AN organisation set up to help people avoid loan sharks and beat the credit crunch has announced a major step forward in its facilities.

The North Yorkshire Credit Union has launched a Pay Point card which can be used to invest and make payments in hundreds of machines and post offices across the county.

In the five months since its launch, the North Yorkshire Credit Union has built up a membership of some 2,000 people who live or work in North Yorkshire. Membership costs just £1, with an initial investment of £1 in a savings account.

It was set up with financial support from the county council, the seven district councils, and four local housing associations. In addition, the county council made available a start-up loan of £200,000 to enable the organisation to make loans to members from day one.

Project manager Nick Marshall 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.

"In the longer term, we are also looking into the possibility of providing a ‘hole-in-the-wall’ style card which will enable our customers to withdraw cash from ATMs."

County councillor Heather Garnett, the 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."