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WHAT IS A CREDIT UNION?
A credit union is a financial co-operative, which is owned and
controlled by its members. Members of a credit union save in
a common fund. As well as being a good savings option, with
successful credit unions paying an annual dividend of up to
8%, the money saved can be used to make low interest loans
to other credit union members. Only people who come within
the common bond of the credit union can join it and make use
of its services. The credit union is directed and controlled
by a volunteer Board of Directors.
All
officers of the credit union are members of the credit union,
who are elected by the membership at the Annual
General Meeting.
All members of the credit union have one vote, regardless
of how many shares they own. Credit unions are not a
local or a
new phenomenon. Credit unions are active in over 80 countries,
and over 100 million people internationally are members.
The government and many other organisations see credit
unions as
a valuable tool in their mission to tackle financial exclusion.
People
who are concerned about the closure of bank branches and the demutualisation
of building societies are also advocating
the development of credit unions. The Scottish Executive
supports the provision of sustainable and accessible
credit unions for
the people of Scotland. Credit unions make sense for many
reasons and they are tipped to be the next big thing
in financial services. |