Safe savings club launched in wake of Farepak failure

Home > Services > Council and government > Council information, performance and statistics > News - release archive

Renfrewshire people looking for low interest loans were thrown a pre-Christmas lifeline with the official opening of the Renfrewshire Wide Credit Union at its new High Street location in Paisley. Staff were on hand from 1pm till 4pm to give advice and answer questions.

This comes after 113,000 victims of the failed Farepak savings firm lodged a £39 million compensation claim to recover their lost Christmas cash.

Councillor Derek Mackay, leader of Renfrewshire Council, said: "Debt is a huge and growing problem for many Scots. Citizens' Advice Scotland has found that many of those in debt have jobs but very low incomes and it's these 'working poor' who struggle most to clear debts of a couple of thousand pounds.

"A lot of people on low and fixed incomes have trouble when it comes to securing loans and other financial products. Banks often ask for passports as proof of identity. With passport fees costing around £72 this can price normal savings accounts out of the reach of people on low incomes.

"Supporting the Renfrewshire Wide Credit Union is an important part of our financial inclusion strategy - our drive to help those on low incomes; those in debt or who are likely to fall into debt; those struggling to manage their household budgets and those who struggle to secure financial products and services they can afford. We want to combat the fact that the poor all too often pay more, especially for loans and credit."

Renfrewshire's Provost, Celia Lawson said: "We want to revive the lost habit of saving. The credit union is a local way of accessing cash without having to go to unscrupulous lenders. In the wake of the Farepak failure we're also working with the Office of Fair Trading on its Sav£ XMas campaign to help people identify safe ways to save for Christmas."

Alex Smeaton, Renfrewshire Credit Union’s development manager, said: "The main thing about the credit union is that it encourages people to start saving. It doesn't matter how much. Once people get into the regular habit of saving it's amazing how quickly they can build up a nest-egg that they can borrow against."

The credit union has seen a surge in membership with 20% more people joining in the past six months. A drive to spread the sensible saving message to a younger audience is also paying dividends with 179 junior members signing up from Gleniffer and Trinity high schools.

Press release: Wednesday 17 October 2007