Highland councillors hit out at credit union's promo failure

Unhappy senior councillors have slated a credit union’s promotional efforts in the Highlands and demanded showdown talks with its boss.

Opposition leader Carolyn Wilson and Highland Council’s finance committee chairman Dave Fallows claim people have been left in the dark about the Hi-Scot Credit Union because of poor marketing.

A "paltry" 358 people have joined the union in the region but the political duo, who are on opposing sides of the authority’s SNP-led administration, have called for the organisation to do far more to promote its services, particularly in schools.

The council is keen to encourage people to join Hi-Scot, which can offer low interest loans, in the face of growing fears about the increasing use of controversial payday loan firms.

But Hi-Scot’s manager David Mackay - who has been summoned to a meeting of the council’s finance committee in January - defended its promotional record and said it did not have the money to launch a major marketing push to raise awareness.

The organisation, which originated in the Western Isles, extended its reach into the Highlands in 2010 in a tie-up with the council and is about to release revamped brochures and leaflets.

It has around 2,400 members in total. Hi-Scot offers loans, with low interest rates, out of funds built up by members’ financial savings, which are guaranteed by the UK government.

But Councillor Wilson, the Independent group leader, said communities knew little about Hi-Scot’s existence and blasted its efforts so far.

"If you asked the man in the street he wouldn’t know about the credit union," said the council’s former resources committee chairwoman.

"Going back to 2010 when the council agreed to use Hi-Scot as its partner they agreed to a business plan that Post Offices, libraries and council service points would be used.

"There is no evidence of that. There are only 350 members in the Highlands. The whole network is there. they could be using police stations, council service points, libraries, schools - they should be encouraging young people to save."

Councillor Wilson said Mr Mackay had previously pledged to develop a marketing strategy.

The union received £250,000 from the council, via the Scottish government’s Fairer Scotland fund, which was used to underwrite loans and lending capital.

Councillor Fallows said he had investigated the credit union’s presence in his own ward and found the availability of promotional literature leaflets and brochures was scarce.

"I too have toured and looked around to see if there is credit union material, and there is a dearth, a sparsity," said Councillor Fallows, who described the number of Highland members as "extraordinarily" small.

"That is paltry, it is nothing and nowhere near where we hoped it would be," he added.

Mr Mackay said he was willing to meet councillors but admitted HI-Scot was an unknown quantity for a lot of people.

He said the union only employed three people and did not have the money to pay for major marketing campaigns.

"I recognise that not enough people know about what we offer," said Mr Mackay. "We are always open to working with our partners but we are not providing a service to Highland Council, it is one of our primary objectives to work independently. We have to work in a sustainable way and are here to serve our members. We pay all our own costs ourselves."

Mr Mackay said Highland post offices allowed people to join the credit and members to deposit money, while it has recently taken delivery of a specially branded VW camper van, which uses it livery to advertise the organisation.

Anyone who lives or works in the region can become a member of Hi-Scot.

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