Credit Unions

Debate between Lord Hunt of Wirral and Lord Newby

Tuesday 3rd February 2015 Lords Chamber

[Lord Newby]

Yes, I agree with the noble Lord that those are both important issues. In the response to the call for evidence, the Government have committed to considering changes to the common bond legislation. The noble Lord will be aware that credit unions maintain their exemption from the consumer credit directive only if they have a restricted potential market. It is important that we do not expand the definition of the common bond in ways that could jeopardise that exemption.

[Lord Hunt of Wirral (Con)]

In declaring my interest as chair of the Credit Union Expansion Project, I point out to my noble friend the Minister how much I welcome the measures that this Government have taken to reform credit union legislation and the recent commitment made to produce proposals for further reforms in the next Parliament. I join the noble Lord, Lord Kennedy of Southwark, in welcoming that. I hope that it will receive support from all sides of the House. Will the Minister agree that legislation is only part of the answer? Helping credit unions to co-operate and to become more competitive and attractive will be key to growing this sector sustainably.

Credit Unions

Debate between Lord Hunt of Wirral and Lord Newby

Thursday 16th October 2014 Lords Chamber

[Lord Newby]

My Lords, I would be happy to do that. The Government are keen that civil servants should join credit unions where possible. Some work has been undertaken on how we could do that at reasonable cost. In the mean time, civil servants are being encouraged both to join credit unions and to get involved as volunteers. For example, an accountant at DWP is the treasurer of a credit union in Sheffield. That is a good example of how civil servants can use their experience and benefit the credit union movement.

[Lord Hunt of Wirral (Con)]

My Lords, I declare an interest as the independent non-executive chair of the Lending Standards Boards and as having agreed to take a similar role with Cornerstone and this particular project. I join the noble Lord in welcoming the recognition of today’s International Credit Union Day. I congratulate my noble friends in the coalition Government on the project itself. Will the noble Lord join me in urging all credit unions, all parties and everyone in the financial services sector to make this project a success and to raise awareness of the great work done by credit unions, not only in the UK but throughout the world?

[Lord Newby]

My Lords, I absolutely agree with my noble friend. I am myself hosting a reception in the Treasury this afternoon to mark International Credit Union Day. At that event I will be having discussions with, and we will be hearing from, Paulino Rodrigues, the chief operating officer of Sicredi, a very successful Brazilian credit union movement from which we are attempting to learn some lessons on common branding and operating standards to give a real boost to the sector.