Council leaders are urging residents to make greater use of credit unions, and want the Government to speed up plans to expand the ranges of services they can offer. Changes to the ‘common bond' controls on ownership of credit unions will allow them to pay interest on savings from October next year, but the LGA wants to see the timetable brought forward. LGA chair, Margaret Eaton, said: ‘Necessary change allowing more people to take advantage of credit unions could be brought forward to help the hundreds of thousands of people feeling the effects of the credit crunch. ‘At a time when it is becoming increasingly difficult for people to get credit and loans, credit unions, backed by town halls, are making sure people can get access to small-scale loans when they need them. ‘Councils are stepping in to set up credit unions to offer financial support and throw people a lifeline. People need a viable alternative to turning to loan sharks when things get desperate.' She also advised: ‘People who are struggling with their day-to-day finances should call their local council to check they are claiming all the benefits and tax reductions they are eligible for.'
