Speaker Stephen Worgan
Fri, Oct 6th 2017 at 12:55 pm - 2:10 pm
Topic:- Stirling Credit Union
This is the report of the Friday meeting of the Rotary Club of Stirling.
Speaker’s host Jane Wilson introduced Stephen Worgan who is a volunteer director of the Stirling Credit Union. Stephen gave a very informative insight into the history, purpose and working of Credit Unions, which was clearly somewhat of a revelation to many of the audience. In Stirling, as in many other situations, though the Credit Union started within the Council as a facility for employees to manage their finances eventually it became available to the general public. This was the perhaps the first misapprehension of those present, in that whereas those using a credit union should live or work in the area, there are no other stipulations. Stephen allowed that one of the first benefits of the unions was that it released many people of limited means from the grip of loan sharks, now they function as a kind of locally run savings bank allowing participants to save money from their incomes and, if necessary, to apply for loans at very low rates of interest.
Other benefits are that savings are available to withdraw on demand; there are no transaction charges; payments on withdrawal are made directly into your bank account, and your savings are protected by the Financial Services Compensation Scheme. Loans are at low rates of interest, typically between 1% and 3% per month. This compares with some private money lenders charging between 10% and 20% per week - up to 1000% per annum!
The Government is supportive of credit unions both financially and in legislation, recognising for one thing that most absenteeism from work is related to stress. The most common cause of this is concern over finances and credit unions can mitigate this.
In short, a credit union assists members in managing their finances responsibly, it allows access to affordable loans (the Stirling branch currently lends over £4,000 per month), and helps them to rebuild their credit scores.
Credit unions are widespread in the U.K. but in many other parts of the world, notably Australia, USA and closer to home, Ireland, they have become much more mainstream and function as locally managed conventional savings banks, with a presence in every high street and shopping mall. The Stirling branch has1,000 members (800 adults and 200 juniors- these latter get a passbook and piggy bank) with savings totalling £923,000 (UK wide amount £1.23 billion) and lends £402,000 (UK £788 million).
Any profits remain with the union - in effect with the members of the union - and all but a very few of the staff are unpaid volunteers like Stephen.
The Stirling branch has been in existence for about a dozen years in one form or another and its premises are at 10 Spittal Street in the heart of the city.
They are keen that anyone who feels they have applicable skills (marketing, legal and the like) and could spare the time to become volunteer should get in touch.
The Vote of Thanks was given by Jane Wilson and the Club showed its appreciation in the normal manner.
Next week’s Speaker’s Host is Tom Wilson, Visitors Host is Alan Prentice
Crawford Gordon,
Secretary, the Rotary Club of Stirling.
Speaker’s host Jane Wilson introduced Stephen Worgan who is a volunteer director of the Stirling Credit Union. Stephen gave a very informative insight into the history, purpose and working of Credit Unions, which was clearly somewhat of a revelation to many of the audience. In Stirling, as in many other situations, though the Credit Union started within the Council as a facility for employees to manage their finances eventually it became available to the general public. This was the perhaps the first misapprehension of those present, in that whereas those using a credit union should live or work in the area, there are no other stipulations. Stephen allowed that one of the first benefits of the unions was that it released many people of limited means from the grip of loan sharks, now they function as a kind of locally run savings bank allowing participants to save money from their incomes and, if necessary, to apply for loans at very low rates of interest.
Other benefits are that savings are available to withdraw on demand; there are no transaction charges; payments on withdrawal are made directly into your bank account, and your savings are protected by the Financial Services Compensation Scheme. Loans are at low rates of interest, typically between 1% and 3% per month. This compares with some private money lenders charging between 10% and 20% per week - up to 1000% per annum!
The Government is supportive of credit unions both financially and in legislation, recognising for one thing that most absenteeism from work is related to stress. The most common cause of this is concern over finances and credit unions can mitigate this.
In short, a credit union assists members in managing their finances responsibly, it allows access to affordable loans (the Stirling branch currently lends over £4,000 per month), and helps them to rebuild their credit scores.
Credit unions are widespread in the U.K. but in many other parts of the world, notably Australia, USA and closer to home, Ireland, they have become much more mainstream and function as locally managed conventional savings banks, with a presence in every high street and shopping mall. The Stirling branch has1,000 members (800 adults and 200 juniors- these latter get a passbook and piggy bank) with savings totalling £923,000 (UK wide amount £1.23 billion) and lends £402,000 (UK £788 million).
Any profits remain with the union - in effect with the members of the union - and all but a very few of the staff are unpaid volunteers like Stephen.
The Stirling branch has been in existence for about a dozen years in one form or another and its premises are at 10 Spittal Street in the heart of the city.
They are keen that anyone who feels they have applicable skills (marketing, legal and the like) and could spare the time to become volunteer should get in touch.
The Vote of Thanks was given by Jane Wilson and the Club showed its appreciation in the normal manner.
Next week’s Speaker’s Host is Tom Wilson, Visitors Host is Alan Prentice
Crawford Gordon,
Secretary, the Rotary Club of Stirling.
