HUNDREDS of members of a “people’s bank” serving York and North Yorkshire can now conduct financial transactions at Pay Point machines and post offices.

North Yorkshire Credit Union (NYCU), set up earlier this year to help families beat the credit crunch and avoid loan sharks, has launched a plastic card that allows customers to invest money and make loan repayments. Nick Marshall, the credit union project manager, said: “The Pay Point card is a significant step forward. It will allow our members to make payments at a wide choice of locations across the county, and indeed across the country, rather than at the relatively limited number of places which have been available until now.”

The card is free to the 2,000 or so members of NYCU – the expanded York Credit Union – and each transaction costs 20p.

Mr Marshall revealed that, in the longer term, NYCU wanted to provide a “hole-in-the-wall-style” card enabling customers to withdraw cash from ATMs.

Coun Heather Garnett, North Yorkshire County Council’s executive member with responsibility for the project, said: “The credit union provides a vital service to the people of North Yorkshire.

“It gives people – even those who have found difficulty in opening a bank account in the past – an alternative to high street banks, and enables them to borrow at reasonable rates of interest rather than having to deal with loan sharks.”

Mr Marshall said: “The credit union is a 100 per cent safe and secure place to save your money. We are regulated by the Financial Services Authority, and your savings are protected by the Financial Services compensation scheme in the same way as banks and building societies.”

The card was launched yesterday to mark World Credit Union Day.

Internationally, more than 185 million people belong to credit unions.

Membership of NYCU, which was set up with financial support from the county council, the seven district councils in North Yorkshire and four local housing associations, costs only £1, with an initial investment of £1 in a savings account.

The organisation is based in Priory Street, York. For further information, phone NYCU on 01904 676633.