VOLUNTEERS at Leominster's fledgling community bank, the Leominster Money Box Credit Union, are celebrating a major new step in the project's evolution, writes PETE BLENCH.

From July 2 the Money Box, which offers cheap loans to members and is the only project of its kind in the county, will be joining banks and building societies under the regulation of the Financial Services Authority.

New regulation will bring extra powers and new benefits for members at Leominster and the rest of Britain's 650 financial co-operatives.

Said chairman Dennis Hawkins: "The credit union movement has been campaigning for changes to how credit unions are regulated for many years and it's great to see the benefits happening now.

Geared up

"It means that we will be able to offer more services to our members. Because we are now part of the Financial Services Compensation Scheme the money that people save with us is protected in the same way that money in banks and building societies is protected."

Dr Hawkins said credit unions offered locally-based services that were geared to the needs of local people.

"People who join don't just become an account number - they're joining over 100 million people around the world who own and control their own financial services providers," he added.

l Further information is available from Money Box at 14 West Street, Leominster, or from treasurer Lawrence Hughes on 01568 614216. The Association of British Credit Unions website is at www.abcul.org