FSA REJECTS CREDIT CRUNCH BUSTING SCHEME

12.00.00am GMT Mon 21st Dec 2009

Local Lib Dem MP, Paul Burstow, spoke out in the House of Commons last week (16th December) against the Financial Services Authority's decision to reject a bid that would allow an existing credit union in the London borough of Croydon to be extended to cover both Sutton and Merton early next year.

The application ticked all the boxes except one; it did not meet the 'locality' rule that currently applies. The view of the Financial Services Authority was that although Sutton, Merton and Croydon share borders, they are not a sufficiently clear and coherent locality to warrant ticking that box.

Paul Burstow MP has been campaigning in support of setting up a credit union in the borough. Mr Burstow said,

"We have been told that changes to the rules are due to come in by next July, mean that the credit union will be able to go ahead then.

"But given the economic problems facing many hard working families today, a credit union is needed now more than ever.

"I hope that the Minister will pass on to colleagues in the Treasury my view that hard-pressed families who are struggling under a burden of debt and financial pressures would benefit from a credit union as sooner, rather than later."