THE first credit union in Watford is being set up to help people on low incomes avoid taking out high interest loans and improve their lifestyle.

The Credit Union Study Group is forming the bank which will be based in, owned and run by people in Watford.

It believes it will be an ideal way to protect people in poorer areas from companies with high interest loans by offering them at half the rate of some banks, and be accessible to those who have black marks against them and no bank accounts.

Miss Liz Stevenet of Watford's Advice and Rights and community development office said: 'We have been given a small grant from the council to pay for the training of volunteers to run the union as well as buy things like software.

'We have looked at credit unions in other areas and they are flourishing. People who would never normally have access to loans at low rates because of past problems can borrow money to do things like go on holiday while still saving with the union.'

The group does not intend to carry out credit checks on those who want to use its services but will be keeping detailed records of all those on its volunteer committee and their particular role in it.

Ms Stevenet said: 'From the credit unions I've looked into there isn't too much of a problem of someone having their hand in the till. The ethos is around communication, trust and community spirit.

'People are more likely to pay money back to the union if it is a local thing and they are likely to meet people in the street who are running it.'

The study group has spent the past year getting support from councillors and canvassing areas by holding meetings in community centres such as Leavesden Green and Holywell.

Miss Stevenet said: 'We have had a lot of interest from people who want to join it and who are happy with the concept of saving anything from as little as 50p a week with the union, but to run it we ideally need another eight to join those who have so far come forward for training.

'People get put off as they think they can't do maths or bookkeeping or can't count but the training is excellent and has the added bonus of preparing you for other jobs.'

The free and informal training covers subjects such as accounts, loans and customer service and is completed in about 40 hours which are arranged around people's commitments.

Once completed the Registrar of Friendly Societies meets volunteers to ensure they are competent to run the union.

So far the group has eight people who include a solicitor, businessman, gardener and retired people.

It is to hold its next public meeting on Thursday, May 4, at the Town Hall and is inviting those who are interested to join them.

Ms Stevenet added: 'Anyone is welcome to come along and find out more. We can only get this up and running if we have enough people who are committed to taking an active role. We think it is a great opportunity for the people of the borough.'

The meeting will run from 7.30pm and people are advised to go to the One Stop Shop or to contact Ms Stevenent on 01923 226400.