Credit union branch to close

The Cambrian Credit Union, is struggling with its own financial problems and has announced that it is closing its part-time counter services based in the Welshpool and Newtown libraries.

Offices in Caernarfon, Denbigh and Wrexham will only open for one day a week leaving Rhyl and Llandudno Junction as the full time offices from November.

It has over 12,000 adult members and 1,500 junior savers and employs over 30 members of staff and around 50 volunteers. Some jobs will be lost.

Powys County Councillor Graham Breeze said the closure would be a great loss to the town of Welshpool. “The library only linked up with the Credit Union in March so this a real disappointment.

“The Cambrian Credit Union offers so much to alleviate poverty and financial pressure for people in our community and it is a great shame that more people have not made use of the facility in Welshpool."

“The service offered people the opportunity to borrow money at low interest rates and although we must appreciate the cost of running local branches this is still a very disappointing decision.”

Chairman of the Cambrian Credit Union Board, Paul Green, said: “We have nearly £9m in savings which is totally protected by the Financial Services Compensation Scheme.

“This money cannot be used for speculative investments and the way that we make a surplus is via the loans that we make to our members. Any surplus after operating costs may be returned to our members as a dividend.

“In recent years our loan revenue has not been covering our operational costs. This means we have not paid a dividend and we are forced to make changes to improve the situation.

“Regretfully, this means that we are reducing staff numbers and office opening hours. This is not a decision taken lightly.”

"Due to exceptionally low footfall in Newtown and Welshpool - around 25 members a month - we will not offer a face-to-face service. Collection points will also close."

Mr Green said the ethos of the credit union remained.

"We were set up to offer savings and affordable loans to our communities, to prevent people falling into the hands of high cost lenders and improve the financial wellbeing and this remains our core purpose.

"To improve our loan service, we now give decisions in principle within one working day of receiving an application. People can also apply for a loan either in person, on the telephone or online via our website."