The DWP and Conaccess Ltd

Conaccess is not just an IT provider to Credit Unions but is also wholly engaged in encouraging the growth and development of the Movement.

This stems from 1968 when the owner of Conaccess Ltd Bill Johnston helped to set up a credit union in Bradford (Felix Credit Union Ltd)

At that time credit unions were seen as a means to encourage thrift and to borrow wisely, to repay regularly at an historically low rate of interest. In other words to encourage self- reliance.

Those credit unions that have taken part in the DWP growth fund scheme have unwittingly been made to stray from these holy tenets of credit union philosophy.

What started out as a scheme that could encourage credit unions moving into more risky areas and therefore potentially growing as a result has ended up in bureaucratic mire?

Credit unions who are involved in the DWP growth fund scheme are now being targeted to lend a prescribed number of loans, to collect these loans within a 10% level of bad loans and to provide reams of statistics. The current economic climate has seen a drop off in loans to members who can repay as they are concerned with their future and those that do want to borrow are in real trouble and cannot repay .

The DWP with its government funding is spending more that £200,000 on IT for 7 very small credit unions in Cumbria. This is commercial nonsense and cannot be justified. This will add thousands to the ongoing costs for those 7 credit unions in Cumbria and once the DWP funds dry up where will those credit unions be in the future.

We now conclude that the scheme is not one that should be advocated and credit unions should avoid getting involved if they are invited to do so. Those who are already within the scheme should make plans to seek an early exit.

© Copyright 2009 W.P.(Bill) Johnston F.C.A. mobile 07778934125

Bill Johnston is a chartered accountant specialising in the credit union industry for more than 40 years. He has build a successful audit practice serving at one time nearly 200 credit unions and currently directs Conaccess Ltd which services the IT needs of almost 150 credit unions.