LONDON–A British military hero has become the first official member of a new Armed Forces credit union in the U.K. Lance Sergeant Johnson Beharry, who was awarded the Victoria Cross in 2005 after saving the lives of 30 soldiers in Iraq, joined the credit union, which has been championed by many parties in the U.K. as a means of fighting payday lenders, including the Daily Mirror.
“It is often difficult for people in the Armed Forces to gain access to financial services - especially those serving overseas, who have little or no way of getting credit in the UK,” said Beharry.
The launch follows a two-year campaign by the Co-operative Party to convince the Ministry of Defence to establish a credit union exclusively to help members of the Armed Forces and their families.
Proponents of the credit union say it will allow hundreds of service personnel and veterans in debt to loan sharks and payday lenders to pay off the money through payroll or pension deductions.
The Daily Mirror has been reporting on how soldiers’ charities are spending millions of pounds each year to support their plight. The credit union is being chartered in part by using £500,000 taken in Libor fines from financial firms.
A new website - www.joiningforcescu.co.uk - has also been launched, with details of the services offered to Armed Forces personnel by the three credit unions offering the new scheme.
The credit unions selected to offer the service are Plane Saver Credit Union, Police Credit Union and London Mutual Credit Union.