A CREDIT union has been registered to operate an office in Shildon, following more than two years preparation.

The opening of the South West Durham Credit Union will be performed by European Member of Parliament Stephen Hughes on Friday, September 6, at 12.30pm.

There will also be the presentation of a cheque for £50,236 from the Northern Rock Foundation.

The credit union has been authorised by the Financial Services Authority to cover the whole of Sedgefield borough and the Wear Valley district.

The group plans to expand from its headquarters in Church Street and hopes to operate up to 25 collection points in the area over the next few years.

A spokesman said: "Credit unions offer both a new start for the financially excluded by encouraging an ethos of savings and by offering low cost loans covered by free insurance. They offer a full range of financial services in many areas where banks have now ceased to operate."

As well as savings and loans the credit union offers training to volunteers for both its operation and management.

The expansion will be on a partnership basis with community groups who will manage their collection points, making it one of the largest of its kind in the country.