PCU 25th Anniversary 2005

The Pentacostal Credit Union
Forward Ever, Backward Never
Celebrating Twenty-Five Years: A Brief History
£9.99

Summer camp: New Life Assembly Church: Dulwich, London

New Life Assembly Church: Dulwich, London
Contents
Foreword 5
Preface 6
Introduction 10
Where it all started 11
The Context of the PCU:
Credit Unions and the Pentecostal Church 14
What are credit unions? 14
Shared goals and justice 16
Black Majority Churches 17
What the Black Majority Churches brought to people 18
The PCU gets going 21
Legal requirements and leading on best practice 22
Working to promote the PCU 24
Building the union 25
Support from the GLC 25
The growth of the PCU: 1983-2005 28
Media coverage 29
The 21st Century – breaking through financial barriers 33
PCU supports Black Churches and community initiatives 37
Innovative project 37
Negative impact of the Financial Services Authority 40
The PCU – looking forward 42

This book is dedicated to
Lionel Donovan Gabriel Jones 1963-1996
He is in our hearts always and forever
THE TWENTY-THIRD PSALM
The Lord is my Shepherd; I shall not want
He maketh me to lie down in green pastures;
He leadeth me beside the still waters.
He restoreth my soul;
He leadeth me in the
Paths of righteousness for His name’s sake.
Yea though I walk in the valley of the
Shadow of Death I will fear no evil;
For Though art with me;
Thy rod and Thy staff they comfort me.
Thou preparest a table for me in the presence of
Mine enemies;
Thou anointest my head with oil;
My cup runneth over.
Surely goodness and mercy shall follow me all the days
of my life;
And I will dwell in the house of the Lord forever
Lionel Jones LLB BSc
Gone but not forgotten
I am particularly pleased to
contribute this foreword to the
25th anniversary report of the
Pentecostal Credit Union (PCU).
Set up from virtually nothing in
1979, the PCU is now one of the
largest and most successful credit
unions in the UK.
This book tells the story of the
PCU, where it came from, what
drove it, how it grew and what it
has achieved. It describes a vision
about social justice translated into
action – making a difference to
many people’s lives.
I am a great supporter of credit
unions. Credit unions, common in
many parts of the world such
as the Caribbean and the US,
promote access to banking often
denied to some people by the
mainstream banks and institutions.
Credit unions are unique in that
they follow a philosophy of
self-help, member control and
economic development. They
can be a crucial economic tool
affecting the members’ needs and
culture, whereby surpluses are
used to benefit members.
In the 1980s at the Greater
London Council we recognised
the potential of credit unions,
and developed a programme of
supporting them. Through our
programme, we encouraged them
to become viable and grow, and
I am happy that the unions that
were supported by the GLC have
seen many successes.
The Pentecostal Credit Union was
one of the unions we supported in
its early days and I am proud to be
associated with its success now.
I celebrate its twenty-five years of
existence and wish it further
success in the challenges of the
future.
Ken Livingstone
Mayor of London
Foreword:
Ken Livingstone

the concept of credit unions can
therefore be seen to be a powerful
and positive influence for black
communities across the UK. As
referred to in the book, the PCU
was seen to be a vehicle for social
and financial inclusion at the
local level.
The PCU has been built on trust
within the community, along
with the obligations from PCU
members. It was also recognised
that the route to social inclusion
was an economic one, with
organisations such as the PCU
meeting a need in the context of
economic development, helping
to fill a vacuum created by
mainstream institutions.
As reflected in this book, the
PCU has grown steadily over the
twenty-five years to be where it is
today; one of the largest and most
financially sound credit unions
in the country. An important part of
this work has been not only
in lending to and supporting
individuals, but also funding
and lending to black majority
Churches which has enabled them
to grow and prosper and, most
importantly, develop a range of
community activities and support
in local neighbourhoods. The
PCU, as part of its raison d’être,
wants to continue to play a part
in local community development
and enterprise. However, as the
book highlights, this approach is
now under threat, with the FSA’s
regulatory regime now effectively
preventing the PCU from carrying
out such work. Effectively the
PCU cannot initiate social and
economic development for
broader strategic initiatives, which
can be seen as detrimental not
only to the development of the
PCU but also many other credit
unions. The approach taken by
the FSA also contrasts with that
taken in other countries, where a
credit union is allowed to play an
important role in the economic
development and regeneration of
the community at local levels.
In the coming months the PCU will
be looking to make these
arguments to the FSA to change
its approach, and allow the PCU
to consolidate and progress its
work with the Churches on the
community development projects.
I am sure that the PCU, working
with others, will succeed in their
mission to provide not just a
service to individuals, but also
to a wider audience. I wish
the PCU well, and support its
continued work and growth
in making a real difference in
people’s lives.
The Pentecostal Credit
Union (PCU) emerged out
of the struggles that many
black Caribbean people
(and others) arriving in the
UK had to contend with in
the 1950s, 60s and 70s.
One of the barriers that they
faced was the attitude of the
banks and other financial
institutions. In those days,
they simply did not want to
know. Black and minority
ethnic groups were more
likely to be denied access
to finance than indigenous
people. Too often they had
to call on families and
friends for help, but also
commonly sought high-cost
loans from loan companies,
door-to-door salesmen
from dubious companies
or loan sharks.
Credit unions, of course, have
been an integral part of Caribbean
life for many years, and indeed
there were Caribbean people who
settled in this country and had a
significant influence on the
growth of credit unions in the UK.
In the case of the PCU, allied
with this has been the influence
of the Church, and in particular
the growth of black majority
Churches in the UK. This growth
also emerged from the increasing
migration of Caribbean people
to the UK after the war, with a
landmark of this being the arrival
of the Empire Windrush in 1948.
The Church in the Caribbean was
a far greater part of everyday life
and common experience than was
to be found in the UK in the 1950s
and 1960s, where the Church
in Britain was found to often be
cold and unwelcoming. Hence,
Pentecostal Churches created
and run by immigrant groups and
individuals in their houses sprang
up to fill the gap.
Marrying the black Churches and
the Pentecostal movement and
Preface: Bill Morris

Forward Ever, Backward Never
The Pentecostal Credit Union:
Celebrating Twenty-Five Years: A Brief History
This book was researched and produced by MDA, a diversity
and research consultancy. In working on the project, MDA worked
closely with the PCU and associated organisations and individuals.
We are grateful for the time given by individuals and the materials
and information they provided to us.

The Pentecostal Credit Union
(PCU) formally came into
being in 1980, originally
operating from a tiny room
in Balham. Sixteen people
attended its first meeting
in 1979; in the same year
its first official payment
was made – £1.20 for a
Rule Book. Aided by the
dedication of those involved
in its formation, PCU quickly
grew. Knowledge of its
creation spread in churches
throughout south London
and membership increased
rapidly. PCU is now one of
the largest Credit Unions in
the UK, with nearly 2000
members and members’
funds running at over
£7,000,000.
The central theme, and ‘common
bond’ (see section 3) has been
membership of the Pentecostal
Church, a black majority Church
movement, with its roots in the
Caribbean. The Credit Union,
when it was set up, was a positive
response to the difficulties that
existed at that time, especially for
black and minority ethnic groups
who were turned away by the banks
and other legitimate lenders, or who
were exploited by ‘money lenders’
and shady banks and lenders.
The PCU, through imagination,
determination, commitment and
a strong belief, has grown and
flourished over the last twenty-five
years. This book gives a brief history
of these years. It tells the story of
the PCU; where it came from, what
drove it, how it grew and what it
has achieved. It describes a vision
about social justice translated into
action, making a difference to
many people’s lives.
By definition, the PCU has been
driven by a strong set of religious
beliefs and values, reflected
through the practical mechanisms
of the Credit Union movement.
The two entities – the Pentecostal
Church and the Credit Union
movement – fit well together,
reflecting principles of fairness,
helping one’s neighbours, justice,
and working to make the world a
better place in which to live.
Credit Unions are concerned
with ‘people helping people’,
with a motto of ‘not for profit, not
for charity, but for service’. These
approaches reflect the teachings and
values of the Pentecostal Church.
Hence, as part of the background
to the growth of the PCU, this
book looks briefly at Credit Unions
and the black majority Churches
themselves, as manifested in the
major strand of the Pentecostal
Churches, as part of the overall
context. However, the main body
of the book is concerned with
telling the story of the PCU
– who has been involved, what
has happened – and drawing out
potential lessons for the future.
Introduction
F O R WA R D E V E R , B A C K WA R D N E V E R | P E N T E C O S TA L C R E D I T U N I O N
10
Introduction
11
Whereitallstarted
The PCU was started by
Reverend Carmel Jones
MBE, who has driven and
inspired it over the last
twenty-five years. As a
young man, Carmel came
to England from Jamaica in
1955, studied engineering
and found his vocation in
the Pentecostal faith. In
1957 he had married Iviline
Rhule: ‘one of the beauties
of Garden Hill, St Catherine,
Jamaica’. Together, they
were to become a formidable
team in building up the
PCU, along with many
other supporters, friends
and colleagues.
Carmel, who became a Minister
of the Pentecostal Church in the
late 1970s, had worked in and
for a range of community
projects and initiatives,
especially with young people.
In common with others, he had
become increasingly concerned
about the problems that black
and minority ethnic groups had
in obtaining cost-effective loans,
not only for themselves, but
also to buy Church buildings or
support for their businesses.
In those days too often the
banks simply did not want to
know. Black and minority ethnic
groups were more likely to be
denied access to finance than
indigenous people. Too often
they had to call on families
and friends for help, but also
commonly sought high cost
loans from loan companies,
door-to-door salesmen from
dubious companies or loan
sharks.
Often such sharks took
advantage if someone was
unemployed or received low
pay, and charged exorbitant
rates of interest. Such stories
as the couple who borrowed
£2,000, had repaid £6,000 and
who were still £1,300 in debt
were common. Often owing
such money was accompanied
by threats and even physical
intimidation by representatives
of the loan companies and the
loan sharks themselves.
It is this background that
became an increasing cause
of concern for Carmel and
the people he worked with.
Perhaps unexpectedly, the Sun
newspaper was the immediate
catalyst for the PCU initiative.
The following story is one
Carmel has often repeated over
the years.
On 4 September 1979, the Sun
included an article about Credit
Unions, which triggered a
reaction in Carmel. That night, he
had a vision, a revelation, about
the issues he had been grappling
with in his work, problems about
Where it all started

black people’s access to financial
institutions’ services. He saw that
the Credit Union movement, with
its ethos and approach, could be
the vehicle that would help tackle
these challenges.
The next day Carmel swiftly
dispatched the following letter to
Len Nuttal, at the Credit Union
League of Great Britain (this would
later become ABCUL).
‘Dear Sir
Would you be so kind as to send
me as quickly as possible the
necessary and relevant detail and
information regarding the setting
up of a Credit Union? For your
information, I belong to a very
large Church group, registered in
the UK, and we have considered
and decided that this system is
extremely useful to us, as I am
sure you know how difficult it is to
obtain money to purchase, repair
and maintain church properties.
‘Please do your best to let me hear
from you as soon as possible.’
The Credit Union League quickly
sent information and a Rule Book,
which Carmel ‘studied over and
over again over the following days’.
He quickly became enthused, and
in early October brought together
‘sixteen brethren and friends’,
to meet and discuss how they
could work together and form a
Credit Union associated with the
Pentecostal Church.
This was followed by a meeting
with Len Nuttal, attended by
twenty-one people. All expressed
an interest in forming a Credit
Union. Within a few days a
formal application to create the
Pentecostal Credit Union had been
made. Twenty-one members had
agreed to join (the legal minimum)
with the common bond (another
legal requirement) that included
membership of the Pentecostal
Church (directly or by family) and
residency or work in the Greater
London area.
Following the application, Carmel
and the others set about promoting
the Credit Union’s work and
persuading Pentecostal Christians
in Greater London to support it.
Significant progress was made
between October 1979 and
March 1980. One hundred and
two members were enrolled and
£1,503.03 was accumulated and
deposited in a bank account in
the name of the Pentecostal
Credit Union Ltd.
In March 1980 the application was
approved. The PCU was in business.
In the coming months and years,
as it grew, the PCU began to fill an
important gap. As Bishop Powell,
Presiding Bishop for the New
Testament Assemblies in England
said:
‘It is one of the best visions that we
have come up with. When we first
came to this country, banks refused
to give us loans, so we had to go
to private lenders and it was very
stressful. PCU has alleviated that
stress. It has built our stability
and made the purchase of
our properties much easier to
achieve.’
12
Whereitallstarted

The concept of Credit Unions
also extended in a significant
way into the Caribbean, Africa
and South East Asia.
Credit Unions in the UK (apart
from Northern Ireland) took
longer to develop than in other
countries, and comparatively
they remain much less
developed than elsewhere.
Much of the growth in the UK
in the 1970s related to the
increasing settlement of people
from the Caribbean, where
Credit Unions were popular and
well established.
Credit Unions also emerged from
the ‘informal partner’ systems
common in African Caribbean
communities. These worked by
people, usually women, coming
together, ‘and making regular
payments to form a common
pool of money’.1
The first British Credit Unions
were set up under the
Companies Act but lack of a
dedicated legal structure was an
obstacle to their development.
This began to be remedied by
the Credit Union Act of 1979.
The Act meant that organisations
could no longer call themselves
Credit Unions unless they were
registered in the Registry of
Friendly Societies. This
involved demonstrating an
appropriate ‘common bond’
and an acceptable set of rules.
The Registry was empowered to
monitor Credit Unions, and each
union had to submit an annual
return. It could appoint an
inspector to investigate the affairs
of a Credit Union, or suspend it
from accepting savings or
making loans.
This time also saw the
development of two national
agencies that represented Credit
Unions and encouraged their
development: the National
Federation of Credit Unions and
the Association of British Credit
Unions, (ABCUL – formerly the
Credit Union League of Great
Britain). Len Nuttal had been
appointed Chief Executive in
1975, and regional development
officers, including Peter Bussy,
were subsequently appointed.
Both Len Nuttal and Peter Bussy
provided invaluable support and
advice to the PCU during its
early years. It should be noted
that, by the end of 1980, the
League had fifty Credit Unions
registered using its model rules,
including the PCU.
Lloyd Boscombe was also an
important figure in the Credit
Union movement and the
League, and has also been a
keen supporter of the PCU over
the years. He commented:
‘A group of black people played
a major part in the creation
of the Credit Union League.
They brought the idea from the
Caribbean. In the early 60s,
people used to go to prison if
they could not pay their rates,
so we kept a lot of people out
of jail. The League had a slow
start, and we were not really
supported by the Government or
any politicians. However, after a
Below we look at the
context of the Credit
Union, to provide a
background to the
growth of the PCU.
Some context is also
provided to the black
majority Churches in
Britain, and the
Pentecostal movement.
Credit Unions
What are Credit Unions?
Credit Unions are effectively
co-operative societies/groups
that offer members loans out of
savings build up by the members.
A union is formed by a group
of people who have a common
interest – or ‘bond’. This could
be, for example, working for one
employer, living in a particular
area, or belonging to the same
Church or ethnic group. The PCU
has a powerful bond through its
Church and beliefs, and also by
the geographical area in which it
now operates (Greater London).
Credit Unions aim to encourage
savings and provide members
with sources of cheap credit.
Many have emerged out
of a desire to ensure that
opportunities are made available
to people on low incomes, or
who have problems in saving or
achieving a good credit history.
Just as important is the aim of
giving access to credit to people
who may have only limited
access to mainstream lenders.
Credit Unions are unique in
that they follow a philosophy of
self-help, members’ control and
economic democracy.
Credit Unions were first
developed in Germany and Italy
in the mid-19th century, with
the movement taking hold in
North America in the first half
of the 20th century. About 30%
of eligible Americans belong to
a Credit Union. In Ireland,
half the population is a member
of a Credit Union. On some
Caribbean islands, membership
is as high as 70%.
The Church connection has been
very significant in Credit Union
development worldwide. In
Ireland, for example, the Knights
of Columbus gave the movement
its initial impetus by organising
the majority of its Credit
Unions in parishes. In Canada,
Monsignor Coady spearheaded
the Antigonosh Co-operative
Movement, establishing a large
number of Credit Unions.
The context of the PCU: Credit
Unions and the Pentecostal Church
14
ThecontextofthePCU:CreditUnionsandthePentecostalChurch
1
See Association of Credit Unions: History of Credit Unions
15

Unions have shown themselves
to be popular and successful.
Credit Unions are also seen
as addressing important
issues about social exclusion
and deprivation. ABCUL has
summarised the ability of Credit
Unions to help address financial
exclusion in the following ways:
• They help people learn the
value of making regular
savings.
• Credit Unions use a pool of
savings to provide a source of
low cost credit. This is
particularly valuable for
those who have difficulty
borrowing at affordable rates
of interest from mainstream
financial providers, who might
otherwise turn to loan sharks.
• A number of Credit Unions
offer a bill payment facility.
This enables individuals
without bank accounts to
benefit from purchasing
their utilities in the most cost
effective manner.
• Credit Unions provide free life
insurance and loan protection
insurance to their members.
• One of the objects of a Credit
Union, set out in the 1979
Credit Unions Act, is the
education of its members in
the wise use of money. Credit
Unions can play a valuable
role in helping people to be
effective and responsible users
of financial services.
time Unions began to grow,
including ones like Shrine, and
increasingly other groups and
people became interested.
‘Through the League, I became
involved with the PCU. They
came on the scene slightly later
than some of the other Unions.
I was struck by the way that
they grew. I went to one of their
Church services and it was an
eye-opener. I never saw so many
people who regularly attended;
often 500 or more on a Sunday
in some of the Churches.
They had a ready membership.
They were very sound, and the
strength of the membership was
in the devotion they had to the
Church.’
Shared goals and justice
This history of close alliance
between Church and Credit
Unions must be based on
shared goals and proof of the
practical possibilities of Credit
Unions.2
Credit Unions are a
manifestation of social justice
and self-help, grounded on
principles of equity and
co-operation. They make credit
available at reasonable rates of
interest by mobilising members’
small savings and using them
for their benefit – in effect, the
Credit Union invests in
its members’ needs.
Credit Unions encourage
individuals and families to
organise their financial affairs
to their greater advantage,
whilst building a community-
owned organisation whose chief
interest is its service to its owner
members. They can be seen as
an economic tool affecting their
members’ needs and culture,
whereby surpluses are used to
benefit the members.
They are also seen as a means of
evangelisation. Initially, people
welcomed the Credit Union idea
as a practical way of protecting
them from financial abuse and
distress, but the opportunity to
present itself to the sponsors to
become known and respected
for the values they represent by a
larger population than just the
Church’s own membership had a
growing attraction and resonance
with people.
ABCUL (the representative body for
Credit Unions) summarises Credit
Unions as being able to provide:
• A solution based on self-help
rather than state handouts.
• A community owned and
community based solution.
• A social framework as well
as a financial one.
• A means of ensuring that
money is kept within the local
community.
• A solution based on tried and
tested structures both in this
country and others, and where
16
2
Referred to in an early PCU Branch Manual 3
See Windrush: The Irresistible Rise of Multi-Racial Britain, Mike Phillips and Trevor Phillips. 4
See Look What the Lord has Done: An Exploration of Black
Christian Faith in Britain, Mark Sturge, for an excellent description and discussion of the growth of black majority Churches in Britain
17
Black majority churches
As mentioned previously, Credit
Unions have been an integral part
of Caribbean life for many years
and, as we have seen, Caribbeans
who have settled in this country
have had a significant influence
in the growth of Credit Unions in
the UK. In the case of the PCU,
allied with this has been the
influence of the Church, and in
particular the growth of the black
majority Churches in the UK.
This growth emerged from
the increasing migration of
Caribbean people to the UK at
the end of the Second World
War. A landmark of this was the
arrival of the Empire Windrush3
in 1948. A majority of those
on board were from Jamaica,
but they also came from other
islands, including Trinidad,
Guyana and Bermuda. These
settlers brought with them
their faith traditions, including
Anglican, Catholic, Baptist,
Methodist, Presbyterian and
United Reform Church.4

whether it was how to penetrate
the areas of misunderstanding
that people could access some
of our services that are there; the
Church soon took that on hand,
to offer advice, very positive
advice, apart from the financial
support.
‘We didn’t have the money
to dish out to people, but by
pooling our resources together,
we were able to support one
another in sending for relatives
back home, pooling our monies
together to buy housing in
partnership so that we could
house our people. Here it was a
very significant area, and when
we purchased those homes
in partnership, when one was
able to buy oneself out of that
property, then we moved on to
buy independent properties,
and then offering people, you
know, that independence that
they need. So the Church has
been very, very active indeed,
and with the social and personal
issues of our people, not least
our constituents, people who
have no connections to the
Church but come to us, then
and now.’
The growing black majority
Churches filled an important gap
and provided a range of essential
services, as reflected in the work
and the role of the PCU. The
black majority Churches were an
integral part of life, including for
children, often from a young age.
‘There is a place round the
corner called St Thomas’s Parish
Hall. And that’s where we have
the Pentecostal Church meetings.
So that’s where Sunday School
was and that’s where our Church
was. A guy called Brother
Shepherd ran the Church, off his
own back, sorted it out, got it
inter-linked with other Pentecostal
Churches in the area. Every time
the season came round we
would go to a convention, either
in Wolverhampton or in
Birmingham, or wherever, but
imagine the foresight of these
people – we’ll just have our own
Church then.
‘It is almost like we weren’t
acceptable – or accepted, in the
Church of England or whatever,
so we would have our own
Church. And that’s what we did.
That’s where we went to Church.
I remember it being quite joyous
and quite happy. We had Bible
class – I found it a bit boring
– but the singing and the spirited
preaching of people like Brother
Shepherd, you sort of got swept
along with it and it was exciting.
And I did it from the time I was
seven years old to when I was
fourteen, or something, every
Sunday.’7
The black majority Churches
grew steadily at this time and, as
we will see, the PCU played
an essential part in this, by
supporting and lending finances
for the purchase of Churches.
At that time, no lending
institutions would consider
lending to religious
organisations such as the
Pentecostal movement.
The black majority Churches
grew in a variety of ways, in part
fuelled by the types of problems
and prejudices Caribbean
settlers encountered in the UK.
Such prejudice was manifested
powerfully, for example, in the
Notting Hill riots in the late
1950s.
However, it is important to
note that the existence of race
and prejudice was not the
only reason for the emergence
and growth of black majority
Churches. Joel Edwards has
argued that it would be
disingenuous or would even
do these Churches a disservice
if they were presented as
existing purely because of the
shortcomings of white Christians,
rejection and racism:
‘Black Churches were not
brought into being solely as
the result of racism. This would
make them entirely a community
by default. Whilst God is able
to produce fruits from our bad
seeds this is not the whole
story! Black Churches came into
being to fulfil spiritual, social
and cultural needs which would
otherwise have gone unmet
– and the African and Caribbean
Church in the UK is an indication
of God’s ability to meet a
people’s needs through their own
ministry to themselves.’
What the Black Majority
Churches brought to
people
The Church in the Caribbean
was a greater part of everyday
life and community experience
than was found in the UK in the
1950s and 1960s. In addition,
the Church in Britain was often
seen to be:
‘cold and unwelcoming…
Pentecostal Churches, created
and run by immigrant groups
and individuals in their houses,
sprang up to fill the gap.
‘Heaven, in my view, begins
right here. So it is not just about
preaching and speaking to
people as soon as we get to
Heaven, but it’s how to get on
with themselves, how to handle
themselves and to get on with
their neighbours right here. And
whatever that means, then we
would be there. And whether it
was marriage, whether it was a
separation, whether it was a lack
of understanding of the system,
18
5
See Joel Edwards, The British Afro Caribbean Community, and as quoted in Look What the Lord has Done, Mark Sturge 7
Interview with Carmel Jones as quoted in Windrush: The Irresistible Rise of Multi-Racial Britain, Mike Phillips and Trevor Phillips. 7
Interview with Baroness
Amos as quoted in Windrush: The Irresistible Rise of Multi-Racial Britain, Mike Phillips and Trevor Phillips
19

At the end of its first few months,
the PCU could take stock of
progress made in its first annual
general meeting. Its religious
basis was made clear at the
beginning of the meeting, as in
all subsequent AGMs, with the
common bond of Pentecostal
Church and Christian beliefs
highlighted. The meeting began
with the words:
‘For if we have this world’s goods
and seeth our brothers have
need and shutteth our bowels of
compassion, how dwelleth the
love of God in us.’
The essence of the PCU,
its raison d’être, was also
emphasised. Members were
reminded of the reasons for the
PCU’s existence:
‘Because if we ever lose sight of
our aims and the contribution each
member must make because of our
voluntary nature, we will become
just another finance company, a
de-personalised lending
organisation.’
Members agreed that the
Credit Union existed because
its members wanted to help
each other with their financial
problems, provide advice and
encourage responsibility and
the ‘wise use of money’ – all
aimed at developing a feeling of
community inside and outside of
the PCU. It was emphasised that
success could only be measured
in the light of these aims.
The meeting reported its first
membership results. One
hundred and seventy-two
members had joined, with
savings totalling £8,480.67.
Loans of between £10 and £500,
totalling £5,460, had been made.
It was also noted that members
had ‘been good with their
payments’.
However, increasingly these
Churches flourished and grew,
providing a range of essential
services to the local communities
and becoming a centre of
community activities.
‘The contribution of the black
majority Churches to the
communities is indicative of
who they are and what they
have achieved. They are a
huge economic force within
the black community. Their
membership is largely comprised
of the middle classes and the
black community, comprising
by far the larger percentage of
professionals and graduates than
elsewhere in the community. It
is also extremely rewarding to
know that the black majority
Churches are the greenhouses for
the continued success of black
people in society: for example,
they provide musicians, artists,
producers and trainers for much
of the music industry in the UK.’8
The black majority Church,
combined with the concept
of Credit Unions, can therefore
be seen to be potentially
powerful and positive influences
for black and other communities
in the UK.
This is what Carmel Jones and
his colleagues envisaged in
1979. The PCU was seen to be a
vehicle for social and financial
inclusion at the local level. It
was to be built on trust within
the community, along with
obligations from PCU members.
It was also recognised that the
route to social inclusion
was an economic one, with
organisations such as the PCU
meeting a need in the context
of economic development, and
helping to fill a vacuum created
by mainstream institutions.
In the following sections we will
see how the PCU grew to what it
is today.
21
ThePCUgetsgoing
20
4
See Look What the Lord has Done: An Exploration of Black Christian Faith in Britain, Mark Sturge
As we have seen, the PCU
effectively came into being
in March 1980 and, in its
first months, a considerable
amount of work was
carried out to turn Carmel
Jones’ vision into reality
The PCU gets going

Legal requirements and
leading on best practice
Key committees, including the
following, had been set up:
The Planning Committee: This
was given the task of keeping
members up-to-date with what
was happening in the Credit
Union movement generally.
It was also concerned with
promoting and effectively
marketing the PCU. Its overall
responsibility was to:
• plan growth and development
• keep members aware from
time to time of their role and
contribution to the Union
• promote, advertise and recruit
• educate members on the Credit
Union philosophy and how to
make wise use of its resources.
The Credit Committee: This
committee was concerned
with overseeing the detail
of the PCU’s finances and
making decisions about and
monitoring the loans made by
the organisation.
The Supervisory Committee: This
committee was concerned with
checking on the PCU’s function
and the work of the directors and
credit committees. It was to be
an independent supervisory and
audit committee, elected by the
members.
A range of members were
already closely involved in the
work of the PCU, and many
continued to give their support,
time and commitment to the
organisation in future years. In
the first year of the PCU, George
Smith, Vice-Chairman, Mr WV
Williams, Treasurer, and Mrs I
Jones, Secretary were already
providing important support that
was to continue.
22
ThePCUgetsgoing
The New Testament Assembly: Tooting Neighbourhood Centre

Building the Union
Through hard work, focus and
imagination, the PCU grew
rapidly in the following years.
A snapshot is provided of some
of the progress made is given
below.
In the second year of the
PCU’s existence (1981), its
membership increased to 269,
and its financial base was fast
growing, with £32,962 loaned,
an increase of nearly £25,000 on
the previous year.
The aim of the PCU was
beginning to be fulfilled.
‘Important though our figures
may be, what is more important
is the use to which the money is
put, and the resultant easing of
any tension or worries financial
pressure causes, especially in a
time of high unemployment and
recession.’
By 1982 the membership had
increased to 380 and loans had
reached £86,440. The cost of
loans from the PCU compared
favourably with other institutions:
‘We advise that the easiest and
cheapest form of credit is a
Credit Union. Compare these
figures: on £100 from any Credit
Union for one year, the interest
is £6.50; in any of the big four
banks, the interest is anything
between £13.50 and £15.00.
Purchasing goods for this amount
on HP ranges from £21 to £35,
and from the high street loan
companies the charges are
between £50 and £100.’
Support from the GLC
At this time the then GLC,
under the leadership of Ken
Livingstone, had begun to
explore the role it could play
in encouraging and developing
Credit Unions, in order to fulfil
the GLC’s existing or wider
objectives.
Initially in response to an
application for assistance from
the Camberwell Credit Union,
during the second part of 1982
GLC officers, supported by
members, began to consider
in detail how they could add
support.
At that time there were
twenty-six Credit Unions
registered in Greater London,
affiliated to the Credit Union
League. They had 8,000
members and £800,000 worth of
shares. It was noted then that a
great deal of the impetus behind
Credit Unions in the UK came
from West Indian communities,
where there was a history
Hence a system was organised
whereby any Church or
community organisation in
Greater London was invited
to discuss the possibilities of
opening a branch of the Credit
Union on their own premises.
At the basic level of operation,
each branch could be run by
three local volunteers – two
collectors and a secretary/
cashier. A briefing/training
manual that explained the
operating procedures was
provided for those involved.
This approach was to become
a powerful tool in terms of
the Credit Union reaching out
to congregations of various
Churches and involving them
in the work of the PCU. In the
early years of the PCU a lot of
work was put into promoting
the benefits of a Credit Union
to Church congregations,
explaining what a Credit Union
could do for them.
Several leaflets were produced
in the PCU’s first months, and
it began to get media coverage,
including in the Jamaica Weekly
Gleaner, the South London Press
and The Voice. Core members
had also met small and larger
groups of to publicise the Credit
Union idea. The PCU was
beginning to be a growing and
successful organisation.
24
WorkingtopromotethePCU
In order to promote
the PCU, a system of
reaching out to the
Church communities
was developed, starting
with south London.
These communities were
effectively ‘mini bonds’,
stemming from the
common bond relating to
the Church. Steps were
taken at this early stage of
the PCU’s development
to reach out to Church
communities in the area
Working to promote the PCU
25

explore how it could translate
this into practical measures.
This was particularly important
for the PCU. The GLC considered
whether the social benefits
gained through the development
of Credit Unions were large
enough to justify grant aid. It
also questioned whether Credit
Unions could expand to the size
necessary to support full-time
staff using the surplus of loan
interest over the interest paid on
members’ deposits.
Following further information-
gathering discussions, the GLC
decided to assist the expansion
of Credit Unions at this
development stage by subsidising
the appointment of full-time staff
who could help develop Credit
Unions further within London.
In doing so it set some general
criteria in terms of supporting
potential grant applications.
These included:
• The nature of the common bond
was such that there seemed
a reasonable chance that the
membership could be increased
to the size necessary for the Credit
Union to be self-supporting.
• That for any specific Credit
Union this expansion could
be achieved in a three year
period, during which the GLC
would fund the appointment of
paid staff on a reducing basis.
• That the Credit Union covered
a geographic area wider than
a single borough, or that there
were convincing reasons
why the borough concerned
could not provide the grant
requested.
• That the Credit Union should
be affiliated to the Credit
Union League of Great Britain.
• That, in each case, there should
be sufficient justification to
render the making of a grant
reasonable and therefore
any grant should be likely
to produce some benefit for
London or its inhabitants other
than a purely financial benefit
for the members of the Credit
Union in question.
This was an important, far-
sighted step. The GLC’s
grant programme was aimed
at capacity building and
encouraging Credit Unions
in London. This programme,
however, would be based on
sound financial principles, and
the individual Credit Unions
that were grant funded (via the
support of a paid employee)
would be enabled to grow on
a strong financial footing and
become completely
self-sufficient.
The PCU applied. It was
successful and hence was able
to employ a full-time manager
for three years. This gave it
an immense impetus, helping
it to grow and develop, and
begin to make an impact, not
only in terms of direct loans to
members, but also in supporting
the development of Pentecostal
Churches, and directly and
indirectly supporting the
extensive range of community
services they provided.
of this type of co-operative
venture. These included not
only the relatively new PCU,
but also such organisations as
the Croydon Caribbean Credit
Union, the Camberwell Credit
Union and others that serviced
largely West Indian
communities.
The GLC began to recognise the
advantages of Credit Unions,
as Carmel and others had
done when creating the PCU.
As a GLC report at that time
(December 1982) noted:
‘It almost goes without saying
that the main advantage of
Credit Unions is the provision
of lending facilities at favourable
amounts ranged at people
who may otherwise have to
borrow through provident
cheques or local tallymen at
interest rates which may be five
times greater. These enterprises
also encourage saving and
provide loan protection and
life savings insurance schemes.
The co-operative nature of
these schemes encourages
people to take a greater interest
in their community or in the
circumstances of people in their
own circles.’
It was also noted that the
dividends paid by Credit Unions
were tax free, although members
were advised that it was their
responsibility to declare any
unearned income to the Inland
Revenue. People also benefited
from the gain in access to loan
facilities and from knowing
that their savings were helping
people who were in similar
circumstances. The report noted:
‘An expansion of the use of
Credit Unions by people on
average wages would reduce the
risk of default and, by spreading
the burden of this, would assist
Credit Unions to pay higher
dividends.’
The GLC also identified the
potential consequences for
minority ethnic communities, in
terms of race equality, as well
as sex equality for women. It
was recognised that the Credit
Unions had particular resonance
with West Indian communities
and that, in comparison with
other financial institutions, Credit
Unions appeared to have a good
record in meeting women’s
financial needs.
‘The Credit Unions assess
applications from women
members on the basis of their
creditworthiness and ability to
repay without any bias in favour
of applications from men.
‘While there are no statistics
available, it is thought that
women account for around
half of the membership of most
London Credit Unions and many
women play important roles in
the management of these
organisations. If necessary, this
matter can be examined in more
detail in relation to specific
Credit Unions.’
The GLC, having agreed to
support Credit Unions, began to
26
27

Media coverage
The PCU was also obtaining
a range of press coverage.
This included several articles
in national newspapers, and
radio interviews. A dinner was
held at the House of Commons
during the year, with 186 guests,
including MPs from the main
political parties, with one event
obtaining substantial media
coverage.
One high profiles example
was the Sunday Times, which
featured the PCU as part of an
extended article on the changing
face of black communities in the
UK and the growth of a black
business-orientated middle class.
Although somewhat patronising,
the long feature did paint a
positive picture of the PCU,
referring to the organisation
(which now operated from a
large Victorian building in south
London) as:
‘Once Anglican and victim of
dwindling attendance, now
refurbished and home to a
thriving Pentecostal congregation
200 strong.’
The article also recorded the
type of services that the PCU
could provide, referring to one
incident:
‘At 1.00pm recently, Jones
received a telephone call from an
investor whose father had died in
Jamaica and who needed money
for the air fare and the funeral.
The cheque was ready next
morning: “a listening bank” said
Jones, with a smile.’9
The feature concluded:
‘The black Church is full of men
like Jones, vigorous and practical,
with one eye on traditional
values of Pentecostalism and the
other firmly on the future.’
Another example of media
coverage at this time was when
the PCU, which was referred to
as ‘standing between the banks
of the loan sharks’, announced
that it was prepared to make
loans to Gospel groups. The PCU
expressed concern that, while
there was tremendous interest
in Gospel music, unscrupulous
commercial interest may be
inclined to cash in:
‘The young people in these
groups are doing important
Christian work through their
music. So long as we can be sure
that a loan would be properly
used, there is no reason why
we shouldn’t help a struggling
group with equipment or concert
promotion…We obviously can’t
compete with the big record
companies, but we can perhaps
help young Church members get
themselves properly organised.’
Apart from providing loans for
individuals for items such as
home improvements or family
emergencies, PCU also played
its part helping debt-ridden
members. One example was
featured prominently in the
media with the title ‘PC Union
saved me from debt’. This
referred to how the PCU saved a
The PCU was now also able
to move from having manual
bookkeeping systems to data
processing systems. Finally, three
years after its inception, it was
able to move from running the
office in the lounge of Carmel
Jones and his wife – the PCU had
obtained a furnished, basically
equipped office, at the Church
of God in Christ’s building in
Fentiman Road. However, the
space was already becoming
too small, and the PCU was
beginning to explore alternative
options.
In 1984-1985, the PCU
really began to take off with
particularly rapid growth over
these years with membership
increasing by 45% during this
period. Average shares per
member had increased by 60%,
with total shares increasing by
137% to more than £1/3 million.
Total loans had increased by
188%. The loans had been
made for such areas as home
improvements and deposits for
house improvements (40%),
motor vehicles (30%), consumer
goods (20%) and for holidays etc
(10%).
28
ThegrowthofthePCU1983-2005
The PCU grew steadily in
these years. By 1983 the
membership had increased
by 190 to 459 and loans
now totalled £167,000.
There were still no bad
debts. This year also saw
the grant aid coming on
stream from the GLC to
fund a full-time manager,
which the PCU hoped
would continue for the
agreed three-year term
‘if the GLC survived the
Thatcher hatchet.’
The growth of the PCU
1983-2005
29
9
Sunday Times, ‘Britain’s New Middle Class’, 27 October 1985

• ‘Personal loans at a competitive
rate – members can borrow
up to £10,000 depending on
how much they have in their
account. An annual interest
rate of 12% APR is charged.
• Bill paying scheme: members
with a good savings record
can get their household bills
paid, up to a total of £10,000.
Repayments are made on a
weekly or monthly basis.
• Credit card payment scheme:
credit card holders can avoid
paying high interest rates, as
the PCU will pay your monthly
credit card bills. Repayment is
re-paid to the PCU at a much
lower monthly interest rate
than the credit card companies
charge.
• Consolidation of debts: if
members have any outstanding
debts the PCU will pay them
off, including the accumulated
interest. Repayments are made
to the PCU at a monthly or
weekly rate that members can
afford.’
The 21st Century –
breaking through financial
barriers
In 2000 the PCU could report
that it anticipated members’ funds
would exceed £4.5 million and
that the loans granted during the
period 1998-1999 had broken
through the £1 million barrier,
with £1,300,418 being loaned.
The year ending 2003 saw the
growth in members’ funding
reaching just short of £7 million,
an increase of nearly 14%.
This was also the year when
the Financial Services Authority
(FSA) carried out a risk mitigation
inspection of the PCU.
This exercise is carried out to
assess Credit Unions’ suitability
to conduct business. It is
based on a ‘risk management’
assessment that depends on two
factors: the impact on the FSA
statutory objectives if a particular
risk materialised, and the
probability that the particular risk
will materialise.
The FSA’s findings covered
market confidence, public
awareness, consumer protection
and reduction of financial crime.
The review found that the PCU
posed an overall medium-low
risk of threat to the FSA statutory
objectives. This was one of the
best ratings that could have been
hoped for, especially as this
was the first time that such an
assessment had been carried out
on the Credit Union.
The PCU has now been in
existence for twenty-five years.
The twenty-fifth annual general
meeting recorded that the Credit
Union had seen an increase in
its surplus before taxation of
3%, to over £488,000, and a
growth in members’ funds to
over £7,340,000, an increase of
over 5.5%. The PCU’s growth in
relation to a range of indicators is
reflected in the charts highlighted
in the following pages.
The year had also seen a range
of work carried out Under FSA
rules which reflected the PCU’s
Jamaican born man, Lloyd, from
crippling debt.
‘Lloyd, transport driver, aged 53,
had borrowed a large amount of
money from loan sharks several
years earlier. He had difficulties
keeping up with the payments
and astronomical interest rates
and had to hold his payments
for a while.’
This was not well received by
the credit company, which
sent someone to Lloyd’s home
to demand full payment. It
was made clear that if Lloyd
was unable to comply with its
demands it would take
possession of his home.
A frightened Lloyd approached
the PCU, having heard about it
from his wife.
Lloyd recalls:
‘I went to see Carmel Jones, and
he gave me literature about the
PCU. I told him of my intention
to borrow money and the reason
why, and he said PCU would
clear my debts.’
Lloyd subsequently repaid the
PCU on a weekly basis at a rate
he could afford. He was pleased
with the service he had received.
‘If you are a member of the PCU
and you are trustworthy you will
never apply for a loan and be
refused, even if you have to wait
a couple of days for it. They take
you on trust. The service you
receive is more straightforward
than if you went to the banks or
building societies.’
The late 1980s into the 1990s
and the 21st century saw steady
growth maintained. The PCU
started an initiative to raise
money to buy its own premises,
and moved into these at
Oldridge Road in Balham.
As well as loans to individuals,
the PCU also started making
short-term loans to Churches
and the services they provide
to communities. This made a
fundamental and important
difference to many people’s lives
– both directly and indirectly.
PCU was able to fill a gap and
lend money where established
banks were not interested.
Section 7 looks at this area in
further detail.
By 1986 membership had
increased to 1,246 with
members’ shares expected
to exceed £2 million within
months, confirming the PCU’s
position as the largest
community Credit Union in the
country. The PCU had come
a long way from its humble
beginnings in 1980 when it
had started with a few hundred
pounds.
The PCU was still receiving
good media coverage, with
regular features, particularly in
the black and minority ethnic
press. In 1998 in a major feature
in The Voice, the PCU could
summarise the benefits it
offered to members as:
33
F O R WA R D E V E R , B A C K WA R D N E V E R | P E N T E C O S TA L C R E D I T U N I O NF O R WA R D E V E R , B A C K WA R D N E V E R | P E N T E C O S TA L C R E D I T U N I O N
32

Graphical information for the year ended 30 September 2004
MEMBERSHIP GROWTH
1600
1400
1200
1000
800
600
400
200
0
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
25 YEARS OF GROWTH
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
20000000
18000000
16000000
14000000
12000000
1000000
8000000
6000000
4000000
2000000
0
Assets Loans Shares
ADMINISTRATION EXPENSES
ANNUAL GROWTH
600000
500000
400000
300000
200000
100000
8000000
7000000
6000000
5000000
4000000
3000000
2000000
1000000
0
Income
1999 2000 2001 2002 2003 2004
Surplus Assets
Telephone
Travel and meeting
Light and heat
Property rates
Maintenance
General insurance
Bank charges
Auditors’ fees
Legal and
registration fees
Social and
education
Data processing
Postage and
stationery
Sundry expenses
Telephone
Travel and meeting
Light and heat
Property rates
Maintenance
General insurance
Bank charges

During PCU’s early years – the
1980s and into the 1990s –
fledgling Church groups were
trying to establish themselves
in London and reach out to
communities. However, they
were unable to obtain loans from
any sources. We have seen that
Credit Unions have begun to fill
that gap with individuals, and the
PCU began to do the same for
these Church groups. The PCU
was able to lend Church groups
funds and by doing so supported
the activities of these groups,
and so made a real difference to
people’s lives.
One example was the New
Life Assembly Church in East
Dulwich, south London.
Reverend Lovell Bent had begun
to work with a small group to
find a place of worship and
develop a range of services and
support for local communities.
They had been using a local
Methodist Church, and wanted
to purchase it – the Methodist
Church was taking up a
residency elsewhere and put
the Church out for competitive
tender. Lovell Bent, with his
congregation, began work to
purchase it. However, wherever
they went they were refused a
loan. None of the major banks
would consider supporting any
mortgages for such property or
group.
Lovell approached the PCU,
which began to see how it
could help. It was able to
support a loan for most of the
purchase price, with the local
congregation having to find
funds for the remainder. Over
the following months the group
determinedly raised the money
in a variety of ways, such as
direct contributions and local
fundraising events. Finally, with
the support of the PCU, it was
able to purchase its own Church.
The Church, in Uplands Road,
East Dulwich, quickly became
a thriving centre with a large
congregation, which has grown
substantially over recent years.
The Church was able to pay
size and scope, and the fact that
it was now very well established.
A range of steps had been
taken to overhaul policies and
procedures, which included the
following:
• A business plan spanning three
years, which will be updated
every year.
• The money laundering policy,
which deals with potential
issues of people using the
Credit Union to hide or
launder money obtained by
illegal means.
• Activating a business
continuity plan in the event of
a disaster or catastrophe such
as fire or flood.
• Redefining the bad debt and
delinquency policies and
bringing them into line with
current assets.
• Ensuring that the internal audit
function of the supervisory
committee is carried out
according to schedule as
recommended by the FSA.
• Bringing about the
regularisation of the ultra vires
Church loans.
As the AGM report noted, the
PCU was now running even
more efficiently as a result of
implementing points made by
the FSA.
However, due to changes made
as a result of some of these
recommendations, it was noted
that the loan rate had fallen with
the regularising of the Church
loans, and as a result of the
phenomenon of a high savings/
loan ratio, which is unique to the
PCU. The PCU was keen to look
at ways in which the members
could take advantage of all the
money laid aside for investments,
since it was not being used for
loans and, as was commented, to
‘get the money working for us
all instead of for the Chancellor,
the Treasury and the Government:
it is our money – why should
they have the benefit?’. This was
also related to the issue of the
PCU’s capacity to lend money
to Churches and the community
services they provided. This is
an area of great concern to the
PCU, and is dealt with further
in the next section.
36
37
PCUsupportsblackchurchesandcommunityinitiatives
Innovative projects
The PCU’s role and
function as a Credit Union
is primarily concerned with
providing a service relating
to savings and loans for
individuals. However, as
the PCU has grown, it has
also developed another
important area of work,
relating to the support of
Churches and many of
the Pentecostal Church’s
services and community
initiatives. Once PCU had
established itself, it began
to lend funds to Church
groups to buy places of
worship and establish and
support the Pentecostal
movement and all that
went with it.
PCU supports black churches
and community initiatives

Road, the PCU has helped with
the funding to refurbish the
building. It has also helped the
Church to purchase more of its
buildings (offices, community
halls and sheltered housing).
As Bishop Powell, presiding
Bishop for the National Testament
Assembly in England said:
‘We run a big community
programme from this Church.
PCU have been instrumental in
developing our community arm.
This is work in the community,
and it is important that they are
able to make loans directly to us.
Otherwise it is very difficult to
get money from the banks to
fund this sort of work.’
Examples of the type of work
this Church has been involved
in include:
• FIRS: a care in the community
programme and befriending
project aimed at people who
are housebound.
• A mental health service/day
centre for two days a week for
people recovering from mental
illness. This is aimed at building
their confidence and helping
them with benefits and other
problems.
• A luncheon club for older
people held three days a
week at the day centre. Hot
meals are served, and leisure
facilities including arts and
crafts and various other
initiatives are offered.
• In Waltham Forest, east
London, a day centre for
older people and two care
homes providing sheltered
housing for older people.
As Bishop Powell also said:
‘When we have tried to obtain
funds for some of our initiatives,
the criteria that the bank has set
have been very difficult. The PCU
has been a saviour to my Church,
and to many of the Pentecostal
Churches around. It is of great
benefit to the Churches. And
additionally, a good number of
people who are members
of the Church have also joined
the PCU. They borrow money
to purchase properties, and get
them out of distress. I encourage
people to become members
and start to invest in the PCU
and its good work.’
off the entire loan in six years.
Subsequently the PCU helped
it to re-roof the entire building;
again this loan was quickly
paid off.
This was the first Church that
PCU bought, and it effectively
became a model for others. The
congregation has grown from its
initial small numbers, and is now
300 (which means the Church
is always full) and many of the
members of the congregation
have joined the PCU.
What is most important, as with
Pentecostal Churches in
general, is not just the place of
worship being reflected in the
Church, but all the activities that
stem from the Minister and the
congregation. In East Dulwich,
the New Life Assembly Church
is involved in a whole range of
community support initiatives.
It runs a nursery, has an excellent
supplementary school and
carries out a range of work and
initiatives with disadvantaged
local people. This includes,
or example, young black
children who may be excluded
from mainstream education, and
where the Church plays a role
in filling some of the gaps.
There is also a range of outreach
work carried out by the Church and
its supporters, including working
with parents, supporting young
people and working on local
initiatives. As the Minister has said:
‘Being involved in the Church is
not just about “spiritual practice”
on Sundays, but is about all the
activities carried out “outside”
the Church, engaging and
working with the communities to
make a difference to their lives.’
The New Life Assembly Church
has been so successful that it
is now looking for new and
larger premises. This is a strong
example of how the PCU has
made a real difference locally
to people’s lives.
Another example is in respect
of the Reverend Alvin Blake and
his work with the Pentecostal
Church for over forty years.
He and other ministers have
for some time had a close
relationship with the PCU, as it
has supported the work of the
Church and, importantly, has
helped it to acquire buildings.
The Reverend Alvin Blake has
emphasised the importance of
the PCU assisting in this way,
as it could effectively provide
the infrastructure and the bricks
and mortar to enable the Church
to develop its community
development initiative.
For example, working with the
PCU had indirectly enabled
many of Reverend Alvin Blake’s
projects.
‘The fact that we have buildings
that the PCU have assisted us
with, means that it is much easier
to establish and develop our
work under the same roof.’
In Tooting, at the New Testament
Assembly Church at Beechcroft
39
38

‘This decision is an attempt
to sabotage the Pentecostal
movement. We want to be able
to be in complete control of
the plans that we have to bring
to the Pentecostal community.
Financial independence is vital.
As immigrants we are always
bottom of the list, but as a
Church community we should be
able to provide for ourselves and
others.’
Overall, it is argued that the
1979 Credit Union Act needs
to be reviewed urgently
to enable Credit Unions,
particularly community based
and associated ones, to make
loans to other community
enterprises and enable any
capital loans to be secured
against premises. The current
regulations are outdated.
The fact that community
organisations cannot be
members restricts the scope of
the ‘provident and productive
progress’ which is the legal
basis upon which a Credit
Union may make a loan: i.e.
‘provident and productive’
on an individual basis rather
than a community one. It also
restricts any contribution that a
local Credit Union can make to
local community development
and enterprise, which in turn
flies in the face of the current
Government’s community
development, regeneration and
cohesion agenda.
One of the challenges for the
PCU, working with a range
of other organisations, is to
challenge the current situation,
and work to facilitate change.
The PCU, as other community-
based Credit Unions, wants to
make a difference, and impact
locally on communities.
One way that it can do so is by
funding initiatives that are also
financially secure, for example
by having security on property.
This is especially important
for the PCU as, because of
its success in growing the
organisation over recent years,
it has considerable funds to be
made available to facilitate and
support new initiatives. It has
also already developed
an excellent track record in
doing so by supporting Churches
and their initiatives. All of these
have also been paid back
efficiently and to schedule.
Negative impact of
the Financial Services
Authority (FSA)
Such initiatives as described
above have grown and prospered
over recent years, but have
effectively been stopped recently
by the Financial Services
Authority, which now has
responsibility for regulating
Credit Unions such as the PCU.
The FSA’s interpretation of
Section 11 of the 1979 Credit
Union Act has put a central tenet
of PCU’s lending aspirations at
serious risk; namely loans
to build or purchase Church
premises and, indirectly, all
he community development
initiatives that stem from this.
Credit Unions are prohibited
from making loans to any form of
organisation or institution other
than other Credit Unions. This
includes community based or
voluntary organisations. In the
recent past, and under the less
regimented jurisdiction of the
Registrar of Friendly Societies,
PCU had successfully made
loans to Churches via a member
taking out a loan as an individual
acting as a ‘third party facilitator’
for Church trustees. That
facilitator could not claim money
in their name, and could not be
held responsible for any loans
taken out in their name. The
responsibility for the repayment
of the loan lay with the Church
trustees and the purchased
building or site was taken as
security against the loan, in
much the same way
as a mortgage.
The FSA has objected to this
practice on the grounds that it is
ultra vires. A loan to a facilitator
on this basis is not a loan to an
individual, but is effectively a
loan to the Church trustees.
This in itself is not a problem,
as a loan can be re-routed to the
trustees, but security for a loan
must come from the personal
assets of the lender; a Church
building belonging to a group
cannot be levied as security. This
would mean individual trustees
putting up their own houses as
security against the Church loan.
This is clearly unpalatable to
most individuals. So Churches
have been re-financing their
loans to the high street banks,
which will provide mortgages.
Effectively the PCU has been
stopped from carrying out its
innovative and pro-active work
in supporting Churches and
their good work. Strong feelings
have been expressed on the
subject, particularly by some
of the Ministers who have been
involved in developing the
Churches and running a range
of community projects. Bishop
Powell commented that:
‘I can’t see why it should be
illegal for the PCU to take
security against the properties
they fund the purchases against –
the banks do it. It is only going to
force our organisation into more
stressful situations for funding. It
will impact on new organisations
wanting to expand, and impact
on the community programmes
that are run for Churches.
41
40

like the ‘personal touch’ of an
organisation like the PCU; they
know other members, and their
involvement in the PCU is
helping to help others.
The unique bond between
members, often via the
Pentecostal Church, has been
an important factor in the PCU’s
success. On a practical level it
has also meant that there has
been less chance of bad debt.
People feel a common duty
not to let themselves or the
Union down, and of course
there is always the factor of
embarrassment: peer pressure
can remind people of their
responsibilities.
Strong leadership and vision
have also lain behind its success.
This has been not only via
Carmel Jones, but also from all
those colleagues and individuals
who have spent countless hours
working on a voluntary basis to
support and build the Union,
often in the evening after a hard
day’s work. These people are too
numerous to name here, but they
and others know who they are.
Without them the PCU would
not exist.
The PCU has also had to operate
in the changing climate of the
UK, through recession, and
times of growth. It has had to
deal with changing regulatory
requirements and legislation,
which is now embodied in the
work of the FSA.
It is a different world now from
when PCU started back in 1979.
Efficiency, value for money,
proper regulation, accountability,
effective systems and a
performance culture are now
virtual pre-requisites for
an organisation such as PCU
to exist. Without effective
systems, a Credit Union such as
the PCU will simply not survive.
The changing nature of the
movement, and the need for
Credit Unions to change, if they
have not done so already, is
reflected in recent work carried
out for and by ABCUL.10
Here,
research by a range of Credit
Unions has led to a number of
important recommendations.
Whilst preserving the Credit
Union values and principles of
democracy, self-help, service
and social goals, including
education of members, Credit
Unions urged the prioritisation
of business expertise in
developing commercial
products and services.
Hence governance, management
operations, product development
and service delivery are
emphasised as a means of
building public confidence
and broadening the appeal of
Credit Unions. A range of
recommendations is made
about maintaining effective
governance, leading to change
and strategic planning. There are
also recommendations relating
to financial management and
discipline, as well as those made
to external bodies such as central
government, sponsors and
funding bodies, local authorities
What has especially driven
the PCU has been its vision,
as manifested in the approach
taken by Reverend Jones and
his colleagues, brethren and
friends. He saw the way that
an organisation like the PCU
can make a real difference in
people’s lives:
‘We can play a lead role in
shaping our destiny – working
together to pool knowledge
and resources – and working
in a co-operative manner to
build a better future for our
young people – we have in
our communities an untapped
wealth that needs to be
developed and unleashed.’
The approach reflects the ethos
of Credit Unions, which is about
self-help, mutual trust, friendship
and taking practical action to
better people’s lives and improve
their chances. What is special
about the PCU is the marrying
of the financial appeal of the
Credit Union movement with
the religious drive and beliefs
of the Pentecostal Church. One
Pentecostal Minister commented:
‘I have to congratulate Reverend
Jones and his staff for his vision
of the PCU. What I would like
to see for the future is for it to
continue and develop, to provide
a service to the community…
to be a strong financial voice for
the Pentecostal movement in the
country… to be there when we
need help.’
The PCU has helped numerous
people via its membership and
financial services and loans. As
well as its day-to-day lending
services there are numerous
stories about how the PCU
has helped members in an
emergency situation. These
have ranged from dealing with
debts accrued in unfavourable
circumstances and helping
with flights and support when
someone needs urgently to visit
their family in Trinidad, to
helping someone financially
when ‘a bank is about to seize
my property’. Members also
43
ThePCU:lookingforward
42
The previous sections
have provided a snapshot
of the work of the PCU
– of the revelation that
Carmel Jones had in 1979
that led to its foundation
and remarkable growth
over the last twenty-five
years. During that time it
has had to face challenges
that many small voluntary
organisations have to face,
including credit unions.
It has been knocked back
at times, but has continued,
seemingly relentlessly.
The PCU: looking forward
10
Creating Wealth in the West Midlands through Sustainable Credit Unions: The Case for Re-structuring. B Jones, Liverpool John Moores University (ABCUL)

The PCU would like to thanks all its members, part and present for
their continued support. There are too many to mention but particular
thanks go to:
The current management committee, staff and advisors for their support and
assistance in this research:
Bishop Lloyd Thomas – Chairman
Rev C E Jones
Miss D Hill
Miss Y Harris
Mr D Hobbs
Mrs S Edwards
Mr C Thompson
Mr L Barrett
Mr A Green
Mr I Akpabio
Miss B Tomlin
Miss M Tapper
Staff and advisors:
Mrs I Jones
Mr S Bowes
Mr L Laniyan – Advisor to the Board
Mr P Clark – Auditor
Mrs D Abeywardene – Solicitor
Appreciation to:
Bishop Malachi Ramsay
Bishop M L Powell
Reverend L Bent
Mr Peter Bussy
Mrs N Ashman
The late Bishop RC Bell
The late Bishop Michael Ramsay
The late Mrs V Gardener
The late Miss S McCogg
and regional development
agencies.
However, the PCU has taken on
many of these new challenges,
and has already, for example,
carried out a detailed review
of its operations, as well as
its policies and procedures
to ensure that they reflect
regulatory requirements and best
practice. The PCU is actively
looking at its work and its role
and how the organisation can
move ahead.
The PCU is one of the most
financially strong and sound
Credit Unions in the country and
in a sense has everything to play
for. As with other Credit Unions,
it will undoubtedly extend the
type of service it provides to
members and may in the future
also explore expanding its base
outside London.
However, a major challenge,
starting in 2005, is that referred
to in the previous section – how
can it utilise its resources to
lend money to the causes and
developments it believes in? As
we have seen, the PCU is now
arguing strongly that the FSA
should change its approach
so that it can continue to lend
money to Churches and their
related activities. The success of
the approach taken by the PCU
is visible, but the FSA’s regulatory
regime now effectively prevents it
from carrying on with such work.
Effectively, the PCU is prevented
from initiating social economic
development for broader strategic
initiatives, which can be seen
as detrimental not only to the
development of the PCU but for
many other Credit Unions. The
approach taken also contrasts
with that taken in other countries,
where Credit Unions are allowed
to play an important role in the
economic development and
regeneration at community and
local levels.
In the coming months, PCU
will be looking to make these
arguments and provide the
necessary information and
evidence, not only by itself,
but also in conjunction with
organisations such as ABCUL
and other organisations and
stakeholders.
As has been argued strongly by
Bishop Powell, the Presiding
Bishop for the New Testament
Assemblies in England:
‘If we are not allowed to
continue to make loans to
Churches, then we will go
back to the bad old days of
illegal pardners. PCU has
rescued us from such pardners.
I would strongly appeal to the
Government and others to
re-think how they clamp down
on this situation that in the past
has been given such a great
advantage to the Pentecostal
community. We now need
to make the case to a variety of
audiences, including the
Government and MPs, and
impress upon them the benefit
that the work of an agency such
as the PCU has been to the black
community in Britain.’
45
44
11
A savings scheme used by early Caribbean migrants, whereby a group of people would pay weekly instalments to a central ‘banker’, who would then
distribute the cash each week to one person in turn
Thanksandappreciation

The beautiful prayer of St Francis of Assisi conveys the spirit of helping
one another. It was adopted as the official invocation of the worldwide
Credit Union movement. The PCU refers to this in many of its reports:
PRAYER OF ST FRANCIS OF ASSISI
Lord, make me an instrument of thy peace.
Where there is hatred, let me sow love;
Where there is injury, pardon;
Where there is doubt, faith;
Where there is despair, hope;
Where there is darkness, light;
Where there is sadness, joy.
Oh divine Master,
Grant that I may not so much seek
To be consoled as to console:
To be understood as to understand:
To be loved as to love:
For it is in giving that we receive,
It is in pardoning that we are pardoned,
And it is in dying that we are born
To eternal life.
Reverend and Mrs Jones, 1990 Ivyline Jones

New Life Assembly Church: Dulwich, London

PCU 25th Anniversary 2005

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