​New campaign hopes to boost credit union use

People are being asked to do their part in the "war on Wonga" by investing ethically in credit unions.

Ethical investors have been urged to "join the revolution" against payday lenders that charge exorbitant interest rates.

The call was made by Capital Credit Union – which covers Edinburgh, the Lothians and the Scottish Borders.

It said that credit unions offer a viable, ethical alternative to banks, building societies and payday lenders such as Wonga.

The credit union model is simple – everyone who joins a credit union saves a regular amount each month.

We’ve always been the ethical choice, because we’re not-for-profit, run by our members for our members, building wealth not debt

That money is then loaned back out again, and any interest made goes into running the credit union, or back out to members as an annual dividend

Launching a new campaign to promote credit union use, Capital’s chief executive Marlene Shiels said: “Credit unions are the new old way of banking – your parents knew about them, as did their parents before them.

“We’ve always been the ethical choice, because we’re not-for-profit, run by our members for our members, building wealth not debt.

“However, we’re also a modern choice, offering online banking, mortgages, and a range of competitive savings and loans products. Why go to the high street banks when you can come to your own community bank?”

Credit union membership has more than doubled across the UK since the 2007 financial crisis.

This number received a significant boost in July last year, when the Archbishop of Canterbury voiced his support for credit unions in the "war on Wonga."