The Association of British Credit Unions (Abcul) has welcomed the arrival of a report that outlines problems many consumers face when they have benefits paid into their bank accounts.
Problems cited by the report from the Citizens’ Advice Bureau (CAB) include difficulties with ID documents and long delays.
Special Benefit Direct accounts have now been developed by credit unions and other credit union accounts have become available from providers such as the Co-operative Bank.
Abcul made the announcement during the launch of a new product that it says will remedy many of the problems associated with current bank accounts and offer customers a better deal.
Abcul chief executive, Mark Lyonette, said “We have been mindful of the downsides to many basic bank accounts throughout the time we have been developing our own product. Credit unions are already committed to making sure people in financial difficulties can access credit union services, and this will be no different with the new accounts.
He added: “Credit unions will have control over any charges they make to members in default and will remain committed to providing great value products to their members and treating each member as an individual with individual needs.”
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