In the summer of 2011, I was delighted to become the 5,000th member of East Sussex Credit Union (ESCU) and, as a result, a proud participant in a real success story.

However, at present, in common with credit unions around the country, ESCU is battling the overly restrictive controls placed on them by the Financial Services Authority, which tend to be much more stringent than those governing banks.  

I raised these concerns in a letter to the Minister at the end of last year, which you can read here.

The net result is that credit unions can often be at a competitive disadvantage compared to banks, despite the very concrete benefits they deliver for local communities, especially the more vulnerable ones.

This is something I wanted the Treasury to hear about first hand, so I organised a meeting with the Minister and representatives of both East Sussex Credit Union and of the national body ACE, which took place today.

I'm pleased to report that the Minister seemed quite receptive to our arguments, and has already put the credit unions in touch with Treasury officials to try to address their key concerns, while he himself would raise the concerns at a forthcoming meeting with the FSA. 

It’s crucial that the right balance is struck between protecting customers through proportionate regulation and allowing credit unions to become effective and credible players in the market. 

If this can be achieved I am confident that East Sussex Credit Union and others will continue to go from strength to strength.