Credit Unions

Debate between Lord Freud and Lord Borrie

Thursday 2nd February 2012 Lords Chamber

[Lord Freud]

Yes, my Lords, that aspect of the review is under active consideration.

[Lord Borrie]

The Minister referred to the growing significance of credit unions, and of consumer credit provided by the unions. What proportion of outstanding consumer credit at the present time is owed to credit unions? What proportion of the totality of consumer credit do they cover?

[Lord Freud]

The proportion is disappointingly small; it is 2 per cent. That compares with a figure of 44 per cent in the United States and 75 per cent in Ireland. It is a very small industry here. Our ambition is to double its size in the next five to seven years. Nevertheless, we need to look at various other financial instruments, particularly as we introduce universal credit.