A CREDIT union which helps steer people away from loan sharks has closed more than half of its Hampshire service points.

In a move which councillors have described as a ‘disaster’ Hampshire Credit Union, or United Savings and Loans (USAL) as it is known, has closed eight of its 14 service points, including in Winchester and Southampton.

The union helps those in financial difficulties with low-interest loans and advice.

It is moving to online and telephone banking, but some users are worried they will be unable to use the service.

Margaret Gunn, 66, has muscular dystrophy and lives in Winchester.

She said she received no warning of the closure earlier this month.

She said: “I don’t have a financial problem but I like to manage my money.

“I got a letter saying it was closed and that I could email my account number and sort code to transfer money, which I didn’t think was secure, or text, which I cannot do. I will have to get my computer working.”

Jenny Meadows, manager of Winchester Citizens Advice Bureau, is concerned it will make it harder for people to open a bank account.

She said: “It is getting more and more difficult to get a basic bank account locally, and some people don’t have the relevant paperwork. Hampshire Credit Union has always been much more flexible.”

The Winchester branch opened in 2008, before merging into the Hampshire Credit Union – based in Portsmouth.

Winchester councillor Chris Pines helped open it. He said: “My money was the first the credit union took. I think the closure is a disaster. It was really serving a purpose.

“When you look at older people, 50 per cent of them don’t have a computer so we are potentially dumping a whole chunk of the population who don’t have online access.”

But Geoff Brown, CEO of USAL, said the points were ‘not making enough money to justify being open’.

He said: “It’s apparent that despite a huge amount of investment and promotion in these networks trying to build local interest we just don’t see the footfall for us to validate maintaining these facilities.”

“It’s a simple fact that this credit union has to pay its way and we cannot earn sufficient income to cover the costs of those facilities, when very few people are turning up.”