City pilot to help poor access cheap money

Investment Minister Arlene Foster explained that the local Credit Union has been at the forefront of an Affordable Credit project in Londodnerry led by the Consumer Council.

Last June the Consumer Council of Northern Ireland published ‘The Price of Being Poor: A Consumer Council report highlighting how poorer people pay more for everyday essentials and recommendations for change.”

The report claimed that many low income consumers can neither afford to pay for items up front nor do they have access to affordable credit at a reasonable rate of interest.

It explained that it was working with Ulster Bank and the Community Foundation to deliver an Afforadable Credit pilot project with local partners in Ballymena to make consumers more financially capable and proficient by helping them manage their money better.

Now the Investment Minister has revealed that the pilot is also ongoing in Londonderry.

She stated: “I am acutely aware of the need for accessible financial services for lower income households. The credit union movement in Northern Ireland plays a vital role in this area, and has been a key player in the Affordable Credit pilots that have been led by the Consumer Council for Northern Ireland in Ballymena and Londonderry, together with the Community Foundation for Northern Ireland and the Ulster Bank.

“I recognise that the transfer of regulatory arrangements for Northern Ireland credit unions to the Financial Services Authority from my Department has presented challenges for some local credit unions in terms of changes required to systems and procedures. In recognition of this, I have requested my officials to consider options for providing support to the Northern Ireland credit union movement in the initial stages of the operation of the new regulatory arrangements.”