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Leeds City Credit Union back from brink
A savings and loan co-operative in Leeds which was taken to the brink of financial disaster has been turned around and is back in the black.
Leeds City Credit Union can celebrate its 25th anniversary in the knowledge that even as recession deepens it is on the road to economic success.
Credit Unions are banks without bankers. They are owned by their members.
Credit unions operate in many areas where loan sharks prey, and in some areas have been set up specifically to force loan sharks out.
Leeds Credit Union was founded at Leeds Civic Hall for Council workers, then opened to all Leeds public sector workers and is now open to anyone and to organisations.
In 2009 its chief executive came under investigation and left.
In 2010 it was given financial support from Leeds City Council.
Leeds Labour Euro MP Michael McGowan led a team who untangled the Credit Union’s finances.
They succeeded, and this year the Leeds City Credit Union moved back into the black – albeit by just a few thousand pounds.
Mr McGowan is standing down as president now that his job is done.
“I am pleased to report we have made progress during the year and compared with three years ago in 2008 when we made a loss of two and a half million we have made a surplus for the year ending 30 September 2011.
“To move from the very edge of the precipice to producing a surplus, to balance our books and move from the red into the black, is an achievement. From a loss of two and a half million to achieve a surplus, even a modest surplus, is a success and I wish to congratulate our staff and directors for their efforts and dedication,” he reported to the 2012 annual meeting held in the Council Chamber of Leeds Civic Hall.
“There have been radical changes at the credit union with the arrival of Chris Smyth as chief executive officer three years ago and the appointment of Paul Higgins, a professional accountant.”
Leeds is the biggest credit union in England and Wales with 22,000 members.
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Saturday 26 May 2012
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Comments
There are 2 comments to this article
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ILCAPA
Monday, February 6, 2012 at 07:02 PMSince this Credit Union started to lend to anybody it has gone down hill ever since.At one time you got interest on your savings which was agreed at the AGM.I've had no interest on my savings for the last 6 years,They never update their Newsletter the last update was when the Mayor visited 2 years ago.This Credit Union has in my opinion been a complete disaster .I have seen people go in the Armley branch and get a £100 loan and go straight over the road to the Public House.This was never what the Credit Union was set up for.It used to be run by volunteers from a small office in the Civic Hall with hardly any overheads.Now it is run as a business from Various Offices by paid workers.No wonder it was losing money.Just as a matter of interest I wonder what the amount of Bad Debt has been written off?
playnicely
Monday, February 6, 2012 at 02:23 PMI'm thoroughly disgusted with the greed of the big banks who wield too much power in this society. I've now put my money where my mouth is and moved to my local credit union. With more members it will continue to thrive and benefit Leeds. This site might be helpful http:moveyourmoney.org.uk,
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