Merton has been given the green light to form a credit union.
The Financial Services Authority (FSA) has given permission for the Croydon Savers Credit Union to extend its services to Sutton and Merton.
Merton chief executive Ged Curran pledged his support for a credit union back in 2008.
Credit unions aim to help members save money rather than borrow. They provide low cost loans at times of need and people can register for the service now.
Credit union members are encouraged to save a small amount of money every week or month to help them get into a routine of saving and become more financially secure.
Should they then wish to borrow money, their savings record would then benefit their loan application. The granting of loans is based on the applicant’s ability to afford repayments rather than employment status or previous credit history.
As the union is run by members, they are more flexible and understanding of the needs of borrowers at times of financial stress.
Councillor Stephen Alambritis, leader of Merton said: “Merton is happy to have a credit union in the borough. This will encourage residents to save whilst offering them attractive deals on loans in these difficult economic time”.
Pauline Ford Managing Director, Merton Priory Homes: “This is great news for residents who will have a more palatable credit alternative to consider against high interest rates and loan sharks”.
Membership forms will be available to download from the Merton Priory Homes website http://www.circleanglia.org/merton-priory-homes/. Membership is open to anyone aged 16 or over who live, work or study in Merton. To find out more call 0300 500 3000.