TAVISTOCK and District Credit Union took a step closer to trading yesterday (Wednesday) when its steering group signed a statutory declaration in the presence of the town mayor.

The hope is that soon the Union will be able to fill gaps left in rural parishes caused by closure of high street bank sub branches.

Signing the declaration is the first of two legal steps to be made before operating as a savings and loan co-operative. The second is when the Credit Union is registered as a company.

Sandy Brookes, chairman of the steering group, said: 'Signing the statutory declaration is similar to the old practice of driving a stake in the ground to claim an area — and in the Credit Union's case, the area is approximately a ten-mile radius of Tavistock.'

The steering group, which is setting up the Union, are all volunteers and Mrs Brookes said they were 'jubilant' they have reached this stage so quickly.

'It makes the creation of the credit union that much more of a reality now that the area of membership is to be defined and legally declared,' she said.

The steering group's aim is to register the Union as a company by October — if all goes well the organisation could be up and running by the end of the year.

Last week the Times reported on the closure of four branches of Lloyds TSB in West Devon.

Ron Clemishaw, steering group secretary, said the Credit Union could not replace banks entirely but would help provide financial facilities in rural areas.

He said the group is still working out how to serve outlying districts, whether by providing a mobile collecting point, a dedicated site or by telephone or internet banking.

'Certainly the idea is to make sure that outlying villages have some kind of bank,' Mr Clemishaw said.

'It will help rural areas by having a collecting point for people to pay in their small savings and to be able to have small loans.

'With the bank if you have a small loan it usually costs the earth — with a credit union it can't cost more than 12 per cent,' he said.

At the moment Tavistock and District Credit Union steering group has about 50 members.

Once it is trading, members save — as little as £1 a week — creating a pool of money accessible only to those members.

Once a member has proved they can save regularly, they are able to borrow up to twice the amount for just one per cent interest per month.

'Obviously the more members you have, the more likely you can make a profit so people can get something back for their savings,' said Mr Clemishaw.

Credit unions are examined by internal and external auditors and offer free life assurance to its members.

They are run voluntarily by members who train to become officers.

Anyone living within a ten mile radius of Tavistock will be able to join the union, whatever their income.

'The numbers are gradually building up,' said Mr Clements.

'Anyone who would like more information about Tavistock and District Credit Union should contact the group at 19, Whitchurch Road, Tavistock, Devon PL19 9BB or telephone 01822 617683.