1. 1. Electrical Community Scheme Presented by David Sanderson

2. What is the Community Scheme? A socially motivated service for Credit Union members, Housing Tenants, vulnerable & low income families An affordable and ethical alternative to high interest weekly payment stores & doorstep lenders Custom built offering focusing on Credit Union members & tenants requirements Support mechanism for local communities Helps Credit Unions to increase their membership and become more sustainable Opportunity for Housing Associations to promote responsible alternative borrowing options to their whole tenant base An opportunity for Credit Unions to conduct financial health checks and propose changes to increase disposable income

3. Why was the scheme developed? To help Credit Unions and Housing Associations tackle issues related to high interest weekly payment stores, doorstep and illegal lenders To provide vulnerable families with access to competitively priced electrical products, regardless of their banking capabilities To build a ‘Fit for Purpose’ product geared towards the customers requirements and expectations To deliver a high level of customer service and increase customer satisfaction To promote responsible borrowing and lending Credit Unions asked us to!

4. How does it work? Credit Unions promote the scheme through personalised marketing or at loan application stage Once a loan is approved the Credit Union places the order directly with The Co-operative Electrical The Co-operative Electrical arrange delivery, with a 90 minute delivery time slot provided on large kitchen appliances Large kitchen appliances are delivered, unpacked, quality checked and positioned All packaging and the old appliance are removed for recycling free of charge The Credit Union DO NOT pay for the product until we invoice them after confirmation of a successful delivery

5. How do Credit Unions compare? In 2011 we supplied products to over 1,300 customers as a result of an order from our Credit Union partners We estimated interest paid on these loans totalled approximately £54,000 at an average of £41.53 per member If these same members had used a doorstep lender for their loan the interest would have been an estimated - £319,800* This is £265,800 more and equates to £204.46* more per member Compare this to a weekly payment store and the estimated interest would have been £172,770* However, if these members had taken an ‘optional’ service cover, the estimated interest would have been a STAGGERING; £467,970!* *Weekly payment store based on advertised representative 29.9 %APR with 156 repayments. Doorstep lender based on advertised representative 272% APR with 52 repayments – Both figures obtained form respective website and correct on 26 th June 2012

6. What are the benefits? Access to a wide range of internet priced electrical products via an affordable and ethical loan provider Prices are monitored daily to ensure competitiveness, with a price match promise Increased customer satisfaction - Our customers rate us at 98% satisfaction Helps tackles issues related to financial exclusion Delivers choice to members and tenants Promotes sustainable tenancy for Housing Associations Free rapid delivery & removal of old appliances 90 minute time slots provided on deliveries Energy efficient products promoted to reduce cost Raises the awareness of wider Credit Union services to tenants Increases Credit Union membership Promotes responsible borrowing and lending

7. Products Vision & Audio LCD, Plasma & LED TV’s DVD, Blu-ray, Homes cinema kits Hi-fi & portable audio Ipods and docks Technology Laptops, desktops & tablets Printers & peripherals Photographic SAT/NAV White Goods Laundry Cooling Cooking Built-in appliances

8. Questions? To contact David Sanderson email David.Sanderson@co-operative.coop