The premise of a credit union is to offer an independent and socially-responsible financial service which is owned and run by its members for the good of the community.

Chair of the branch, Jacquie Lucas, is keen for people in the Driffield area to get the message to spend sensibly and save often before the current economic climate spells disaster for many of the town's low-income families.

"We work for the socially excluded in the town who can come to us for low-cost loans," she said.

"The situation now is very scary and it's going to get worse. We are getting more and more people coming in with loans to pay off."

The organisation, run by volunteers, can lend small amounts of money to people in need, perhaps £200, and offers advice on money management.

Often people with a poor credit history struggle to obtain a basic bank account, so Credit Union aims to offer members more options to manage their money.

Volunteers discuss the level of difficulty potential borrowers are experiencing and then make a decision on the amount of money to lend.
"We volunteer because we all really believe in it," said Jacquie. "If someone comes to us owing thousands of pounds the best thing is not to give them a loan but send them to someone who can help, such as the Citizen's Advice Bureau.

"We lend responsibly by looking at people's financial circumstances and if we think someone will not be able make the repayments we don't lend the money."

Director of the Hull and East Yorkshire Credit Union, Edwin King, stressed that an important function of the Driffield Credit Union is to deter people who find themselves in a difficult financial situation from using doorstep lenders who charge very high interest rates.

Once members have their heads above water again, the Credit Union also offers savings accounts which allow people to put aside small amounts each month which will earn dividends until the money is withdrawn.
So far the Driffield branch has recruited 150 members and 400 junior members, said Mr King, and more are joining the organisation at a rate of around three or four per month, but the group would like to encourage more people to get on board.

The doors are also open for people with no financial difficulties, but who would like to support the community organisation.

Driffield Credit Union currently visits several primary schools in the Driffield area teaching young children about the importance of money management and arming them with important skills to carry into adult life.

Jacquie said: "As they grow older they will get an understanding of what it's like to save money. We try to get people to realise there are other ways to save."