until it got to the point where I was using other loan sites just to pay Wonga back.
Ten months later that £100 loan had ballooned into a £7,500 debt with six different lenders.
Eventually he had to tell his family, who lent him the money to pay the sites back.
I've got absolutely nothing to show for it. It all just went on interest and fees, he said.
They make it seem so easy, so you've got to have a good head on your shoulders. It was an expensive lesson to learn.

'Online gold rush'

Wonga is one of more than 100 sites that have sprung up over the last five years offering to lend small sums within minutes at high rates of interest.
The market is growing rapidly - partly because big mainstream banks have become less likely to agree smaller loans or overdraft extensions.
Wonga claims only a minority of its customers get into any financial trouble.
We're all human and we're worried this is being marketed as an immediate solution. What about living within your means?
Labour MP Stella Creasy has been pushing for tighter controls on the way credit companies are able to operate.
They are aggressively targeting young consumers over the internet, she said.
For some people this short term debt can easily become a long term problem. There needs to be better regulation.
In countries like Germany, France and parts of the United States there are laws capping the maximum interest rate lenders can charge.
The government is now looking into the whole market for high interest loans and says it will decide whether to bring in any new regulations later in the year.

What the loans cost

• Wonga charges 4,214% APR; other online lenders might be slightly less or more
• Charges must be displayed as an Annual Percentage Rate - or APR
• But even critics accept APR is designed for long-term debts and is a poor indicator of how much short term loans cost
• A better measure might be the 'straight' cost of interest: still high at between 250% and 360%
• In real money, borrowing £100 from Wonga for 30 days would cost £36.72

 

Get extra help from the Union

MP backs stand against loan sharks  (Slough Observer 4 December 2011)

Slough MP Fiona Mactaggart and a major credit union have joined forces and issued the no-nonsense mesage don't be a loan shark victim
The politician will be in the Sloiugh Town Square on Sunday (6 November) to promote the message and offer advice to those in need of extra cash.

Just because you're on Income Support, don't have a good credit rating or have had financial problems in the past doesn't mean you can't get on top of your finances.  We'll try to help.she says

One weapon that is available is Community Savings and Loans Berksire (CSL)
CSL, formerly known as the Reading Credit Union, offers loans and savings to customers living or working in Berkshire. CSL can be of particular benefit for people who are struggling and are unable to get help from high street banks and may be forced into considering companies who offer very high rates of interest.
Jim Coghill, Chairman said that  “Across Berkshire and in Slough people manage their money okay, but once the washing machine goes or the car collapses – those unexpected moments – that is what causes problems and that is what drives people to taking out loans at very high rates of interest and paying back a great deal more than they borrowed..
It is a sad fact that those who are financially excluded think that their only way out of a financial difficulty is to use a doorstep lender or payday loan company and end up paying 1,000% or more whereas CSL will charge a maximum of 24% - cheaper than a credit card.
This event would not have been possible without the active support of Pat Kelleher, Assistant Director, Public Protection at Slough Borough Council.
CSl offer their services at My Council, Landmark Place, High Street, every Wednesday 10:00 to 16:00 and at Chalvey Community Centre, The Green, every Tuesday from 12.00 to 14.00                                            

 


A2Dominion and CSL at Foundry Court Estate

On 25th October, CSL and A2Dominion held an event on their Foundry Court Estate to promote the benefits of financial planning.
A2D and CSL want to ensure that, as best they can in these difficult times, residents get on top of their finances.
Staff of A2D, ably supported by the CSL volunteers, were on hand to hold confidential, personal, discussions to advise on savings plans and loan products that can be tailored to individual circumstances.
As Jim Coghill, Chairman of CSL said People manage their money okay, but once the washing machine goes or the car collapses  – those unexpected moments – that is what causes problems and that is what drives people to taking out loans at very high  rates of interest and paying back a great deal more than they borrowed.

CSL supports Daily Mirror E-Petition to End Legal Loan Sharking

The Daily Mirror has posted a new e-petition on the Government's site in support of their campaign to tackle the problems caused to consumers across the country by legal loan sharking.

If 100,000 people sign it, the Government will be forced to take action at last on the growing problem of high-cost credit. You can find the petition here:

http://epetitions.direct.gov.uk/petitions/20219

Please add your support by adding your name to this petition

Get Reading covers the presentation to our 1,000th member

Reading's credit union is 1,000 strong

By Paul Cassell  October 06, 2011  http://www.getreading.co.uk/news/s/2101000_readings_credit_union_is_1000_strong

An organisation set up to encourage people with money troubles to save instead of using loan sharks has welcomed its 1,000th customer.

Community Savings and Loans Berkshire (CSL) – formerly known as Reading Credit Union – also supports those who are struggling with their finances and have been refused credit.

It provides savings accounts and gives loans to people living or working in the county who are unable to get help from banks and feel they have little choice but to use lending companies which charge high rates of interest.

Many of its clients have chosen to save with the not-for-profit organisation with the aim of helping others who are in financial difficulty.

CSL encourages people to save money by offering loans only to those who have been saving with it for three months. Its current interest rates vary between 15 and 26.8 per cent.

The deputy human resources director of Royal Berkshire NHS Foundation Trust, Suzanne Emerson-Dam, became the landmark savings customer – knowing her money would help provide a lifeline to those in financial difficulty.

“I was looking for a mechanism to save rather than needing a loan,” she said. “While I have savings with a bank, I liked the fact CSL was community orientated and supported people in need and hardship.

“It is a very good scheme. I take my finances seriously and would hate to be in a position where I was struggling financially. I think an organisation like this that offers lower rates of interest on loans has to be commended.”

Tina Rawling, from Whitley, said joining CSL made a real difference to her life after she was declared bankrupt with thousands of pounds of debt.

“I can actually go to CSL and pay in my money, which gives me peace of mind.

“It’s not like a debt collector. You don’t get yourself into debt and, if there are any problems and you do fall behind, they are there to back you up.

“There isn’t that threat of bankruptcy anymore.”

The organisation began in Reading eight years ago and has expanded to Wokingham, Newbury and Slough, with plans to reach further into the community.

CSL is supported by Reading Borough Council and run by two paid staff members, and is keen to recruit more volunteers to help run and promote its services.

Its chairman, Jim Coghill, said: “In general, residents manage their money OK but, once the washing machine goes or the car collapses – those unexpected moments – that is what causes problems.

“That is what drives people to taking out loans at very high rates of interest and then paying back a great deal more than they borrowed.

“We sit down and explain how we work, look at a person’s income and expenditure and then decide if we can offer a loan. But we will not offer a loan to people who cannot afford it.

“We want to give people long-term financial control and peace of mind.”

 


CSL chairman Jim Coghill welcomes the organisation’s 1,000th customer, Suzanne Emerson-Dam

Chalvey Community Centre launch

Stop Loan Sharks – CSL offers advice and support at the launch on Saturday 3rd September

Slough Borough Council Community Services hosted a street party as part of the celebrations marking the opening of the new centre.
Community Savings and Loans (CSL) were present at this event continuing the work it does at The Centre every Tuesday advising local residents on financial matters.

As Jim Coghill, Chairman of CSL said In these times of economic uncertainty, many are faced with difficult decisions around money. This is when unscrupulous lenders try to take advantage of the situation to make large amounts of profit from those who think they have little choice.
We welcome every opportunity to provide financial support, through affordable loans, to local residents to help them through.  We are the local alternative to those who charge interest rates on loans that can be over twenty times those available through CSL.
Volunteers are the mainstay of CSL’s operation and we are indebted to the support of local residents Ray Barkley, Takee Glancy and Danielle Taylor who are there to offer help and advice to local residents

 

As you can see, Takee was ably supported by Sharkey, the mascot of the Stop Loan Sharks initiative.

Mother tells how Reading Credit Union changed her life

Mother tells how Reading Credit Union changed her life
by Jenny Minard  BBC Berkshire Reporter

 
Credit unions offer financial help to people who are struggling
Money is tight for many people during the recession. But there is hope for those who cannot get help from banks.
And Tina Rawling says going to Reading Credit Union has made a difference to her life.
She was declared bankrupt and struggled with her finances after running up thousands of pounds worth of debts.
I'd actually gone bankrupt and got myself into debt about four years before that, because I'd borrowed money.
It was easy for me to get myself into debt. I wanted things for my children.
I was in £10,000 worth of debt. It was difficult for me to get any money from anyone.
I couldn't have a bank account so I saw this leaflet for credit union and it said that even if you were bankrupt or had a poor credit rating they could help you out, so that's why I approached them.
Credit union
Tina went to the credit Union which is so successful it has now been given permission to expand across the county.
It offers low cost loans and savings plans to those excluded from the traditional banking system.
Tina says this has been a blessing for her.
It's made a big difference because I've got the peace of mind now. I haven't got anyone knocking at the door which is a good thing.
I can actually go to the pay point and pay my money, which is peace of mind and it's not like a debt collector, you don't get yourself into debt and if there are any problems and you do fall behind they are there to back you up.
There isn't that threat anymore.

How does it work?

The credit union in Reading is expanding across Berkshire
Dave Screen is the chief executive of Reading Credit Union and explained how it works.
We're a savings and loan organisation, just like an old fashioned building society used to be.
So you can save with us and if you do, you can then take loans from us.
We will talk to everybody and try to help where we can. We don't give loans out to everybody but we do encourage people to save and they can borrow and the good thing is the interest rates are at a maximum of 26.8%.
Mr Screen said that some companies offer a very high amount of interest.
I have one which I printed off the internet this morning a standard pay day loan with an APR of 2,689%.

Invest locally

He said Reading Credit Union is also for people who want to invest locally.
It's for people who want to save ethically, or who want to save or invest in a Reading organisation, and as it is now across Berkshire, because it is a cooperation everybody is an equal member.
Everybody can vote the directors in and out. Everybody has control of the organisation, so we are very much locally based and locally run and everything is open to scrutiny.
So why do people go to these companies with such high interest rates?

Doorstep lending

It's a whole mixture of reasons, said Mr Screen. One of the most pernicious reasons is that a lot of companies operate doorstep lending.
What they will do is pop round to your house. They will have a local friend of yours who is an agent who will organise to give you £20 or £30 or £100 because you're short.
They come to the door and they are usually a friend. It makes it all very easy.
But what's happening is, you're buying something that's very expensive.
When you look on the internet they tend to bury their APRS, which is the way we measure loans, in all the other bits of writing and information so it can be difficult to find the right thing.
So it seems that the recession has been good for some businesses.
It's been the best of times, and the worst of times. It's been good for the credit union - our membership is now over 600 and our loans amount this month has gone up and to the greatest amount for several months and we are expanding.
Unfortunately that is down to the fact that more and more people are needing financial help and support.

 

Volunteer to help Berkshire Credit Union

The following appeared on the GetWokingham news site http://www.getwokingham.co.uk/news/s/2098006_volunteer_to_help_berkshire_credit_union on
August 15, 2011

Volunteer to help Berkshire Credit Union
By Lewis Rudd

A credit union with coffers swelling from new members and investment is looking for volunteers in Wokingham to help make it an even greater financial success.

Berkshire’s credit union has announced its 900 members, around 40 of which are based in the borough, have deposited more than £400,000 with the community bank during the last year.

Now working under the name Community Savings and Loans, the organisation, which until 2009 was known as the Reading Credit Union before being granted permission to expand its services across the county by the Financial Services Authority, offers loans and saving initiatives to customers living or working in Berkshire.

In turn, money made through interest and investment is pumped back into community projects and initiatives, some of which are being considered here in Wokingham.

Although based in London Street, Reading, Community Savings and Loans does have a branch in Denmark Street, where it shares an office with the Citizens Advice Bureau, and is open on Friday mornings for customers to discuss services with volunteers.

Speaking about the community projects being proposed for Wokingham, Davis Screen, chief executive, said: “We are working with Wokingham Borough Council to identify areas where we could offer particular help.

“Most of these ideas are at the planning stage but we are keen to go and give talks and offer information to local community groups and see how we can be of help.

“But we are working with Wokingham Borough Council to identify ideas and looking at taking them forward.”

Speaking about the organisation itself, Mr Screen added: “We are all about fair finances and transparency and what you see is what you get. Anyone who lives or works in the Wokingham area can become members.

“We encourage people to start saving, and once they have started saving to think about borrowing. We sit down and explain how we can offer loans and look at a person’s income and look at expenditure and then offer a loan – but we will not offer a loan to people who cannot afford them.

“Across Berkshire and in Wokingham people manage their money okay, but once the washing machine goes or the car collapses – those unexpected moments – that is what causes problems and that is what gets people into debt.

“We are here to help people save money and help the community.”

Other plans Community Savings and Loans have for Wokingham include the expansion of the opening hours at its town centre office, however, the organisation, which boasts only three paid members of staff, needs more volunteers to make this happen.

Wokingham MP John Redwood said: “I welcome any local business or financial organisation offering a better service and offering more choice in the marketplace.”

Stop Loan Sharks event

The Stop Loan Sharks event, a debt awareness campaign, took place in Broad Stret Mall, Reading, on 14th April.
This initiative was run by the Trading Standards South East Illegal Money Team and three partner groups, including CSL.
The message is that people should 'bite back'against illegal lenders by seeking alternative help or reporting them to the police.
Jayne Parsons, Manager of CSL Berekshire, told Midweek she had witnessed a 10% rise in debt queries over the past year with more than 40 people a month visiting the Reading office.
She said No-one likes to talk about debt.  If people are suffering in this way I'm here to provide help and advice in total confidence.  We want people to know there is an alternative so that they don't get ripped off.
Jayne was ably supported by Bethan Miskell, one of our valued volunteers. 

Credit Union coming to Bracknell soon

The following article appeared on http://www.getbracknell.co.uk/news/s/2091053_credit_union_comes_to_bracknell on 13 April

Credit Union comes to Bracknell

A credit union that aims to put doorstep loan sharks out of business hopes to open in Bracknell in May.
Community Savings and Loans (CSL) will be owned and run by its members as a safe alternative to unscrupulous lenders who prey on the poor.

But organisers of CSL say the union will also be an attractive alternative to high street banks for savers looking for an ethical home for their money.

Jayne Parsons, customer services organiser for CSL, said: “It is a complete win for everybody.
“We want to encourage the financially included who want to save ethically and do something that will benefit the community.
“By saving with us you get a good rate and are helping people in the community who are financially excluded.”

Bracknell people who are out of a job, living on benefits or in debt will be able to get a loan from the union at a rate tailored to them – once they have saved a small amount for three months.

Jayne explained: “For these people credit is an issue and we can offer low-cost loans.
“We are not an alternative to the banks but to the door-step lenders and payday loan companies.
“But at the moment we are also seeing people who are in work and are paying heavily for things like credit cards.”

CSL signed up its first member in Reading in 2007 when it was known as Credit Union and now has around 750 active savers.

Branches now operate in Slough, Maidenhead, Newbury and a Wokingham office, based at the town’s Citizen’s Advice Bureau on Friday mornings, opened in February.

The organisation is run as a co-operative and is backed by the Government’s guarantee scheme. Every saver has shares and receives an annual dividend and a death benefit. Borrowers are supported to reduce their debts where possible.

Jayne has yet to find a base for the Bracknell service but said it would probably be in the town centre although a weekly collection point on housing estates was a possibility.

She is now recruiting volunteers to run the service and is looking for friendly, computer literate Bracknell people of all ages.

She said: “Our volunteers don’t have to have a financial background but will welcome customers, handle membership inquiries and open and maintain accounts.

“It really is a rewarding role.”

If you are interested in volunteering with CSL call 0118 958 5803 or visit www.cslberks.org.

Calling for volunteers in Bracknell Forest

CSL is opening in the Bracknell Forest area and we are looking for volunteers to help us to start community services across the area. 

Who are our supporters?

We are supported by the local authorities of Bracknell, Reading, Slough, West Berkshire, Windsor and Maidenhead and Wokingham.
But most importantly we could not operate without the team of dedicated supporters and volunteers in the local community.

Can you help?  Could a friend help you?

We are looking for volunteers to help us to deliver customer services in Bracknell, Easthampstead and Binfield.

Do you have any spare room in your office we could use?

We are also looking for some premises so that we can open up in the town centre – we just need help from the community to help us get going.

Helping volunteers into new employment

We have a good track record in Reading of helping our volunteers to gain new skills and then move on into paid employment, it’s just another great way we have of helping the community.
This is all part of our role as an antidote to the big faceless banks – a truly local, community financial organisation which supports people in the local area.

Interested?

To find out more about joining the team or helping in other ways to get things started in Bracknell, call our Customer Services Organiser - Jayne Parsons on 07553 888286, or by email via jayne.parsons@cslberks.org.

Berkshire’s Credit Union launches Kredit Card Killa!

In response to a growing demand from members with credit card debt problems
the Credit Union has this week launched a new product called  the Kredit Card Killa!.

It’s aimed at the working poor who have large credit card debts that can’t be paid off quickly.
To save people money the credit union will offer loans at an APR of 16%, less than half the 35%
or so that most cards charge on big debts. But its more than just getting a loan, the credit union
will help applicants to manage their budgets more effectively so that they don’t need a credit card
in the future  -  AND applicants will have to kill their credit cards by chopping them up in front
of us. Borrowers will have to be brave!

Chief Executive David Screen said today “Credit Card users with big debts need to check the small print;
the 0% deals that we see on the internet are designed to trap people into debt that is often later
charged at 35% or more. For example: If it takes you three years to pay £3,000 off your credit card,
they will charge you £1,900; we will charge you £790, so you save over £1,100 with us.
If we find people really are on 0% deals then we won’t offer them a loan because it wouldn’t be in their best interests.”

Community Savings and Loans have branches in Reading, Slough, Wokingham and Maidenhead.
We will soon be opening in Newbury and Bracknell. All these branches are operated by volunteers who are doing  a fantastic job for the community. By taking out loans to kill their credit card debt the borrowers are also helping their local community: it’s a win/win for us all.

David Screen

Chief Executive

Martin Lewis’ Money Saving Expert article on Credit Unions

Martin Lewis’ Money Saving Expert article on Credit Unions published 29 October

What exactly are Credit Unions?

Credit Unions are small non-profit financial organisations set up by people with something in common, to benefit their community.
They’re there to provide a financial community, where its members mutually benefit as there’s no profit for third party shareholders.
At one end they help those who can’t get access to ordinary, run-of-the-mill bank products, becoming a lifeline for many living in less well-off communities grappling with their finances. For many they’re a welcome alternative to payday loans or doorstep lending.

How do they work?

Credit unions aim to help you take control of your money by encouraging you to save what you can, and borrow only what you can afford to repay. In essence, they're a savings and loan co-operative, which just means the members pool their savings to lend to one another and help to run the credit union.
This is done in a ‘not-for-profit’ way, so the cash is only used to run the services and reward the members…and NOT to pay outside shareholders, like most other financial institutions.
To keep all the money safe, credit unions can’t lend out all their members’ savings or plough the remainder into anything that carries too much risk. Plus all money in savings unions has the same government protection as bank savings accounts.

It's not just about the products

One of the main objectives of a credit union is “The training and education of the members in the wise use of money and in the management of their financial affairs.”
How do credit union loans/borrowing work?
A key appeal of credit unions is a willingness to make small loans of £50 to £3,000, which high-street banks won’t do.

What’s the interest rate?

The interest is usually around 12.7% APR (1% a month) going up to a maximum 26.8% APR. So if you borrow £100 over a year at most you’ll repay £126
As noted these rates are higher than the cheapest Credit Cards or Loans, but are MASSIVELY cheaper than the products offered to those who are usually turned down for loans from high street banks when rates can be 200% or more.

What are the monthly repayments on a one year loan?

Amount Borrowed

Typical (APR 12.7%)

Maximum (APR 26.8%)

£100

£8.90

£9.60

£500

£44.60

£48

£2000

£178.40

£191.80


There aren’t any repayment penalties
Credit union loans usually carry NO hidden charges or penalties if you can pay off the loan early. Plus life cover is packed into the loan at no extra cost so if you die before paying off the loan, the insurance would repay the loan for you.

How do credit union savings/bank accounts work?

These tend to be ultra flexible, allowing you to save amounts large or small weekly, monthly or whenever you can.

How much do they pay?

Rather than interest like a normal savings account, credit unions aim instead to pay a dividend on your savings each year. This simply means a ‘payment back’ in proportion to the amount of money you’ve got in. Effectively if the credit union is making money, you’ll get a cut of this, and the amount depends on how much you’ve saved.

Any other benefits?

Life savings insurance is included with savings accounts, at no extra cost. This means that if you die, the amount of savings can be as much as doubled by the insurance and paid to whoever you choose. Further details on this are available from the individual credit unions.

How safe are savings in a credit union?

Credit Unions are small organisations and lack the enormous amounts of money of the big banks. On the other hand the regulations mean they must be far more prudent and not over lend.
As with any type of savings, the most important thing to consider is “in the event it went bust, am I protected?” and the answer is yes. Credit union savings have exactly the same protection as normal savings accounts; in other words the Financial Services Compensation Scheme will pay back £85,000 per person, per institution.


For more info see Martin Lewis’ the Safe Savings guide. (http://www.moneysavingexpert.com/savings/safe-savings)
For the full; article click here http://www.moneysavingexpert.com/banking/credit-unions

Reproduced with kind permission of Money Saving Expert

 

Payday Loans scam should be banned!

A loan from one of many payday rip-off merchants costs 13 times more than the same loan from the Credit Union. Community Savings and Loans is the new credit union for the whole of Berkshire and is ready to provide local people with a much cheaper and responsible option: borrowing and saving at the same time.

The payday loans game;

To borrow £200 for one month from one of the many payday lenders will often cost you £50 or more. It will cost £3.91 from us!

It gets worse though, if you don’t pay off the payday in the first payment your debt goes up and up. After six months you’ll pay £245 to a payday lender, from us it will cost you £13.

Banned in the USA, get rid of them in Berkshire too!

Chief Executive David Screen said today “Payday lenders are banned in 15 states in the USA, so why don’t we run them out of Berkshire? Most of the providers in the UK are American companies operating over here making a fortune because the rules are just too relaxed. These organisations are getting people into debts that they can never get out of”.

It’s more than just borrowing.

We expect all our members to save as well as borrow because our aim is to get people out of the debt-spiral. We sit down with applicants and work together to come up with the best loan AND saving arrangements for both of us. It’s a great way to manage your money.

For more information, or to come and see us please see our Opening Hours page or call us on 0118 937 5796

 

 

 

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