It was formed to address the economic hardship among low paid manual workers and the local Caribbean community.

Like other British credit unions at the time, it was a small savings and loans co-operative which offered its members a limited range of financial products and services.

[2] From 1991 onwards, Southwark Council Employees Credit Union implemented a range of reforms, including the introduction of improved IT systems and staff development.

[3] In 2012, LMCU absorbed the Pimlico Credit Union (established 1980), enlarging its south London base to the City of Westminster.

Under the scheme, borrowers could take out a payday loan or spread out repayment over a longer period.

However, in a survey, 66% of applicants said their main reason for taking out a loan with London Mutual was the low cost of borrowing compared to other payday lenders.

Only 10% said that the option to repay over a longer period of time was their main reason for choosing the credit union.