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London Capital Credit Union

Governance and people

London Capital Credit Union (LCCU) is a financial co-operative, owned and controlled by its members and providing financial services to communities across London. It is one of the country’s fastest growing credit unions: from 675 members and £493,000 on loan in 2008 to over 15,000 members and nearly £11m on loan at the end of 2017.

Membership

Almost all of LCCU's members come from some of the least affluent parts of their community. What LCCU offers members is straightforward:

  • help to save and
  • lending money at reasonable interest rates, steering them clear of payday lenders and loan sharks

To benefit from LCCU services you must be a member. Government regulations limit membership to people in any one of the following four categories:

1. Live, work, study or worship in any of the following areas:

  • Barnet
  • Camden
  • City of London
  • Hackney
  • Haringey
  • Islington

2. A member or employee of The Co-operative Group (The Co-op) in London and the South East Region

3. A member of UNITE the Union or UNISON in the Greater London Region

4. Employees of organisaitons on the list available here.

Values and Principles

The primary objective of the credit union is to promote sound financial management by encouraging people to save rather than borrow. Unlike other financial institutions there is no minimum savings level unless you take a loan, and no minimum loan value. By encouraging saving LCCU prevents debt. Its ‘Saver Loans’ see part of any repayment allocated to the members’ own savings account, so as the loan is paid off, the member accumulates savings. Over time members build up savings and end the cycle of borrowing.

LCCU specialises in helping people on low incomes, and/or facing problems with debt. The credit union offers a range of information and support for members in financial difficulties. The low cost loans provide a real alternative to people who would otherwise borrow using expensive bank loans, credit cards, or even payday loans. Everything LCCU does is guided by the internationally recognised Co-operative Values & Principles.

Growth

LCCU plays a significant role in alleviating poverty, which is why it has an ambitious expansion programme. LCCU wants to extend its services to tens of thousands more people so as to reduce financial exclusion and the level of poverty in the community.

In the next three years, LCCU expects to double membership, double the value of its savings and more than double the value of its loan book.

Plans for the future continue to be very ambitious. Given the social impact LCCU makes, it wants to continue to grow the credit union as it has done in the past 10 years. The aim is to increase membership from 15,000 to 30,000 and the loan book from £9.8m, to £20m by the end of 2019, with much more in future years.

This growth will be delivered by:

  • Encouraging more people to save by offering competitive dividend rates on savings and providing schemes that allow people to save through salary deduction;
  • Continuing to offer highly competitive market leading loan interest rates;
  • Continuing to offer excellent quality service to members;
  • Strengthening their balance sheet to ensure that they are delivering sustainable growth in LCCU's community.

LCCU are looking to offer more loans by creating new products such as revolving credit facilities and giving access to services through aggregator websites such as Money Supermarket.

The credit union wishes to increase the percentage of members who repay their loans by way of a payroll deduction scheme with their employer. Experience and analysis shows that deducting repayments at source significantly reduces the risk of a loan going wrong.

LCCU wants to improve its regulatory capital position. Regulators across the world are increasingly keen to ensure that financial institutions are robust in the face of possible future crises. LCCU is required to show that it has a balance sheet capable of withstanding financial stress. That means that if it wants to grow, it needs to increase regulatory capital.

Annual General Meeting

You can find details of London Capital Credit Union's previous AGM's and annual reports here

People

Management

The Board of Directors are volunteers who are elected by members at the Annual General Meeting and stand for a 3 year term. The Board are responsible for running the Credit Union, setting its strategic direction, and ensuring that operational staff implement the Business Plan, which is created with input from the Chief Executive.

The Board elects its Officers such as Chair, Secretary and Treasurer.

The Board are supported by a dedicated, well-trained staff team, assisted by volunteers such as service point staff and helpers in the office.

Directors

The Board is responsible for the strategic direction of the credit union and establishing policies and procedures for the operation of the business. It also holds management accountable for delivery of the business plan and maintenance of high quality service to members

Directors remunerations

The Board is comprised solely of unpaid members of the credit union who commit to volunteer on a regular basis.

Diversity

Female directors: four of eleven directors are female

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