A major advance in facilities is launched today for users of the new North Yorkshire Credit Union - the organisation set up earlier this year to help families beat the credit crunch and avoid loan sharks. The North Yorkshire Credit Union Pay Point card, which will allow Credit Union members to invest and make payments through hundreds of Pay Point machines across the country, and at Post Offices, was unveiled yesterday at the quarterly meeting of North Yorkshire County Council.

The card is being launched today (October 15) to mark World Credit Union Day. Internationally, more than 185 million people belong to credit unions. Sponsorship by the Co-operative Society means the card is free to members of the Credit Union, and the transaction fee is reduced from 45p to 20p.

In the five months since its launch, the North Yorkshire Credit Union has built up a membership of some 2,000 people who live or work in North Yorkshire or the city of York. Membership costs just £1, with an initial investment of £1 in a savings account.

The Credit Union was set up with financial support from the county council, the seven district councils, and four local housing associations. In addition, the county council made available a start-up loan of £200,000 to enable the organisation to make loans to its members from day one.

"The Credit Union provides a vital service to the people of North Yorkshire", said County Councillor Heather Garnett, the Executive Member with responsibility for the project. "It gives people – even those who have found difficulty in opening a bank account in the past – an alternative to high street banks, and enables them to borrow at reasonable rates of interest rather than having to deal with loan sharks."

Nick Marshall, the Credit Union project manager, said: "The Pay Point card is a significant step forward, and it is very appropriate that we are launching it on World Credit Union Day. It will allow our members to make payments at a wide choice of locations across the county, and indeed across the country, rather than at the relatively limited number of places which have been available until now.

"In the longer term, we are also looking into the possibility of providing a 'hole-in-the-wall' style card which will enable our customers to withdraw cash from ATMs." He added: "The Credit Union is a 100% safe and secure place to save your money. We are regulated by the Financial Services Authority and your savings are protected by the Financial Services compensation scheme in the same way as banks and building societies."