Her Royal Highness The Duchess of Cornwall has joined London Mutual Credit Union following a visit to their Peckham branch, where she praised the practical support credit unions offer to members during challenging economic times.
The Duchess, who regularly supports organisations providing practical help in their communities, chose to become a member of London Mutual Credit Union to raise awareness of the valuable financial services credit unions provide, empowering members to save and make informed financial choices.
Royal endorsement for community banking
During her visit to the Peckham branch, The Duchess met with members and staff to learn about the services offered by one of London’s largest credit unions. London Mutual provides financial services to anyone who lives or works in the Southwark, Lambeth, Westminster and Camden boroughs, operating by lending out members’ savings and encouraging customers to take control of their money whilst only borrowing amounts they can afford to repay.
The Duchess praised the personal approach that sets credit unions apart from traditional banking: “I think everybody needs that bit of help to show them how it’s done. That personal touch just makes a difference.”
As a City of Westminster resident, The Duchess is eligible for membership and this represents the first credit union she has joined, although she has visited five others over the past three years to learn about their work.
“It’s very important to get the word out and tell people about it. It is just raising awareness. Probably like many other people I didn’t know much about it,” The Duchess explained.
Meeting members and understanding impact
During her visit, The Duchess spoke with several LMCU members who have benefited from the credit union’s services. Wendy Powell, 67, was at the branch with her daughter Clare, 32, who is already a member. Wendy shared her conversation with The Duchess: “I told Camilla I was just here with my daughter but that I was thinking of joining and she said she would as well. I said she should get behind me in the queue.”
Louis McLeod, treasurer of LMCU, explained the membership benefits: “When you join you’re given a share account and encouraged to save on a regular basis. You also have access to various perks that are invaluable in a credit union current account. You also have access to the ISA account. The Duchess would save dividends like any other member on her regular share account and if she did make an ISA account she would get 3% interest. She would be able to take advantage of both the traditional share account and also the ISA account and the current account.”
Expanding membership and services
Lucky Chandrasekera, chief executive of LMCU, explained that the credit union is working to attract members from diverse economic backgrounds: “If everyone is unemployed and can’t save money you don’t have money to give, so you need affluent people as well. We are working on introducing mortgages and we have just finished testing the iPhone app so it’s for the younger generation, so we are working on that.”
LMCU became the first British credit union to offer payday loans and now serves more than 16,000 members. Their payday loan product, designed for people in crisis situations, charges 28.6% APR interest rates compared with other lenders who can charge up to 4000% APR, providing a genuinely affordable alternative to exploitative lending.
Supporting co-operative banking principles
Over recent years, Her Royal Highness has visited numerous credit unions across the country to learn about the invaluable work of these co-operative-style financial institutions. Her decision to join London Mutual Credit Union demonstrates her commitment to supporting community-owned financial services that prioritise member welfare over profit.
The royal endorsement highlights the important role credit unions play in promoting financial inclusion and providing ethical alternatives to high-cost lending, particularly during periods of economic uncertainty when many families face financial pressure.
