A BURNLEY credit union has won crucial support in its bid to continue giving low-cost easy-to-pay loans to its members.

The national conference of the Association of British Credit Unions voted to support a motion put by Brunlea Community Credit Union opposing legislation to make the savings groups subject to the Consumer Credit Act.

Brunlea's president Tom Fallows, addressed the conference on the dangers faced by the unions if the Government failed to provide an exemption for them under the Consumer Credit Act, which, he added, was aimed at restrictions on commercial lending organisations and protection for the people who used them.

He said: "Credit Unions are not driven by profit, but are financial co-operatives helping each other by pooling savings and making loans to our members.

"We don't need the control envisaged In the Consumer Credit Act. We charge moderate rates and we don't use sophisticated advertising to lure customers into taking loans they may struggle to repay," he added.

Mr Fallows said the Act would would ratchet up costs for the local unions, which could place them in risk of going bust.

"We are tiny organisations and don't have the money to pay for these kind of controls, particularly when they are not needed."

Mr Fallows, who heads one of three credit unions in Burnley, said he was delighted with the overwhelming vote of support for the motion.

"Conference backing is vital to influence Government thinking on this matter," he added.

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