London Capital Credit Union Limited is a not-for-profit member-owned financial co-operative, based in Archway and operating across London and the South East.
Founded in 1997, by 2025, the credit union had over 20,000 members.
History
Islington Council Employees Credit Union was originally established in 1997, to provide secure savings and low cost flexible loans for employees of Islington Council.About the Credit Union London Capital Credit Union (retrieved 1 November 2014) It became Islington and City Credit Union in 2007,Credit Union for Haringey Islington and City Credit Union, Newsletter Issue 4, Winter/ Spring 2010/11 briefly Haringey, Islington and City Credit Union (with the support of Haringey Council) in 2011Welcome to Haringey Haringey, Islington and City Credit Union, Newsletter Issue 5, Autumn/ Winter 2011/12 and finally adopted the current name, broadening its catchment to include Barnet, Brent, Camden, City of London, Enfield, Hackney, Haringey, Islington & Waltham Forest .Barnet, Camden and Hackney London Capital Credit Union, Newsletter Issue 6, Summer/ Autumn 2012
One of Britain's first registered credit unions,Voinea, Anca ABCUL marks the 50th anniversary of the first credit union in Britain Co-operative News, 26 March 2014 Hornsey Co-operative Credit UnionWelcome to New Members in Hornsey London Capital Credit Union, Newsletter Issue 7, Winter/ Spring 2012/13 and the neighbouring North West London Credit UnionExpanding Your Credit Union London Capital Credit Union, Newsletter Issue 8, Summer/ Autumn 2012/13 transferred engagements in 2013,Expanding Your Credit Union London Capital Credit Union, Newsletter Issue 9, Winter/ Spring 2013/14 followed by the smaller Radio Taxicabs Credit Union in 2014.Radio Taxi Cabs Credit Union Merger London Capital Credit Union, Newsletter Issue 11, Autumn/ Winter 2014
David Lammy, Labour member of Parliament for Tottenham, was signed into membership in 2014,Campaign Against Payday Lenders London Capital Credit Union, Newsletter Issue 10, Spring/ Summer 2014 followed by Dave Prentis, General Secretary of the public service trade union, UNISON (then President of Unity Trust Bank and a non-executive director of the Bank of England).Member Number 11,000 London Capital Credit Union, Newsletter Issue 12, Spring 2015 UNISON's registered charity, There for You, has been working in partnership with the credit union since 2013.UNISON launches credit union network UNISON—the Public Service Union, 18 September 2013
In 2015, a merger with the small Rainbow Credit Union for Co-operative members and employees in London and the South East proved impractical;Keeping it Co-operative London Capital Credit Union, Newsletter Issue 15, Autumn/ Winter 2015 it was placed into administration and ceased trading on 14 September.The Rainbow Credit Union declared in default Financial Services Compensation Scheme, 15 September 2015 Notable for being one of the first credit unions to lend money to businesses, the neighbouring North London Credit Union transferred engagements in 2023.
Activities The credit union promotes thrift by the accumulation of savings, creating sources of credit at a fair and reasonable rate of interest by using savings for the mutual benefit. Its objects include the training and education of members in the wise use of money and in the management of their financial affairs.Objects London Capital Credit Union, Rules (3), 2012
Credit unions form part of the wider international co-operative movement and can be found in 97 countries, with over 184 million members. In the UK there are currently 362 credit unions, offering an alternative to payday lenders to some 1.2 million members.Acland, Olivia Forget payday lenders – there’s a much better way to borrow The Guardian, 24 October 2015 Membership of London Capital Credit Union is restricted by Common bond of association / common bond to individuals living or working in the London & the South East, members of the South East Region of The Co-operative Group and the Greater London & Eastern Region of Unite the Union or employees of over 100 of employers across the UK..Common bond qualifications for membership London Capital Credit Union, Rules (7.1), 2012
Products London Capital Credit Union runs salary savings and loans schemes in conjunction with over 100 national and local employers. It also offers a Prize Saver Scheme with a monthly free prize draw for £5,000 as an incentive to save. The credit union is responsible for the operation of the salary scheme, with the employer facilitating monthly deductions from salary.Mutual Benefits for Employers and Employees London Capital Credit Union, 2013
Low cost Saver Loans allocate part of the repayment to a share account, which means that as members repay loans their savings continue to grow. The credit union also offer a range of other products, including short-term and home-owner loans; credit builder loans, designed to help people repair their credit rating; and security loans, to encourage members not to withdraw their savings. CredEcardplus is a reloadable prepaid card that works in a similar way to a High Street bank account. The credit union has a 94% approval rate for its saver loans.94% Approval Rate For Our ‘Saver Loans’ London Capital Credit Union, Newsletter Issue 13, Summer 2015
The credit union is an accredited London living wage employer.London Living Wage Campaign London Capital Credit Union, Newsletter Issue 15, Autumn/ Winter 2015 In 2015, the Fairbanking Foundation awarded London Capital Credit Union five stars for personal loan products in its first Mark certifications.Jones, Rupert Financial firms praised for helping customers manage their money The Guardian, 21 October 2015
Dividends Credit unions do not pay a fixed rate of interest on savings balances. Instead, they distribute any trading surplus to members in the form of an annual dividend calculated on average savings or as a rebate of loan interest paid (2% in 2023).
A member of the Association of British Credit Unions Limited,Credit unions in membership of ABCUL Association of British Credit Unions (retrieved 1 November 2014) registered under the Industrial and Provident Societies Acts, London Capital Credit Union is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and PRA. Ultimately, like the banks and building societies, members' savings are protected against business failure by the Financial Services Compensation Scheme.Credit Union Guide Financial Services Compensation Scheme (retrieved 2 April 2015)
See also Credit unions in the United Kingdom British co-operative movement
References
External links London Capital Credit Union Association of British Credit Unions