Peterborough’s Rainbow Credit Union announces closure date

The council announced they would be ending funding for the union, which has helped thousands of residents over the years, in October last year.

Now Sally Chicken, volunteer chair of the union, has confirmed it will close at the end of the month.

She said: “It is with deep sadness that I announce that Rainbow Saver credit union will be closing its branch in Peterborough at the end of February 2020. The loss of core funding from Peterborough City Council and the lack of alternative funding means we cannot continue.

“More than 2,500 customers use the Peterborough credit union, and we are particularly concerned about the 800 individuals who cannot get any alternative provision, as they have been rejected by banks. We know they have been refused bank accounts, there is no alternative provision for them. Many are in work and their employers do not pay cash, so we have been processing their wages for years. Additionally, we help hundreds of young people under the age of 18 who have also been refused bank accounts.

“ Banks are retreating from services to people on low incomes or other vulnerable situations because they cannot make a profit, so it shouldn’t be a surprise that credit unions need support to offer these accounts. Our local team have great skills in processing money and helping people in very difficult circumstances, and we are so sad to be closing our branch.”

Councillor Irene Walsh, cabinet member for communities, said: “The budget setting process for 2020/21 is the most difficult we have ever experienced and we have had to make some very difficult decisions about the services we provide and the way we spend our money.

“As part of our phase one proposals approved by councillors last month, funding for the credit union will cease at the end of March. Although it has provided a worthwhile service in the past, providing bank accounts to people with poor credit who could not access one on the high street, banks are now offering accounts to people with poor credit history so there is no longer such a need for us to fund this service.”