Tweet
Credit union launches debit card
Dr Gibbons (r) got behind the counter to help launch the new account
A credit union has become the first in Wales to launch its own current account.
It means members of the Llandudno Credit Union can now have a debit card, allowing them to pay for goods in shops and use cash machines.
The credit union, which covers the Conwy area, has seen its membership jump to 3,000 as the recession bites.
Its new current account is also being backed by the assembly government as a way to help low-income families.
Officially launching the service, Social Justice minister Dr Brian Gibbons said this was the next step in helping develop Wales' credit union network.
"Up and down the country people are struggling with the personal ramifications of the downturn and credit unions are to help," said the minister.
Dr Gibbons said the groups could provide a "safe haven" for hard-earned savings, and a "fair and understanding hearing for a loan application".
Payments
The assembly government has invested £100,000 to help the Llandudno union set up the new current account.
There are people who are on low incomes who tell us they have found it difficult to open a normal bank account 
Barry Roberts, manager, Llandudno Credit Union
As well as offering a debit card to members, the union can now provide standing order and direct debit services, and the account can receive direct benefit or salary payments.
There are now 30 credit unions in Wales, owned and run by their 45,000 members.
Just like banks, savings are guaranteed by the UK government, and the groups are also under the scrutiny of the Financial Services Authority.
But because they are run as co-operatives rather than for profit, it means any loans they make to members do not attract painfully high interest rates.
"We have been attracting new members from all walks of life," said Barry Roberts, who manages the Llandudno union.
"Obviously, there are people who are on low incomes who tell us they have found it difficult to open a normal bank account.
"But there are also people who are just generally fed up with the service they've been getting from their high street branches."
'Piggy-back'
The new service has been setup with the help of the Co-operative Bank, which handles the technical side of issuing the debit cards and the electronic account management.
"The credit unions are effectively piggy-backing on their system," added Mr Roberts.
"So far, we've issued 50 cards as we get trained to use the system, and now we're officially open for business."
But operating traditional banking services brings with it one dreaded draw back - bank charges.
"Because we are a credit union, there are no overdraft facilities," explained Mr Roberts.
"If there are insufficient funds to meet something like a standing order, we will be charged ourselves for that, and we have to pass it back to the members."
But, the union says it has set up a system that allows them to text message members instantly to warn them if they are overdrawn.
It is also pledging that any charges it has to impose should never be more than a maximum of £15.
Dr Gibbons (r) got behind the counter to help launch the new accountA credit union has become the first in Wales to launch its own current account.
It means members of the Llandudno Credit Union can now have a debit card, allowing them to pay for goods in shops and use cash machines.
The credit union, which covers the Conwy area, has seen its membership jump to 3,000 as the recession bites.
Its new current account is also being backed by the assembly government as a way to help low-income families.
Officially launching the service, Social Justice minister Dr Brian Gibbons said this was the next step in helping develop Wales' credit union network.
"Up and down the country people are struggling with the personal ramifications of the downturn and credit unions are to help," said the minister.
Dr Gibbons said the groups could provide a "safe haven" for hard-earned savings, and a "fair and understanding hearing for a loan application".
Payments
The assembly government has invested £100,000 to help the Llandudno union set up the new current account.
There are people who are on low incomes who tell us they have found it difficult to open a normal bank account Barry Roberts, manager, Llandudno Credit Union
As well as offering a debit card to members, the union can now provide standing order and direct debit services, and the account can receive direct benefit or salary payments.
There are now 30 credit unions in Wales, owned and run by their 45,000 members.
Just like banks, savings are guaranteed by the UK government, and the groups are also under the scrutiny of the Financial Services Authority.
But because they are run as co-operatives rather than for profit, it means any loans they make to members do not attract painfully high interest rates.
"We have been attracting new members from all walks of life," said Barry Roberts, who manages the Llandudno union.
"Obviously, there are people who are on low incomes who tell us they have found it difficult to open a normal bank account.
"But there are also people who are just generally fed up with the service they've been getting from their high street branches."
'Piggy-back'
The new service has been setup with the help of the Co-operative Bank, which handles the technical side of issuing the debit cards and the electronic account management.
"The credit unions are effectively piggy-backing on their system," added Mr Roberts.
"So far, we've issued 50 cards as we get trained to use the system, and now we're officially open for business."
But operating traditional banking services brings with it one dreaded draw back - bank charges.
"Because we are a credit union, there are no overdraft facilities," explained Mr Roberts.
"If there are insufficient funds to meet something like a standing order, we will be charged ourselves for that, and we have to pass it back to the members."
But, the union says it has set up a system that allows them to text message members instantly to warn them if they are overdrawn.
It is also pledging that any charges it has to impose should never be more than a maximum of £15.
Comment