Armed Forces can now get easy-access loans and savings through credit unions

Three of Britain's most successful credit unions have joined forces to offer the service to the military and help keep them out of the clutches of predatory payday lenders

Credit unions can help stop military becoming prey of payday lenders (Getty)

Three credit unions have linked to offer simple savings accounts and loans to the Armed Forces and their families.

Over the years, Armed Forces personnel have reported difficulties accessing credit because their job involves moving regularly and it can be challenging to build a good credit rating. For this reason, some personnel have reported being actively targeted by high cost lenders.

The new service means the military will be able to save regularly or repay loans via payroll deduction. Family members and retired personnel getting a pension are also eligible.

It’s being launched today at the head office of the Royal British Legion in London to mark International Credit Union Day.

The government has selected three of Britain’s most successful credit unions – Plane Saver Credit Union, Police Credit Union and London Mutual Credit Union – to offer the service to Forces personnel.

Minister for Defence Personnel and Veterans Mark Lancaster said: “It is crucial that those service people who work so hard to keep Britain safe, both at home and abroad, can access easy and affordable ways to save and borrow. This helps to tackle an issue that has caused disadvantage and disappointment to some service members.”

Meanwhile, to mark International Credit Union Day Minister for Welfare Reform, Lord Freud, said: “Credit unions can offer exceptionally high-quality financial products that can help prevent people from getting into crippling debt and I urge people to think about joining their local branch.”

Credit union facts and figures

• There are around 362 credit unions across England, Scotland and Wales employing more than 1,500 staff
• 1,197,293 people use the sector, including 120,080 junior depositors
• Credit unions have total assets of £1.26bn, total loans of £718m and total deposits of £1.07bn. They have an annual turnover of £26m
• 22 credit unions across the UK now offer current accounts
• More than 35,000 people have their current account with a credit union

You can get full details of the new service for the military at www.joiningforcescu.co.uk